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U.S. government agencies and many of the state and local (city and county) government agencies have for several years entered into contractual relationships with commercial businesses to perform some of their business functions. Such “contracting out” arrangements differ from outsourcing in that the contractor does not have control over the total function; the government, for the most part, instructs the contractor when and how to perform the work. These arrangements enable the government to have access to resources (human and technology) that it otherwise—because of regulations or funding—could not obtain. In addition to large-sized contractors (such as Lockheed Martin,) supplying services and products to the U.S. Department of Defense, for example, each government entity has set aside some of the budgeted contracting-out funds and earmarked that money specifically for contract work to be awarded to small businesses and economically disadvantaged companies owned by minority individuals, veterans, women and Native Americans. Acquisition rules determine which kind of company can bid on a government contract. Continued... By Kathleen Goolsby