Procurement management

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December 30, 2019

Procurement is the process of acquiring interests, services and goods of real property including construction. The United States government uses funds they spend on such interests for buying or leasing these properties. There is much regulation of federal procurement by the US using statutes governing federal contracting in the United States. The private parties entering into contracts with the Federal Government run with government regulations. Procurement management by the US government involves a regulatory authority for going into the contract. The US government uses policies in federal contracting. The Contracting Officer is agent to the US Federal Government and he has regulations guiding him. This procurement system of the United States is much more organised and structured. The major departments for federal procurements are: General Services Administration, Health and Human Services and Department of Defense. The major 5 defense and aerospace contractors in the US are Raytheon, General Dynamics, Northrop Grumman and Lockheed Martin. The Federal Government’s authority comes from the federal constitution. Contracting authority derived from American Constitution enables the government to contract with private organisations.

How does the US government manage their procurement?

The major laws for managing procurement in the United States are Federal Property and Administration Services Act, Procurement Act and Armed Services Procurement. The Federal Acquisition Regulation develops the administrative law for addressing rules from courts and by Congress. This regulation includes language and reference programs. A lot of agencies regulate the coverage. The supplements are in the Code of Federal Regulations (CFR). Federal common law governs common contracts. Another law for managing contracts is the Uniform Commercial Code (UCC) and general law. This code is for contracts for selling, buying and granting security interests on properties. The UCC is uniform among the states in the US and state legislatures. It is a common law that applies where the Uniform Commercial Code doesn’t. However the law applying to various states regulates contracts between subcontractors and the prime contractor law applying to various states.

 

Which part of the American Constitution deals on managing procurement?

The authority to buy is not among the powers for the US government. Section 8 of Article One of the US Constitution did not give this power to the Federal Government. Nevertheless the courts made laws proper and necessary for executing powers like militias, navy, army, banks, post roads and post offices. The US legislation provides money and endorses it. The acquisition process doesn’t influence this legislation even though procurement laws use the appropriation process. This is with the Federal Acquisitions Streamlining Act (FASA) and the Federal Acquisition Reform Act (FARA). Other laws are the Anti deficiency Act, Armed Services Procurement Act (ASPA) and the Federal Property and Administrative Services procurements

 

Proposals for US procurements

The contractor prepares the proposal according to the American Request for Proposals (RFP) that include the precise copy showing statement of work. Response shows approach on managing projects, statement of work and past performance samples with regards to complexity, scope and size. Evaluator scores shows proposals that do not meet specifications. Graphics and charts can promote a proposal especially the ones showing a contractor’s uniform. The government will skim over a proposal that is too long. The source selection team of the government does not wish to spend a lot of time on the selection process. Government awards contracts to many proposals that meet their needs. Contractors should know that the lowest bidder is often the winner. This solicitation shows that a contractor should draft a proposal that will meet the needs of the government.

Acquisition planning is the first stage for Federal acquisition. Planning for acquisition depends on certain circumstances. The acquisition by the Federal Government needs effective planning. Another relevant document for submission is the Statement Of Work (SOW) which shows the period, requirements, standards, schedule and work place.

How do states in the US manage procurements?

Certain states in the US does well when it comes to public procurements. This goes with the use of analytics and data. The major 5 best states for public procurement are New York, Ohio, Massachusetts, Georgia and Michigan. Michigan uses agile development, category management and strategic sourcing to cut down costs, promote innovation and increase procurement cycles. Certain trends are reshaping procurement through states. This include analytics and data as states get more mature, adopt contracts-based on solutions, forge closer relationships and contract vehicles. Using analytics and data procurement success applies and up to 70% of survey respondents use and spend data. Michigan and Florida are states that use market research firms, vendors forums and expert in the internal subject. Florida uses technology tools for gathering market information and industry. The state uses a reporting tool for capturing data. It provides customer reporting and analysis for supporting negotiations. Georgia used data from state procurement audits for educating procurement offices and procurement professionals. 90% of states in the country have rules governing procurement. Alaska awards their contracts according to the ability of the vendor with the cost. Ohio is one of the states that aims to solve an agency’s problem. The state of Ohio awards contracts based on earlier terms and conditions.

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