<P> In the same period, small business contracts totalled $96.8 billion . </P> <P> The Federal Government's authority to enter into contracts derives from the U.S. Constitution, which defines its powers . The Federal Government acts through legislation, treaties, implementing regulations, and the exercise of those authorities . The Federal Government's power to contract is not set forth expressly and specifically in the U.S. Constitution . However, the U.S. Constitution appears to assume the continued vitality "Engagements" entered into under the Articles of Confederation . U.S. Const., Art . VI . Moreover, the power to contract was and is regarded at law as necessarily incidental to the Federal Government's execution of its other powers . An early Supreme Court case, United States v. Thomas Tingey, 30 U.S. 5 Pet. 115 (1831), recognized that the United States Government has a right to enter into a contract . It is an incident to the general right of sovereignty, and the United States, may, within the sphere of the constitutional powers confided to it and through the instrumentality of the proper department to which those powers are confided, enter into contracts not prohibited by law and appropriate to the just exercise of those powers . Scores of statutes now also expressly authorize departments and agencies to enter into contracts . The U.S. Congress passes legislation that defines the process and additional legislation that provides the funds . Executive branch agencies enter into the contracts and expend the funds to achieve their Congressionally defined missions . When disputes arise, administrative processes within the agencies may resolve them, or the contractor can appeal to the courts . </P> <P> The procurement process for executive branch agencies (as distinguished from legislative or judicial bodies) is governed primarily by the Armed Services Procurement Act and the Federal Property and Administrative Services Act . To address the many rules imposed by Congress and the courts, a body of administrative law has been developed through the Federal Acquisition Regulation . This 53 - part regulation defines the procurement process including special preference programs, and includes the specific language of many clauses in Government contracts . Most agencies also have supplemental regulatory coverage contained in what are known as FAR Supplements . These supplements appear within the Code of Federal Regulations (CFR) volumes of the respective agencies . For example, the Department of Defense (DOD) FAR Supplement can be found at 10 CFR . </P> <P> Government contracts are governed by Federal common law, a body of law which is separate and distinct from the bodies of law applying to most businesses--the Uniform Commercial Code (UCC) and the general law of contracts . The UCC applies to contracts for the purchase and sale of goods, and to contracts granting a security interest in property other than land . The UCC is a body of law passed by the U.S. state legislatures and is generally uniform among the states . The general law of contracts, which applies when the UCC does not, is mostly common law, and is also similar across the states, whose courts look to each other's decisions when there is no in - state precedent . </P>

Who has the legal authority to bind the us government on a us government contract