Government Procurement Key Terms
These government procurement terms will help you keep everything in order
Agencies at the local, state and federal levels spend trillions of dollars annually on products and services so if you are a small, medium, or large business you will want to find a way to do business with government procurement departments. The opportunities for businesses that sell electronics, information technology, construction and engineering abound. If you want to find out what the bid process is comprised of or what bids are currently available there is also a plethora of firms that are available to consult with you on these processes. To get started you will want to become familiar with some of the terms you will find as you do your research.
B2G
B2G or business-to-government refers to selling or marketing products and services to government agencies. Public sector organizations typically post RFPs (Requests for Proposals) that outline in detail what the agency is looking for. Government procurement departments are responsible for developing the RFP, reviewing the bids from various businesses and then making a selection on which one is most qualified.
Try: PCMAG explains this term.
RFP
An RFP or request for proposal is a complete, thorough description which invites suppliers through a bidding process to submit a proposal on how they would supply a commodity or service. Government procurement departments use the RFP process to bring structure to their decision that is objective and fair to respondents.
Try: Go to TechTarget for a concise definition.
FedBizOpps
FedBizOpps is the website for the federal government and which posts all the business opportunities available for bids. Federal government procurement agencies use FedBizOpps to disseminate information on the types of projects, products or services currently needed.
Try: FBO.gov is the official website for opportunities.
GAO
The GAO or Government Accountability Office is an investigative agency of the U.S. Congress and is responsible for auditing, evaluating and investigating anything related to the receipt, disbursement or application of public funds. It is also responsible for making sure that public funds are spent economically and efficiently. Federal government procurement agencies are monitored by GAO.
Try: GAO is the official website for the agency.
Performance bond
A performance bond is often included by a government procurement department in an RFP and is a surety bond (agreement to uphold a contractual promise) that is issued by an insurance company or bank in order to guarantee satisfactory completion of the contract.
Try: See BusinessDictionary.com for more information on this subject.
No-bid contract
No-bid contract is also referred to as a "sole source contract" and usually implies that there is only one person or company capable of providing the services or products that are needed by a business procurement department. Urgency is often the rationale used for allowing these types of contracts. There is often a great deal of suspicion associated with these types of contracts because they exclude competitors from the process.
Try: Slippery Rock University provides an excellent description overview of what should be included in this type of contract.
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