In order to begin to understand the Federal governments procurement process, you must have a thorough understanding of Federal Acquisition Regulations (FAR).
The Federal agencies purchases a variety of services and products from outside suppliers/vendors.
FAR provides standardized regulations that all Federal agencies are required to follow when purchasing services from a supplier or vendor.
The FAR is used as a road map for Federal agencies to follow when they are going to purchase products or services.
When Federal agencies decide to purchase products or services from suppliers/vendors. Federal agencies have a variety of contracting methods they can use:
Simplified method allows lower level approval and less documentation.
Sealed Bidding is used when agencies contract competitively. An Invitation For Bid (FIB) will accompany a sealed bid. Sealed bids are opened in the public at the purchasing office location. Sealed bids are read out loud and recorded.
If a Federal agency needs a highly specialized/technical service or product and the contract will exceed $100,000.00., the agency may issue a Request for Proposal (RFP).
Do not assume that once you are awarded a contract you can relax. If you are unable to successfully complete the contract, you could end up owing the government money. Like any contract you should read the entire contract including the small print. Once you sign the contract you have a legal obligation to fulfill the contract as the content requires.
You should pay special attention to the Termination For Default. If you fail to deliver the agreed upon services of products within the time frame allowed, or any other requirements within the contract, the agency can cancel the contract. Always read before you sign!
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