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Sep 7, 2021

Why GovCons Exist

Time to read: 2 min

Contracts are necessary for government customers to buy a product or service. The government buys about a half-trillion dollars in goods and services a year through contracts. Prices and rates are negotiated, a vendor’s administrative structure is pre-vetted, and important details like the timeframe for delivery are finalized. Since all government activity is publicly funded, agencies must ensure they are buying the highest quality products at the lowest possible market rate. This fuels the bid process for government contracts.


  • Government contracts must be published because they are publicly funded
  • Publicly funded government purchases result in unique requirements from vendors
  • The competitive bid process ensures purchases are of the highest quality and offered at a fair market rate

The Bid Process

Government contracts use a competitive bidding process because federal purchases are publicly funded. This ensures customers are getting the best products or services at a fair rate. 

Democracy dictates that every American should have a fair opportunity to bid and all government contracts be made public. This is why companies need to respond to RFPs and bid for federal contracts or grant opportunities.


Government Contracts Reduce Risk Factors

Government contracts lessen the level of risk required for both government agencies and vendors. Publicly funded government purchases result in unique requirements from vendors. Customers dictate their specific needs in detail in their proposals. This reduces confusion for vendors when applying for contracts and ensures the customer receives only relevant solutions.

Publicly funded government purchases result in unique requirements from vendors. 

Getting on the right contract vehicles is the right step in becoming a customer’s preferred vendor. Businesses can build a long-term trusting relationship with government officers once they make the first contact.


Find the Right Government Contract For Your Business

Searching through RFPs on and other databases can be tiresome and difficult to sift through. FedScout helps teams filter for opportunities in their industry and offers insight to your P-win. Save time by searching for your next government contract with FedScout on the web or mobile app

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