Government Solicitation Bid Package Mini-Course - Part 3

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Let's get back to the Government Solicitation Bid Package Introduction.

Exploring the Solicitation Structure

An IFB is generally a ‘sealed bidding method’ utilized when there is no substantial difference between the products or services that meet the specifications. It focuses solely on getting the best price possible for what it needs. The issue with IFB solicitation is that it could result in poor quality work and performance issues.

This process is utilized regularly by the federal government and can be issued in one of 4 ways:

1. Open tenders – These are open to all potential vendors and contractors that meet submission requirements and can guarantee performance.
2. Restricted tenders – These are open to only a select group of prequalified vendors or contractors who meet a set of minimum qualifications.? This may be part of a two-part process: the first step is an expression-of-interest (EOI) tender call that produces the list of vendors that are qualified to participate in the second part.
3. Double envelope system – This system separates the technical proposal from the price proposal. When the evaluator is choosing the winning proposal, they consider the technical proposal first and then look at the price. This system is intended to ensure a fair evaluation of the technical merits of a proposal, without being influenced by its cost.
4. Tender box – This system uses a mailbox to receive bids. This tender box is open for interested parties to submit their bids during the period of time that proposals are being accepted.? Once the bidding period is over, the tender box is sealed shut and can only be opened by the evaluation committee or a member of the procurement management department with two witnesses.

A Request for Proposal (RFP) involves a Negotiated procurement generally utilized when soliciting complex products and services. There are two types of federal government contracts – competitive acquisitions and sole-source acquisition. The RFP process involves competitive bidding by at least two contractors. While the RFP may be advertised, it does not have to be, and the federal government may privately contact several contractors and ask for competitive proposals.?

Once the government receives bids from the contractors, it will impartially and comprehensively evaluate the proposals and determine which bid to accept. The government is searching for the “best value” contract; i.e., the contract that will provide the greatest overall benefit to the government, not simply the least expensive bid.

Sole Source Acquisitions involve RFPs being directed toward specific contractors, rather than going through the competitive bidding process. Sole-source contracts are generally contracts aimed at filling specific and unique government needs and are either low-cost contracts or contracts that can only be filled by one business.

Regardless of the type of contract, the bidding process begins with the federal government preparing an RFP. The RFP will either be advertised or sent to one (in the sole source case) or more than one contractor. The proposal will list the job requirements and request the submission of proposals (bids).

Invitation to bid or a request for proposal?

When bidding on federal construction projects, you may be dealing with one of two forms of procurement. While similar, these methods are different enough to cause severe financial problems for firms that fail to properly submit or service a bid.?

Invitations to Bid are utilized when there is very little difference in how the project will be completed from one bidder to the other. Essentially, every bidder can produce the same product, so the only thing that separates them is the cost of their services.?

Most government contracts are procured with an invitation to bid, and for good reason. Bids are sealed in envelopes and opened publicly. The government contract is awarded to the lowest bidder regardless of their experience. This is done to remove bias from the selection process and to promote fair competition.

Unlike an invitation to bid, a request for proposals (RFP) is used on more demanding and complex projects. These projects require a high degree of technical expertise. As a result, experience and approach are considered in addition to the price. The advantage of an RFP is that it leads to a superior final product. However, it also leads to a much longer selection process and the potential for negotiations to break down.??

It is imperative that you as a contractor understand the upfront costs associated in the pursuit of government contracts. Nothing is guaranteed. As much as the government tries to keep things on a level playing field, awards generally will go to contractors who have a relationship with the procurement team.

Relationships are the linchpin when it comes to contract awards. Everything else being equal, those with the strongest relationship wins.

Stay tuned, in the next newsletter... we'll get into the "What Happens After The Response Is Received."

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Whether seeking to enter the local side (state, county, and municipal) or jump into Federal contracting without an introduction from Governmental Relations team members – we can help you get started!

If you're ready to dive in now, here are some options:

1. Enroll in the full course now - Introduction to the Government Solicitation Bid Package
2. Book a consultation: see my calendar