Another useful NASA publication, How to Compete for NASA Contracts, tells how to put your bid together. This manual lists practically every federal agency, with telephone numbers for obtaining information, including listings of purchasing offices. As indicated earlier in this publication, there are two methods contracting officers utilize to acquire the products and services needed by the federal government. When bids are opened, the bidder quoting the lowest price is awarded the contract if the bid is responsive and if the bidder qualifies as a responsible firm. The contractor has agreed to perform on the government's terms and complies with the IFB in all important respects, including the method and timeliness of bid submission and the substance of any resulting contract.
Responsibility refers to the contractor's ability to perform the contract.
Determining factors include financial capacity, plant capacity, skill, judgment and integrity. The time span is generally 90 to 120 days from solicitation of bids to bid opening and contract award. Figure 3 indicates the key or significant events in the formal advertising process. When formal advertising is not suitable or possible due to the nature of the product or service sought, the government will negotiate for the product or service. Small purchases are most often made through special expedited negotiation procedures.