Business Finance Homework Help

I need help with a Business question. All explanations and answers will be used to help me learn.

1.    The structure of government contracting is complicated but necessary. Federal government spends billions of dollars on contracts. According to the White House, approximately one out of every ten dollars of Federal government spending going to contractors. As the government is spending taxpayer dollars. It is government’s responsibility to make sure that it spends wisely and eliminates wastes. Also, the government must ensure the procurement process running smoothly while trying to avoid as much corruption as possible. Therefore, regulations and policies are necessary.  On the other hand, the complicated regulations and policies can become a barrier for many emerging companies, startups and small businesses who attempt to enter the government contracting market.  In addition to Federal Acquisition Regulations (FAR), there are many other rules and regulations, local laws, agency policies that can affect a procurement.

Speaking of contract management in 21st century, agencies should invest more in their new hire. In America, everything is becoming digital, including government procurement. For example, using Contractor Performance Assessment Reporting System (CPARS) to check and record a specific vendor’s past performance. Agencies depends on data analysis to calculate contract costs and secure savings from each purchase. However, the senior and veteran employees are not comfortable with dealing modern technology. To navigate the digital transformation, recruiting tech- savvy younger workers become critical. These new hires might be good at keystrokes, but they lack interpersonal skills which are important in contract administration.  So, the focus of new workforce training perhaps should include people skills apart from regulations and procedures training. 

2.    There are many factors contribute to the successful implementation of a federal government contract. First of all, a clear and open communication between government and contractors. A contract between the government and a contractor reflects a buyer and seller relationship. In this relationship, the government (buyer)’s objectives include obtaining the product or service at the right quality, right quantity and at best price. Government also must ensure that the product or service is procured in accordance with the Federal Acquisition Regulations.  The contractors on the other hand have the objectives of making a profit. Each party has its own goals. This may result in withholding information. Therefore, it is critical to have a clear and open communication between the Contracting Officers, Program Managers and the contractors.  Secondly, the contractors need to develop a well-defined technical approach and well-structured procedures to perform the work. In addition, maintaining a pool of qualified personnel who can implement the plan is important. The employees need to have the right education, training, and experience. Also, a good organizational structure is another critical factor. Everyone’s responsibilities in an organization are well defined. Finally, the ability to monitor and control the cost while maintaining a heathy cashflow.  Cost is the major concern in the government contracting. In the end, the government does not want to put taxpayer dollars at risk.