1. Learn how to Penetrate the State and Local Government market ScanSource

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 Q&A

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? Agency 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 Departments 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 Library 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 Threshold The dollar amount that determines whether or not a public sector purchase goes through the “formal” process Threshold amounts vary By agency Department Type of purchase

10. Defining Government Purchasing Formal Purchases Over Bid Threshold Lots of rules “Advertised” 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 http://www.orlandoairports.net/purchasing/index.htm http://www.seattle.gov/purchasing/doingbusiness.htm http://www.ga.wa.gov/Pca/manual.htm

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 Privatization

14. Resources “Government Source” ScanSource’s public sector program Register Networking sites LinkedIN 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?