Many of the procurement processes used by the government have the effect of separating the end user from the buying process. The end user - program office or department within an agency - notifies its procurement office that it needs a particular product or service. The procurement office determines which procurement method to use and completes the procurement process, with the product or service being delivered to the end user.

So, as a vendor, whom do you consider your customer - the procurement office or the end user? Technically, the procurement office is your customer because it issues the contract or purchase order and administers compliance*, resulting in your receiving payment upon performance. To understand the process, consider the following diagram.

1. The end user identifies a need for a product or service and draws up specifications or a statement of work describing in detail what is required and estimated budget.
2. The end user forwards the requisition to its procurement office.
3. The procurement office selects a procurement method, identifies potential suppliers, and solicits bids or proposals from them. Upon receiving the bids or proposals from the pool of potential suppliers, the procurement contracting officer evaluates them. If the evaluation criteria is price only, the purchase will be awarded to the low bidder. More often, there are other evaluation criteria, and the procurement officer will consult with the end user to determine which bid or proposal represents the best value.
4. The supplier delivers the product or service to the end user.
5. The supplier submits an invoice to the address designated by the procurement office. The procurement office will verify compliance with the end user before the invoice is paid.

Thus, the decision to buy and the decision from whom to buy are often made by two different parties. In practice, however, the end user can exert significant influence on the selection of vendors in a variety of ways:

• The way that specifications, performance requirements, evaluation criteria or statements of work are worded can have the effect of favoring one vendor over another.
• The program manager can request that a specific company or companies be included on the bidder's list or otherwise be considered for the procurement.
• The end user may suggest a procurement method that would have the effect of favoring a specific vendor. At the extreme, the end user can draw up a sole-source justification explaining why only one specific vendor is capable of meeting the need.
• In certain cases, the end user can make the decision independently and complete the purchase using a government purchase card (credit card).

To prevent any one individual from exercising too much influence, purchases above certain dollar thresholds are subject to progressively more restrictive rules, both within the end user's office and the procurement office. Approvals by more than one manager or executive may be required. Planned purchases above $25,000 - unless bought off GSA schedules - must be publicly announced through FedBizOpps, and purchases above $100,000 must, with few exceptions, be competitively bid.

TIP: Smaller sales are easier to make because the paperwork requirements are lower. More importantly, you only have to convince one person or program office - the end user - to make the purchase.

* In the Department of Defense, the Defense Contract Management Agency generally administers DoD contracts within their area of operations on behalf of the contracting officer.

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