The success of a contract with the government depends on the contractor’s performance. Small companies can compete fairly with large companies with high capital. A check on all possible contractors is carried out before any vendor is chosen. Financial results are analyzed in order to check their capacity to provide services of quality. Since the process is competitive, the selection panel should be admirably presented to small organizations (Kamimura, 2014). This is done through a clear understanding of your market. In addition, a key factor that cannot be overlooked is the right tools to run the project. Kamimura (2010) notes that small businesses fail to win bountiful projects due to misrepresentation. If they can show ability to deliver, then they stand a chance to be trusted with the work. Business glooming is paramount in any competitive bidding. Everything contracted by the department of defense is given a fair ground to incorporate both small and large businesses. However, irrespective of such information, people wary from applying for them with a multitude of reasons. They consider the process intimidating due to high bureaucratic nature.
Simplified Acquisition procedures are used for procuring simple services by the federal government. Services such as technological changes are covered under this method (Sink &Pages, 2007). It identifies policies and channels used to acquire services and other products in the government organizations. As a small business, this procedure is helpful. The owner is provided a platform to explain what he or she offers based on the capability. Essentially, the management is exposed to the lengthy and rigorous assessment which build the capacity to negotiate for highly priced contracts. Notably, this procedure has a maximum threshold. Settling on this method has enumerable number of advantages. One, it improves opportunities to the small business. Putting a mark beyond where the policy operate aims to attract the small organization into contract. Large figures scares away the service offers. In most instances, large organizations enjoy a huge base of financial muzzle, subduing the small ones. The policy is all inclusive and starters get the chance to exercise their trial. Furthermore, it reduces administrative cost. The preliminary stages involves researching on the expectation of the project owner which gives the provider a chance to evaluate the returns (Whelan &Nagle, 2007).
Blanket Purchase Agreement provide an excellent option for the contractor. It is recurrent need to fill certain services (Sink & Pages, 2007). Considering the remote controls get inefficient with time, the business is expected to continually deliver the same after a certain period of time. An ongoing supply agreement is signed by the two parties hence more profit is made by the supplying company. The reason to settle for this method is its convenience. After the first batch is supplied, the business has time to prepare itself for the next supply. Besides, the management stand a chance to conduct market research to improve on their product. Reduced cost is also realized by the small business (Kamimura, 2014). Time factor is a strong tool to determine the cost of services. If more production is done simultaneously, both labor and raw materials are purchased rapidly without considering the cheaper options. Allowing space after a particular delivery is done gives the business time to restructure and organize things. Withal, the first payment could be used for expansion with an objective of serving a wider market (Whelan & Nagle,2007). Therefore, selecting Blanket Purchase Agreement tremendously improves the business growth. Operation of small business is faced with a challenge of expansion capital. Focusing on the right method acquisition is the first step in retaining the trust with large government organization such as Department of Defense.
Uniform Contract Format
This is the format applied where there exits varied number of bidders. The format is detailed in general manner to accommodate all people. The form come with different sections and subheadings which guide the contractor on how to present the information. For a small business, contract clauses could be a challenge. A legal department has the expertise to expose the information to the management before engaging in any contract. However, these services might miss in a growing business. According to Kamimura (2014), legal consideration is key in any business. Since signing documents is part of the process, having the professionals in the field could mitigate the eventualities of policy violation. Outsourcing is an option where such services miss. Additionally, the section of inspection and acceptability could be a problem. At this stage, the business is supposed to show the capability of offering the required services. The representative from the business defends the application based on what they can offer. Often, an organization which has not served the market for long is sometimes ignored. The owner is expected to give a succinct and efficient presentation which would guarantee success (Sink & Pages,2007). A unique depiction of competency builds trust with the contract committee. The final section that would pose a challenge is supply prices. For a starter, quoting meaningful price is not easy. One might end up stating more hence miss the offer or lower prices resulting to lose. External valuers have better skills to estimate the cost.
Kamimura, R. (2014). Simplified Information Acquisition Method to Improve Prediction Performance: Direct Use of Hidden Neuron Outputs and Separation of Information Acquisition and Use Phase. Proceedings of the International Workshop on Artificial Neural Networks and Intelligent Information Processing.
Sink, C. M., & Pages, K. L. (2007). False claims in construction contracts: Federal, state, and local. Chicago: Forum on the Construction Industry, American Bar Association.
Whelan, J. W., & Nagle, J. F. (2007). Federal government contracts: Cases and materials. New York: Foundation Press Thomson/West.