B2B Payments

Is A ‘Nuclear Blast’ About To Hit New York’s Procurement World?

Earlier this week, the Washington Post reported that New York officials are trying to create plans for a set of IT contracts that could change the way state and local governments purchase their technology goods and services.

According to analyst Derek Johnson, who wrote the article and works at Deltek, a firm that analyzes the government contracting market, this potential procurement plan could have a dramatic effect on the kind of agency procurements that make up a significant percentage of non-term contract spending.

The umbrella contract would cover project-based IT consulting services, along with manufacturer-based communications and telecommunications equipment, cloud, on-premises software and connectivity services. Other hardware and software would also be covered.

“To those in the contracting world, this is the equivalent of a nuclear blast,” Johnson wrote in his Washington Post piece. “Within the IT realm alone, New York and other states typically have dozens of perpetual term contracts in place for certain types of software, computers, printers, professional services and consulting.”

Johnson added that those contracts are typically supplemented with “one-off, limited-time bids for large-scale software systems or services related to a major project.” This move by New York could also set a precedent for the procurement process in other states, Johnson said.

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