Thursday, November 21, 2019

Small Business Government Contracts Essay Example | Topics and Well Written Essays - 1750 words

Small Business Government Contracts - Essay Example According to the U.S government, a small business is considered independent in its operations. In most cases, either the income generated or number of employees employed within the company determines the size of companies depending on the type of business the company is in; for instance, a service or production business respectively (Knerly, 2007). Small businesses tend to have privileged access to government contracts. A number of government bodies have been established to help the small businesses to manage contracts and enhance their networking. For example, the National Contract Management Association, Procurement Technical Assistance Centers, as well as the National Center for Small Business Information. To access government contracts, a small business is usually required to meet a number of conditions. There should be popular possession by people disadvantaged communally as well as economically (Knerly, 2007). The federal contracts target people with difficulties in relation to their race, ethnicity, as well as cultural bigotry, groups such as; Hispanic Americans, black Americans, and the Americans with Asian-Pacific descendent are some of the groups that can easily access government contracts. Prior to contracting with the government, establishing a small business requires registration with the federal government. ... Subsequently, the registered business now seeks financial opportunities that will enable it to operate effectively. The federal government provides a number of opportunities for this. For instance, there are opportunities for sub-contracting, federal grants, as well as partnering with other businesses (Knerly, 2007). Differences between the Cost Estimating Relationship (CER) method and the Engineered Cost Estimate Method Knerly (2007) acknowledges that contract pricing is a vital area for small businesses. In most cases, the government first verifies the overall cost of the business before issuing the contracts. This process usually tends to take a long time and thus, it is vital for the business to ensure that it can manage its daily operations. Small businesses can use various techniques to determine the cost of a contract. Among them is Cost Estimating Relationship (CER) technique and the Engineered Cost Estimate technique. The CER method denotes the use of set up relationships be tween independent variables to approximate a cost or price; for instance, using CER to identify the overall cost of production. The technique of approximating the rapport between independent variables and contract cost follows varied processes. First, the business or individual should clearly distinguish the dependent and independent variables they seek to determine. Second is seeking expert advice on the type of business one seeks to start. In this case, assessing the way other businesses have utilized robots in their production. By doing so using CER, a business is able to generate relevant information. Next is to establish the potency between the variables. In estimating the cost of production using CER, the connection linking the dependent to independent

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.