Small Business establishment
Business
(Author’s name)
(Institutional Affiliation)
Acquisition Method
A small business is a privately owned type of a business. All the activities of the business are operated by the owner that is employment of workers, planning and organizing the business activities etc. Acquisition method is designed to improve the recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree .One of the most preferred acquisition method is purchase orders.
Small businesses prefer purchasing order method because of the following substantial reasons:-
Many of the restructuring costs and transaction-related costs factored into fair value are recorded separately as business expenses (Mackey A.2012). Purchases orders are generally issued on a fixed-price basis for acquisition of commercial items. It also specifies the quantity of supplies, contain a determinable date by which delivery of the supplies or performance of the services is required, and provide for inspection.
An unpriced purchase order is an order for supplies or services, the price of which is not established at the time of issuance of the order, which may be used only when: – It is impractical to obtain pricing in advance of issuance of the purchase order.
Unpriced purchase orders may be issued on paper or electronically. A realistic monetary limitation, either for each line item or for the total order, shall be placed on each unpriced purchase order. The monetary limitation shall be an obligation subject to adjustment when the firm price is established. The contracting office shall follow up on each order to ensure timely pricing. The contracting officer or the contracting officer’s designated representative shall review the invoice price and, if reasonable process the invoice for payment (Vadapalli, R. (2007).
If a purchase order that has been accepted in writing by the contractor is to be terminated, the contracting officer shall process the termination in accordance with the commercial items; or purchase order that has not been accepted in writing by the contractor is to be canceled, the contracting officer shall notify the contractor in writing that the purchase order has been canceled, request the contractor’s written acceptance of the cancellation (Gass, 2012).
Each purchase order Incorporate all clauses prescribed for the particular acquisition. The clause May be modified to fit the individual acquisition to add other needed clauses, or those clauses may be added separately. Modifications (i.e., additions, deletions, or substitutions) must not create a void or internal contradiction in the clause. For example, do not add an inspection and acceptance or an acquisition.
Uniform Contract
In section one of the uniform contracts there is supplies of services and prices/costs, inspection and acceptance, deliveries and performance, packaging and marking, contract administration data, description/specification/statement of work. Contrary to the requirement of the uniform contract the purchasing order has a wide variety of items in a broad class of supplies or services that are generally purchased, but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably. The only way to avoid such cases is to provide commercial sources of supply for one or more offices or projects in a given area that do not have or need authority to purchase otherwise, use of this procedure would avoid the writing of numerous purchase orders and there should be no existing requirements contract for the same supply or service that the contracting activity is required to use.
In section two of the uniform contract there should be a contract clause. Contrary to the uniform contract the purchasing order states that the contracting officer shall insert in each Blanket purchase agreement(BPA) the clauses prescribed elsewhere in this part that are required for or applicable to the particular PBA. This however can be solved, unless a clause prescription specifies otherwise if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA.
References
Ingram, D. (1999). First language acquisition: Method, description, and explanation. Cambridge [u.a.: Cambridge Univ. Press.
Mackey, A., & Gass, S. M. (2012). Research methods in second language acquisition: A practical guide. Chichester, West Sussex: Wiley-Blackwell.
Vadapalli, R. (2007). Mergers acquisitions and business valuation. New Delhi: Excel Books.
