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. 

📌  Provide better and more efficient government services to residents: Marketplaces may offer additional features such as invoicing and reporting, making it easier for cities to manage their procurement processes.

📌  Promote transparency, effectiveness, efficiency, and accountability: Government marketplaces typically offer a purchase tracking function, enabling governments to keep a close eye on their purchases and make adjustments to align with their interests and goals.

As more cities turn to marketplaces to achieve their social-economic purchasing goals, it is clear that they have the potential to transform the way cities do business and create a more prosperous future for their residents.

Following this, Glass launched Glass Commerce, a government marketplace enabling compliant transactions between government buyers and verified small vendors without bids or paperwork. So far, Glass has helped government agencies procure over 5.8 million items from local, small and diverse businesses, leveraging procurement data and streamlining operations across more than 30 federal, state and local agencies, including the State of Illinois, the City of Seattle and the City of Miami.

Head over to www.commerce.glass and discover the government marketplace revolutionizing the handling of small government purchases.

This blog was written by Gisela Montes, GovTech Community Lead at Glass.