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Procurement is the acquisition of commodities or services by purchasing, renting, leasing, contracting, or bartering

Purchases acquire goods or services for the direct benefit of the State and are subject to either Wis. Stat. Chapter 16 Subchapter IV or Chapter 35 (print procurement), and the Wisconsin State Procurement Manual.

Contracts are a formal arrangements between the DHS and one or more parties, which by their terms and elements, are enforceable by law.

Grant contracts, on the other hand, are the transfer of something of value to a recipient for the purpose of support or stimulation rather than to acquire goods or services that directly benefit the State. For further clarification of definitions used in Federal policies, refer to Federal Terminology and Definitions.

Audit management described on this web site applies primarily to grant contracts issued by the DHS due to the manner in which the grant contracts are established.

Request for Application (RFA) is a request for grant applications, for both discretionary and competitively funded programs,  that allows organizations to apply or compete for funding to maximize the public investment in and best serve the needs of the various programs.

Request for Proposal (RFP) is a method of purchasing where specifications and requirements for the commodity or service cannot be clearly defined, but the problem, outcome and deliverables can be prescribed. Cost is only one of the factors used to choose the vendor.

Request for Bid (RFB) is a method of purchasing services and commodities that are projected to cost over $50,000 where specifications, requirements, services and end-products can be clearly defined; and once minimum requirements are met, cost is the determining factor in selecting the successful vendor(s).

Request for Information (RFI) is a formal written request which solicits from vendors specific and targeted information which DHS might use to gauge market availability or other conditions. An RFI does not (and need not) necessarily lead to a future procurement or contract for the goods or services mentioned in the RFI.  An RFI is used to obtain information only, no contract will be issued.

Last Revised: December 3, 2015