How the Government Buys

CLICK HERE for a list of area government agencies and procurement representatives.

Federal Purchasing Methods
The Federal government utilizes a variety of different purchasing methods depending on what it is buying, what funding is available, what the needs are and other factors. The trend is towards longer commitments and increased flexibility. Anyone considering selling to the Federal Government MUST register in www.SAM.gov.

Federal Government Wide Goals
The U.S. government is the world’s largest buyer of products and services. Purchases by military and civilian installations amount to over $500 billion a year, and include everything from complex space vehicles to janitorial services and cancer research. In short, the government buys just about every category of commodity and service available.

How Is Selling To The Government Different From Selling To Commercial?
A company looking to do business with the government has to be aware that there are some considerable differences between government purchasing practices and the purchasing practices of commercial businesses. The government has a certain authority and rights that commercial enterprises do not have. That’s why contractors should be aware of what to expect when doing business with the government.

Government Accounting Rules
A significant difference between how business is done in the government sector versus commercial sector is the set of rules and regulations which govern the contract and associated accounting and financial obligations and processes.

How does the Government Pay?
One of the benefits of working with the Federal government is that if the contractor provides the goods and/or services and set forth in the contract, and submits the proper documentation as required, the government will pay promptly.
The Federal government pays its contractors electronically. The method is defined by the contract. The trend is to continue to decrease the volume of paperwork involved in processing acceptance / payment and continue to increase the use of web based applications and processes. As in the commercial sector, this results in substantial cost savings.

Wide Area Workflow
Wide Area Workflow (WAWF)is a Department of Defense secure web based system for electronic invoicing, receipt, and acceptance. WAWF allows vendors to submit and track invoices and receipt/acceptance documents over the web and allows government personnel to process those invoices in a real-time, paperless environment. It is also the only application that will be used to capture the Unique Identification (UID) of Tangible Items information. For additional information please contact Ben Blanc at (414)270-3600 or at benjaminb@wispro.org.

For additional information on this topic, please contact our staff of experts at info@wispro.org or 414-270-3600