Pulse

By GCN Staff

Blog archive

States leveraging group purchasing for procurement efficiency

A recent analysis of state and local government and education spending finds that although the number of bids has declined, overall spending has increased.

The Onvia State & Local Procurement Snapshot for Q3 2014 analyzes contracting activity across the nation.

Compared with the same quarter last year, the Q3 2014 analysis finds a 3.2 percent decline in opportunity volume, or the number of state, local and education bids and RFPs submitted for open bidding by government agencies, which indicates slowing growth. 

However,  a decrease in opportunity volume does not necessarily indicate a decrease in state and local government spending, according to Paul Irby, a market research analyst at Onvia.  "What we're seeing happen much more often now is one agency awarding a contract to a vendor, then several agencies purchasing off of that single contract for future purchases."

The firm analyzed procurement activity of a sample of cooperative purchasing agencies across the country and saw a 16 percent increase in their procurement volume over the prior year. “Many of these contracts will be purchased off of many times, resulting in a decrease in opportunity volume even if spending is equal to or higher than last year,"  Irby said.

Onvia's Snapshot analyzed several other trends in state, local and education agency procurement for the period, including:

  • A noted decline in telecom contract volume compared to last year, which could be related to both an ongoing migration to VoIP services and the shift from agency-provided wireless devices to government agency BYOD adoption.
  • A 10.5 percent decline in opportunity volume among education agencies. Education is one of the sectors most strongly impacted by cooperative purchasing initiatives as districts aim to pool purchasing activity in an effort to negotiate better pricing and increase procurement efficiency.

With an increase in cooperative purchasing activity resulting in fewer contracts of greater potential value and with higher state and local tax revenues expected to increase overall government spending in 2015, competition among government vendors is also on the rise, the report said. 

Readers can download the full report from Onvia.

Posted by GCN Staff on Dec 01, 2014 at 11:51 AM


Featured

  • Congress
    Rep. Jim Langevin (D-R.I.) at the Hack the Capitol conference Sept. 20, 2018

    Jim Langevin's view from the Hill

    As chairman of of the Intelligence and Emerging Threats and Capabilities subcommittee of the House Armed Services Committe and a member of the House Homeland Security Committee, Rhode Island Democrat Jim Langevin is one of the most influential voices on cybersecurity in Congress.

  • Comment
    Pilot Class. The author and Barbie Flowers are first row third and second from right, respectively.

    How VA is disrupting tech delivery

    A former Digital Service specialist at the Department of Veterans Affairs explains efforts to transition government from a legacy "project" approach to a more user-centered "product" method.

Stay Connected

Sign up for our newsletter.

I agree to this site's Privacy Policy.