The federal government streamlined its procurement process last week by issuing new rules governing contract negotiation and competition for contracts.
Long-awaited revisions of Part 15 of the Federal Acquisition Regulation were issued in the Federal Register on Sept. 30, almost two years after the Part 15 rewrite began. The rewrite simplifies acquisition processes and promotes several new business practices that proponents say will save both the government and contractors time and money. The rewrite was delayed because small businesses were concerned that the revisions would make it difficult for them to compete against large firms for government contracts.
After two proposed rules were issued and officials received more than 2,000 comments on them, the final rule incorporates some changes to address small business concerns, while still revamping the contracting process.
Under the new rules, contracting officials will be able to limit the number of proposals they consider, and only the top-rated contenders for a contract must be included in the final competition. Officials say this will save contractors money because they won't have to waste time on bids they have little or no chance of winning. It will also help agencies, because they won't have to review bids that are unlikely to be successful.
The new regulations also promote increased communication between government and industry to eliminate confusion over requirements. They encourage the use of past performance evaluations in contracting decisions, but give businesses the opportunity to explain poor past performance.
The rules also encourage oral presentations, which are generally less costly than written proposals. At Fort Sam Houston in San Antonio, oral presentations cut the lead time on a procurement for outpatient clinics from up to 15 months to five months. Proposals that used to take up huge stacks of paper were reduced to the point where they could fit in a single envelope.
The new rule becomes mandatory for procurement offices on Jan. 1, 1998.
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