Chapter 13: Purchasing and Public Contracts

In the private sector, organizations are generally free to contract however and with whomever they choose with the focus often on the organization’s profit.  In the public sector, public contracting is founded on the principle of fully advertised, open, and fair competition with the focus on transparency and fairness.  Public contracts are generally the purchase, sale or lease of goods or services, or contracts for the construction of public improvements. The authority to enter into a public contract and the limits to that authority are governed primarily by state statute, state administrative rules, and to a lesser extent by the Oregon Constitution and local charters.

This chapter will provide an overview of Oregon’s public contracting laws, identify the various types of public contracts subject to the laws, and describe how to legally procure a public contract.  For ease of understanding, the chapter will be divided in to two primary categories of public procurements: 1) the procurement of goods and services; and 2) the procurement of public improvements and construction services.