Case Analyses- Request for Proposal

The Request for proposals (RFPs) is used in negotiated acquisitions for the procurement of supplies and services (research and development (R&D), construction and commercial items), by the contracting officer issuing a solicitation to communicate the government needs to prospective contractors. The policies and procedures that govern RFPs vary between the procurement of commercial items and construction. The purpose of this paper is to compare the two RFPs and identify the differences.
The Federal Acquisition Regulation (FAR) requires commercial items acquisitions exceeding $5.5 million to be solicited using the RFPs contract method and solicitations is prepared using the standard form (SF) 1449. The commercial items RFP used in this comparison was issued by the Department of Veteran Affairs (DVA). The requirement is to provide inscription for blank marble niche covers for Arlington National Cemetery. The acquisition is being set-aside for service-disabled veteran-owned small business (SDVOSB). The period of performance is for a base period and four option years. The option clause to extend the term of the contract is included. The option clause does not obligate the government to exercise the option years. The government may exercise an option by providing the contractor with a written notice within the time specified in the contract. The solicitation states that prospective contractors must provide an all-inclusive unit price. The solicitation provides a list of government furnished material.
The RFP requires prospective contractors to include all cost in their unit price. This means the prospective contractors must consider all cost that will affect their bottom-line to include profit and forecast that cost into their proposal. The prospective contractors must understand that the government is not required to exercise an option period. If, a prospective contractor do not have a clear understanding of the option clause and spread their profit throughout the option years, to make their proposal more appealing to the government, the contractor can lose a large sum of profit, if the government decides not to extend an option. It is the prospective contractors’ responsibility to ensure government furnished material is stored properly and not integrated with the contractors’ stocked materials.
All construction solicitation must be prepared using the SF 1442. The Contracting Officer must use RFP acquisitions method, when negotiations (discussion) are contemplated with prospective contractors. If, discussions are not required, the invitation for bid (IFB) is the required contract method. The RFP for construction used in this comparison is for a design/build project to construct all the buildings and infrastructure necessary to support two addition battalions to the Wallace Creek Phase II complex, Marine Corp Base, Camp Lejeune, NC, using military

construction program (MILCon), funds approved by congress. The solicitation has one base bid and one option bid. The prospective contractors must provide payment protection to include Bid Guarantee. The period of performance is over 1200 calendar days. This solicitation is a two phase process. Prospective contractors must submit two proposals, one for the design phase and one for the construction phase.
This requirement was solicited as an “Unrestricted” Full and Open Competition. FAR Part 19.10- Small Business Competitiveness Demonstration Program was developed to allow specific groups to participate in a special program that require industry groups with certain North American Industry Classification System (NAICS) codes, to compete within the industry without restricting competition through set-aside. Construction is one of the groups within that program. The FAR still requires contracting officers to consider small business for requirement below the Simplified Acquisition Threshold (SAT) of $100K and must continue to consider them for requirements over $100K, if, there is a reasonable expectation that two or more offers will be received in response to the solicitation. When the contracting officer cannot reasonable expect two or more offers. The requirement must be solicited as “Unrestricted” Full and Open allowing large businesses to compete with small businesses.
It is the responsibility of the prospective contractors to make sure they have a clear understanding of the RFP before preparing their proposal. Construction solicitation requires prospective contractors to provide certain types of payment protection for various thresholds. Projects valued over $100K, requires prospective contractors to submit a bid bond with their proposal. The bid bond guarantees the government that the prospective contractors are financially able to receive the required payment protection from a surety company. Prospective contractors must also consider: surety bonds fee, length of time to complete project, number of building and size, liquidated damages, subcontractor cost, rental equipment cost, and design cost when preparing their proposal.
This paper has identified major differences between a request for proposals for commercial items to construction procurement by comparing the policies and procedures required by the FAR for each type of requirement. Similarities between the two RFPs: both require the prospective contractor to provide a proposal, firm-fixed price (FFP), and the ultimate goal is accomplished with both …to satisfy the government needs.