Competition Flashcards

Question

FAR PART 6, COMPETITION REQUIREMENTS FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A). What are some unacceptable reasons for using other than full and open competition (noncompetitive contracts)?

Answer 1

The FAR specifically forbids agencies from using these two excuses: Unacceptable excuse number one: "My agency ran out of time, so we issued a noncompetitive contract using other than full and open competition." Lack of advance planning is never a valid excuse for using noncompetitive procedures. Unacceptable excuse number two: "My agency funding is expiring soon, and my agency does not want to wait for next year's money to arrive to award this contract, so I don't have time for competitive procedures." This poor excuse is based on the time-limited nature of agency funding. Again, lack of planning is never a valid excuse for using noncompetitive procedures.

Answer 2

Acquisition planning is the government process of thinking carefully about the best way to purchase and maintain whatever the government buys, including the full life-cycle cost.

Answer 3

Life-cycle cost means the total cost for the government of acquiring, operating, supporting, maintaining, and eventually disposing of whatever the government buys. The important concept is that the government's total cost does not stop after the contract is signed, or even after the contract period of performance is completed. For complex purchases, such as multi-million-dollar programs, the life-cycle costs can span decades. The cost of supporting or maintaining major weapons systems can be several multiples of the upfront purchase price. You can compare this process to the life-cycle cost of your car. In addition to the purchase price of the car, you must pay for parking, maintenance, repairs, insurance, fuel, and other lifecycle costs.

Answer 4

By understanding the government's responsibilities for acquisition planning and consideration of life-cycle cost, you can form persuasive arguments that help you sell more to the government. By incorporating these concepts into your proposal, or response to requests for information, or sales pitch, you can gain the trust and confidence of your government clients.

Answer 5

Acquisition planning should begin as soon as the agency need is identified. If your company wants toinfluence the acquisition planning, you need to act quickly and anticipate the government's needs.

Answer 6

Consolidation refers to when the government combines two or more requirements into a single contract. In other words, instead of awarding two or more contracts, the government awards only one contract. Consolidation of contracts can save time and money but can also prevent smaller companies from competing on the consolidated contract. Larger contracts provide a distinct advantage for larger companies.

Answer 7

Bundling is a minority subset of consolidation. Not all consolidation qualifies as bundling, but all bundling is also consolidation. Bundling occurs when the government consolidates two or more requirements that were previously performed by small businesses, and that consolidated contract is no longer suitable for performance by small businesses. Therefore, bundling is a subset of consolidation that shuts out the possibility of small business performing as the prime contractor. For these reasons, the government avoids bundling requirements. When the government decides to bundle contracts, they must justify the decision in writing.

Answer 8

Government contracting officers and other senior leadership are supposed to make decisions based on market research, including decisions about acquisition planning. Your company is part of the wider market; therefore, the opinions, arguments, or facts specific to your company qualify as market research. Your company can influence government decisions by providing information that qualifies as market research. Provide your information in writing. You can respond to Requests For Information (RFI) or formal notices of consolidated or bundled contract competitions. Your written response can identify the negative impacts on small businesses, which maypersuade the government to avoid consolidation or bundling. In some cases, you could write an email to the agency's Director of Small Business (or Office of Small and Disadvantaged Business Utilization or Office of Small Business Programs). The Director of Small Business may act as your company's advocate to the program or contracting office.

Answer 9

That question is difficult to answer because policy preferences change every few years. So, let's discuss the decision factors so you can better understand the landscape.

Answer 10

An inherently government function is a service, action, determination, or duty so intimately related to the public interest that it requires a federal employee's performance (rather than a contractor's). Some activities cannot or should not be outsourced to contractors, we call them inherently governmental functions. The simplest example is the President of the United States, whom Americans elect via the electoral college to be the chief executive. Although the following example is silly, it colorfully illustrates the principle of inherently governmental activities. If the duly elected President of the United States hired a contractor to make every single decision, while the President drank margaritas in the Florida Keys, most Americans would be rightfully angry. Why is the President outsourcing the principal duties of the Office of the Presidency? Why is a contractor— who was not elected —making decisions that affect the entire nation? Why is a contractor writing and signing executive orders and negotiating deals with foreign leaders? Keep this silly example in the back of your mind when you consider other examples of inherently governmental activities.

Answer 11

FAR Part 7 provides a long list of inherently government activities, such as: Conducting criminal investigations Commanding military forces Determining agency policy Directing federal employees Controlling intelligence operations Awarding, administering, or terminating contracts Determining agency budgets

Answer 12

FAR Part 7 provides a list of functions that almost qualify as inherently government activities and therefore merit special consideration, including contractor services relating to the following: Budget preparation Reorganization or planning Analysis, feasibility studies, and strategy options Development of regulations Acquisition planning Contract management (government contracting) Responses to Freedom of Information Act requests Legal advice and interpretations of regulations or laws

Answer 13

Remember, the list is a warning, not a direct prohibition. Contractors can perform services related to those functions, but the government must exercise caution to ensure the services do not cross the line of inherently governmental functions.

Answer 14

The simplest explanation is that contractors, in the 21st century, are an integral part of the federal workforce. Contractors are not federal employees, but contractors work side-by-side in support of federal employees. While only federal employees can make decisions or determinations, contractors are regularly hired to assist and support federal employees. This difference is subtle yet important. As long as the federal employee makes the final decision or determination, contractors can usually avoid any problems with performing inherently governmental functions. Onsite contractors should learn this word and use it often: "recommendation." As in, "My recommendation is that the agency follows simplified acquisition procedures." "I recommend that the Director conduct a full audit." "I do not recommend that the Deputy Assistant Secretary attend the meeting." Always remember that your contractor employees, if they work as onsite contractors, side-by-side federal employees, are hired to make recommendations, not decisions. Let the federal employees make final decisions and determinations. Stay in your lane! Train your employees about the policies surrounding inherently governmental functions. Each of your employees should understand the basics and know how to proceed if asked to perform inappropriate services.

Answer 15

Many years ago, public officials gathered in town halls to open sealed envelopes, in a public setting, to guarantee fairness and transparency. These sealed bids became the basis for contracting competition. The government notified everyone through "formal advertising" to submit a bid based on government specifications. If your bid was compliant and the lowest price, your bid wins the competition. When Congress passed the Competition in Contracting Act (CICA) in 1984, the popularity of sealed bidding dropped significantly. The reason is under CICA, both sealed bidding under FAR Part 14 and competitive negotiation under FAR Part 15 were acceptable ways to satisfy the need for "full and open competition." In cases, agencies opted to use the more flexible procedures of FAR Part 15 instead of sealed bidding

Answer 16

No, not really. In federal government contracting, sealed bidding is a rare or niche method of competition. Only a small minority of government contract competitions use sealed bidding. Unless you work in construction contracting, you can probably ignore it completely.

Answer 17

The "solicitation" for sealed bidding is called an Invitation for Bids or IFB. To give all companies an equal opportunity, the IFB should contain all the important terms and conditions of the contract. The idea behind this policy is that bidders should distinguish themselves primarily on price.

Answer 18

Price is supposed to be the primary decision factor for award. Ideally, the government shared a precise and exhaustive list of specifications so that all bidders understand exactly what must be performed under the contract. Therefore, the only evaluation factor should be price or price-related factors.

Answer 19

No, the government cannot negotiate with bidders under sealed bidding. Remember, the bids are sealed, and the winner is selected based only on price evaluation. This limitation is both the strength and weakness of sealed bidding. The benefit is the sealed bidding process is objective, simple, and prevents unequal treatment of bidders. The drawback is the process is rigid, limited, and prevents negotiation that might otherwise produce a better contract deal.

Answer 20

No, sealed bidding is designed to prevent the government from paying more to get a better product or service. Under sealed bidding, the government is supposed to award to the company that has a "responsive" bid with the lowest price.

Answer 21

Responsive refers to whether the bid conforms to all material elements of the IFB or government specifications. If your company leaves out an important item required by the IFB, or fails to follow the IFB, your bid may be considered nonresponsive. If your bid is nonresponsive, you are not eligible for award. The requirement of responsiveness is one way to keep all sealed bidders on equal footing. If one bidder tries to get an unfair advantage by submitting a lower price based on a material deviation from the IFB, the government cannot possibly reward that bidder because such a bid is nonresponsive and therefore ineligible for award.

Answer 22

Responsiveness is about whether the contractor pledged to do precisely what the government requested in the IFB. The government will examine only your bid to determine responsiveness to the IFB. Responsibility is about whether the contractor can or will perform the contract (if it wins the contract). The government can examine not only your bid, but other attributes of your company as well, to determine responsibility. You can read more about the determination of contractor responsibility in Part 9, Contractor Qualifications.

Answer 23

If you understand so far, sealed bidding does not allow negotiation between the government and sealed bidders. Instead, the government opens the sealed bids and makes award based only on price or price-related factors. Two-step sealed bidding combines negotiation with traditional sealed bidding. In the first step, the government asks for different technical proposals. No pricing or price negotiation is involved in the first step. The government only negotiates regarding the technical proposal. The goal is to develop a detailed technical specification to use in the second step. The second step is more like traditional sealed bidding. Based on the technical specification developed in the first step, companies submitsealed bids, and the government picks the winner based on the lowest price.

Answer 24

Two-step sealed bidding makes sense when the government does not have a precise set of technical standards already developed, which is a requirement for traditional sealed bidding. Two-step sealed bidding allows creative input and ideas from industry, and helps the government decide what it wants and what is available in the first step. Then, in the second step, the government takes those specifications and follows a process like traditional sealed bidding.

Competition Flashcards

FAR Parts 6, 7, and 14