Federal_Procurement_Process

Federal procurement is the process used by the government to procure or lease goods and services. Procedures may be different between countries, however the goals for procurement policies are similar. These are to improve competition by presenting fair access to prospective bidders, increasing the value received through the disbursement of public funds, and promoting the reliable use of resources. In the United States, the Office of Federal Procurement Policy, a subdivision of the Office of Management and Budget established in 1974, determine federal procurement policies by its legislative action and recommendations. Those are then published in the Federal Acquisition Regulation (FAR). The FAR is issued jointly by the Department of Defense (DoD), the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA). It applies not only to direct purchases made by the government, but also to purchases made by federal grant recipients. In other countries such as India, different procurement rules apply at the federal level, in the states and territories, to the central public sector units, and to public sector enterprises. Procurement is regulated through executive directives at the federal level. The Rules were revised in 2005 to afford greater flexibility while ensuring accountability in government transactions. Instructions were issued by the Central Vigilance Commission (CVC) to supplement these regulations. At the federal level, procurement is administered by the individual government agencies. India has not established an authority that is exclusively responsible for defining procurement policies and for overseeing compliance with the established procedures. In Australia, the Finance Minister issues Commonwealth Procurement Guidelines (CPG's). It outlines Australian federal procurement requirements. It has developed lists of approved suppliers for the purchase of a wide variety of goods, called common use arrangements (CUA), which range from stationary and supplies to temporary labor. In Canada, the Public Works Government Services Canada (PWGSC) is the governmental body primarily responsible for federal procurement. A law has been passed in 2005 which created a list of preapproved suppliers. These are to be used for standing orders, which covers the procurement of several of the most commonly purchased assets including automobiles, fuel, office supplies and professional services. If the purchase surpass monetary values set for different categories, the PWGSC opens the procurement up to the bidding process. It advertises it on the Government Electronic Tendering Service. Federal procurement generally requires competitive bidding on contracts which exceed a certain monetary threshold. A request for proposal (RFP) is issued with specific guidelines. After which, the bids are submitted for review. The contract is usually given to the bidder, which can meet all of the essential specifications at the lowest price. Exemptions can occur in cases where only one source of supply exists, or when one supplier has proven to be far superior in performance to the others. Getting into the federal procurement system is hard. There are many who try. However, only the few who will persevere will be accepted. The settlement of being on the inside of federal procurement are continuous. One is that once you make it inside the system, you are inside for a long time. The government changes slowly and that includes vendors. Another reason is that the federal government’s checks do not bounce. And the biggest reason to grind it out for government procurement is that the government does nothing small. However, there is a need to understand how the government work as a profession has been sought after as a secure position where on does not get laid off, but does get an awesome retirement, and federal holidays. The downside is there is not much upward mobility, the environment does not like initiative or creativity, and the pay is typically lower than industry norms. Civil service workers want it simple, uniform, and with no pressure. Further, most people define themselves by what they do. Consider also that most government positions are careers. That means the people will define themselves by the job and will want to do a good job. As there is tiny incentive for a civil service worker to perform a job well, and little incentive not to perform well, the desire to do something well is only the motivation employees will have to do a job well. This is the reason the minority certification is so powerful for government contracts. Purchasing departments already have a number of minority purchasing requirements. This mindset also demonstrates why incumbent vendors are hard to strike. An incumbent has the inside track even if a contract is open and competitive because the contracting officer would probably do what they can to make every nuance in their favor. After an awarded contract, there is still plenty of work for them to do, with reporting, contacts, invoicing, etc. That is why often you will see solicitations leaning heavily toward incumbents. Likewise, that is the reason why contracts are renewed as long as possible rather than be put up for competition again. Persons entering into commercial contracts are free to do anything that they can agree on. Each represents each own’s interests and can obligate themselves in any way they believe will benefit them. If one or both persons are represented by agents, usually employees, commercial contracting law allows the agent to form contracts based on generally accepted notions of commercial reasonableness. the law allows each side to rely on the other's authority to make a binding contract. There are many nuances and cases covering this, but generally speaking the law favors the creation of commercial contracts in order to facilitate business. Reference: * Definition of Procurement. (n.d.). In Hubpages. Retrived July 15, 2011, from http://hubpages.com/hub/Definition-Of-Procurement * Government Procurement in the United Staes. (n.d.). In Wikipedia. Retrieved July 15, 2011, fromhttp://en.wikipedia.org/wiki/Government_procurement_in_the_United_States * What is Federal Procurement. (n.d.). In Wisegeek. Retrieved July, 15, 2011, from http://www.wisegeek.com/what-is-federal-procurement.htm