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Federal Contracts Sealed Bidding

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I n order to truly become successful in the government contract arena a small business would want to be educated on the ins and outs of government contract bidding. The federal government encourages small businesses to participate in government contracts. Each year, the head of each federal agency may set aside the award of certain acquisitions exclusively to small business concerns. Those set- asides may either be whole or partial. Total or partial set asides may be conducted by using either sealed bids to competitive proposals. (Hearn, 2011) The president also establishes annual government-wide subcontracting goals that help the agencies formulate their own specific goals. A determination to make a set aside may be a unilateral decision by the contracting officer. Once the product or service had been acquired successfully by a contracting officer on the basis of a small business set aside, future requirements for that particular product or service will normally be acquired by that contract officer on the basis of repetitive set aside. The set asides are also for assuring that a fair proportion of Government contracts is placed with small business concerns. Government-wide goals are 23 percent for small businesses, three percent for service-disabled veteran-owned businesses, five percent for small disadvantaged businesses and five percent for women-owned businesses. (Hearn, 2011) In order to achieve those goals, FAR 19.702 requires prime contractors that are “other than small” to submit detailed small business subcontracting plans when competing for contracts exceeding $1.5 million for the construction of public facilities, and $650,000 for other contracts.( http://www.corporatecomplianceinsights.com/) Total set asides for small business participation, for acquisitions over $ 100, 000, are made when there is a reasonable expectation that offers will be received from at least two responsible small business concerns offering the products of other small business concerns. The subcontracting plan must describe how much subcontracting will be awarded to each of the specified small business categories. (Hearn, 2011)Solicitations typically identify the specific goal of the agency for a particular project. If the solicitation is silent, the prime and its subcontractors must determine the agency’s current goals, which may be listed online. The purpose of the HUBZone Program is to provide federal contracting assistants to qualified small businesses located in historically underutilized business zones. Agencies that participate must set aside acquisitions exceeding the simplified acquisition threshold for competition restricted by the HUBZone small business when there is a reasonable expectation that; (i) offers will be received from two or more HUBZone small businesses , and (ii) award will be made at a fair market price. (Hearn, 2011)
Under FAR part 19.704, a “flow-down provision,” large subcontractors must also formulate subcontracting plans if they receive a subcontract in excess of the monetary threshold. The higher-tiered contractor is responsible for obtaining, approving and monitoring the subcontracting plans of lower-tiered contractors. Contractors interested in pursuing federal work must understand federal subcontracting plan requirements. This includes knowing what information and actions do – and do not – count toward meeting subcontracting goals, as well as the consequences for failing to make a good faith effort to achieve them. Only then will contractors be able to avoid unnecessary risk. Small business concerns (SBCs), HUBZone businesses, women-owned businesses, small disadvantaged businesses (SDBs), veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSBs) count toward achieving subcontracting goals. In addition, Alaska Native Corporations (ANCs) and Indian tribes satisfy subcontracting goals and, unlike other SBCs, they do not need to qualify as small to count toward subcontracting goals. A common issue is how far down a contractor may go in order to satisfy its subcontracting goals. The FAR limits contractors to counting only next tier subcontractors toward achieving goals. )http://www.corporatecomplianceinsights.com/)
In 1988, the General Services Administration established a commercial card program called SmartPay. The program was designed to simplify micro purchase payments. (Hearn, 2011)The SmartPay program saves the government money by reducing paperwork and administrative costs associated with official Government purchases. By avoiding paper-based procurement; it streamlines how front-line managers can access products and services; and the card providers (banks) rebate the government a percentage on the amount purchased. It has improved management controls so well that it is now a dominant method of payment within Federal Government and is used regularly for small and medium sized purchases.( Hearn, 2011) Transaction reporting and decision-making activities making the procurement easier for the federal cardholder and the vendor. This electronic purchase program has been very effective, a true win-win scenario.

Jones , R (March 27, 2012). Federal Small Business Subcontracting Plans. Retrieved January 26, 2013 from http://www.corporatecomplianceinsights.com/federal-small-business-subcontracting-plans

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