Assignment 4 Win the Contract, Simplified Acquisition Methods
Simplified Acquisition Methods
Simplified acquisition methods are contract methods that are used to facilitate procurement of goods and services and the acquisition process. There are different simplified acquisition methods that can be used for federal contracts by the contractors. Our small company which produces very small remote control aircraft capable of long sustained flights want to compete for Department of Defense (DoD) contract that should be more than $600,000 to be able to expand. The acquisition method that fits the company is the purchase orders. A purchase order is a legally binding document that authorizes purchases transactions between a buyer and a seller. A purchase order provides information on descriptions, quantities, prices, discounts, payment terms, date of payment and shipping, and associated terms and conditions("Subpart 13.3—Simplified Acquisition Methods", 2017). The order also specifies the seller.
There are several reasons I think purchase order simplified acquisition method fits our company. One of the reasons is that purchase orders are organized and clear. This reduces potential misunderstanding as the specific helps the seller understand what the buyer wants. The buyer can also use it to ensure all the specified items were delivered to the seller. This helps in inventory management for both the buyer and the seller. If our small company uses the purchase orders chances are high that it will meet the specifics of the flights ordered by DoD thus avoiding misunderstanding which may lead to a loss.
Another reason why purchase orders fit our small company is because it provides a legal protection. A purchase order becomes a legally binding document when the seller accepts the order. In this case, our small company can take a legal consideration against the DoD if it is not paid according to the specific terms and conditions. The DoD can also sue our company if they do not meet the specific terms and conditions for the goods to be delivered. This means that our company should always be careful to meet all the terms and conditions of the contract for it to be on the safe side. If it meets the conditions, there is a probability of renewing the contract over and over thus making it expand its services.
Purchase order financing is another benefit our company can have from suing a purchasing order. This is because if the company does not have enough cash flow for the order it can secure a loan in form of a purchase order financing. Purchase orders can be verified by a financial institution as there are fewer risks involved. This can facilitate the growth of our company because after the first order is completed, the possibility is that it will be able to finance the contract with time if it is renewed.
A uniform contract format has four parts which include; the schedule, contract clauses, list of documents, exhibits, and other attachments, and representations and attachments ("Subpart 15.2—Solicitation and Receipt of Proposals and Information", 2017). The part that can present a problem to the competing of the contract is the part IV, representations and instructions. The evaluation factors for the award can limit the company from winning the bid. This is because at this section the other bidders are evaluated and the best of them wins the contracts according to the contract terms and conditions. For the company to win the contract from the other competitors it should consider a number of things.
One of the things it should consider is to focus on getting quality testimonials. As our company is small it needs to look for ways in which it will convince the buyer, DoD, that they can deliver quality goods by meeting the specific terms and conditions. This can be achieved by having video or written testimonials from trusted companies. Having trust signals like website contact form can also enable the company to take advantage of winning the contract. This is because the form will provide information such as toll-free number, office hour’s information and response times. Maintaining a good web reputation is also another opportunity for the company. This is because the DoD will go through the company’s website and if it has a good reputation, that is an added advantage. Paying attention to branding is also another opportunity to our small company. This is by making sure that the company colors and logos are clear, social media profiles matches with the company’s website and the use of specific company tone in the marketing copy ("Forbes Welcome", 2015).
Forbes Welcome. (2015). Forbes.com. Retrieved 20 May 2017, from https://www.forbes.com/sites/theyec/2015/09/01/how-small-businesses-can-win-big-contracts/2/#528e04ca19a6
Subpart 13.3—Simplified Acquisition Methods. (2017). Acquisition.gov. Retrieved 20 May 2017, from https://www.acquisition.gov/far/html/Subpart%2013_3.html
Subpart 15.2—Solicitation and Receipt of Proposals and Information. (2017). Acquisition.gov. Retrieved 20 May 2017, from https://www.acquisition.gov/far/html/Subpart%2015_2.html