Are you interested in knowing what Government Procurement is? Want to know detailed information about it? We will explain the background, process, and how you can get the maximum benefit from it. Read the article to learn more about it.
In the United States of America, Government Procurement is a massive commercial market. The main reason behind this is that the USA govt. relies on public resources, products, and services. Such as construction, property investment, office supplies, national health care equipment, and plenty of others. Many enterprises see this industry as financially efficient. Because they know the real deal – that the government will procure what is needed from the commercial group. Therefore, we have collected all the essential information you must know before entering into the Government Procurement industry.
Standardized Government Procurement
A process where the government obtains the required products and services from commercial enterprises is known as Government Procurement. Because government entities spend the public funds, therefore there are multiple rules and regulations employed on how it should be used. This is why there must be legal contracts with suppliers to proceed further. The prices are already negotiated and reasonable according to determined terms and conditions. Companies and entrepreneurs with products and services assemble to bid on. Contracts must demonstrate their profitability and legitimacy to earn the work contacts and retain them.
If you wonder who is the All-in charge of Federal Government buying – It’s the General Service Administration. Once any company gets associated with this agency, then it gets easier to sell the goods and services to institutions such as local and state federal agencies. The procurement could be for any level or government institute. This is the reason it is such a huge industry that can be estimated to be 7 trillion dollars which is 10-15 percent of the yearly US GDP.
History of Government Procurement
Today’s Government Procurement is based on two laws that are
1. Armed Services Procurement Act (1947) and
2) The Federal Property and Administrative Services Act (1949)
Both of these laws have included many other rules and regulations and modified them. In 1979 one more amendment was passed named “Office of Federal Procurement Policy Act”. It simplified the direct approach for federal purchase. This led to the formation of the Federal Acquisition Regulation. It is the official guideline for any contractor who wants to acquire government contracts. It also formed CICA i.e., Competitions in Contracting Act which established the official competitive federal contract bidding procedure.
Ever Since the government has taken several steps to engage both small and large firms for buying opportunities. The Small Business Administration i.e., SBA aims to achieve it for their best interests. Programs such as SBA’s 8th program were to assist the marginalized companies to meet their government sales targets.
What Is the Bidding Process?
Bidding via the GSA is a complex and time-consuming procedure. Obtaining approval for a GSA Contract. Such as a Multiple Award Schedule or Federal Supply Schedule, entails a significant amount of time and work. Some firms must begin with small and work their way up. A legitimate contract opportunity website can assist with this. No matter where a company looks for contractual possibilities. Corporations must propose a work proposal. And the government will assess their capabilities in areas such as:
- Sufficiency of funds and resources, expertise, people, and operational competence
- Ability to meet production and delivery deadlines
- Performance excellence, tracks, and reputation
- Access to adequate facilities and equipment availability
- Legal recognizability
Typically, this has become a “lowest-bid” method, with the contract going to the party that gives the lowest price for their service or goods. However, recent trends show that a transition is developing in government purchasing techniques, with more comprehensive research being performed to identify the best possible price for the quantity and quality of products and services being supplied. Rather than the lowest feasible price which is assumed to be the standard metric for many of them.
We hope that this article has brought insight into what government procurement is all about. If you are also looking forward to getting entrance into this trillion-dollar industry then you must sharpen your skill, product, or service that you are going to offer to the federal agency. You can also get help from the contract managing websites and applications that can help you from the beginning to the finalizing of the contracts.