Because the procurement process and applicable regulations vary by state, you will find that the decision-making process - especially who makes the decisions - also varies. In some states, the procurement process is highly centralized and regulated, while in other states decisions are made closer to the end user.

The type of product or service and how it is used has a major impact on who makes the purchasing decision. For example, the following types of products are usually procured by a central purchasing office, often a subagency of the state's department of administration or functional equivalent:

• Office supplies
• Office furniture and equipment
• Telecommunications
• Information technology equipment and services
• Real estate services (except transportation-related)
• Facilities maintenance, supplies, and equipment
• Printing
• Vehicles

Generally speaking, if you offer a product or service that is used by a variety of state agencies, the central purchasing office plays a major role in the procurement process. However, even in states where the central procurement office exercises administrative control, a great deal of procurement activity is delegated to other departments.

Procurement authority for other particular classes of goods is often concentrated within one or a few agencies. For example, road construction contracts may be awarded by the state's department of transportation. Building construction and renovation may be contracted through the office of the state architect. State-sponsored institutions, such as universities, prisons, and hospitals may exercise more independent purchasing authority, but are usually still subject to state purchasing guidelines.

Regardless of whether a procurement is made through a central purchasing office, the decisions on what products and services to buy are made at the program level. The highway department decides how many road signs to buy. Social services agencies decide what support services are needed. The lottery commission chooses its own mix of advertising methods. The department of revenue establishes its own needs for professional development training. And so on, throughout the various functions of state government.

When the program managers have determined a need for a product or service, they follow the applicable procurement procedures. For products or services purchased by a central procurement office, the manager will issue a requisition for the product or service or purchase it using an existing contract schedule. For items not purchased centrally, the manager will use the agency's own procurement facilities following the state's procurement regulations.

Next: State Government Procurement Methods

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