Procurement

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3. A new computer system to replace the current HW and SW suites used in the Accounting Department with approximately 300 people

Negotiated procurement – works best for large purchases i.e., equipment, land, or buildings.

Companies require negotiation as part of the process in order to lower the cost of the assets as much

as possible. This method will often need different competencies from the procurement office.

The technology industry typically negotiated procurement process. During the negotiated procurement process, no one can get from the government, a contractor’s technical solution, including the unique technology, if this happens would compromise the contractor’s intellectual property. Since the company’s intellectual property is a valuable commodity that the government collects during the procurement process, it could be used to get a cheaper price from a competitor. In addition, the FAR states that the government must protect its sources. The government cannot reveal any reference information about the contract as stated in the FAR 15.306. Further the government can’t reveal an offeror’s price without that offeror’s permission. The government can however tell one or all companies that its price is too high or low and give them the government estimate for the purchase. There are a few steps an agency takes in a negotiated procurement to purchase goods and services. First you must determine the resources required to meet the operational strategy. The agency develops its operational strategy for accomplishing that mission. Agency considers facilities, personnel, budgets, and other resources. Then assign a program manager and contracting officer. From there the agency must develop a acquisition strategy, and then acquisition plan. The program manager and the contracting officer have attain approval and funding. You then establish the source selection authority, who determines the winning contractor. After we determine the winning...
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