Federal Procurement Process

Federal procurement is the process used by the government to procure or lease goods and services. Procedures may be different between countries, however the goals for procurement policies are similar. These are to improve competition by presenting fair access to prospective bidders, increasing the value received through the disbursement of public funds, and promoting the reliable use of resources.

      In the United States, the Office of Federal Procurement Policy, a subdivision of the Office of Management and Budget established in 1974, determine federal procurement policies by its legislative action and recommendations. Those are then published in the Federal Acquisition Regulation (FAR). The FAR is issued jointly by the Department of Defense (DoD), the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA). It applies not only to direct purchases made by the government, but also to purchases made by federal grant recipients.

      In other countries such as India, different procurement rules apply at the federal level, in the states and territories, to the central public sector units, and to public sector enterprises. Procurement is regulated through executive directives at the federal level. The Rules were revised in 2005 to afford greater flexibility while ensuring accountability in government transactions. Instructions were issued by the Central Vigilance Commission (CVC) to supplement these regulations. At the federal level, procurement is administered by the individual government agencies. India has not established an authority that is exclusively responsible for defining procurement policies and for overseeing compliance with the established procedures.

      In Australia, the Finance Minister issues Commonwealth Procurement Guidelines (CPG's). It outlines Australian federal procurement requirements. It has developed lists of approved suppliers for the purchase of a wide variety of goods, called common...