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State procurement in the United States is the practice by which the united states government attains goods, services (notably construction), and interests in real property. Commitments for government procurement usually involve appropriated finances spent on supplies, services, and interests in real property by and for the use of the municipal Government through purchasing or lease, whether the supplies, services, or interests are already in existence or must be produced, developed, demonstrated, and evaluated. See 48 C.F.R. § 2.101 (""Acquisition"" defined, as to services and goods only).
municipal Government contracting has the same legal elements as contracting between private parties: a lawful purpose, competent contracting parties, an offer, an acceptance that complies with the terms of the offer, mutuality of obligation, and consideration. However, state contracts are much more intensely regulated, accountable to quantities of statutes dealing with Govt. contracts and the Federal contracting process, mostly in Titles 10, 31, 40, and 41 of the United States Code.Private parties entering into a contract with one another (i.e. commercial contracts) are much freer to start a broad range of contract terms by mutual consent than a private party entering into a contract with the Federal Government. Each private party represents its own interests and can obligate itself in any lawful manner. city Government contracts take into account the development of contract stipulations by mutual consent of the parties, but many areas addressed by mutual consent in commercial contracts are controlled by law in Government contracts and legally require use of prescribed provisions and clauses. In commercial contracting, where one or both parties may be represented by agents whose authority is controlled by the law of agency, the agent is frequently allowed to form a contract only with reference to accepted notions of commercial reasonableness and perhaps a few unique statutes that apply.
In Federal Government contracting, unique regulatory authority is required for the Government's agent to enter into the contract, and that agent's bargaining authority is strictly controlled by statutes and regulations reflecting Civil policy choices and prudential limitations on the right of Govt employees to obligate Federal funds. By contrast, in commercial contracting, the law allows each side to rely on the other's authorization to make a binding contract on mutually pleasing terms. Obviously, there are many subtleties to industrial contracting, but, generally speaking, the law favors the creation of commercial contracts by a variety of agents in order to enhance business.
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