Where State and Local Governments Are Upping Their Procurement

Factory workers assemble medical devices.

Factory workers assemble medical devices.

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And the states that lead in each contracting area.

State and local government agencies saw the number of bids and RFPs for improved medical equipment grow 21 percent in 2016, more than any other contracting area, fueled by high health care costs and an aging boomer population.

According to the “10 Hotspots in Government Contracting for 2017” report released Thursday by Seattle-based business commercial intelligence company Onvia, medical equipment bids and requests for proposal increased from 1,491 in 2015 to 1,798 last year.

The medical equipment industry is worth $484 billion worldwide, and demand for new devices at public hospitals and health centers in the U.S. is meant to boost efficiency and prevention as patients capitalize on expanded access to insurance.

New York is the top state for medical equipment bids and RFPs, representing 13 percent of the market, followed by California and Texas, according to the report:

[C]itizens increasingly look to government to make progress in adopting newer technologies (such as the latest medical devices, high-speed connectivity, and smart lighting) or better methods (such as educational approaches for the classroom).

Perhaps that’s why innovating education is the second-biggest procurement growth area, evolving teaching methods driving a 20 percent increase in government bids and RFPs. Texas is the leading state in that regard.

The third-largest procurement growth area is expanding connectivity with a 20 percent increase in bids and RFPs from 306 to 367, according to the report. That means high-speed broadband infrastructure among other tech. California leads the nation in procurement on that front, followed by Illinois.


The other top 10 procurement “hotspots” in order are: information technology, smart lighting, disaster services, infrastructure, Americans with Disabilities Act compliance, clean water and school bus services.

Read the full report here.

Dave Nyczepir is a News Editor at Government Executive’s Route Fifty and is based in Washington, D.C.

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