INPUT Releases Report On GSA Schedule 70 Purchases

State & Local Purchasing Off Schedule Accelerates Despite Economic Downturn

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Reston, VA (Vocus) June 19, 2009

INPUT, the leading authority on government business, has issued a report on the General Services Administration (GSA), an independent agency of the United States Government that helps manage and support the basic functions of federal agencies. The GSA often assists with procurement work for federal agencies and has established the GSA schedule, which is similar to a set of prenegotiated contracts. Procurement managers from government agencies can purchase from the GSA schedule, knowing that all legal obligations have been taken care of by the GSA.

Schedule 70 is GSA's General Purpose Commercial Information Technology, Equipment, Software, and Services schedule. INPUT notes that 87 percent of Schedule 70 use by state and local governments is for five categories: wireless services, software maintenance, perpetual software licenses, IT equipment, and IT services.

In the report, GSA Schedule 70 - 2008-09 Local Purchasing Surges with Economic Downturn, INPUT examines GSA Schedule 70 orders placed by state and local governments from 2003-2008.

INPUT Findings

GSA Schedule 70 sales to state and local governments were $521.8 million in 2008.
Sales in the first quarter of 2009 are 40 percent above sales in the same quarter one year ago.
State and local government purchasing off Schedule 70 will enjoy a compound annual growth rate of 32 percent over the next five years.
Verizon Wireless is the leading vendor selling to state and local governments through the use of GSA Schedule 70, capturing 23 percent of all sales in 2008.
There were 56 suppliers in 2008 with more than $1M in Schedule 70 state and local sales.
The top ten suppliers represent more than 70 percent of total spending.

INPUT Conclusions

The economic stimulus will catalyze further use of time-saving Schedule 70 because of the bill's strict timelines. Contractors can expect to see:

o More cooperative purchasing among state and local governments.
o States adopting streamlined contract vehicles.

Vendors should include Schedule 70 in their green sales strategy.
Vendors are refining state and local sales strategies and are marketing GSA Schedule 70 as a purchasing option.
Contractors should provide government clients with a variety of ways to contract for their products and services.
Local dollars add up and successful suppliers should take the time to focus on local governments and K-12 schools.
GSA Schedule 70 use will be driven by: 1) Recovery Act and associated timelines; 2) Increased investment in technology equipment and infrastructure for energy savings (after Recovery Act). 3) Increased supplier participation in Schedule 70 as state and local government shortfalls abate.

Report Author: Jason Sajko, senior analyst at INPUT, is available for media inquiries.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 2,000 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational and networking events. For more information about INPUT, visit http://www.input.com or call 703-707-3500.

Proper use of name is INPUT.

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