We’ve been talking a lot lately about the Amazon Amendment – a provision tucked into a government appropriations bill that instructs federal agencies to source products through a “company that operates online portals,” aka, Amazon.
If you plan to start selling to federal government agencies under the Amazon Amendment, you’ll need to consider offering blanket purchase order (PO) pricing. The Upstart Group can offer insights on how to best tailor your bid to secure the business.
Many government procurement officers are struggling to balance saving money on behalf of taxpayers, while best serving the needs of their internal customers. The Amazon Amendment gives them the ability to source necessary products online, the way that other businesses do.
One purchase order gets issued for the entire year, then products are billed at a year’s quantity price, but in smaller but recurring quantities. In essence, blanket PO pricing allows the procurement officer to extend bulk purchase discounts across the organization and across the year.
It’s a great way for them to simplify the ordering process of something that is purchased repetitively. For example, rather than creating 100 different purchase orders, the agency can simply create one for a year, and receive against it multiple times. This simplifies the purchasing process for the buyer and gives the seller a predictable forecast for sales for the year.
The federal government spends almost $500 billion annually, across 55,000 distinct agencies. This is a marketplace that you can’t afford to miss. And The Upstart Group is ready to help you make the most of it with insights and guidance to pricing, marketing, and navigating the unique nuances of this specialized market.
Reach out to The Upstart Group today.