What does the word "acquisition" mean?

In the contracting world, acquisition means to procure goods and services on behalf of a government agency.

The rule manual, FAR, is the principal rules relating to Federal procurement in the United States. However, the rule book only applies to Executive branch agencies which is the branch of Government that does the most spending. You should read over the rules before getting started to see what applies to your business and how to govern your business accordingly. The website that the Government updates and uses as their primary source of regulations and guidelines is Acquisition.gov and can be accessed from anywhere in the world.

Procurement Levels

Micro-purchases: Acquisition of goods and services at the lowest monetary value. The threshold for this level is $2000 for construction, $2,500 for services and $10,000 for goods. These are not required for competition like other procurement levels.

Simplified Acquisitions: These contracts are not required for a formal evaluation. The threshold for this level of procurement is $250,000 and usually saved for small businesses to compete for an award.

Regular Purchases: All other procurement is considered a regular purchase. They must go through the competitive process and advertised on the open solicitation market.

Acquiring Goods and Services

When a Government agency or department discovers a need for goods or services they manage the need through their administration and develop an acquisition plan. This will determine the type of contract they need. Depending on the level of procurement, the contract will be put through the competition and bidding process.