Cooperative Procurement Emerging Markets Initiative

Procurement organizations have limited resources and decide which procurement solutions to pursue that will bring the greatest benefit to their public sector customers. The Emerging Markets initiative solicits insights directly from the private sector, offering an opportunity to provide ideas that are innovative and forward thinking, to anticipate and proactively meet the needs of multiple governmental entities throughout the country.

Innovation Summary

Innovation Overview

The National Association of State Procurement Officials (NASPO) is comprised of the State Chief Procurement Officials of the United States (US), including the District of Columbia and the US Territories. NASPO ValuePoint (NVP), a division of NASPO, is the largest public procurement cooperative operating in the US. NVP establishes Master Agreements through a cooperative and collaborative Lead State Model. These Master Agreements are used throughout the US by state government, as well as by thousands of local public entities. In 2020 $17 Billion of public spend flowed through NVP contracts, and this figure is growing year over year.

In the past, ideas which led to NVP cooperative Master Agreements, came into existence primarily by considering collective spend data maintained by our state members. NVP would primarily measure the suitability of the idea by polling state membership.

The emerging markets initiative is an effort to anticipate the “global” needs of state and local governments, based on the insight of industry leaders in the supplier community.

At its core level, this initiative is designed to solicit input from the private sector for innovative contract solutions to meet present and anticipated government needs. The private sector invests significant resources toward research and development of future products and technologies. Therefore, the private sector is in a good position to share where they see the market headed. To tap into their research and strategy ideas, the emerging markets initiative encourages private sector input on which products, technologies and services should be pursued by NVP as a cooperative and explain how their solutions apply to the state and local government sector.

NVP’s objective is to broaden the pool of thought, beyond simply looking at current spend data within the states and capture innovative contracting ideas that will ultimately help governments reach greater levels of efficiencies.

Public and private sectors both benefit from this initiative, throughout the entire US. Public sector benefits because thousands of public entities gain access to nationally competitively bid contracts under a single solicitation, for innovative products, technology or services. The private sector benefits with a nationwide agreement that recognizes industry terms, and which will effectively open state and local government markets more fully. The initiative was broken into six phases:

Phase 1
Suppliers were asked to produce three primary pieces of information (1) Overview of the concept (2) Whitepaper describing the concept in fuller detail (3) Relevant market Information including references to existing contracts that address this concept. Organisers posted this announcement on their website.
Phase 2
Submissions were collected using a cloud-based interface called “form stack”.
Phase 3
Selected suppliers were afforded an opportunity to present to NVP and asked their views regarding the following:
• Current market demand for state and local government
• Market growth potential
• Anticipated resources needed to develop the idea into Cooperative Master Agreement(s)
Phase 4
Evaluations of submissions and presentations considered applicability of the solution to state and local government and focused on market growth and potential.
Phase 5
Requests for Information (RFI) were issued to gather a broader industry perspective and secure a deeper understanding of how each industry functions. Furthermore, NVP conducted a Survey of the States to assess potential need; and performed additional market and financial analytics to corroborate market potential.
Phase 6
Once all phases were complete, NVP submitted formal recommendations to the NVP Board, comprised of procurement representatives from multiple states, seeking approval for the development and release of a cooperative procurement.

Innovation Description

Innovation Development

Innovation Reflections

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Year: 2020
Level of government: Regional/State government

Status:

  • Generating Ideas or Designing Solutions - finding and filtering ideas to respond to the problem or opportunity
  • Implementation - making the innovation happen

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