assignment 3

CONTRACT NEGOTIATION 6

Contract Negotiation

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University affiliation

Contract Negotiation

Suggest three (3) ways in which the basic concepts of the FAR Policy would mutually benefit your small business and the Navy.

Federal Acquisition Regulation, (FAR) refers to the system that governs the acquisition process through which individuals acquire certain goods and services through the utilization of contracts. Unlike the simple buying and selling processes through which individuals obtain goods and services on stores and pay for them cash, the contract processes are complex and might involve services to be rendered for a long time before payments are made. To ensure that every organization or individual keeps the terms of the contract, the FAR has established certain contract terms through which all individuals must follow completely. The FAR, therefore, provides a uniform policy through which all contracts must follow. Its policies will significantly benefit both the Navy and the small business.

One of the ways through which the FAR policies would mutually benefit both the business organization and the Navy is the provision of a contract procedure through which these two organizations will utilize to formulate and agree upon its terms. This significantly helps both the small business and the navy since with the process having already being developed and determined; there is no need to start developing and formulating procedures to utilize in the contract. This might even cause other problems where the organization and the Navy do not agree upon the process to utilize in formulating the process. The FAR policy regarding the already determined contract process that all organizations and individuals joining contract agreements, therefore, benefits both the small business and the Navy by helping to reduce the time needed to create the contract (Manuel, Halchin, Lunder, & Christensen, 2015).

Another basic concept of the FAR requires that both parties should ensure that they remain bound and act according to the terms of the contract without defying them in any way. With this concept, therefore, both the navy and the small business will thus attain certainty of each other with regard to satisfying the terms of the contract. Without proper satisfaction of the terms of the contract, either the small business would not be certain that the Navy will uphold its part of the contract, or the navy would lack certainty that the small business will manage to provide the services that it describes in the contract. With the requirement concept of the FAR, however, both organizations attain this certainty. The third way through which these organizations will mutually benefit from the FAR concepts is through the concept of contract pricing. Since contracts are diverse with many of them being of different values, the concepts of the FAR policy do not fix a certain value to be the price of all contract. They, however, provide guidelines through which the price of a contract should be determined. Since pricing is among the most problems that individuals acquire when they are negotiating, the FAR concepts significantly benefit both the small business and the navy (GSA, 2015).

Determine the method that you will use for solicitation of a bid. Next, explain why the Navy is likely to choose your company in the sealed-bidding process.

The process of soliciting for a bid is a significantly important process that all organizations should be significantly conversant with. In order to be granted the contract, the navy organization will require the assurance that the small business organization has the capability to provide the specific services that are it requires completed. It also requires attaining the assurance that the small business is the one offering the best terms among other competitors for the work that the organization requires done. To provide the organization with this assurance, I will first explain the abilities of the organization with providing the services that the Navy requires, by stating the qualifications and skills of the organizational employees who will provide the services required. I will then provide the organization with fair private offers and a short period requirement to complete providing the services.

The Navy as explained requires the organization offering the best terms and one that is highly willing to implement the organizational needs in its service. It is also likely to prefer the organization with the highest capability of providing the services professionally. After providing it with the qualifications of the specific professionals that will provide the organization with the services needed and offering fair prices, therefore, the navy organization is likely to choose my company for the contract (Turner, 2014).

References

GSA, (2015). Federal Acquisition Regulation: GSA. Retrieved from https://www.gsa.gov/portal/content/101126

Manuel, K., Halchin, E., Lunder, E. & Christensen, M. (2015). The Federal Acquisition Regulation (FAR): Answers to Frequently Asked Questions: Congressional Research Service.

Turner, C. (2014). Unlocking contract law. Abingdon, Oxon: Taylor and Francis.