Formal advertising and negotiation: their place in government procurement

Abstract

Government procurement is no doubt the largest single source of income for private industry. Each year there is many billions of dollars spent to supply the needs of the military and other governmental departments. As a result of Congressional action in the form of statutes, procurement personnel are restricted in their actions when buying the material and supplies required. This paper endeavors to explain the different methods of contracting available to the contracting officer and the various types of contracts that may be placed. Since the most desirable method, to the Congress, formal advertising is not considered to be advantageous to the writer, this paper was undertaken. An objective review of both negotiation and formal advertising is presented, however, the conclusion must be reached that negotiation is superior.