The contracting power is the acquisition by the government of goods and services on behalf of the public authority. However, to prevent fraud and corruption, the laws of most countries regulate this power of government to a certain extent. That is why in many cases a contracting authority is required to issue public tenders if the value of the acquisition exceeds a certain amount or threshold.
Therefore:
The government's power to set conditions on companies seeking to sell goods or services to government agencies is known as <u>contracting</u> power.
