1. I believe the form of fixed price contracting that would benefit the small business owner the most would be the fixed price contract with economic price adjustment, allowing for shifts as a result of the changes in material costs, meaning that the individual has the potential to spend less on materials if the cost of materials goes down, and decreases in labor during contract performance, meaning those who work less would get paid less, as opposed to a flat rate for their labor charges, and those who work more are able to substantially benefit as a result of their time spent on the project (Acquisition.gov, 2013).
2. The small business owner may take advantage of economic price adjustment by increasing the amount of labor put into a particular project, allowing for the business to gain more money, while buying the materials at a lower cost when they are on sale, and then charging for the materials based upon their non-sale pricing (Acquisition.gov, 2013).
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3. A business must take several steps into consideration when setting up a bid for a federally funded project starting with registering for government contracting. The business must be vetted as a part of this process, and specific product codes must be obtained, along with industrial classifications. Once all of this has been obtained, then the small business may start looking at Schedules to see what they would like to bid for (SBA.gov, 2013).
4. Three places in those steps where avoiding mistakes is critical are making sure that all forms are filled out properly, all codes are proper and correct for tax purposes and for the purposes of ensuring that they are entered into the correct group, and performance evaluations must show nothing but high quality work (SBA.gov, 2013).
- Acquisitions.gov. (2013). Subpart 16.2 fixed price contracts. Retrieved from http://www.acquisition.gov/far/html/Subpart 16_2.html
- SBA.gov. (2013). Register for government contracts. Retrieved from http://www.sba.gov/content/register-government-contracting
