Order Code RS22536
November 20, 2006
CRS Report for Congress
Received through the CRS Web
Overview of the Federal Procurement Process
and Resources
L. Elaine Halchin
Analyst in American National Government
Government and Finance Division
Summary
In the basic federal procurement process, acquisition personnel, after determining
their agency’s requirements (that is, the goods and services the agency needs), post a
solicitation on the Federal Business Opportunities (FedBizOpps) website. Interested
companies prepare their offers in response to the solicitation, and, in accordance with
applicable provisions of the Federal Acquisition Regulation (FAR), agency personnel
evaluate the offers. Another type of procurement opportunity for a company is to serve
as a subcontractor for a government contractor. To be eligible to compete for
government contracts, a company must obtain a Data Universal Numbering System
(DUNS) number, register with the Central Contractor Registry (CCR), and complete an
Online Representations and Certifications Application (ORCA). Several agencies, such
as the General Services Administration (GSA), provide assistance and services to
existing and potential government contractors. Research and development (R&D)
procurement opportunities may involve traditional contracting methods, such as
solicitations and contracts, as well as nontraditional methods, which include agency-
sponsored contests and venture capital funds.
The federal government’s basic procurement or acquisition process involves an
agency identifying the goods and services it needs (also known as the agency’s
“requirements”), determining the most appropriate method for purchasing these items, and
carrying out the acquisition. Although this process is simple in theory, any given
procurement can be complex, involving a multitude of decisions and actions. A
contracting officer may need to determine, for example, whether to use a federal supply
schedule (see below), what type of contract to use, whether simplified acquisition
procedures may be used, or whether the procurement should be set aside for small
businesses.1 Thus, this report does not attempt to describe every possible type of
procurement. Instead, it describes the most common elements of the federal procurement
process and resources that may be used in that process.
1 Information about these topics may be found in Parts 38 (federal supply schedules), 16 (types
of contracts), 13 (simplified acquisition procedures), and 19 (small business programs) of the
Federal Acquisition Regulation (FAR), which is discussed in the next section.
Congressional Research Service ˜ The Library of Congress

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Overview of Federal Government Procurement

Federal Acquisition Regulation (FAR)
The primary source of federal procurement information and guidance is the Federal
Acquisition Regulation, which consists of Parts 1-53 of Title 48 of the Code of Federal
Regulations
. Available at [http://www.acquisition.gov/far], the FAR covers, for example,
contractor qualifications, types of contracts, small business programs, and federal supply
schedule contracting. The FAR also includes, in Part 2, definitions of procurement words
and terms, and, in Part 52, solicitation provisions and contract clauses.2

Eligibility Requirements for Businesses

With a few exceptions, a firm that wants to compete for federal government contracts
must meet at least three requirements: (1) obtain a Data Universal Numbering System
(DUNS) number, which is a unique nine-digit identification number for each physical
location of a business, available at [http://www.dnb.com/US/duns_update/]; (2) register
with the government’s Central Contractor Registry (CCR) database, available at
[http://www.ccr.gov]; and (3) complete an Online Representations and Certifications
Application (ORCA), available at [https://orca.bpn.gov]. The latter two websites also
may be accessed from the government’s Business Partner Network (BPN) website,
available at [http://www.bpn.gov]. Additional requirements specific to a particular
procurement may be found in the applicable solicitation (see below).3

Summary of the Acquisition Process
Essentially, the federal acquisition process begins when an agency determines its
requirements and how to purchase them. If the agency’s contracting officer determines
that the appropriate method for procuring the goods or services is a contract, and the
contract amount is greater than $25,000, then the agency posts a solicitation on the
Federal Business Opportunities (FedBizOpps) website, available at
[http://www.fedbizopps.gov].4 At a minimum, a solicitation identifies what an agency
2 Another source of information about procurement terms is the Federal Acquisition Institute’s
glossary, which is available at [http://www.fai.gov/pdfs/glossary.pdf].
3 Although not a requirement, certification as, for example, a small disadvantaged business (SDB)
may be advantageous and requires certification by the Small Business Administration (SBA).
See the SBA’s website, available at [http://www.sba.gov/starting_business/special/
minorities.html], for information about SDB, HUBZone, and 8(a) programs, eligibility criteria,
and certification.
4 Examples of procurement methods that do not involve establishing a new contract include
using a government purchase card (that is, a credit card); placing a task order (or a delivery order)
against an existing contract; or ordering from a GSA schedule (schedules are described in the
next section of the report). The governmentwide commercial purchase card is, in effect, a credit
card government employees may use to make certain types of purchases. It is known for being
used to make micro-purchases, which are items that do not exceed the micro-purchase threshold
of $2,500. For additional information, see FAR 2.101 and FAR Subpart 13.2. A delivery order
(continued...)

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wants to buy, provides instructions to would-be offerors, identifies the source selection
method that will be used to evaluate offers, and includes a deadline for the submission of
bids or proposals.5 Agencies also may post solicitations on their own websites and, in
exceptional circumstances, may post solicitations on their websites instead of on
FedBizOpps. (The Federal Emergency Management Agency (FEMA) did this in the
aftermath of Hurricane Katrina in 2005.6)
Following the deadline for companies to submit their offers, agency personnel
evaluate offerors’ submissions, using the source selection method and criteria described
in the solicitation.7 Unless multiple suppliers or firms are needed, such as for a supply
schedule, the agency awards a contract to one firm.
Resources for Businesses
Governmental Resources
Congressional Research Service (CRS). The Congressional Research Service
has a website, available at [http://www.crs.gov/reference/general/fed-business.html#first],
which provides links to resources for businesses. Members of Congress may request to
have the CRS page added to their websites. This service is available at
[http://www.crs.gov/reference/general/WG02003.shtml].
General Services Administration (GSA). The General Services Administration
is perhaps best known, in terms of contracting opportunities and resources, as the agency
that maintains numerous supply schedules. A schedule is a list of goods and/or services
provided by GSA-selected multiple vendors at varying prices. (Hence, these schedules
are known as multiple award schedules (MAS).) Information about schedules, including
guidance for how to get on a schedule, and about online and on-site training opportunities
is available at [http://www.gsa.gov/schedules].8 Essentially, the process for getting on
4 (...continued)
(or task order) contract, which also may be known as an indefinite-delivery contract, is “a
contract for supplies [or services] that does not procure or specify a firm quantity of supplies [or
services] (other than a minimum or maximum quantity) and provides for the issuance of orders
for the delivery of supplies [or the issuance of orders for the performance of tasks] during the
period of the contract.” (FAR 16.501-1.)
5 An “offer” is a response to a solicitation. A company or individual who submits an offer is
known as an “offeror.”
6 For information about Hurricane Katrina contracting, see CRS Report RS22380, Hurricane
Katrina Recovery: Contracting Opportunities
, by L. Elaine Halchin.
7 The two primary categories of source selection are sealed bidding (FAR Part 14) and negotiated
contracting (FAR Part 15).
8 A detailed description of the process involved in getting on a schedule may be found in GSA’s
GSA Multiple Award Schedules Program and Marketing Strategies Training Guide for Small
Business
, available at [http://www.gsa.gov]; follow the links to About GSA>Organization>Office
of Small Business Utilization>Obtain a GSA Schedules Contract - Training Guide. Another
(continued...)

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a schedule is similar to that for obtaining a government contract: GSA issues a solicitation
for particular goods or services, companies submit offers in response, and then GSA
evaluates the offers and awards contracts to multiple vendors for the same goods or
services. Schedule solicitations are posted on FedBizOpps, and GSA also posts them on
its website. The GSA solicitation page may be accessed by going to
[http://www.gsa.gov], clicking on “Getting on Schedule,” and then clicking on “GSA
Schedule solicitations.”
Minority Business Development Agency (MBDA). The Minority Business
Development Agency, which is part of the Department of Commerce and whose website
is available at [http://www.mbda.gov], “promotes the growth and competitiveness” of
minority business enterprises, regardless of their size.9 The agency’s network of business
development centers provides a variety of management and technical assistance services,
and its Opportunity Contract Matching System is designed to match entrepreneurs with
federal government and private sector contracting opportunities.
Procurement Technical Assistance Program (PTAP). Although the
Procurement Technical Assistance Program is administered by the Defense Logistics
Agency (DLA), it is available to assist companies that market products and services to all
federal agencies, and state and local governments.10 Services are provided through 93
Procurement Technical Assistance Centers (PTACs), which have over 250 local offices.
A list of Procurement Technical Assistance Centers is available at [http://www.
aptac-us.org/new/Govt_Contracting/find.php]. The centers provide assistance through
classes, seminars, one — on-one counseling sessions, and networking events on such
topics as identifying procurement opportunities, preparing proposals, and researching
agency procurements.11
Small Business Administration (SBA). The Small Business Administration
offers a variety of services and assistance to current and would-be government
contractors. Its website, available at [http://www.sba.gov], includes a “Business
Opportunities” link on the main page, which leads to a website with information on
contracting basics, regulations and policies, business opportunities, size standards for
small businesses, marketing, contract proposals, small business programs, and special
interest topics. The SBA also offers training and counseling services through its Office
of Entrepreneurial Development, available at [http://www.sba.gov/ed]. This site includes,
8 (...continued)
resource for businesses is GSA’s forecast of contracting opportunities, which is available at
[http://www.gsa.gov/forecastcontractingopportunities]. To find GSA’s training opportunities,
go to the GSA website and follow these links: About GSA >Training Programs from GSA>How
to Get on Schedule >GSA Schedules Contract Training (SBU).
9 U.S. Department of Commerce, Minority Business Development Agency, “The Basics of
MBDA,” available at [http://www.mbda.gov/?section_id=2&bucket_id=643&content_id=
3143&well=entire_page].
10 Defense Logistics Agency, “Department of Defense, Procurement Technical Assistance
Centers,” available at [http://www.dla.mil/db/procurem.htm].
11 Association of Procurement Technical Assistance Centers, “Government Contracting
Assistance,” available at [http://www.aptac-us.org/new/Govt_Contracting/index.php].

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for example, information about Small Business Development Centers, which provide
management and technical assistance to small businesses. Free online courses, on topics
such as government contracting and marketing and advertising, also are available on the
SBA website, at [http://www.sba.gov/training/courses.html].
Non-Governmental Resources
Other resources that firms may find useful in identifying procurement opportunities,
navigating the government’s procurement process, and marketing their goods or services
include professional, trade, and industry organizations, publications, and events; local
chambers of commerce; and consultants. For example, the book Elements of Government
Contracting
, by Richard D. Lieberman and Karen R. O’Brien, provides information about
the federal procurement process. Magazines such as Government Executive and
Homeland Defense Journal include articles with information about government
procurements and industry workshops or conferences. Industry and trade organizations,
such as the Professional Services Council, may be another source of useful information.12
Selected Topics
Research and Development Procurement
Part 35 of the FAR provides guidance on research and development (R&D)
contracting. Interested companies, organizations, and other entities may use FedBizOpps
to identify R&D opportunities, which may be posted as solicitations or broad agency
announcements (BAA).13
The federal government also uses several nontraditional procurement methods to
acquire the technologies and products it needs. Recognizing that not all new and
innovative ideas may be captured by established procurement programs and procedures,
the federal government provides for the submission of unsolicited proposals. That is, a
firm may submit a proposal for which there is no solicitation. Guidance and requirements
for the preparation and submission of unsolicited proposals, including the criteria for a
valid unsolicited proposal, may be found at Subpart 15.6 of the FAR. Some agencies may
also provide information on their websites about unsolicited proposals, which the
Department of Homeland Security (DHS) does at [http://www.dhs.gov/xopnbiz/
opportunities/editorial_0617.shtm].
As the central R&D organization for the Department of Defense, the Defense
Advanced Research Projects Agency (DARPA) is charged with “sponsoring
12 The mention of these particular publications and this group is not intended to be, and should
not be construed as, an endorsement.
13 A broad agency announcement is used “for the acquisition of basic and applied research and
that part of the development not related to the development of a specific system or hardware
procurement. BAA’s may be used by agencies to fulfill their requirements for scientific study
and experimentation directed toward advancing the state-of-the-art or increasing knowledge or
understanding rather than focusing on a specific system or hardware solution.” (FAR 35.016(a).)

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revolutionary, high-payoff research that bridges the gap between fundamental discoveries
and their military use.”14 The DARPA website, available at [http://www.darpa.mil],
includes links to solicitations and BAAs, and a publication, Doing Business with DARPA,
that provides information on the agency’s procurement process. The Department of
Homeland Security (DHS) has an organization, the Homeland Security Advanced
Research Projects Agency (HSARPA), that performs a similar function for DHS.
Information about HSARPA, including solicitations, BAAs, and workshops, is available
at [http://www.hsarpabaa.com]. The Technical Support Working Group (TSWG) is an
interagency effort that “identifies, prioritizes, and coordinates interagency and
international research and development (R&D) requirements for combating terrorism.”15
The working group uses the BAA Information Delivery Systems (BIDS), available at
[https://www.bids.tswg.gov], to post BAAs and collect proposals.
Other nontraditional opportunities for firms, research institutions, and organizations
are government-sponsored contests and venture capital funds established by agencies for
the purpose of helping to fund technologies the agencies could use. Two agencies that
sponsor prize contests are the National Aeronautics and Space Administration (NASA)
and DARPA. Information about NASA’s Centennial Challenges and DARPA’s Grand
Challenge are available at [http://exploration.nasa.gov/centennialchallenge/cc_index.html]
and [http://www.darpa. mil/grandchallenge/index.asp], respectively. Three agencies that
have established venture capital funds are the Central Intelligence Agency (CIA), NASA,
and the Department of the Army. Information about the nonprofit corporation that was
established to manage the CIA’s venture capital fund — In-Q-Tel — is available at
[http://www.in-q-tel.org/]. The venture fund affiliated with NASA is Red Planet Capital;
its website is available at [http://www.redplanetcapital.com]. Information about OnPoint
Technologies, the Army’s venture capital fund, is available at [http://www.onpoint.us/].

Subcontracting Opportunities
Another way to become involved in federal government contracting, albeit indirectly,
is to serve as a subcontractor for a company (known as the “prime contractor”) that has
been awarded a government contract. Agencies may provide information on their
websites about firms to which they have awarded contracts. For example, GSA maintains
a s u b c o n t r a c t i n g d i r e c t o r y, a v a i l a b l e a t [ h t t p : / / w w w . g s a . g o v /
smallbusinesssubcontractingdirectory], and DHS provides a list of prime contractors at
[http://www.dhs.gov/xlibrary/assets/opnbiz/OSDBU-DHS_Prime_Contractors_List.pdf].
Other potentially useful sources of information include trade and business publications,
FedBizOpps, company websites, and the Federal Procurement Data System (FPDS).16
Information gleaned from these sources might indicate which companies have received,
or expect to receive, government contracts. The SBA provides guidance on
subcontracting at [http://www.sba.gov/businessop/basics/subcontracting.html].
14 Defense Advanced Research Projects Agency, “Mission and Overview,” available at
[http://www.darpa.mil/body/mission.html].
15 Technical Support Working Group, “About TSWG,” available at [http://www.tswg.gov/tswg/
about/about.htm].
16 The Federal Procurement Data System, which is available at [https://www.fpds.gov], includes
information about government contract actions over $3,000. (FAR 4.602.)