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Saturday, April 23, 2016

Discover More About Government Contract Award

By Peter Robinson


A contract is whereby two or more parties agree on doing something or not doing something specified. This agreement is usually legally binding hence is enforceable by the law. A valid contract must have elements like; intention to enter into a contract, an offer, acceptance, consideration and capacity. It is mostly in written form but can also be in implied or spoken forms. In relation to this, the following is an article on government contract award.

Government contracts can be grouped into the following categories; fixed-price contracts, labor-hour contracts, cost-reimbursement contracts, incentive contracts, negotiated contracts, indefinite-delivery contracts, time-and-material contracts and labor-hour contracts. They usually use three methods for public procurement which are open tendering, limited tendering and prequalified tendering.

The methods by which contracts are awarded in the government are usually regulated by the constitution and the method prescribed must usually be followed. They mostly uses competitive bidding also called open tendering especially for big government expenditures like the construction of public buildings and roads. This method is fair and discourages fraud and favoritism.

This contracting process involves steps like research and planning, invitation for bidding, submission of bids, oral presentations and then contract awarding. After the awarding is done, the winning bidder is always in regular communication with that government agency to set up meetings, deadlines and any other details that needs to communicated to as part of binding the relationship initiated which then includes sharing various details from both parties.

Strong relationships are built between the government and the company that is awarded the contract. These relationships built with them help the agency to build a very strong foundation for their business and this gives them a higher and good chance of having excellent performance. The companys value is also raised and hence it is highly considered by creditors when applying for corporate loans or in occasions when selling the agency.

Payments by a government to the agency that is awarded a contract are assured therefore the business generates income from this. There is a sense of security for any party entering into an agreement with them hence no doubts about the payments. When the agency adheres to the terms and conditions provided, it could have long term stability as these contracts may be for several years.

Entering into contract relationships with the government can help a company or business to modify and build their business strategies for the commercial sector. This can help the business to grow even more. It also helps in strengthening a companys client portfolio. This makes a company attractive to new and potential clients and doing good and quality work on these contracts can help boost this.

In conclusion, doing a good job when offered a job is very important as sometimes the government may value previous and past performances in the selection process hence gives high chances for being selected again in the future. Through these contracts, a companys value is raised, client portfolios strengthened, relationships are created, stability is enhanced, strategies are made and modified and a company is able to earn income among many more benefits.




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