Publication Date


Document Type


First Advisor

Alwan, Hadi H.

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Finance


Small business--United States; Government purchasing--United States


The role of a financial manager in a small manufacturing company typically encompasses areas beyond that recognized by the financial discipline and is necessitated by the limited number of management personnel. An area of additional responsibility may lie in determining profitable marketplaces for the firm. In addressing this issue, this study concentrates on the procedures necessary for entrance into the world’s largest marketplace, that of U.S. Government procurement. This study begins by identifying important sources of information and illustrating the three types of government contracts available to potential suppliers. The most common form, the firm-fixed price contract, is then used for illustrative purposes throughout the study. Acquisition of a government contract is then researched. All the important steps are highlighted with the emphasis centered on the avoidance of financial problems caused by an ignorance of procedure. This is carried forward through a review of nine fixed contract clauses that are typically misunderstood and result in contracts being underbid The final section deals with the various sources that are available for financing a government contract. Private and government sources are reviewed with the respective requirements for funding set forth. Most of the financial difficulties arise during the initial stages of contracting and since many small business concerns cannot withstand unexpected financial outlays, this marketplace is often avoided. However, this study concludes that federal procurement can be a safe form of business venture. Awareness of The Procurement System will avoid many of the financial problems and allow for proper contract implementation. Use of The Procurement System can lead to a source of strong economic growth for the small business and enhance its business opportunities in other market areas and among the environment of increased competition.


Includes bibliographical references.


vi, 68 pages




Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type