Overview of the
Procurement Process

The government procurement process provides a structured framework for how public-sector organizations identify needs, acquire goods and services, manage contracts, and ensure accountability for public spending. While specific procedures vary by jurisdiction and agency, most state and local procurement processes follow a consistent sequence designed to promote transparency, competition, and compliance.

Understanding this process helps agencies coordinate procurement activity, manage risk, and ensure that purchasing decisions align with policy, operational, and fiscal requirements.

Step 0: Needs Recognition

The procurement process begins when an agency identifies a need for goods or services to support its mission or operations. This need may arise from program requirements, maintenance needs, regulatory changes, or strategic initiatives.

At this stage, agencies consider scope, timing, funding availability, and whether the requirement aligns with existing contracts or strategic procurement plans.

Step 1: Purchase Requisition

Once a need is identified, the requesting department submits a purchase requisition. The requisition documents the requirement, estimated cost, funding source, and justification for the purchase.

The purchase requisition is the formal request to initiate procurement and provides the information needed for review and approval.

Step 2: Requisition Review

Procurement staff review the requisition to ensure completeness, funding authorization, and compliance with applicable laws, policies, and procedures. This review may include determining whether the requirement can be met through existing contracts, cooperative agreements, or established procurement vehicles.

Requisition review helps prevent duplication, ensures proper approvals, and confirms the appropriate procurement method.

Step 3: Solicitation Process

If a new procurement is required, the agency initiates the solicitation process. This may involve issuing a request for bids (IFB), request for proposals (RFP), ask for qualifications (RFQ), or another solicitation type consistent with procurement rules.

During this stage, agencies develop solicitation documents, advertise opportunities, manage vendor questions, and ensure that the process remains fair, transparent, and competitive.

Step 4: Evaluation and Contract Award

After receiving responses, the agency evaluates submissions in accordance with the criteria outlined in the solicitation. Evaluation teams assess factors such as price, technical qualifications, experience, and compliance with requirements.

Once the evaluation is complete, the agency awards a contract to the selected vendor and finalizes contract terms and conditions.

Step 5: Order Management

Following the contract award, the agency manages orders issued under the contract. This includes issuing purchase orders, monitoring delivery schedules, and ensuring that goods or services are provided in accordance with contract terms.

Effective order management supports performance tracking and helps ensure that contractual obligations are met.

Step 6: Invoice Approvals and Disputes

As vendors submit invoices, agencies review them for accuracy, compliance with contract terms, and confirmation that goods or services were received as expected. Approved invoices are processed for payment in accordance with financial controls and timelines.

If discrepancies arise, agencies address invoice disputes to resolve issues while maintaining proper documentation and oversight.

Step 7: Record Keeping and Closeout

Throughout the procurement process, agencies maintain records to support transparency, audits, and public accountability. Record keeping includes documentation related to solicitations, evaluations, contracts, payments, and performance.

At the conclusion of a procurement or contract, agencies complete closeout activities to ensure all obligations have been met and records are retained in accordance with retention requirements.

Why the Procurement Process Matters

The government procurement process ensures that public funds are spent responsibly, competitively, and in accordance with law and policy. By following a structured process, agencies strengthen compliance, reduce risk, and promote public trust while supporting effective service delivery.

Understanding this process also helps agencies identify opportunities to improve coordination, efficiency, and outcomes across procurement activities.

To learn more about how Calyptus supports public agencies across the full procurement lifecycle, from planning through execution and oversight, see our Procurement services.