How Does Federal Procurement Work?






You will need to get some understanding on all the process of procurement in the government if you want to go after the federal contracts. Procurement is a term to identify the process of buying used by the government. Below are some information about the basics on how to get a government business.



It is really straightforward when it comes to process of the federal government if you are looking to buy some products. For products that are cost under three thousand dollars, all the person need is the authority to be using a government purchasing card. A government purchasing card is a government debit card or a credit card. That is why if vendors will need to have a credit card merchant account for them to get government card payments if they will be doing some business with the federal government.



The government will do a competitive bid for the products that are more than three thousand dollars. But it is really possible that the person who will be buying will use GSA schedules. GSA schedules are the pre-negotiated contracts to sell the federal procurement services and products to the federal government. There will no longer be a need for a competitive bid since these are pre-negotiated deals. These GSA schedules are good for the products and services that can easily be categorized, compared, and be given a rate. This will be good on the temporary labor, consulting services, and trades.



The person that will be buying from these GSA schedules can simply do so without going out for a competitive bid. There are contracts or schedules for almost all of the standard purchases like the furniture or office supplies, computers, or parts and equipment. That is the reason why one of the first step that a small business needs to try every time it wants to go after government contracts is to get a GSA schedule. Get into some more facts about business, visit https://www.huffingtonpost.com/entry/3-ways-your-business-can-_b_14138830.html.



So take note that a procurement personnel will be able to buy products and federal acquisition management services using a government card, a competitive bid, or from a GSA schedule for up to $25,000. You should also take note that the purchasing agents that will be dealing with products and services for above $25,000 are the contracting officers. They will be serving the government for many times that will be needed and will have to make an RFP or Request For Proposal. And that is how a federal procurement will work.