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What Are The Five Major Categories Of Government Procurement?

What Are The Five Major Categories Of Government Procurement?

Are you curious about the different types of government procurement? Are you wondering how governments acquire goods and services, and what are the main categories that define their purchasing process? Whether you’re a business owner looking to sell products to the public sector or just want to understand how your taxes are spent, this blog post is for you. In this article, we’ll discuss the five major categories of government procurement: construction, supplies and materials, professional services, information technology (IT), and transportation. So fasten your seatbelts and get ready for an informative ride through the world of government procurement!

Federal Government

The Federal government procurement process can be confusing, but it is important to understand the different types of government procurement in order to make the best purchasing decisions. Here are the five major categories of government procurement: 1. Governmental Procurement 2. Nongovernmental Procurement 3. Contracting 4. Grants and Contracts for Services 5. Direct Ventures

State and Local Government

In business, procurement is the process of acquiring goods and services from suppliers. The Purchasing Department at your local government is responsible for ensuring that the money you spend goes to the right places and that the products or services you receive are what you were expecting.

There are five major categories of government procurement: contract management, supply management, purchasing, contracting, and grant & contract administration.

Contract management is a process of ensuring that all tasks related to a contract are completed in accordance with its terms and conditions. This includes tracking all awarded contracts, monitoring performance against goals, and issuing payments when due.

Supply management is similar to contract management but focuses on managing the flow of goods and services into a department or agency. Suppliers must be registered with the department or agency, and orders must be placed in advance to ensure sufficient supplies are available when needed.

Purchasing is the process of selecting specific goods or services to be purchased from a supplier. Purchasing agents work with departments or agencies to identify needs and then place bids on behalf of their clients.

Contracting is the process of awarding contracts to suppliers who agree to provide products or services at specified prices and dates. Contracts may last for one year or longer, and each party has an obligation to meet all terms and conditions set forth in the agreement.

Grant & contract administration refers to all tasks related to administering grants or contracts, including tracking expenses, managing award

Private Sector

There are many types of government procurement, but the five major categories are contract negotiation and management, materials management, contracting processes and procedures, information technology purchasing, and human resources.

Nonprofit Sector

The nonprofit sector is a broad and diverse field that includes organizations that provide social services, education, and other forms of assistance to the general public. There are five main categories of government procurement in the nonprofit sector: grantmaking, contract bidding, cooperative purchasing, public-private partnerships (PPPs), and special procurements.

Grantmaking is the most common type of procurement in the nonprofit sector. This involves providing financial assistance to nonprofits through grants or loans. Grantmakers usually use competitive bidding processes to award grants. Grantmakers may also use cooperative purchasing practices to buy goods and services from nonprofits. Contract bidding is used by some grantmakers to buy goods and services from private businesses. Public-private partnerships (PPPs) are a type of procurement in which the private sector partners with government to provide goods or services. Special procurements are unique types of contracts that are used only occasionally by grantmakers.


In this article, we have covered the five major categories of government procurement. Hopefully, this has given you a better understanding of the different types of procurement and what they involve. If you need any help with anything related to procurement, be sure to reach out to us at our contact page or give us a call at (855) 348-2883. We would be more than happy to help!