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Innovations in State and Local Government







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.