Selling IT to US state governments

State governments together spend a very large amount on technology, and their contracts are often more accessible to small firms than federal ones. There are 50 different systems, though, so focus matters.

How states buy IT

• A central procurement office, often in a department of administration or general services, runs major competitions and statewide contracts.
• The state CIO's office or IT agency often sets standards and buys enterprise IT.
• Agencies buy smaller items themselves, within delegated limits.
• Statewide contracts let agencies, and often cities, counties and schools, buy without running their own competition.

Where to find state tenders

Each state has a procurement portal and vendor registration system. Register with each state you target, choose your commodity codes carefully, and set up alerts. Many cities and counties use separate portals. See how to set up tender alerts.

Cooperative contracts

• NASPO ValuePoint: a cooperative purchasing program led by state procurement officials, with multi-state contracts for IT products and services, including cloud.
• Sourcewell, OMNIA Partners and others, used by many local governments and some states.
• GSA Schedules: some state and local governments can buy from certain GSA Schedule categories through cooperative purchasing. See how to get a GSA Schedule.

Security

Many states require cloud vendors to meet a security standard, often GovRAMP (formerly StateRAMP), FedRAMP, SOC 2 or ISO 27001, depending on the data. Health and benefits systems often add requirements under HIPAA and federal program rules. See FedRAMP explained.

In-state preferences

Some states give preference to in-state businesses, small businesses or certified diverse businesses, and many have their own small and minority business programs. Check each state's rules.

Federal money, state rules

Many state IT projects, such as Medicaid, unemployment insurance and child support systems, are partly federally funded, and federal rules can apply to how they're bought.

Foreign and out-of-state firms

Most states allow out-of-state bidders. Some are covered by the WTO Government Procurement Agreement for certain agencies, which helps foreign firms, but coverage varies by state. Many foreign firms set up a US subsidiary or partner with a US firm. See selling IT to government in the US.

Common questions

How do I register as a vendor with a state government?

Through the state's procurement portal or vendor registration system. Each state has its own, and registration is usually free.

What is NASPO ValuePoint?

It's a cooperative purchasing program of state procurement officials that creates multi-state contracts that states and often local governments can use.

Can a Canadian company bid on US state government contracts?

Often yes, though some states have preferences or rules that limit foreign or out-of-state bidders on certain contracts.