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Purchases made by the federal government must comply with the Federal Acquisition Regulation (FAR), which governs all federal acquisitions. There are a variety of different ways that agencies can comply with these regulations and a variety of contract types to match. Agencies are bound by certain regulations based on several factors, including:
- Type of item being purchased ("item" refers to both supplies and services)
- Dollar value of the purchase
- Expected duration of the purchase
- Types and sizes of contractors expected to compete
Agencies should choose a certain type of contract based on their requirements. Successful contractors must have a basic understanding of the FAR and its critical elements as well as the types of contracts most often used by agencies. Basic FAR and contracting courses are widely available online.