...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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...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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...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 most major newspapers, the financial press, and some television stations. Bids are accepted up to thirty days in advance of the auction, and may be submitted electronically through the Treasury Automated Auction Processing System (TAAPS) and by mail. All bids are confidential and are kept sealed until the auction date. In an auction, two types of bids can be submitted: Non-competitive tenders...
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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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...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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...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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...of Contracting Government Acquisition – BUS501 Date: 31 July 2011 An analysis of the difference between sealed bidding and negotiated contracting based on FAR standards and the needs and peculiarities of buying an IT system from an agency; it is believed that negotiated contracts are more appropriate. In fact, the landscape of acquiring government contracts has been moving towards the trend of negotiated contracts. It has actually become to norm for procurements, unless for certain occasions where sealed bidding is deem necessary. This case is not one of those occasions. Sealed bidding is only used when certain situations arise. For one, sealed bidding is only okay if the government has a lot of time. The process of soliciting bids, encouraging interested parties to pass their bids and evaluating the submitted bids could be very time consuming. An information technology system is often needed as soon as possible because this system would be used to streamline the operations and make the tasks of everyone in relation to the agency easier and more efficient. There is not a lot of time to ask for bids and evaluate each one being received. Although it would be nice to cut out on costs and sealed bidding offers this advantage, there are some ways to make sure one gets the best deals out of negotiated contracts as well. The time for sealed bidding often takes at least 30 days, wherein the solicitation of bids take place. More time would be needed to conduct the analysis...
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...Sealed Bids vs. Competitive Proposals Strayer University Cost and Price Analysis – BUS 315 Sealed Bids vs. Competitive Proposals When the government has recognized a necessity for supply and services, they immediately conduct a market research, and find probable sources of supply. This information is then sent to the contracting officer for procurement. The contracting officer is solely responsible in determining if the procurement may be accomplished through sealed bidding or negotiation. Sealed bidding is the government method to make known of a need by a solicitation named Invitation for Bid (IFB). Negotiation as used in the acquisition process, means contracting through the use of competitive proposals and discussions, between the contracting officer and the contractor. These government solicitations for negotiation are called Request for Proposal (RFP). The solicitation process originates similar for sealed bids and competitive proposals. The contracting officer announces an IFB for sealed bids, and/or a RFP for a competitive proposal, in FedBizOpps. Most solicitations are accessible, and can be copied directly from the Internet. The contractor upon awareness of these solicitations replies by submitting a bid for the sealed bidding, and/or a proposal for the competitive proposal solicitation. Most contractors contemplate sealed bidding as the less pricey, fastest economical procurement method since no time is lost in negotiations. Bids are assessed with...
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...Assignment 1: Sealed Bids vs. Competitive Proposals Howard Dingle William La Salle BUS 315- Cost and Price Analysis 10-28-12 Abstract In order to compare and contrast Competitive Contracts and Sealed Bidding Contracts, I have to define each term. After defining the terms I have to explain which contract I think is the most valued contract alternative. Write a 1-2 page paper in which you compare and contrast sealed bidding and competitive proposals in terms of which are most advantageous to contractors. In order to do compare and contrast analysis of seal bidding contracts and competitive proposal contracts, I have to define each concept fully. After completing this task, then I can come to a decision in which I think which contract is the most suited to conduct business in my opinion. Sealed bid is the document enclosed in a glued (sealed) envelope and submitted in response to invitation-to-bid (ITB). Sealed bids received up to the deadline date are generally opened at a stated time and place (usually in the presence of anyone who may wish to be present) and evaluated for award of a contract. Competitive sealed bids are for purchases of items of tangible personal property; services and construction over $10,000 or $20,000 small purchase limits. Bids for construction contractors or heavy equipment purchases are good examples of a competitive sealed bid. Competitive Proposals is a procurement that meets the following criteria: 1. Is initiated by...
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...Sealed Contracting The method of obtaining government contracts has changed considerably. Sealed bidding is less frequently used now than in the past. However, there are certain situations when sealed bidding is mandatory. According to the Federal Acquisition Regulation when preparing sealed bidding invitations must describe the requirements of the Government clearly, accurately, and completely. Unnecessarily restrictive specifications or requirements that might unduly limit the number of bidders are prohibited. The invitation includes all documents (whether attached or incorporated by reference) furnished prospective bidders for the purpose of bidding. As a result government contract practitioners still must familiarize themselves with processes that call for sealed bidding. In the mid-1990s, Congress made several changes to statutes related to processing acquisition of government contracts. Before these congressional amendments sealed bidding was the standard. In most cases sealed bidding is the preferred method for construction , so if the Seahawk helicopters and Cobra aircrafts are being purchased for that type of business it would be a better option. Negotiated Contracting These amendments gave federal contracting officers more opportunities to award contracts through the newer process competitive negotiation. The process begins when the CO issues a Request for Proposals. The RFP must, include the agency’s need, the terms and conditions of the contract and any other...
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...| | Assessor’s initials | | Maastricht UniversitySchool of Business & Economics | Place & Date: | Maastricht, 10-12-2012. | Name, initials: | Elemans, DP | ID number: | I6049135 | Study | International Business | Course Code: | EBC1009 | Group number | 36 | Tutor name: | Nikita Krugljakov | Writing tutor name: | Gaye van Denderen | Writing Assignment | Main Paper (Task 10) | Your UM email address: d.elemans@studentmaastrichtuniversity.nl Table of contents: 1. Introduction 2. Advantages and disadvantages of online auction 2.1 Advantages 2.2 Disadvantages 3. Different types of auctions 3.1 English auction 3.2 Dutch auction 3.3 First-price sealed bid auction 3.4 Second-price sealed bid auction 4. Different methods of bidding 5. Winner’s curve. 6. Example of bidding, using game theory. 7. Conclusion 8. Reference list 9. List of figures and tables 1. Introduction The internet itself started in the sixties in the United States. It has had massive growths and has given the population some very useful tools. The most current development is internet auction, also called online auction. Online auction is a service in which auction users or participants sell or bid for products or services via the internet. Sellers put products on the site and following this, buyers can place an offer that they are willing to pay for it. The sellers can then decide to accept this offer or wait for a higher offer to come. eBay is one of the most...
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...1. Under What Condidtions Is Sealed Bidding Required Contracting Officers shall solicit sealed bids if-Time permits the solicitation, submission and evaluation of sealed bids;The award will be made on the basis of price and other related factorsIt is not necessary to conduct discussions with the responding offerors about their bids; andThere is a reasonable expectation of receiving more than one bid. 2. Contracting officers shall solicit sealed bids if -- (1) Time permits the solicitation, submission, and evaluation of sealed bids; (2) The award will be made on the basis of price and other price-related factors; (3) It is not necessary to conduct discussions with the responding offerors about their bids; and (4) There is a reasonable expectation of receiving more than one sealed bid. 3 .Price and only price related facors 4. Contracting officers shall solicit sealed bids if—(1) Time permits the solicitation, submission, and evaluation of sealed bids; The award will be made on the basis of price and other price-related factors; It is not necessary to conduct discussions with the responding offerors about their bids; and There is a reasonable expectation of receiving more than one sealed bid. 5. A recognition that the Government always seeks to obtain the best value in negotiated acquisitions using any one or a combination of source selection approaches, and that the acquisition should be tailored to the requirement. At one end of this continuum is the low priced...
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...Introduction This paper is going to cover the different types of contracts and cover performance-based acquisition. Discuss which contract that would be warranted on vehicle purchase. Also, evaluate the pros and cons of sealed bidding, and negotiated contracts. Cover, which one would be best purchasing of vehicles in this case. Furthermore, we will cover the responsibilities of the contracting officer during the proposal evaluation. Assess the requirements for performance-based acquisitions and last create requirements for the vehicle purchase that could be included in a performance-based contract with rationale. Examine the types of contacts and performance-based acquisition Types of contracts that can be used are fixed-price, cost-reimbursement,...
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...Feldman, Ch. 16 and Compton Ch. 6. You will need to list, define, discuss and provide examples of the main three offered within the article: Fixed-Price, Cost-Reimbursement, Time-and-Materials (T&M), AND the two offered within Compton p.p. 66-70: Letter Contracts and Indefinite Delivery Contracts – this is a graduate level class…I will be looking for you to discuss all five! Please do so! Please include research from both of our textbooks [interpret, cite and reference]). For Performance-based acquisition, [Compton Ch. 7] you can also use information from your Week 3 DB as well). Finally, as the question requires, select and explain, the best type of contracts for the trucks and cars for DHS). 2. Evaluate the pros and cons of sealed bidding contracts and...
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