Procurement Processes Essay.
Develop a Procurement Strategy (20%)
Using the situation provided below, students will identify a strategy for each procurement.
Required Formatting of Assignment 2:
- This assignment is NOT a paper. You may list each scenario and provide your selected strategy together with an explanation of why that strategy is best
- Write in the third person;
- Include specific FAR paragraph references in your explanation
- Include a separate reference page.
- Submit the assignment in the Assignment Folder.
You are the senior contracts personnel in a USG department. After a department meeting, your group was asked to review all the contracting activities that your department will be responsible for in the next year. You are to present your recommendations to the entire staff at the next meeting. Attending the meeting is the entire contract and procurement staff.
As you go down the list of approved business activities (that is, activities that will be completed via contracting and for which funding has been approved), you need to determine what types of procurements you will conduct. The decisions to make are:
- a sealed bid process, or
- a two-step sealed bid process, or
- a negotiated procurement.
Required Elements to include in the Situation –
In your response, you will discuss which strategy you would choose for each procurement and why.
Your programs are:
- painting and re-carpeting a 3-story office building for your staff
- inventory and supply of standard office supplies to be delivered monthly
- a new computer system to replace the current HW and SW suites used in the Accounting Department with approximately 300 people
- landscaping and snow removal services around the buildings for the year
- maintenance of your department-owned emergency power generation system
- T-shirts and hats with logos for the department softball league
Procurement 1: Painting and re-carpeting a 3-story office building for the staff – The suitable procurement method for this procurement would be the sealed-bid method which all bidders submit their bids without the other’s consent (Coss, 2016). The key reason why the procurement method is suitable in this case is that the firm would not want another contracting body to take contract.
Procurement 2: Inventory and supply of standard office supplies to be delivered monthly – The most favorable procurement method in this instance is the two-sealed bid process which is a combination of competitive procedures created to attain the advantages of sealed bidding when enough specifications are not present (Coss, 2016). The major advantage for this process in this case is that it normally helps to acquire large amount of goods.
Procurement 3: A new computer system to replace the current HW and SW suites used in the Accounting Department with approximately 300 people – The appropriate procurement method in this case is the negotiated procurement method that allows both parties to agree on the price (Coss, 2016). The method is suitable in this case because it would allow the purchasers to agree on the appropriate price.
Procurement 4: Landscaping and snow removal services around the buildings for the year – The procurement method in this scenario would be the negotiated procurement method. The method is necessary in this case because the team in charge of the process will have a good opportunity to settle on a price that would not strain the company.
Procurement 5: Maintenance of your department-owned emergency power generation system – The appropriate procurement strategy in this case would be the sealed-bid method. The major reason why the method is preferable in this case is that the company will be able to determine the cost that would fit the organization.
Procurement 6: T-shirts and hats with logos for the department softball league – The company will use the negotiated procurement method to make it easy to agree on the most suitable price that would not cost the firm highly.
Coss, L. (2016). Procurement methods: Effective techniques, reference guide for procurement
professionals. London: BookBaby.