By Irv Alpert
Executive Vice President, Onvia, Inc.
In some ways, the government RFP process is the most flexible of all the government procurement methods, but it can also be the most complicated.
According to the General Services Administration, which jointly oversees the FAR rules with the Department of Defense and NASA, the RFP/negotiation method of procurement may be warranted under any of the following conditions:
- There's not enough time for sealed bidding
- The award will be based on factors other than price
- Discussion with bidders is necessary
- The government is aware of only one source for the item or service.
As part of the RFP process, businesses and contracting officials are allowed to bargain over details before a contract is awarded. Depending on the size and complexity of the purchase, negotiations may include discussion of price, schedule, technical requirements, the type of government contract and other terms. This is why government RFPs will vary by product and service type.
Government RFPs can be densely detailed documents with myriad regulations, requirements and stipulations. By setting forth strict guidelines, agencies strive to make the contract-award process unambiguous and fair. Every vendor must adhere to the same exacting requirements and review criteria.
Here's how the process works:
- Contracting officials issue an RFP that contains all the information necessary for companies to prepare their pitches.
- Companies write and submit their proposals, paying special attention to requirements specified in the RFP, such as the work plan, staffing, company financial data, and other criteria.
- Contracting officials review the proposals and select those deemed competitive enough to continue in the evaluation process.
- Contracting officials and companies meet to negotiate specific aspects of proposals, including the areas in which the proposals don't meet the agency's needs. Companies may be invited to submit revised offers, taking into account concerns raised during negotiations.
- Before the government contract is awarded, the agency determines whether the would-be contractor is responsible. Small businesses deemed not responsible are referred to the SBA for further review. If the business passes muster, the SBA will award it a Certificate of Competency, which is binding on the contracting official.
