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Government Contracts Law

The legal focus of government contracts concern all rules, statutes, cases, regulations and procedures in which any organization or company must adhere to when forming business relations with federal, state or local governments. The regulations pertaining to government contract law reflect essentially every aspect of the creation, performance and future termination of a contractual agreement with a government agency.

Many small businesses maintain and increase their operations through doing work for local, state, and federal government entities. While these businesses may also secure business through the offering of competitive bids on jobs offered by the private sector, small business owners should be aware of the differences in procuring work from the public and private sectors. The most fundamental difference between the procurement process in the public and private sectors concerns the process itself; whereas some private companies may have fairly streamlined processes for awarding contracts to outside bidders—or may not even bother with competitive bidding at all, if they are comfortable with a certain contractor—governments at the local, state, and federal level are all obligated to adhere to a significant body of law designed to ensure that 1) taxpayer money is spent wisely, 2) contracts are not awarded for less-than-legitimate reasons, and 3) all businesses are provided with a fair opportunity to make their case for the contract in question. Because government buyers are expected to spend taxpayer money wisely, their purchases are usually subject to significant oversight. Formal procurement rules are established to prevent both the reality and appearance of favoritism.