Overview of the Federal Procurement Process and Resources

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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.

he 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 T

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 ¹
aside for small businesses. 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.

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.
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 ²
procurement may be found in the applicable solicitation (see below).
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

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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) ³
website, available at http://www.fedbizopps.gov. At a minimum, a solicitation identifies what an
agency 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 ⁴
proposals. 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 ⁵

2005).

Following the deadline for companies to submit their offers, agency personnel evaluate offerors’ ⁶
submissions, using the source selection method and criteria described in the solicitation. Unless
multiple suppliers or firms are needed, such as for a supply schedule, the agency awards a
contract to one firm.

The Congressional Research Service has a website, available at http://www.crs.gov/reference/
general/WG02003.shtml, 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/refer ence/general/grants/fed-business.ht ml .
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,

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including guidance for how to get on a schedule, and about online and on-site training ⁷
opportunities is available at http://www.gsa.gov/schedules. Essentially, the process for getting on
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/schedulesolicitations.
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” ⁸
of minority business enterprises, regardless of their size. 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.
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 ⁹
all federal agencies, and state and local governments. 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 ¹⁰
opportunities, preparing proposals, and researching agency procurements.
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

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Development, available at http://www.sba.gov/ed. This site includes, 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.
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 ¹¹
source of useful information.

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 ¹²
opportunities, which may be posted as solicitations or broad agency announcements (BAA).
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/opportuni ti es/e ditorial _0617.sht m.
As the central R&D organization for the Department of Defense, the Defense Advanced Research
Projects Agency (DARPA) is charged with “sponsoring revolutionary, high-payoff research that

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bridges the gap between fundamental discoveries and their military use.”¹³ 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 ¹⁴
development (R&D) requirements for combating terrorism.” 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/, respectively. Two agencies that have established venture capital funds are the
Central Intelligence Agency (CIA) 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/. Information about OnPoint Technologies, the Army’s
venture capital fund, is available at http://www.onpoint.us/.
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 subcontracting directory, available at
http://www.gsa.gov/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 ¹⁵
System (FPDS). 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/services/contractingopportunities/basics/subcontracting/
index.html.

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