Government procurement scansource
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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 Presentation Transcript

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