The government buys many of the products and services it needs from suppliers who meet certain qualifications. The US federal, state and local governments applies standardized procedures by which to purchase goods and services.

For example, the federal 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.

When the government wants to purchase a certain product or service, it can use a variety of contracting methods. Key contract methodologies used to purchase products and services indlude:

• Simplified acquisition procedures
• Sealed bidding
• Contracting by negotiation
• Consolidated purchasing vehicles