Posts Tagged ‘government contracts’

How Government Contracts Happen

Sunday, February 14th, 2010

There will come a time in our lives that we will be involved in a procurement process of some kind. The procurement process does not actually happen in one single step, but a process that deals with one party getting their hands on a particular services or goods. This process may involve private individuals or business. Whether dealing with individuals or business proprietors, the important thing is that all the needs of both parties are met.

The same goes for the act of government procurement, which is the trade by an individual or a private company of their goods and services to the federal, local or state government.

These goods or services that the government bought will then be used to accomplish public government projects or even to give in the form of a public service. If it is the former, then there is a need to secure good construction contracts.

So what is a construction contracts and how do they work in terms of government procurement? Basically, they are agreements that bind two parties together legally, in this case the parties being you and the government agency. The agreement deals with all the details and the cost of a construction project, be it merely simple renovations or the more intricate projects.

Government procurement involves a series of steps prior to becoming construction contracts. Step one in the process deals with the government agencies identifying the things that they need. These are usually the materials, products or services that are needed. The agency also lists all the components that each item has to have, as well as making estimates on how much the project or material will inevitably cost. Once all that has been hashed out, the agency will be able to fully realize what they need and they can go to the next step.

This involves assessing all the possible goods and service suppliers. This is where their agents canvas around to find who meets most of their requirements. This is where negotiations, bids and accepting proposals occur. If you are the lucky one chosen, then both parties will go ahead with the next step.

The next phase on the government procurement process is confirming the agreement and the trade of goods will come to pass. This is also when the payment is made. This is when the construction contracts are written out, signed, and legalized.

Whether the payment is done in full or in installments, the contract stipulates that the government still has the right to back out of the deal and look for other options. As the supplier, you need to make sure that what you are providing is of good quality and that your services are up to par. That way, there will be no need for the deal not to push through.

The process of submitting an application for a request for proposal is difficult when not understood,and trust that it’s hard to understand.. Leon Beckstone works with businesses to prepare a well written “RFP” for the bidding process. He has some writing experience with construction contracts, government procurement and other similar topics as well.

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An RFP Can Save You Time And Cash

Friday, January 22nd, 2010

Whenever a project starts, it’s so easy to get swamped by the proposals that come flooding in. And none of them ever seem to be presented in a way that is easy to understand. None of them seem to have all the details you need, and it’s always hard to choose who should receive the contract.

Don’t pull your hair out yet. By using a RFP, you can avoid this confusion and get your project back on track. You will want your request for proposal to be clear and concise and include information on exactly what it is that you want from your prospective contractors.

An RFP should be detailed enough to ensure that most bids are fairly uniform. That means all the information you want will be organized in a way that will be easy to access. To make sure this happens you should includes some information about your own company, and include you contact information and your preferred method to receive bids. This is a great way to weed out contractors who can’t follow instructions. If you ask for a fax and they only send an email, you will know you can cut them loose.

You should also request some of the basic information about your prospective companies as well, including things like their work history, their areas of specialization, and any references they can provide. You should always be ready to check those references, too, because that is a source of good, objective information.

Once you’ve got the basic information, it’s time to get to the core of the proposal. You need to be as clear as possible when you are describing the job and what is expected of the contractor. For example, if you are hiring someone for a concrete job, you need to outline what the job will include. Flat work only? Will there be a stoop and some stairs? These details are extremely important if you’re going to get an accurate proposal. If you’re not careful, the contractor could have a completely different idea about what is expected, and you may come to this realization too late in the process. And that can cost you a lot of time and money.

It’s helpful for both you and your project partners to actually break down each piece of the project for an RFP. You will also want to have the bids state what the projected timeline will be for completion. Taking more time than expected costs you money, so you need to budget a timeline into the project.

An RFP should also have each company include a contingency budget. This can tell you a lot about them. If they project an overly large budget, they are either incompetent or are being dishonest. If they claim they need no contingency, they may just be overconfident. You should expect a reasonable margin of error.

Take the time to create an organized request for proposal and you’ll be more likely to receive the bids that contain the information you need. An RFP will save you time and money, since you will be able to quickly and easily compare potential contractors side by side before you make your final decision.

When submitting government contracts it is vital to have a well written request for proposal. Evelyn has some writing experience with construction contracts, government procurement and other similar topics. For more information, see her other articles.

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Start To Procure Government Contracts

Sunday, December 20th, 2009

While a business will probably not get rich with government contracts, they do provide a very steady income with guaranteed payments and a fairly steady source of work. In order to succeed at bidding and winning government contracts, one must have at least a basic understanding of how they work.

The first thing a company should do is start of small. There are a lot of little towns or municipalities that offer work, and it is easier to get involved with these jobs than it is the larger state or federal jobs. These contracts will probably pay less than twenty five thousand dollars, but these kinds of contracts are crucial to building a reputation as a reliable and capable contractor.

CPOs (Contracting Procurement Officers) and PAs (Purchasing Agents) take the responsibility of defining the parameters of the RFP (Request for Proposal) that will be put out for bids. These specialists become very well acquainted with the market value of the goods and services that are up for bid and are quite capable of ensuring that the government contracts eventually awarded deliver quality at a fair market cost.

The CPOs and PAs are also responsible for studying and examining any warranties that are offered and researching the service history and reputation of the bidders. This is a precaution that will save the agency a lot of time and headaches down the road.

Right now, only about 20 percent of the businesses in the U.S. participate in bidding for government contracts. This is a startling statistic since there really is a lot of potential for work and income from these contracts. The reason many companies don’t attempt to gain government contracts is simply because they are too nervous about the rather large amounts of paperwork and red tape that surround government work.

In addition, many businesses are unaware of how the acquisition process starts, how bids can be tracked and how a business can get involved. The answers to all of these questions at the federal level can be found on the Web site of the Government Services Administration (GSA).

The GSA office also maintains a website that will provide a lot of prospective bidders with the education and assistance they need to make the most of their bidding efforts. These courses provide a continuing education credits, and there will even be a certification of completion after the classes are done.

Once the company has build up a solid reputation in the local scene, it will be much easier to get more lucrative federal government contracts down the road. If the company meets its deadlines and provides quality work, they will continue to receive more contracts.

While applying for government contracts it is essential to have a well written RFP. Evelyn has some writing experience with construction contracts, government bids and other similar topics. For more information, see her other publications.

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Small Businesses and Government Contracts

Saturday, November 21st, 2009

The United States government is one of the largest purchasers of goods and services in the world. Therefore, it can be very beneficial to get the government as one of your customers, especially if you can get government contracts for recurring purchases.

There is a process that any company interested in working with the government will have to go through. On the bright side, the government has certain regulations that ensure that a certain percentage of the contracts they award go straight to small businesses.

In order to become qualified to bid on government contracts, small businesses will need to classify their company by the size and type of business they are running according to the North American Industry Classification System (NAICS) and the SBA size standard.

The government agencies that are offering the contract will need this information. And, since some of the contracts that they award are specified for certain types of business, you should also specify whether or not your company qualifies as a woman-owned business, a veteran-owned business, a HUBZone business, or a service-disabled business.

The next step to procure government contracts is to register with the Central Contractor Registration (CCR) database. Most government agencies use this service to learn about their potential providers. In order to register, though, a company will need to have a number of things in order, including: an NAICS code, the SBA size standard of the company, Standard Industrial Classification codes, a Federal Tax Identification Number, and a DUNS number.

After you are registered in the CCR database, government agencies may contact you to see whether or not you wish to bid on government contracts. However, if you really want to get government business, you need to pursue opportunities on your own as well.

There are a number of different resources that you can use in order to do this. For example, there is a FedBizOpps.gov website where all opportunities for projects over $25,000 are listed. You can check that site to see if there are any projects you can bid on. Federal agencies also list smaller opportunities on their Bid Boards or on their websites, so it is important to check these locations as well because many of these smaller opportunities are reserved for small businesses.

Another good way to find out about bidding opportunities is to become a GSA Schedule Contractor since some types of products and services are almost always purchased through the GSA. When you can cover all these bases, you’ll be more likely to keep the revenue flowing.

The process of adding an application for a request for proposal (RFP) is difficult when not understood clearly. Once understood it is critical to provide well written government contracts. Evelyn has had enough writing practice with construction contracts, government procurement and other similar topics that she understands the process. For additional information, see her other resources.

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What Can Procurement Services Do For Me?

Thursday, October 15th, 2009

What exactly do we mean when we talk about procurement? In the most basic terms, procurement is the process of purchasing goods and services at a very cost effective price. Other words you could use include: gain, acquire, or purchase. Using a procurement service, then, is like hiring someone to make purchases for you.

Procurement isn?t just about making purchases though. It is also a process that should always check for the quality and quantity of the product or service. A procurement service or department should make sure that you only buy what you need and that it is in good shape. Usually the department will have a list of suppliers that they regularly use, and can use this relationship to get good deals and products they trust.

Procurement processes differ from company to company because they all have different needs, and methodologies between government agencies and private companies have different regulations. Procurement is still beneficial to both when they are purchasing items in bulk and on a regular basis.

The actual merchandise that the company deals with can also change the procurement services. A good example would be health care supplies. If you are working in that industry you are going to be far more meticulous about the quality of the products than if you are only dealing with basic, everyday items.

Of course, in the technical sense, procurement happens on the individual level too. Whenever you purchase something, whether online or in person, you?re acting as your very own procurement department. Hopefully you?ve taken the time to find the most affordable item or service and are working with providers you trust.

For many companies, it is both expensive and difficult to try and know what you’re spending and what you’re purchasing in every aspect of day to day business. This is where procurement services will be able to help ease the burden and provide companies with an accurate analysis of what they’re spending so that they can negotiate better deals with suppliers.

How you use the procurements department, though, is completely up to you. Some companies outsource the whole thing, while others want to take care of it in-house because of the specific products they need to acquire. Every business is unique, and these processes have to match their individual needs.

Take the time to do the research before you choose a procurement service. There are different companies out there to choose from, and you want to find the one that will do the most for your company. Be sure to check out their history and find out if they have a reputation in the industry. Make sure they understand what you really need.

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How The Government Procurement Process Works For You

Wednesday, October 14th, 2009

Ultimately, the goal of the General Agreement on Tariffs and Trade Procurement Code is to encourage confidence in international government procurement and to maintain healthy competition between contractors and companies. The code also makes sure that all procurement procedures are done in a fair, impartial, and transparent method.

There are a lot of governments that follow the GATT Procurement Code, and they all accept the rules outlined in the agreement. About a decade ago, however, the United States negotiated some tighter regulations on those rules. The US was also able to get Procurement Code coverage on construction contracts and other goods and services that opened up new government procurement export opportunities.

With this code in place, the basic steps of procurement can be implemented in a secure and confident manner, allowing multiple opportunities for US businesses to tap into the international market that consists of billions of dollars. The first step includes the realization that there is a need.

Once you?ve established a need, there will be a process of searching through various services, products, and contractors. Because of the government procurement code a company can look to the international market and find the best prices. This means US based companies have the opportunity to compete internationally and secure new jobs.

Due to government procurement, consumers from all over the world are able to evaluate vendors, companies or contractors on an international basis. In this way, consumer will be able to compare a multitude of companies or vendors until they find the few that can offer the specific needs they are searching for and then make further choices based on cost and efficiency.

Then, once the consumer has settled on the right company, whether it is a domestic or international one, they will make the arrangements for fulfillment. This step in the government procurement process involves exchanging payments and confirming that there was a satisfactory delivery of goods or services.

If, however, some of those goods or services don?t live up to the expectations of the consumer, there are they can turn for compensation. They can either continue to work with the company until the goals or met, or return the product and demand a refund or reimbursement.

The government procurement code has made the contracts between the United States and overseas business very valuable, and that value will continue to increase. When it?s done right, the whole process can build economic security in the United States and with other governments.

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How to Seal the Deal on Government Bids

Monday, October 12th, 2009

Many businesses welcome the opportunity to compete for government bids, and ultimately secure a lucrative contract. However, not all takes the time that is required in order to avoid making costly mistakes with these bids and proposals.

A general rule of thumb is to give the government what it is asking for, not what you think it needs. Failing to exercise professionalism and sophistication can also lead to disappointing results. There are things that every business must avoid when making a submission to the federal government for its business.

In an effort to reduce the federal government’s carbon footprint, a presidential executive order directs purchasing agencies to identify and give preference to government bids for buying products and services that pose fewer threats to the environment. There are several guiding principles which need to be considered to assess the environmental performance of products marketed to the federal purchasing agencies.

Another positive reason to participate in and win government bids is that this will strengthen an organization’s client portfolio. Having a government agency listed among your top clients will make your organization even more attractive to other clients who might be considering your company’s services or products.

Multiple Attributes The product or service should have multiple environmental attributes.

If your business is minority owned or a small business, there are many government bids designed to target and award these contracts. This is true for both federal and state governments, which require that at least 25 percent of government contract be awarded to either minority owned or small businesses. Taking advantage of these opportunities will give your bottom line a big boost.

Magnitude of Impact Not only must companies know the impact its product and service has within the United States, but it must also consider the global impact to the environment when used.

Applying for government bids requires patience. The contract process can be a long and arduous procedure, and your company must be willing to play by the rules and properly follow the procedures.

Not only is the process slow, but the sales cycle is slower than the capital markets and requires dedicated time and effort. However, once you have secured the contract, your business will appreciate the fruits of the labor.

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Handling Procurements Through Requests For Proposals

Sunday, October 11th, 2009

Whenever a division within my company starts looking for a third party to deal with a large part of their business, they turn to the procurements department to take care of the point of contact and to start the proposal process. There are also a lot of different companies that can handle this process for them, depending on their needs.

The procurements department has the responsibility to review all the companies in contention and make the best recommendation they can. If a company can pass this initial screening test they will be asked to submit a formal proposal. Previously, we never specified what kind of format was used, we just wanted them to answer certain questions and show they were capable.

However, I just informed my procurement department that I was looking for a new, third party vendor to handle our inbound data. They asked me which format I wanted potential companies to submit their responses in. I had a choice between an EOI, RFP or RFT.

Expressions of Interest (EOI) ” an EOI is ideal for a company requesting help with a certain problem without knowing exactly how to solve the situation. Basically, you have a problem that needs to be fixed, but do not know what it will take to fix it. An EOI will provide solutions to your problem and provide the cost associated for fixing it.

Request for Proposals (RFP) ” are used to purchase goods and services directly from a third party vendor. An RFP will include a solution on how to solve your problem. The better RFP will provide you with more than one solution. The document will include different options which will be priced accordingly. This will provide you with the flexibility you need to fix the problem, and have room in case anything else develops. This form of proposal is more common with consulting services or in the information and communication technologies field.

Request for Tenders (RFT) ” is used to provide a specific solution to a particular problem. The proposal is asking each potential company one question. There is limited room for flexibility and creativity. This proposal format is used more in the building and construction industry. A superb example of an RFT would be a request to add two bathrooms on to a house. The differences will be in design, materials and pricing.

In my particular case, I knew it was going to take a lot of flexibility to get the problem solved. So, in the end, I chose to have the procurements department secure requests for proposals from all the top contenders.

Sometimes it may take some time for a company to complete a good RFP, depending on how big the project is and how much detail you expect in the project, but by collecting a lot of RFP youll be able to find the company that can fill your needs at the most cost effective price point.

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Writing a proper RFP

Thursday, August 20th, 2009

There needs to be a straight line when it comes to doing business. This makes it so the companies involved are all on the same page. That when everybody understands fully the agreement being proposed.

Companies are writing RFP notes when they would like to work with different companies. Request for Proposal, also known as RFP, are a great way for companies to communicate when working on projects together.

The proposals are not your typical documents. The details included are more precise and include the main proposal, the details of the project, and the budget. You want to cover all bases when studying these documents so you don’t miss anything. This way you they can compare companies and choose the best one for the job.

Aside from comparing, why do they need all these details? The reason for this is that they want to know how many hours, workforce, and money they need to spend on a particular project. In this way, they will be able to see whether they will be able to keep it or not. Since if they will just jump to a proposal without studying it, the company may end up getting bankrupt.

If you are going to bid for a government contract, it s also very important for you to have a well-written RFP. This is for the reason that once they are impressed with your company, you will certainly be their partner and continuously have work or tasks coming from them –ensuring your company’s continuous income flow.

Depending on the size of the proposal will determine how formal your proposal has to be. A smaller project doesn’t need to be as formal but it is a good idea to make it as formal as possible to give you practice for future bids.

There are templates that you can use to create a bid. You can find these said templates online, there are many resources you can use to find them. Remember to include as much information as possible when writing a proposal.

Begin doing your homework so that you are able to write and effective RFP. This will help you build a relationship with your future clients.

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