Under FAR 19.5, the government sets aside procurements specifically to be awarded to small businesses. Awarding such programs should be given following particular fair market prices, thus increasing transparency in acquisitions. Historically underutilized business Zones require some contracts to be set aside to serve the interests of small-sized businesses (Regulation, 2013). The federal government creates an opportunity for offering most of its commitments to small companies to support and foster economic developments through such companies. The limitation arises in situations where the government anticipates acquiring small businesses with an expected value of $3,000 but not exceeding $150,000. The contracting officer determines the possibility of establishing the contracts capable of deciding if it is possible to acquire contracts from two small businesses. Based on this scenario, a local competitor has submitted the same proposal, and the two companies are likely to succeed. This paper focuses on explaining the various aspects needed in acquiring a navy contract based on RFP #123456789, dated 07/14/2014.
Based on the HUBZone Set-Aside Procedures, various reasons explain why small businesses qualify for government-based contracts. The first reason why my company is likely to be eligible for the deal is that the contracting officer is specific that two firms have applied for the tender. Competitive HUBZone set-aside contract can be provided in situations where the contracting officer is aware that at least two small businesses will present their proposal to the government institutions. FAR 19.5 provide opportunities and set aside procedures for small businesses to qualify under the process for ensuring that small businesses have a chance for securing government tenders (Regulation, 2013). Since my company is a small business, there is a possibility that it will qualify under the contract. The second reason as to why my organization is likely to secure the tender under HUBZone Set-aside procedures is because the award will be provided under the best fair market price and it is specifically made to empower small companies. My business is one of the small businesses in the region, and Navy contracting officer observes the economic power in the company, such as increasing employment opportunities and increasing the level of production. The geographical location of the business is perceived to be underutilized subzones making it easy for the contracting officer to see the potential of the mall business.
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A multiyear contract will be beneficial to both the navy and my business. Under the multiyear deal, the contracting company is usually in a position to give services or products to a particular party for several years as opposed to an annual contract. As a result, the contractor is in a position to offer services for at least two years, while the funding will be provided on an annual basis. One of the ways through which a multiyear contract will benefit both the company and navy is through flexibility and making it possible to predict the future (Shoraka, 2014). Planning is an essential aspect needed by both the organization and the navy. As a result, a multiyear contract creates an opportunity for the company to create a chance for both the navy and the business to allocate budgets expecting to see the returns before the end of the contract. The navy and the company may have adequate time for investing in programs capable of improving the performance of the organization in future. For example, employee training and acquiring improved technology can be a way of ensuring that people receive adequate skills for improving performance in the organizations.
The second benefit for multiyear contract likely to be experienced by both the company and navy is that it is likely to minimize the costs of operations. For example, there will be a precise use of raw materials by increasing the level of efficiency (Witko, 2011). As a result, both the navy and the business will benefit by reducing the unit costs that would otherwise be experienced in annual contract. Employees will require a single training and the raw materials will be acquired once, thus focusing on improving the level of profits.
Contracts can be classified into different types such as fixed-price contract, cost reimbursement, time and material contracts. Selecting the best deal becomes an appropriate approach to determining the level of efficiency in rendering services and products to the company. A fixed-price contract is perceived to be a legal covenant with defined parameters that are designed to increase the level of agreement in an attempt of ensuring that people understand the value of a contract (Witko, 2011). This approach suits my business when entering the deal because it provides several benefits. For instance, the fixed-price contract creates an opportunity for ensuring that there is a possibility for managing the costs for hiring from outside as the business and contractor can determine the total value of the contract before signing the agreement. This approach becomes possible because the pricing value of the contract is not based on the escalator, and it has a ceiling for the monetary value of the contract. The process also eliminates unexpected business costs as a fixed price usually rests on an independent contractor, thus preventing unforeseen expenses during the operations. Minimizing the level of values increases the opportunity for ensuring that the business earns a high level of profit.
Various incentives are applicable in contracting any form of a contracting proposal. For instance, a company may choose to use either cost, schedule or performance incentives based on the motives and goals of the business. In this case, my business will focus on using performance-based incentive as the appropriate way for presenting a proposal for the navy contract. The rationale behind this approach is that it provides an opportunity for addressing the needs for increasing the ability for the business to increase the interests of the business because of an increased level of efficiency in operation (Shoraka, 2014). Application performance-based approach creates an opportunity for defining the goals of the contract, thus using a result-based method. The objectives need to be achievable and measurable, creating a chance for allocating the resources required in completing the deal. Clear definition of the goals and the aspects to be applied in measuring the viability of the business creates an opportunity for focusing on the outcomes with a high rate of efficiency. The indicators to be used in the research approach are minimized to maintain the performance development within a controllable approach.
Technical proposal bid will be the best approach for applying in applying for the contract with navy. The objective of using this strategy is to ensure that my business has a high chance of receiving the tender. The government purchases a significant amount of goods and services, thus creating an opportunity for suing a competitive process in selecting the most suitable contractor (Shoraka, 2014). This information indicates that government agencies apply different aspects in an attempt of analyzing the appropriate applicant to get the tender. Most companies focus on reducing the prices as the best approach for winning a bid. However, a navy agency can choose a proposal based on technological applicants irrespective of the costs likely to be experienced in completing the project. As a result, technical biding for a plan is an indicator of quality services to be offered by the contractor, thus making it an attractive proposition. As a result, efficiency and effectiveness is an essential aspect for determining the reason as to why technical biding approach is crucial in presenting the proposal.
Contractors are in a position to experience significant challenges that need to be addressed to ensure the success of the project. As a result, there is a need for employing a contingency plan for mitigating the risks that may influence the level of commitment to serving the interests of the contracting company. In case my company receives the award, it will be beneficial to address the cost-related risk that is likely to affect the functioning of the company. In circumstances where related financial risk occurs, there is a possibility for avoiding the challenges that can be experienced as a result of a decline in profit margin (Kendrick, 2015). Cost related risks may include price inflation for materials to be used in construction. The second type of risk that needs to be addressed is environmental-related risks. This problem originates from the use of disruptive activities such as noise and pollution likely to affect the functioning of the company negatively. Safety associated risk is also expected to affect the operation of the business, especially in situations where employees experience health hazard challenges. For instance, there may be some challenges, such as the existence of fire extinguishers, thus minimizing the efficiency of employees and work managers. Time-related risk is also likely to strike the performance of the business, making it difficult for the company to serve the interests of the company. For instance, lengthy procedures before the government can create resources needed to approve the project may expose the business to a tight schedule. Tight schedule may compel the business to compromise efficiency in delivering the services. This problem exposes the company to quality efficiency risks, thus affecting the effectiveness of my business in serving the interests of the navy government agency.
In conclusion, the contracting process, especially with the government agency, creates a need for developing ordination among various issues. As a result, interested parties, especially small businesses, have a chance for subjecting proposals likely to attract the interests of the hiring agency. HUBZone set-aside procedures for giving tenders to small companies create an opportunity for ensuring that acquisition is made at the fair best market price. In this scenario, two companies have applied. If the award is given to my business, there is a need for ensuring that there is the creation of a plan to avoid the time, cost, quality, environment, and safety-related risks.
References
Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. Amacom.
Regulation, F. A. (2013). Small Business Programs: Historically Underutilized Business Zone (HUBZone) Program,” Part 19.1405, 2012b. As of May, 13.
Shoraka, J. (2014). Federal procurement and small business. Public Manager, 43(4), 27.
Witko, C. (2011). Campaign contributions, access, and government contracting. Journal of Public Administration Research and Theory, 21(4), 761-778.
