Vendor
Information
Program State of Oregon
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Oregon's
Vendor Information Program (VIP) is the first and still the only
fully automated bid access and information system for public
purchasing in the United States. By providing universal and timely
access to information about state contracts electronically, Oregon
has improved the fairness of the state procurement system,
significantly broadened opportunities for contracts for small and
minority-owned businesses, and saved the state millions of
dollars.
Using VIP,
firms and individuals seeking to do business with the state can
receive bid information via personal computers in their homes or
offices 24 hours a day, seven days a week. Vendors who don't own
computers can access VIP at more than 120 designated Procurement
Centers located throughout the state in local chambers of commerce,
community colleges, small-business development centers, libraries,
and trade associations.
The VIP
system began operations on January 1, 1992, and cost approximately
$400,000 to introduce. During VIP's first year, the number of firms
participating in the state's bidding process rose from 16,000 to
24,000. The resulting increase in competition drove down the cost
of goods and services bought by the state, saving taxpayers more
than $17 million in purchasing costs. The state also saved $60,000
in paper and postage expenses and $500,000 in personnel costs.
Vendors using
VIP can get comprehensive information not only about contracts up
for bid, but also about contracts awarded previously and standard
contract terms and conditions.
VIP was
developed by the purchasing division of the Oregon Department of
Administrative Services (DAS), after determining that the state's
process for procuring more than $150 million worth of goods and
services annually was antiquated. The system produced such poor
results that DAS considered discarding its centralized purchasing
system altogether and having each state agency buy goods and
services on its own.
The biggest
challenge in implementing VIP was to change 30 years of procurement
practice. State officials formed an advisory council of business
and government leaders to help design an information campaign to
explain the new system to vendors throughout the state.
In a recent
survey of vendors, 91 percent reported improved access to bid
information through VIP, and 74 percent said they had learned of
bid opportunities through VIP that they had previously not known
about. Some 93 percent of those surveyed felt that adding city and
county government bidding opportunities to VIP would be valuable,
and the state is currently working to do so.