State and Local Governments Have Their Rules Too!

Although Fedmarket's installments and newsletters tend to focus on the federal government, I would like to take the time to address state and local government business. Many companies have approached me with questions about this marketplace. The reality is that I have found that it is not that much different than the federal market. State and local governments tend to have their own procurement rules. These rules are not dramatically different from those found in the Federal Acquisition Regulation. State and local procurement rules typically have a dollar value at or above which the buyer must obtain three bids rather than sole source. Many jurisdictions also require that an opportunity go out for public bid if the contract will require multiple awards, has a large contract value or if the opportunity is very public in nature (such as a Homeland Security or construction project). When I sat down with Colorado's small business specialist last year, he explained that each department within his state government can make a purchase of up to $25,000 without asking for a competitive bid. I asked him if Colorado had any small business rules or rules about only using businesses located in Colorado. His response was that no such rules existed because the state government didn't want to limit the opportunities of Colorado-based businesses to win opportunities outside the state. If you want to peruse Colorado's procurement web site, see the following link: http://www.colorado.gov/dpa/dfp/spo/index.htm?opendocument

I spoke with a former co-worker of mine who works for the City of Warren, Michigan. He told me Warren uses a central bid notification system to notify vendors of bid and quote opportunities. This venture is called the "Michigan Intergovernmental Trade Network ("MITN"). The system is used for registration of vendors and for the posting of bids, quotes, requests for proposals, request for information, addenda, and awards. He said, "Vendors with Internet access should review the registration options at www.govbids.com and select the link to the MITN site."

Each community, school and state or local government follows its own protocols. Many of those protocols look a lot like the FAR but they have their own twist. Therefore, you might want to personally visit your local government office. Ask them to direct you to the local procurement rules. Try to determine whether a web site registration for bid notices is necessary in your jurisdiction. If you determine it is possible to get a state Multiple Award Schedule ("MAS"), you will need to follow the appropriate rules and protocols in order to obtain one. And it goes without saying that by getting a state MAS, you will make the purchasing officer's job that much easier.

Once you know the rules and procedures, you will be able to find the end users and start to sell your products and services. When the end user believes in your products and services, they'll literally carry you over to the contracting office and the closing begins. So, you see, the process is not much different than federal contracting.

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