Government procurement scansource


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  • Typically, State and local government sales are lumped in with private sector sales.
  • Use DOT as an example
  • Draw Wheel and Spokes
  • Define Decision makers – Typically at the end of the process. In government, it’s at the beginning.End users are typically not the decision makers. But in S&L they are.
  • It’s nice to know about the threshold concept. But the problem is every agency is different.
  • Also used for emergency purchasesVendor lists
  • Government procurement scansource

    1. 1. Learn how to Penetrate the State and Local Government market<br />ScanSource<br />
    2. 2. What we’ll cover<br />Defining the state and local government market for you<br />How state and local agencies buy<br />Giving you a framework to sell to one of the most fragmented but lucrative markets in the world<br />Q&A<br />
    3. 3. What’s in this for you<br />If you are new to the state and local government market…<br />Learn how to identify your specific market<br />specific purchasing entities<br />and the people to contact<br />If you currently have a state and local government market presence…<br />Learn how to strategize future sales and marketing endeavors<br />Learn how to get unstuck with a specific agency you’re targeting<br />
    4. 4. Defining State and Local Government<br />Public Sector<br />The part of the economy concerned with providing basic government services<br />What are some examples of basic government services?<br />Agency<br />Any public sector entity that receives $ from taxpayers<br />Public sector purchases that use taxpayer dollars are sometimes visible to you<br />Purchasing Entity<br />Any agency or part of an agency that purchases<br />Most agencies have more than one purchasing entity<br />
    5. 5. Defining State and Local Purchasing<br />
    6. 6. Defining State and local Purchasing<br />Centralized Procurement Offices<br />Differentiates government from the private sector<br />Should be your first point of contact at an agency<br />They know all the rules<br />Sometimes they have a website and online registration<br />Procurement staff will have their names on a bid or RFP<br />Typically the only person a vendor can contact during the bid/RFP process<br />Often generalists, sometimes they specialize<br />
    7. 7. Defining State and Local Purchasing<br />Departments<br />Typically have the most influence on what is purchased<br />Then pass along to procurement<br />Department heads are referred to as “Decision Makers”<br />“End Users”<br />Relationships are MORE important in the public sector than they are in the private sector<br />
    8. 8. Typical Local Government Procurement Process<br />Library<br />Procurement Request<br />Agency Procurement Office<br />Conducts Competitive<br />Bid/RFP Process<br /> Seek Approval of Award<br />Board Commissioners City Council<br />Police Dept<br />Procurement Request<br />Authorize Award<br />Procurement Request<br />Health Dept<br />
    9. 9. Defining Government Purchasing<br />Threshold<br />The dollar amount that determines whether or not a public sector purchase goes through the “formal” process<br />Threshold amounts vary <br />By agency<br />Department<br />Type of purchase<br />
    10. 10. Defining Government Purchasing<br />Formal Purchases<br />Over Bid Threshold<br />Lots of rules<br />“Advertised”<br />Typically competitive<br />Approximately 20% of all purchases<br />Approximately 80% of $ spent<br />
    11. 11. Defining Government Purchasing<br />Informal Purchases<br />Under Bid Threshold<br />Not many rules<br />Not “Advertised”<br />Typically less-competitive<br />Approximately 80% of all purchases<br />Approximately 20% of $ spent<br />
    12. 12. Defining Government Purchasing<br />Examples of Purchasing Sites<br /><br /><br /><br />
    13. 13. Government Purchasing and you<br />Current Trends in State and Local purchasing<br />Procurement Offices are shrinking<br />Piggyback contracts<br />Public Private Partnerships (P3) on large infrastructure projects<br />Purchasing Cooperatives<br />Privatization<br />
    14. 14. Resources<br />“Government Source” <br />ScanSource’s public sector program<br />Register<br />Networking sites<br />LinkedIN<br />News Feed Sites<br />
    15. 15. Government Purchasing and you<br />How much formal bidding do you do?<br />How many agencies call you?<br />How many government agencies are you registered with?<br />How many vendor lists are you on?<br />What’s your average contract value to the government?<br />What’s your win ratio on competitive bids and proposals?<br />What is your differentiator?<br />What does your best state and local government customer look like?<br />