Function

• In the United States government procurement requires individuals entering into commercial contacts to follow specific government laws and regulations. Although both parties are still allowed to set their own terms, they are not permitted to deviate from any government laws or regulations. The OFPP is run by a government administrator who is appointed by the president of the United States and approved by the U.S. Senate.
  
  

History

• In 1974 Congress created the OFPP to guide government procurement policies, regulations and procedures. The OFPP was established to "provide overall direction for government-wide procurement policies, regulations and procedures and to promote economy, efficiency and effectiveness in acquisition processes," according to the OFPP website.
  
  

Significance

• The OFPP guarantees the implementation of proper government policies and practices in the federal government's acquisition of an estimated $350 billion each year in goods and services, The OFPP oversees the development of acquisition regulations, formulates and coordinates acquisition legislation, manages the government procurement data system and promotes participation of small businesses in government contracts.