Free Sealed Bids Vs Competitive Proposals Essay Sample
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Before commencing to deal with government bids, it is important to comprehend the procurement process. The buying process of every county, state or city is a bit different hence making the life of vendors complicated (). Nevertheless, the fact that a majority of local governments design their regulations, rules and procedures in line with the federal government’s, it is important to review the two basic procurement processes, sealed bids and competitive proposals. This paper therefore compares these two processes, outlining the most advantageous to the contractors.
Research and experience reveal that unless one prequalify bidders, giving construction job to the bidder with the least price (the low bidder) can leave one displeased at the last part of the project. Unlike sealed bidding, competitive proposal system allows consideration of procedural factors apart from price. These include: discussion with givers regarding to offers submitted, finding the middle ground of the contract price or anticipated cost and further contract term, review of proposals prior to the final contractor choice, and the pulling out of a bid at any moment up until the time of award. Award is usually made on the condition of the proposal that stands for the preeminent overall worth to the PHA, taking into consideration the price, technical proficiency, past skill, and excellence of proposed staffing (Penny, & Travers, 2010).
The situations for using competitive proposals more willingly than sealed bidding are established in the Procurement Policy. Normally, the competitive proposals technique should be applicable at any time when any of the following situations exist:
1. The requirement cannot be illustrated exclusively enough to allow the exercise of sealed bidding. That is to say, the work is not explicit enough to precisely guesstimate the total cost of the agreement.
2. The nature of the obligation is in way that the PHA requires to estimate more than the just price to be certain that the potential contractor knows the PHA’s requirements and can effectively complete the deal, particularly when contracting for proficient services for example, official, architect-engineer and bookkeeping where the PHA demands precise expertise and knowledge (Penny, & Travers, 2010).
The Sealed Biding technique is usually not suitable for securing official services. Sealed bidding can only be applicable when it is probable to enumerate the costs of the necessary services for instance, amount of hours to allow the submission of firm offers or bids and honor a firm fixed-price deal to the lowest responsible and responsive bidder. This takes into account only cost and price-related factors (Penny, & Travers, 2010). Furthermore, it is always important to think about other factors apart from price for example, experience when choosing a legal services contractor. Moreover, sealed bidding does not allow the use of any other factors (Penny, & Travers, 2010).
Contracting officers shall ask for sealed bids if;
(1) Time allows the solicitation, submission or giving out, and assessment of sealed bids;
(2) The award will be completed on the condition of cost and other price-related issues
(3) It is not essential to conduct negotiations with the responding givers concerning their bids.
(4) There is a logical expectation of being paid more than a single sealed bid.
Because of disparities in areas for instance law, policies, and selling practices, it is usually essential to conduct negotiations with givers relative to projected contracts to be performed and completed outside the United States. This makes the competitive proposal to be useful such in situation (Oyer, 2011).
On the other hand, Competitive Proposals process is commonly ideal when procuring proficient services since it permits for the consideration of procedural quality, or any other factor apart from cost for securing services anticipated. Other factors include the central small procuring threshold or a lesser threshold as recognized by the PHA for instance, to be conventional to State law. In addition, Competitive bids are solicited, bids are priced, and reward is made to the giver whose bid is most profitable to the PHA, with cost and other factors considered (Oyer, 2011). Either a set price compensation type deal may be awarded. This process is normally used when situations are not apt for the exercising of sealed bids.