The government buys many of the products and services it needs from suppliers who meet certain qualifications. It applies standardized procedures by which to purchase goods and services. That is, the government does not purchase items or services in the way an individual household might. Instead, government contracting officials use procedures that conform to the Federal Acquisition Regulation (FAR).
The FAR is a standardized set of regulations used by all federal agencies in making purchases. It provides procedures for every step in the procurement process, from the time someone in the government discovers a need for a product or service to the time the purchase is complete. The FAR can be accessed electronically at acquisition.gov/comp/far/index.html.
As of October 1, 2001, the government transitioned from Commerce Business Daily (CBD) to Federal Business Opportunities (FedBizOpps) to "post" all procurement opportunities expected to exceed $25,000. FedBizOpps is a web-based application and is the government-wide point of entry to communicate its buying requirements to potential suppliers. This website can be accessed at www.FedBizOpps.gov.
When the government wants to purchase a certain product or service, it can use a variety of contracting methods. Simplified acquisition procedures, sealed bidding, contracting by negotiation, and consolidated purchasing vehicles are key contract methodologies used to purchase products and services.
Information courtesy of the Small Business Administration.
