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Contract Bidding With the Navy Report

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How the Basic Concepts of the FAR Policy Would Benefit my Business with the Navy

The Federal Acquisition Regulations (FAR) policy requires that all the contracts to supply must be open for competition. The FAR policy allows small businesses to venture freely into the competition if they meet the requirements to win the contracts. The set-up structures for different currencies within the FAR framework make the internationalization process of doing business possible and smooth. The FAR offers initiatives by providing various solutions to small businesses. Such initiatives make them compete with even larger businesses that offer the same contracts and become reputed. This paper will look at the various tenets of the FAR policy that would benefit my small business in its contract negotiation with the navy as well as the method that shall be used to solicit for bids.

Under the government cost principal contract, FAR states what and when the prices can be recovered. The specific cost that can be recouped is confined under three conditions of which it must be reasonable, allowable, and allocable (Funari, 2019). There are clauses in the FAR policies that allow the US government to recover any payment from the contractor under the said three conditions. The provision of competitive negotiation between the small businesses and the contracting navy makes the awarding of the contracts process smooth (Funari, 2019). The protocols in the FAR policies remove complexities in the case where any two requests for proposal (RFP) from two competing businesses.

Provisions in FAR policies such as the acceptance and inspection of delivery, testing of products, or the services to be provided are available by the small businesses. Also, FAR offers the processes of payments, changes of the scope of work, and the terms and conditions of contract terms that facilitate the ease of doing business with the navy (Mlinarchik, 2017). Just as with the United States Department of Transportation, there is a concerted effort across many government institutions to ensure that many small businesses gain more acceptance in contract biddings and thereby find it easier to conduct business with the government.

Bid Solicitation Methods and How to Gain the Upper Hand in the Sealed-Bidding Process

The solicitation of any bid by a business must be made using competitive negotiation of the contracts. The RFP (Request for Proposal) is the first step in the negotiations to win a bid for all businesses that are participating in the bid. Thereafter, the navy is likely to choose my small business in the sealed-bidding process (Funari, 2019). The RFP will demonstrate the naval needs, terms, and conditions, the resources that are required to accomplish the contract, and all the technical requirements for the evaluation of the proposal. The final copy of the RFP is analyzed by the FAR officers and they choose the offer that is more beneficial to their requirement. Therefore, the choice of a winner of the bid will be made.

The government has the right within three years, to audit all the contractors’ data and all records at any given time. Besides, the audit price that has been proposed before any negotiation process can be audited by the government. This requires that any relevant supplements are included in the proposal during its preparation (Funari, 2019). It is critical, unlike when dealing with FAR, to confirm the procedure of acquisition that governs the regulations.

Since the FAR policies make the bidding process smooth, the navy will choose my business. The efficiency of the government activities is regulated by the FAR policy and makes it eliminate any deficiencies that may occur in my proposal. Some exemptions in the required compliance process may be an added advantage. In this case, my business complies with FAR policies, therefore, offering a minimal chance of abolishment by the government or any of its agencies. Otherwise, we cannot compete in the proposal. With this, my business requirement is to gain an upper hand against the other businesses’ proposals since we have complied with all the FAR rules and policies.


Funari, N. C. (2019). Masters of Public Administration, Texas State University, San Marcos, TX. Web.

Sobota, J. (2017). Web.

Mlinarchik, C. (2017). Does the FAR Apply to Federal Contractors? No! Dispelling Myths in FAR Applicability and Clause Selection in the Contracting Profession. Contract Management. Web.

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