Business-to-government (B2G),[1] also known as business-to-public-administration (B2PA)[1][2] or business-to-public-sector (B2PS) refers to trade between the business sector as a supplier and a government body as a customer playing a major impact in public procurement.
[6] More than 60% of Fortune 1000 companies are active in the B2G market, with government customers generally having a positive impact on a firm’s value.
[7] Public-sector organizations generally post tenders in the form of requests-for-proposals, requests-for-information, requests-for-quotations, and sources-sought, to which private suppliers respond.
Business-to-government networks provide a platform for businesses to bid on government opportunities that are presented as solicitations, in the form of requests-for-proposals, through a reverse auction.
Government agencies typically have pre-negotiated standing contracts vetting the vendors/suppliers and their products and services for set prices.