Which statement is correct regarding the government's policy for describing agency needs?

The statement that restrictive provisions can only be used as authorized by law is correct because government policy emphasizes compliance with applicable laws and regulations when defining agency needs. This ensures that any restrictions imposed on the description of needs are justifiable and legally permitted, promoting fairness and competition in the procurement process.

In the context of government contracting, it is vital to maintain a balance between ensuring that specific requirements are met and allowing for sufficient flexibility to encourage broad participation from potential vendors. While it might sometimes be necessary to specify certain restrictions to achieve the goals of the acquisition, these must always align with the governing statutes and regulations to avoid unfair limitations on competition. Thus, this approach fosters a transparent procurement environment while still addressing the unique requirements of the agency.

Other options may suggest approaches that either disregard legal authority or compromise the necessary clarity and openness required in government procurement, which are not in line with established practices or regulations.