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End of year spending totals may surprise!By Mary Scott Nabers, CEO of Strategic Partnerships, Inc. |
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The state spends large amounts on picture frames, business cards, signs, blueprints, mailing labels, fulfillment services and reproductions. For printing and reproduction alone last year, $74 million was spent. Another huge spending category for the state is fleet maintenance. Most of this spending is done by three agencies: the Texas Department of Transportation, the Texas Department of Public Safety and the Texas Parks and Wildlife Department. Last year, $31 million was spent on maintenance and repair of vehicles and $10 million for rental vehicles. These totals do not include new vehicle purchases, insurance or gasoline.
Other purchases, such as $141 million for advertising services, $33 million for cleaning services and $36 million for computer maintenance and repair may not be as surprising.
With numerous health science centers, state universities and mental health facilities, Texas state agencies bought $750 million in medical supplies last year. The state also paid out $457,000 for veterinary services. Services are big categories when it comes to procurement totals. In 2007, the state spent $27 million for legal services and $23 million for investment counseling services. Communications services cost the state $67 million while $7 million was spent on computer consulting services. Education and training services, most of which were for the state's various health science centers, totaled $24 million.
The take away message is that opportunities for vendors abound in state government. Firms that sell automotive services, cameras, landscaping services, printing or anything else government purchases should take a serious look at the end-of-year spending totals for those categories. Chances are, once that is done, the next move will be to become a part of the government procurement process and begin capturing some of the business opportunities.