Contracting vehicles - Texas has a lot of them!

One popular program is the Texas Department of Information Resources (DIR) Go DIRect Program. The program allows eligible entities to purchase IT hardware, software and services from vendors who have contracted with DIR through a competitive bid process. These contracts offer discounts on technology-related goods and services because DIR can negotiate lower prices as a result of large volume of purchases to be made by public entities. Users of the DIR program include state agencies, cities, counties, school districts, public institutions of higher education, hospital districts, utility districts and state and local governments in other states. Millions of dollars flow through this program each year.

Other purchasing cooperatives in high demand originate with the state's numerous Councils of Government (COGs). The Houston-Galveston Area Council (HGAC) has one of the largest cooperative purchasing programs in the state, HGACBuy. On behalf of participants, HGACBuy acts as a designated purchasing agent and handles pre-bid/pre-proposal conferences, prepares bid specifications, evaluates responses and awards contracts. Local governments, schools hospital districts and other entities use this program.

Regional Education Service Centers (ESCs) also have cooperative programs. Each of the state's ESCs serve approximately 50-70 school districts and 10-20 counties. Vendors are awarded cooperative contracts after an ESC is comfortable that the pricing is right, terms and conditions are fair and the process has been competitive. As a result, school districts and others are allowed the freedom to skip a formal bid process. One of the largest programs is The Cooperative Purchasing Network (TCPN) which is operated by Region 4 ESC in Houston.

The Local Government Purchasing Cooperative, another very popular cooperative purchasing program, is administered by the Texas Association of School Boards and endorsed by the Texas Municipal League and the Texas Association of Counties. Because all contracts have been competitively procured by the Cooperative, members are free to view prices and contracts and make purchases through the Cooperative's portal, BuyBoard, without any bidding. All local governments, nonprofits, school districts and other political subdivisions of the state may participate.

Contracting vehicles come in many shapes and forms. There may not be a need to understand them all - unless you want to sell to governmental entities in Texas - and then there is a critical need. Companies, and especially sales reps, should be very knowledgeable about all of the state's cooperative purchasing programs.

SPI researchers have prepared a Guide to Contracting Vehicles in Texas. If you need a copy, contact Reagan Weil at 512-531-3900. There is no charge for the research document.