Deltek Analyst Nooshin Rezazad reports.
Statewide term contracts are a cooperative agreement used to procure goods and services from pre-approved vendors. In recent years, state and local governments have increasingly utilized these contracts to purchase information technology-related goods and services, from computer hardware and software to maintenance and support services. Deltek estimates that state IT term contracts encompass more than $12 billion in annual spending for state and local goods, and nearly $6 billion in annual spending for professional services. In 2011, nearly $700 million in state and local spending was through GSA Schedule 70, and more than $16 million through Schedule 84.
In a poll conducted by Deltek, 72 percent of companies active in the state and local government market rated the importance of term contracts to their success as critically important or important. Product company sales executives rated the importance of term contracts at 4.5 out of 5.0.
As a result, Deltek’s developed the GovWin IQ State & Local Term Contract Resource to provide information and analytics on more than $20 billion in annual nationwide spending across more than 15,000 individual contracts. The database includes master price agreements, Md. CATS I & II, WSCA, U.S. Communities, and other statewide term contracts.
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