This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 1.102 Statement Of Guiding Principles For The Federal Acquisition System
The FAR is constructed to be user friendly to all participants doing business with the government. This means that the Contracting Officer is able to fairly assess their given authority and the vendor is able to assume their natural rights as a trusted business partnership is formed through the guided process of government acquisition of goods and services to both serve the citizen and equip our nation. Public business plays an important role in aiding this vision.
The goal of such a partnership is to ensure best value is delivered to the customer. It is to be understood that the government justifies what is being solicited and for what purpose. In turn, the vendor is to propose a product or service that meets or exceeds the guidelines set forth in each issued solicitation. The job of the CO is to obtain said good or service within a system that works better and costs less.
Taxpayer dollars are being used to buy what is required. Therefore price and performance matter and are dictated through a very competitive marketplace. The system is in place to serve the citizens of this country. The selection process of awarding a federal contract is granted to a company with a history of past performance within the federal arena or a company that has demonstrated a superior ability to perform. Either somebody who has done it before or somebody who does it the best will be declared the awardee.
Government will decide this through communicating with industry by way of requesting information (RFI), requesting a quote (RFQ) and through research of publicly advertised goods and services known as market research. Once they grasp the perimeters of the specified buy they will construct a statement of work (SOW) for goods or a performance work statement (PWS) for services which is included in the solicitation. When proposals are submitted each CO will conduct a price analysis which compares the product to its competitors and a cost analysis which allows the CO to compare the fully-loaded price to historical and current trends, the current budget as well as the specific need. The government maximizes the use of commercial goods and services. Therefore each company has the tools to present a fair and reasonable proposal. Each side has a general understanding of the marketplace and the vendor is the subject-matter expert.
Competition naturally occurs as with any business marketplace. Such generates a timely, high-quality and cost effective good or service purchased by the government.
Effectiveness only comes about through proper planning. Each side possesses the wherewithal to either propose a solution or to maximize funding.
The buying process inside the federal marketplace is fairly predictable with room for innovation. Thus it is not a problem to conduct business dealings with integrity, fairness and openness. Such is why open communication is essential between the CO and the vendor(s) at every stage of the purchasing process as well as why decisions and dollar amounts are made public and protests are legitimately legal.
Risk is to be minimized. The government achieves this through a multi-level system of designated warrant levels which attributes appropriate knowledge, skills and abilities to each CO who is authorized personal discretion, the capacity to use sound business judgement and the aptitude to comply ethically with currently published rules and regulations which appropriately oversee each buy authorized by the United States of America. Such ensures that each contractor will be treated fairly but not necessarily the same.
Each buy is essential in fulfilling goals set forth by the President and Congress. Each administration creates their own vision. Numbers may fluctuate but the day-to-day operations and national security objectives remain the same.
Each federal agency is encouraged to obtain feedback from industry to modernize business practices. This is done through general oral and written communication at all levels of the acquisition team, surveys or group exchanges such as an Industry Day or professional conference. Sharing of information is not viewed until after award and candid communication is encouraged concerning strengths and weaknesses of the acquisition process regardless of sought medium to maintain and sustain improvement.
The acquisition team is comprised of members of the government and industry. Each individual holds a specific role and associated responsibilities to be enacted within a certain timeframe within the acquisition life-cycle. For example, an agency may assign specific administrative roles to one person who receives clarification, allowance and signature from one or more colleagues within a federal workplace or agency. The FAR allows for innovation and internal discussions are held to ensure taxpayer dollars are being maximized.
Teamwork, unity of purpose and open communication create a win-win situation for all involved parties. Neither side is to understand themselves to be bamboozled nor embezzled within the constraints and innovations of conducting business with the federal government. Some may perceive dealings with the government to be convoluted and even pre-determined. Nothing could be further from the truth. Contractors are working with competent business analysts who are trained negotiators. Vendors routinely compliment federal personnel on their prowess to strike a fair and reasonable business deal while government welcomes industry feedback to modernize the federal acquisition process. However, the legal interpretation of the process can be a deterrent for some.
In short, the vendor is used to completing deals with a handshake, email or telephone call. The government equips COs with the skills of a lawyer who is not required by law to pass the BAR exam along with the expertise of an accountant. Guidelines are set to protect the process. Actions are made public due to the funding source.
The way to success is knowledge. I hope these quick hitters allow you to better understand the process of doing business with the government.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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