Bidder Beware: The Stakes Are Rising In Government Procurements

Governments at all levels across the country are increasingly moving towards a "centralized procurement" model, in which one agency, department or organization manages the purchasing of goods and services for multiple government entities.

As governments look to take advantage of the benefits of group purchasing and shared services, the scope, value and duration of resulting contracts have increased, and this has raised the stakes for suppliers on every procurement. Losing out on a particular procurement may lock a supplier out of a large market for a significant period of time. This is particularly true in the life sciences sector, where shared services organizations already play a significant role in aggregating purchases of medical devices and off-patent and generic pharmaceuticals.