The U.S. Government has some interesting items on its shopping list these days: "Buffalo" mine-protected clearance vehicles, US-VISIT biometric identity-check systems, and multi-mission maritime aircraft. But where does the United States Department of Defense go shopping, and how does it decide what items to buy?

Unlike in the consumer market where businesses sell products directly to individual consumers, the business-to-business market is where businesses sell products to other businesses and government entities. The business-to-business market is significantly larger than the consumer market, and government agencies make up the single largest purchaser of goods and services.

Government agencies purchase a wide variety of products ranging from concrete, timber, and office supplies to ballistic missiles and petroleum. Furthermore, when evaluating what products to buy, the government follows a decision-making process that is similar to the consumer decision-making model. Acquisition teams are responsible for recognizing a problem or need, evaluating various solutions, and selecting from among the best possible choices.

Due to rising terrorism and other political threats over the past decade, government agencies are ramping up defense spending. The U.S. Government is currently involved in a variety of defense-related purchases. Various procurement-and-acquisition groups evaluate products and award government purchases to vendors.

(JuLy, 2004)