Everything You Need to Know About Government Procurement!

Here at Greenwood Aerospace, we pride ourselves on the effectiveness of our government procurement processes and our impressive track record with countless government contracts over the past forty-plus years. Our focus is on procuring contracts for Contractor Logistics Support providers and direct-to-government contracts. Our specialties include, but are not limited to:

  • Supply chain management: We offer procurement, management, and warehousing options.
  • Field Support Services: We partner with CLS providers to deploy field service representatives to military bases or operational locations to provide on-site support, troubleshooting, and maintenance services.

But what exactly is ‘Government Procurement?’ Let’s take a look and find out. 

What Is Government Procurement?

What exactly is government procurement? I’m glad you asked. 

In a nutshell, government procurement refers to federal contracts and the processes that government agencies use to purchase goods or services to award a government contract. 

This blanket term generally encompasses a wide range of products and services, which can be digital, physical, or educational. Common procurement items are 

  • Office supplies 
  • Machinery (tractors, golf carts, off-highway non-tactical vehicles, construction equipment, etc.)
  • Equipment (fixed or mobile tools, etc.)
  • Aviation Ground Support Equipment (GSE), parts, and services.  

This is a very brief rundown and a tiny sampling of an industry that is valued in the billions annually. 

What Are Some of The Key Components of Government Procurement?

A federal contractor or any government contractor needs to know a few core components of government procurement. 

Regulations and Procedures 

All levels of government have specific rules and regulations for government contractors to ensure that the procurement process is fair, to encourage competition, and to promote transparency. 

The Bidding Process

Government procurement often involves a competitive bidding process to win contracts. Potential federal contract holders must submit proposals or bids to open solicitations from the federal contracting offices. This is not how it works 100% of the time; some projects are sole or single source.

Contract Management

Once a supplier or the prime contractors are selected, the contracting agency enters into a contract with them outlining the exact terms and conditions of the contract. These are the non-negotiables about:

  • Execution of the project
  • Performance monitoring
  • Ensuring compliance with the contractual obligations

Public Accountability

The public eye is on all government agencies to ensure fiduciary responsibility, and rightfully so. Government contractors have occasionally not delivered as expected, so the public will scrutinize accordingly. The government may publish information about procurement opportunities, award decisions, and contract details to ensure transparency and accountability. 

Socioeconomic Goals

Governments at all levels have a vested interest in promoting socioeconomic goals, both locally and nationally. Government procurement often achieves these objectives by promoting small businesses, supporting local industries, and advancing green initiatives. Governments may incorporate specific preferences reflecting these items into the procurement process. 

Small Business Eligibility

USDA is using the SBA definition as Small Businesses. The definition of "entrepreneurship" differs depending on industry. Use SBA Tables of Size standards for assessing business eligibility. Find information at the United States Chambers Of Commerce.

What are the 4 types of government contracts?

Federal contracting is generally divided into two major forms: fixed-price and restitution. Other types of contracts include incentive contracts and material contracts, hours contracts, indefinite-delivery contracts, and letters contracts.

There are four main categories of government contracts in the federal procurement process:

  1. Fixed-price contracts: as the name suggests, the federal government agency or procuring office determines a predetermined fixed price. The contractor then provides the goods or services as defined by the contract. No matter whether prices of materials rise or other unforeseen conditions happen, the contractor must deliver the agreed-upon product or service within the budget they agreed to. The risk is definitely on the contractor in a fixed-price contract. 
  2. Cost-reimbursement contracts involve the federal government reimbursing the contractor for allowable costs. These types of contracts can also induce additional payouts to the contractor to help with overhead. Cost-reimbursement contracts are usually used when the scope of the work or costs involved in the project are uncertain. This gives contractors a lot more security to accommodate changes throughout the process. 
  3. Time and materials contracts: this is more of a hybrid style contract, using elements of the previous two. Time and materials contracts are usually used when the scope of work is not well-defined, or it will be too difficult to estimate a total contract cost. 
  4. Indefinite delivery/indefinite quantity (IDIQ) contracts: IDIQ contracts are just as they sound: when the scope is ongoing and unpredictable, an IDIQ is often procured. There are maximum values specified, but the point is that this is a max. The government contracting officer may need less during this period, but there is a maximum. 

What Is the Federal Procurement Data System? 

Where does the Federal Procurement Data System (FPDS) play into all of this? Well, let’s see what it is first. 

The FPDS is a centralized database database that the U.S. government maintains. It is the primary source of information on all federal contracting activities, government-wide. This is a massive database where all data on federal contracts is stored. This includes information on:

  • Information about contracts awarded
  • The value of the contracts
  • All parties involved
  • Contract types

The FPDS is vital to promote and guarantee transparency and accountability in the federal procurement process. It also provides insights into how taxpayer dollars are being spent on government contracts. Remember, transparency is everything. 

From the FPDS, we can see spending patterns emerge, calculate contractor performance, and see overall trends in the federal procurement process. Stakeholders across the federal government use FPDS to access and analyze federal procurement and contracting data. These stakeholders usually include government agency-designated representatives, contractors, policymakers, researchers, and members of the public. 

Who is considered a government contractor?

Federal contractors are businesses or organizations that contract to perform a specific job to provide workers and/or equipment or to provide services and equipment. These are often small businesses that see contract opportunities and capitalize on them. A small business can thrive on even niche contract opportunities if it positions itself correctly. Small businesses can serve as a prime contractors or sub-contractors, depending on the scope of the contract.

Of course, large businesses often serve as prime contractors, creating tens of thousands of subcontracting opportunities for small businesses.

Why You Should Choose Greenwood’s Government Contracting Solutions

Greenwood is the preferred small business for government contractors. Some of our past and current government partners include:

  • Bureau of Land Management (BLM)
  • U.S. Forrest Service (USFS)
  • Department of Energy (DOE)
  • National Aeronautics and Space Administration (NASA)
  • National Oceanic and Atmospheric Administration (NOAA)
  • Pacific Northwest National Laboratory (PNNL)
  • Department of Defense (most branches)
  • And many more.

We service some of the largest government agencies in the United States and streamline fast and high-quality results for our clients. We can fulfill any mission objective and government contracting needs while keeping your best interests in mind. 

Our goal at Greenwood Aerospace is to minimize risk and delays while maximizing on-time and on-budget project execution. We are here to provide the solutions that your agency needs. Give us a call, and we will get the process started today! Or, you can use our convenient online quote system to get a quote started.