11/ 20/ 2007
by Glenn Townes
The Federal Cooperative Purchasing Program is an easy and stress-free way for entrepreneurs who specialize in information technology to readily offer some of their products and/or services to state and local governments.
The General Services Administration administers the popular match and does business with a program that links state and local governments to vendors across the country. The caveat is that vendors must specialize in providing IT services. To participate in the program, vendors must first register for the program via a form called the Information Technology Schedule 70.
According to published reports and government statistics, cooperative purchasing accounted for about $97 million in revenues last year for the more than 5,200 contractors in the Federal Cooperative Purchasing program. The vast majority of the contractors— about 88 percent—were small IT-based businesses. Based on figures, the largely minority and women-owned business enterprises garnered more than 40 percent of the total state and local government IT-related business last year. Overall, state and local government agencies spent a whopping $240 million in fiscal 2006 on cooperative IT purchasing. Government statistics indicate that the figure has steadily increased since 2003.
The process is relatively easy, and IT vendors interested in becoming part of the program must first register at www.gsa.gov/schedule70solicitation. The site walks potential vendors through the process. Once completed, vendors will have access to a detailed listing of what specific IT products and services are needed at the state and local level in all 50 states.
The guidelines and requirements to becoming a Cooperative Purchasing Program participant are easy. Here’s how the process generally works for businesses interested in selling to local and state government:
Eligibility: Participation in the program is voluntary by both the government entities and the business owner. Once registered, a vendor will able to sell to state and local agencies in all 50 states and various counties and municipalities. Each state has its own procurement regulations and guidelines that may or may not affect it from being able to do business with vendors. Perhaps, it’s a good idea to check with the government Web site in your state or county to learn more about this.
Benefits: Perhaps one of the best benefits of becoming an Information Technology Schedule 70 vendor is that all information related to your business—size and socioeconomic category—is readily available to the state and local governments, and it’s easy for them to identify specific vendors who meet their procurement criteria.
A comprehensive Web site allows local and state governments to view potential contractors based on a specified geographical area or region. Potential contractors can even be divided into categories based on ethnicity, gender or socioeconomic status. For example, the GSA’s E-Library has unique features that enable state and local government agencies to categorize potential vendors in a variety of ways.
On the flip side, when a state or local government agency has a need for a specific kind of IT service or product, the entity will issue an order via instructions in the Federal Acquisition Regulation (www.arnet.gov/far.) The agency will:
- Research the acquisition using GSA’s online tools at the Web site www.gsaelibrary.gsa.gov
- Solicit orders from selected contractors
- Evaluate the options and make a selection in accordance with stated criteria
- Issue or make the order
- Receive the products or services from the contractor
- Pay the contractor/vendor per the contract agreement
Finally, based on projected government figures, the state and local IT market will be about $92 billion in fiscal 2007. With national budgets expected to be severely tightened in 2008, state and local governments will actively be looking for ways to reduce costs and save money. So entrepreneurs with a niche for IT products and services may want to consider becoming a part of the Federal Cooperative Purchasing program as a way to increase their business’ bottom line.
