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In today’s fast-paced and budget-conscious public sector environment, efficient procurement practices are more crucial than ever. Let’s explore what cooperative purchasing entails and delve into the myriad ways it can revolutionize public sector procurement. What is Cooperative Purchasing? Your Peers are Using Cooperatives!
Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government Contractors. We just completed two articles on the Truth in Negotiations Act (TINA) [1] and, before that, two articles on Defense Contract Audit Agency (DCAA) audits.
When the Office of Federal Procurement Policy launched its Better Contracting Initiative in November 2023, leaders promised this time would be different when it came to developing enterprisewide software licenses. Currently, prices routinely vary up to 20% for the same software across agencies, OMB wrote in its fact sheet about BCI in 2023.
Last weeks FAR & Beyond blog launched the Coalitions Government Procurement Efficiency List (GPEL) for the new federal market. The GPEL will identify opportunities to improve the efficiency and effectiveness of the procurement system to deliver cost effective, best value solutions to meet customer agency mission requirements.
Understanding how inflation impacts procurement and then taking action to mitigate its effects is essential for any business looking to stay ahead of the game. How Inflation Impacts Procurement Inflation affects a number of aspects of a business, including its ability to compete in the market, financial performance, and overall strategy.
Data management tools, like pricing algorithms and artificial intelligence (AI), are playing an ever-larger role in Federal procurement as agencies look to streamline processes, increase efficiency, and improve contract outcomes. GSA’s current use of algorithms and pricing data is instructive in this regard.
Watson, Government Contracts and Procurement Fraud Attorney: The Truth in Negotiations Act (TINA), also known as Public Law 87-653, is a U.S. 254b that requires government contractors to submit cost or pricing data in their bids and to certify. federal law, 10 U.S.C. 2306a, 41 U.S.C.
If you feel like prices for just about everything are going up, you’re not alone. In federal government contracting, however, a contractor may not have the same leeway to raise its prices. Accordingly, issuing an order based on non-FSS pricing under an FSS acquisition would be improper. B-421917.2,
If you have been following the monthly blogs you will now be aware of the different categories of procurement, the way KPIs can help manage performance as well as stakeholders and how we manage the four different categories. Across all these aspects of procurement we will find ourselves having to negotiate.
Last weeks FAR & Beyond blog launched the Coalitions Government Procurement Efficiency List (GPEL) for the new federal market. The GPEL will identify opportunities to improve the efficiency and effectiveness of the procurement system to deliver cost effective, best value solutions to meet customer agency mission requirements.
Federal Insights - GSA's FAS streamlining - 9/19/24 [link] Download audio In the battle to modernize and streamline federal procurement, the General Services Administration is on the front lines and in the trenches. We generally negotiated those pricing and terms and conditions with our contracting officers.
At 2 am on Saturday morning, the day after the 10th Conference of the States Parties to the UN Convention against Corruption (UNCAC) was meant to end in Atlanta, exhausted negotiators finally adopted a resolution on “ Promoting transparency and integrity in public procurement in support of the 2030 Agenda for Sustainable Development ”.
Author: Larry Berglund Negotiation competencies are a must in procurement. Whether in the private or public sector, you are always negotiating. Characterized as one of a few players in a market which control pricing or supply such as foods, communications, airlines, or office supplies. Where can you find leverage?
Price analysis can be considered a stage of bid evaluation depending on the provisions of a legal and regulatory framework. It is an assessment of the evaluated price of a responsive bid to ascertain that it is not unreasonably high nor unreasonably low, but fair enough to the procuring entity and the supplier.
Moreover, given the procurement system’s focus on regulatory and performance compliance, prime contractors are incentivized to flow down as many clauses as possible beyond those mandatory flow-downs. For this reason, procurement policy flow-downs cannot be one-sided.
Jeff Koses, GSA’s senior procurement executive, wrote that contracting officers, under certain conditions, can use upfront payments to buy software-as-a-service and it doesn’t violate federal procurement law that prohibits advanced payments. “In This move should increase competition and drive better pricing.
Data management tools, like pricing algorithms and artificial intelligence (AI), are playing an ever-larger role in Federal procurement as agencies look to streamline processes, increase efficiency, and improve contract outcomes. GSA’s current use of algorithms and pricing data is instructive in this regard.
Transparency is the key to effective communication between and among stakeholders in the procurement process. Communication is the connective tissue of federal procurement, bringing government and industry together on behalf of the American people. Transparency is in the government’s interests.
Among the charges are allegations that Raytheon engaged in a bribery scheme to obtain contracts with the Qatari military and misrepresented its costs during contract negotiations with the U.S. This is the second largest government procurement fraud recovery under the Act according to the DOJ. Department of Defense (DOD).
Federal resources like SAM.gov and the Dynamic Small Business Search database are essential for small businesses to find and compete for government contracts, offering centralized procurement opportunities and increased visibility to federal agencies. SAM.gov lists contracts over $25,000, making it a vital resource for small businesses.
A procure-to-pay solution offers a seamless process from point of order to payment. At Ivalua, we’ve seen how a Procure-to-Pay business process ensures sustained benefits through good buying practices, improves visibility and swifter issue resolution, and enables proactive management of suppliers. Reduced errors, fraud and risk.
In turn, this will lead to more consistent and sound negotiation and administration of MAS contracts. In the past, the regional structure gave rise to differing cultures, negotiation approaches, and interpretations of applicable regulations and solicitation provisions. Data context is critical to data driven decision making.
The Federal Acquisition Regulation (“FAR”) gives contracting officers significant flexibility in selecting the procurement method they choose to use. The Corps canceled the IFB citing that all bids were at unreasonable prices and cancellation was in the public interest. In Great Lakes Dredge & Drydock Co., LLC, B-421676.4,
As part of our ongoing efforts to modernize government IT procurement and management, the Better Contracting Initiative (BCI) has been a cornerstone of our strategy at the Governmentwide IT Program Management Office. We’ve embarked on a journey to streamline how our federal government procures and manages its software assets.
As one of three major acquisition policy changes GSA is seeking over the next year, the proposal would remove language in the schedules program that many blame for why agencies use lowest price, technically acceptable (LPTA) still too often. Jeff Koses is the senior procurement executive at GSA.
I get to talk with procurement teams about AWS Marketplace daily. I love this question because the answer cuts to the heart of how IT marketplaces offer a new way of approaching software procurement. I love this question because the answer cuts to the heart of how IT marketplaces offer a new way of approaching software procurement.
According to Forrester, “AWS continues to raise the bar for transacting and contracting, with real dollar benefits…[and] continues to work with procurement executives and other technology buyers to ensure its marketplace is solving their buying challenges.”
Why Benchmarking Matters in ProcurementProcurement is all about achieving value for money. In procurement, benchmarking involves assessing supplier performance, costs, and processes against industry standards or competitors to ensure you are receiving the best value. Ready to deepen your procurement expertise?
What does this mean for procurement and supplier management? If you want a supplier to work quickly, to provide their best ideas, people or products to support your business, they won’t be responsive if for the last three years you only communicated to beat them up on price or criticise their delivery performance.
Moreover, given the procurement system’s focus on regulatory and performance compliance, prime contractors are incentivized to flow down as many clauses as possible beyond those mandatory flow-downs. For this reason, procurement policy flow-downs cannot be one-sided.
Contract Management is often thought to be the last step in the Procurement life cycle but instead it is both the beginning and end of the procurement cycle and it provides a constant feedback loop. The following article discusses the various steps of contract management and its role in procurement efficiency.
Spring also means it is time for a Procurement Policy Spring Cleaning Checklist highlighting the key initiatives that will shape procurement operations for customer agencies and industry partners. Increasingly, AI is making its way into procurement operations. Multiple Award Schedule (MAS) Price Evaluation.
A contractor got into a pricing squeeze when the customer, in this case the Marine Corps, way underestimated the quantities for the services under the fixed-price contract. For details on the lessons learned, the Federal Drive with Tom Temin spoke with Haynes Boone procurement attorney Zach Prince. The contractor did just that.
No question, government procurement is different from acquisitions outside the public sector, Cunningham believes. He spotlights some best practices and procedures for tech procurement in local government: • Conduct a thorough needs assessment across departments. Prioritize stakeholder engagement, including community input.
Mitchell warns that “Agencies may have poor outcomes when a Lowest Price Technically Acceptable (LPTA) solicitation is awarded, and the public entity then goes completely hands-off and simply expects perfection with the final deliverable.” An agency’s tech-buying team should be highly inclusive with a variety of skills, Mitchell says.
GSA’s role in streamlining EOS acquisition GSA’s Multiple Award Schedule provides a centralized platform for government agencies to procure EOS products and services from pre-vetted vendors. With such a large pool of vendors, agencies are able to get multiple competitive bids to get the best price for required services.
A procure-to-pay solution offers a seamless process from point of order to payment. At Ivalua, we’ve seen how a Procure-to-Pay business process ensures sustained benefits through good buying practices, improves visibility and swifter issue resolution, and enables proactive management of suppliers. Reduced errors, fraud and risk.
I think most government contractors have contracts that are negotiated and the prices are negotiated upfront, and then they have to adhere to those prices over the course of the entire five-to-10 year contract. But yet at the same time, there are some procurement reforms cooking up. Tom Temin Right.
On November 16, 2023, GSA issued a proposed rule updating the General Services Acquisition Regulation (GSAR) Federal Supply Schedule Economic Price Adjustment (EPA) clauses. The rule proposes to remove “certain economic price adjustment requirements within these clauses to better align with commercial standards and practices.”
Businesses must understand the key differences between the public and private procurement methods, regulations, and goals when c onsidering tender opportunities in either sector. This article, which compares public and private procurement, gives suppliers the confidence to move in both markets.
Difference Between Procure to Pay and eProcurement. Procure-to-Pay is the sequential process we described earlier. Eprocurement or e-procurement comes from electronic procurement. Cloud-based Procure to Pay platforms are a must-have for any company that wants to become best-class in P2P.
Moreover, understanding the procurement processes of government agencies can significantly enhance your marketing efforts, allowing you to tailor your strategies to meet the unique needs of these major buyers. Federal agencies, through their extensive procurement needs, offer a myriad of contracting opportunities for businesses.
Ivalua Spend Management Insights [ivory-search] Procurement Rising: The Silent Inflation Tax on Manufacturers February 27, 2023 | | Manufacturing by Doug Keeley Last year, the Consumer Price Index was the highest it has been in four decades, making inflation one of the most concerning macroeconomic factors facing the business world today.
These documents play a vital role in the procurement process, helping agencies find the right contractors for their projects. An RFP is typically used for complex projects where the agency needs detailed proposals, while an RFQ is more suitable for simpler purchases where price is the primary factor.
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