 |
How DOD Buys
Almost 98 percent of DoD's purchase transactions
are for $100,000 or less. Although they account
for less than 20 percent of DoD's procurement
dollars, they total in the billions of dollars
each year. Most of these millions of actions are
accomplished using simplified acquisition
procedures. Oral solicitations or very brief
written requests for quotations are issued to
prospective suppliers in the local purchasing
area. The successful quoter is issued a purchase
order, and compliance with the order (i.e.,
delivering the product or performing the service)
constitutes contract acceptance and fulfillment.
Purchases over $100,000 are made by sealed
bidding by competitive proposals, or (in unusual
circumstances only) by other-than-competitive
procedures. Sealed bids are used when the
Government knows exactly what it needs, while
competitive proposals allow flexibility in
defining the exact requirement or the terms
and conditions of the procurement.
Procurement by sealed bidding begins with the
issuance of an invitation for bids (IFB)
containing all the information bidders need
to respond. The IFB states the needs of the
purchasing activity and defines the work in
sufficient detail to permit all bidders to
compete on the same basis. It also identifies
all factors to be considered in evaluating
the bids. A standard form is provided on which
bids are submitted, and a specific time is
set for bid opening. The opening is held in
public (you can attend), and the contract is
awarded to that responsible bidder whose bid
offers the best value to the Government.
When sealed bids are not appropriate,
competitive proposals are solicited. The
purchasing office issues a request for
proposals (RFP). After reviewing the
proposals received, the contracting officer
ordinarily will negotiate with those
suppliers that have submitted acceptable
proposals, seeking the most advantageous
best value contract for the Government.
Copyright © 2005-2012 by ContractSecrets.com
All Rights Reserved / How DOD Buys
|
|
