...Sealed bidding and competitive proposals are the two methods used to acquire competitive prices from bidders. Sealed bidding is “a process by which government needs are made known by a solicitation called and Invitation for Bids. The government will use sealed bidding when (1) it feels confident that award can be made to the lowest price offeror who is responsive and responsible and (2) the government’s requirement is reasonably well defined in the form of drawings and specifications”(Murphy, 2009). Once the bids are opened, the prices become public knowledge. This could be a disadvantage to contractors because their prices will be made known for all to see. When sealed bidding is used, the lowest bidder that is found to responsive and responsible will be awarded the contract. “Sealed bidding always leads to a firm-fixed-price contract or fixed-price with economic adjustment contract” (Murphy, 2009). This would be another disadvantage to the contractor, because all the risk is on the contractor in fixed-priced contracts. “Competitive acquisitions rely on market forces to obtain the best value to the government” (Murphy, 2009). This process differs from sealed bidding because offerors can change their proposals and negotiate. Unlike sealed bidding, competitive acquisitions may not award the contract to the lowest bidder. “This process permits tradeoffs among cost or price and noncost factors and allows the government to accept other than the lowest priced proposal...
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...Reverse Auction Process In the traditional auctions, also referred to as forward auctions, a seller offers a product that is demanded by several buyers who compete and bid up the price. The highest bidder wins and buys the product. In a reverse auction, it is the buyer who is in control of the process. The buyer is interested in an item offered by a number of sellers who compete and lower their price in order to get the deal. Unlike traditional auctions that occur at physical locations, reverse auctions are accessed online, through web browsers, via private software companies known as “market makers.” The market makers facilitate the auction process and provide support, training and all necessary software to suppliers participating in the bidding process. The reverse auctions process starts with the buyer preparing and posting an electronic request for quote (RFQ) to a web site. Through the use of RFQs, the company electronically communicates its expectations to prospective...
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...which the defendant was the last bidder. The defendant had bid 401. The auctioneer had dwelt on the bidding. As the auctioneer dwelt the defendant said, “Why do you dwell? You will get no more. The defendant said he was informed the worm weighed at least 1300 cwt and was worth more than 401. The defendant asked him if he could warrant it to weigh so much, and receiving a answer in the negative he then declared that he would not take it, and refused to pay for it. It was re-sold on the subsequent day’s sale for 301 to the defendant. Against which the action was brought for the difference. ISSUES OF THE CASE The issues in the case PAYNE against CAVE Saturday, May 2nd, 1789 are: 1. The highest bidder (the defendant) withdrew his offer before the hammer was knocked. The hammer is put down to assure that the bidder’s bid is accepted and there are no more bids to come in. The time given between the bid being made and the hammer knocked is for other bidder’s to bid higher or the highest bidder to withdraw his offer. When a bidder bids an amount he is giving an offer and the offer is accepted when the auctioneer knocks his hammer. An offer can be withdrawn before it has been accepted. 2. Walton set aside the nonsuit, on the ground that the bidder was bound by the conditions of the sale to abide by his bidding, and could not retract. The defendant when he started bidding he is to abide...
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...2013 MANAGERIAL ECONOMICS GROUP PROJECT: “US TREASURY BILLS AUCTION PRICING: ANALYSIS OF THE STRUCTURE AND PROCESSES” Professor: Done by: The goal of this paper was to analyze and explain the auction system process held by US Treasury and the possible alternatives for it (multiple-pricing auction). Introduction. The U.S. Treasury Department regularly borrows to finance the Federal Government's debt. From 1980 to 2006, the public debt of the United States grew from $930 billion to $8.68 trillion. Approximately one-half of that debt is held in Treasury bills, notes, and bonds, or "treasuries." The Treasury Department sells these securities at auctions held at the Federal Reserve Bank of New York, and the Bureau of Public Debt (BPD) in Washington, D.C. The rest of the debt is held mostly in federal and federally sponsored agency securities and U.S. Savings Bonds, and is not sold through the auction process.1 The modern auction process for bills, notes, and bonds begins with a public announcement by the Treasury. A typical announcement might read, "The Treasury will auction $11,000 million of 91-day bills to refund $9,000 million of maturing securities and to raise about $2,000 million new cash." This statement clearly describes the 2 goals of Treasury: to refund old debt and to raise new funds. Such announcement is carried by...
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...What is Dealite? Dealite is a disruptive social commerce startup based out of Mumbai, India. • We provide a unique auction experience that combines the thrills of online shopping with entertainment. • We source the best deals on the latest, branded, box packed products and make it available for our members at unbelievable prices. • All you do is browse available auctions, buy your seat with bids and you could win at up to 99% off. If you do not win, you have the option to Buy It Now at a discount covering 100% of your seat cost and paid bids. How do I get started? Getting started is simple. Register by filling a simple form, browse Available Auctions, buy a seat with bids and bid away when the auction starts. If you win, you claim and pay or opt for Buy It Now (with applicable discount) to own the item. Dealite Tip: When you Buy Seat, Dealite gives you an equal number of bids called ‘free bids’ which you can use to place bids in that particular auction where you have bought a seat.Buy Bids now! Make sure you go through our How It Works page to find out how you can enjoy participating in a Dealite auction. [pic] I haven't received your verification email? If you did not receive our verification e-mail, check your spam or junk folder or Click Here to request another verification email. [pic] Are products on Dealite brand-new? Yes, All products featured on Dealite are brand-new, box-packed and with warranty (if applicable). [pic] Can I really save...
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...Susan persuades him to enter the booth where "furmity" is sold, since the food is nourishing even if repulsive in appearance. In the tent Michael pays the furmity woman, "a haggish creature of about fifty," to spike his basin of furmity with large dosages of rum. He quickly finishes a number of well-laced portions and, in a "quarrelsome" mood, begins to bewail the fact that he has ruined his life by marrying too young. As the liquor takes hold, Michael offers his young wife for sale to the highest bidder. Susan, who has experienced his outrageous displays before, swears that if Michael persists, she will take the child and go with the highest bidder. She ignores the advice of "a buxom staylace dealer" and stands up for the bidding. Michael continues the bidding with renewed vigor and raises the price to five guineas for wife and child. The staylace dealer rebukes him to no effect. Before long, a sailor offers to meet Michael's terms. With the appearance of "real cash the jovial frivolity of the scene departed," and the crowd of listeners "waited with parting lips." Michael accepts the sailor's offer, pocketing the money with an air of finality. Susan and Elizabeth-Jane leave with the sailor, but before they depart she turns to Michael and,...
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...Competitive bidding is a well-established aspect of all industries and businesses. Vendors usually present a proposal that must meet specific requirements needed by the buyer. These specifications are called Request For Proposal (RFP) or Request For Quote (RFQ). As a routine, sellers present their bids in a written format after discussing all aspects of the specifications with the buyer. It is important to note that when the purchasing is done from women-owned or minority-owned firms, a stricter more complicated process is involved since more qualifications asked of them. The same applies to small-businesses. Small businesses that use competitive bidding usually have prior experience of the process. However, if they small business lacks the proper and prior experience, it may have to educate itself with culture ad nature of competitive bidding. To help with such need, the US Small Business Administration (SBA) provides excellent learning resources for these small businesses in order to properly get involved in competitive bidding. There are major elements of this process that are important to both the buyer and the seller. From the point of view of the buyer, it is always important to identify the right supplier who has prior experience and full resources needed to meet the requirement of the bid. Some examples of experience involve qualifications, prior achievements, responsiveness, and of course cost. Since evaluating a proposal is time-consuming, buyers usually require...
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...Sealed Bidding vs. Competitive Proposals Compare and Contrast Charles E. Andrews Professor Stephen Bartorillo BUS315 April 28th, 2013 Sealed Bidding vs. Competitive Proposals C. Andrews Sealed bidding is a “process by which government needs are made known by a solicitation called an Invitation for Bids (IFB)”; whereas, competitive proposals is a “process by which the government needs are made known by a solicitation called a Request for Quotation (RFQ) or a Request for Proposals (RFP)” (Murphy, p17, 2009). With sealed bidding there is no negotiation for contractors, therefore the best proposal for the lowest possible price should be offered. Not only does the contractor have to propose the lowest possible offer, but the contractor must be considered responsive and responsible by the contracting officer. Responsive is noted to “have not taken exception to any material aspect of the specification, work statement, or other terms of the proposed contract”; while, responsible is noted to be deemed “capable of performing and meeting the terms stated in the IFB” (Murphy, p17, 2009). Since there is no negotiation with sealed bidding, and the contract is awarded to the lowest bidder who is deemed responsive and responsible, the contractor must be mindful of all of their expenses associated with completing the work to the government’s specifications, as there are no adjustments once the contract has been awarded. By the contractor fine tuning his skill of estimating his...
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...fraud: shill bidding Table of content Page 1 1. Introduction Page 2 2. Shill bidding Page 2 3. The English auction Page 3 4. Strategies and payoffs Page 3 5. The price of the product and the frequency of shill bidding Page 4 6. The profit of the seller Page 4 7. Conclusion Page 5 8. References Page 6 1 1. Introduction In today’s world, Internet auctions are becoming increasingly popular and are one of the most successful forms of electronic commerce (Bajari & Hortacsu, 2004). “Internet auctions already represent billions of dollars in transactions and have been growing at a rate of more than 10% per month (Lucking-Reiley, 2003)”. At an auction, a participant can buy and sell goods or services by making bids or taking bids. These selling transactions occur between businesses and consumers (B2C), between two businesses (B2B), between the government and businesses (G2B) and between the government and consumers (G2C). Although Internet auctions are becoming increasingly popular, because they offer many advantages to buyers and sellers, they also bare some negative consequences as snipping and shill bidding. Shill bidding is a strategy of the seller to raise the final price of his own offered items. The questions that arise are: how does shill bidding work and why is it used? To investigate shill bidding, first this...
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...De Havilland Inc. Report on Competitive Bidding and Negotiation Presented to Louis Girard Prepared by: Michel Boyer 10046739 February 8th, 2016 Table of Contents Executive Summary 3 Issue Identification 4 Root Cause Analysis 5 Alternatives and Options 6 Recommendations 7 Implementation 9 Monitor and Control 10 Executive Summary The current inventory of parts, flaps shrouds and equipment bay doors, to produce the Dash 8 airplane will run out in approximately 18 months. In keeping with the companies’ goals of reducing costs, we have asked our suppliers to accept a 25% reduction in prices. When it came to the actual, they were not willing to budge. For that reason, we issued an RFQ. We obtained 9 bids. The lowest bidder was Morton Enterprises. After evaluating the bids, we identified two options, the first one to enter into negotiation with Morton so they can become the preferred supplier of flap shrouds and equipment bay doors. The negotiation must also include transportation, supply, support, etc. The second option is to also negotiate, at the same time as Morton, with the next 2 lowest bidders, Das Components and Lakeshore Industries. Our recommendation is to start negotiation with Morton as soon as possible. Morton’s price will permit us to reduce our manufacturer costs and enter into a long term relationship. A bid clarification meeting must be held quickly to make sure that Morton’s bid...
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...Bidding on Hertz LBO case study The main issue of the case is that The Carlyle Group and its partners (Clayton, Dubilier & Rice, and Merrill Lynch Global Private Equity) must make a decision about the final terms of a bid to purchase the Hertz Corporation, a wholly owned subsidiary of The Ford Motor Company. Hertz had been put up for sale in June 2005. In order to initiate “consideration of strategic alternatives” Ford entered a dual-track process, which means pursuing an initial public offering and a private auction process simultaneously. A dual-track process gives several advantages to a Ford, a seller of Hertz, by affecting the bidding process: 1) a dual-track approach can maximize the price obtained by the seller because of competitive pressure of a viable IPO process that can drive bidders to put more money on the table; 2) a dual-track process can give a seller significant negotiating leverage over deal terms in a private sale; 3) a dual-track approach allows a seller to keep its options open until it becomes clear which route will yield the highest value, thus preserving flexibility and hedging against deal uncertainty; 4) while a dual-track approach magnifies the cost, complexity and management distraction inherent in any sale process, it may also enjoy useful synergies by providing to a seller a comparable information about value of the selling company. The seller can judge about fair ask price of its company based on due diligence of bidders...
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...I n order to truly become successful in the government contract arena a small business would want to be educated on the ins and outs of government contract bidding. The federal government encourages small businesses to participate in government contracts. Each year, the head of each federal agency may set aside the award of certain acquisitions exclusively to small business concerns. Those set- asides may either be whole or partial. Total or partial set asides may be conducted by using either sealed bids to competitive proposals. (Hearn, 2011) The president also establishes annual government-wide subcontracting goals that help the agencies formulate their own specific goals. A determination to make a set aside may be a unilateral decision by the contracting officer. Once the product or service had been acquired successfully by a contracting officer on the basis of a small business set aside, future requirements for that particular product or service will normally be acquired by that contract officer on the basis of repetitive set aside. The set asides are also for assuring that a fair proportion of Government contracts is placed with small business concerns. Government-wide goals are 23 percent for small businesses, three percent for service-disabled veteran-owned businesses, five percent for small disadvantaged businesses and five percent for women-owned businesses. (Hearn, 2011) In order to achieve those goals, FAR 19.702 requires prime contractors that are “other...
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...9-205-058 REV: AUGUST 19, 2011 MALCOLM BAKER JAMES QUINN Ber rkshire Partne Bid e ers: dding f Cart for ter’s In the spring of 2001, Bost o ton-based pri ivate equity firm Berkshi Partners w consider ire was ring a levera aged buyout (LBO) of the William Cart Co., a lead ter ding producer of infant, ba r aby, and child dren’s appar in the Un rel nited States. Berkshire Par B rtners, which had extensi h ive experienc investing i the ce in retail and manufac cturing sector was initia drawn to Carter’s bec rs, ally o cause of the s strong brand name ngth of the s the co ompany had developed during its 136 d 6-year history as well as for the stren y, s senior mana agement team (See Exhibit 1 for a profil of Berkshir m. t le re.) To investigate the option of a potential LBO, Berkshir assembled a five-memb team, to b led o t f L re d ber be by managing dire ectors Ross Jo ones and Bra adley Bloom and senior a associate Mich hael Ascione (See e. Exhib 2 for biogr bit raphical sketc ches.) The tea would hav less than e am ve eight weeks to move throu all o ugh the stages of a Gol ldman Sachs-led auction— —from initial r research and due diligenc to valuation and ce bid st trategy. In addition to running the auction and thereby serv ving as Carter agent, Go r’s oldman Sachs (GS) s would be offering “staple-on” financing. Under this arr d g rangement, th winning b he bidder would have d ...
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...De Havilland is a very successful and well known name in the aviation industry. The company has been procuring Flap Shrouds and Equipment Bay doors from two of its major vendors. However Dollard Plastics, the Flap shroud vendor refused any renegotiations with de Havilland. Kim Tomar, the Financial Analyst at De Havilland had realized that issue and therefore started the process of finding a new business partner who is capable of meeting a set of standards that De Havilland had developed earlier for their procurement department, had started the process about year and half earlier than the expiry date with the incumbent supplier. After careful analysis of the nine bids received by de Havilland, I recommended Morton to De Havilland’s Source Selection Board (SSB) as prospective vendor. Based on the initial information from the normalized bids from all nine bidders, the lowest bid was Morton Enterprises. Their bid was 18% lower than their nearest competitor, and when I compared prices of the needed components to the prices supplied by current providers they were between 54% and 74% less expensive. However, beyond parts cost reduction we are also interested in establishing long-term co-operative contracts with the vendor. So, apart from determining who had the best price offer, I need to determine whether Morton is sufficiently stable to be relied upon in the long run. So my strategic intention here is to negotiate an agreement with Morton that will be of the greatest value possible...
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...How has eBay refined OAMs? List 2-3 specific website features that eBay adds that are not found on unregulated OAMs that merely link buyers and sellers? Be specific. When eBay started its business in 1995, online auction got new head starts in many ways. EBay has refined its online auction model by creating a global platform, a model that connects to people, person to person marketplace on the Internet. Before eBay, auctions were limited to garage sales, collectibles shows, flea markets and in-store sales. Some of the “COOL” that makes eBay stand out are it’s varied buying formats and secure and more accessible payment methods. Some of them being Auction-style format which provides options of bidding. Moreover, eBay also features an option called Buy it Now which literally lets the customer buy the product right away without waiting for a long time. Other feature that’s not seen in unregulated OAMs is Motor classifieds, which basically lets a customer find a vehicle that they choose so they can see it online before they purchase it. 3. Two unique features that add value to OAMs, I think will include more secure payment systems and reliable ordering. EBay has been uniquely able to partner up with Banks like Wells Fargo to enhance their payment processing system. For a global payment method, PayPal has always been an integral part of eBay. EBay is a registered online business model unlike other unregulated websites. It features real product and real seller on the other end...
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