How government marketplaces are helping U.S. cities achieve their socio-economic purchasing goals?

Government marketplaces?are becoming increasingly popular as U.S. cities seek to achieve their socio-economic purchasing goals. These marketplaces provide cities with a more streamlined and efficient way to conduct their?micro and small purchases?while also supporting local businesses and fostering economic growth. In this post, we will explore that.?

In the U.S., government buyers use different procedures depending on the dollar amount of the purchases and the types of goods and services they buy. These purchasing methods include: 1) Government Procurement Card (P-Card) purchases (usually under $10,000); 2) Small purchases (purchases over $10,000 and under $50,000 on average), and 3) Formal solicitations (purchases that exceed $50,000).

In the realm of public procurement, where governments spend a staggering $16 trillion each year,?small purchases?make up a significant portion - around $3.7 trillion, which is over 20% of all public purchases. These purchases are typically below the bidding threshold and do not require a bidding process. Instead, anyone with purchasing authority can make a?small purchase?directly from the seller of their choice.

Given the substantial volume of?micro and small purchases, we ask ourselves —?How can U.S. cities harness this purchasing power to further their economic and social objectives??One potential solution that we believe could be helpful is the use of?government marketplaces?designed exclusively for them.

Below are some examples of economic development goals that governments aim to achieve, along with how?government marketplaces?assist in reaching these objectives.

??? Promote small and local businesses: Many governments aim to promote the growth of small and medium-sized enterprises, as well as the local economy. To achieve this goal, they can utilize?government marketplaces?that feature a large number of local, small, and medium-sized businesses.

??? Simplify the procurement process: By using a single platform to manage procurement, cities can save time and resources, while accessing a wide range of vendors and products, allowing cities to find the best value for their budget.?

??? Achieve their infrastructure development goals: By providing a platform for the sale of surplus or unused equipment and materials, cities can generate revenue and reduce waste.?

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