360° Procurement: Empowering Local Suppliers Through Public Procurement 

Procurement is no longer just about finding the lowest price; it has become a powerful tool for community development. When local suppliers are given opportunities to compete, procurement drives job creation, economic growth, and resilience. For state and local governments, this means adopting procurement practices that support local businesses and benefit their communities.

Why Local Supplier Engagement Matters

Engaging local suppliers goes beyond economics; it’s about building vibrant, self-sustaining communities. When procurement dollars stay within the community, they generate a ripple effect. Local businesses hire residents, reinvest in community initiatives, and support other small businesses. This cycle keeps money circulating within the local economy, fostering long-term growth and stability.

Local businesses also offer unique advantages. They are often more responsive to community needs, provide tailored solutions, and can offer quicker turnaround times than larger, out-of-state competitors. By prioritizing local suppliers, governments strengthen their communities and foster entrepreneurship and innovation.

Economic Impact of Local Procurement

Research from the American Independent Business Alliance (AMIBA) shows that for every $100 spent at a local business, approximately $68 stays in the local economy, compared to just $43 when the same amount is spent with non-local firms. This increase in local spending creates jobs, boosts tax revenue, and stimulates economic growth. Additionally, prioritizing local suppliers introduces more competition to the marketplace, which can improve pricing, quality, and innovation.

Challenges Local Suppliers Face

Despite the benefits, local suppliers often struggle to secure government contracts. Many small businesses lack the resources and experience to navigate the complex procurement process. Paperwork, compliance requirements, and tight deadlines can make it difficult for them to compete with larger firms with more government contracting experience.

Governments must address these barriers by simplifying processes and offering resources to help small businesses participate. Streamlined applications, targeted outreach, and training programs can empower local suppliers to compete more effectively.

The Power of 360° Procurement

Procurement involves more than just transactions; it’s about relationships between government buyers, suppliers, and the community. A well-designed procurement strategy should be enabled by technology to address the needs of all three groups:

• Government Buyers: Streamlining processes, improving supplier outreach, and using data to enhance decision-making.
• Suppliers: Receiving timely notifications about relevant opportunities and training on government procurement practices.
• Community: Providing transparency to show how tax dollars are being spent and ensuring those dollars benefit the public.

At SOVRA, we believe in a holistic approach that supports not only procurement professionals but also suppliers of all sizes. We aim to help local businesses win more government contracts, driving economic growth across communities.

Strategies to Empower Local Suppliers

Governments can take several steps to support local suppliers and promote inclusive procurement practices:

1. Raise Awareness: Conduct outreach through workshops and partnerships with associations and technology providers to ensure small businesses are aware of procurement opportunities.
2. Simplify Processes: Reduce paperwork, limit legacy requirements, and provide clear instructions to facilitate small businesses’ participation.
3. Provide Training: Offer resources like webinars on compliance and workshops on how to submit competitive bids.
4. Create Set-Asides: Reserve a portion of contracts for local businesses to increase their chances of securing government work.
5. Monitor Progress: Track contract awards and economic impact to assess the success of local procurement initiatives and adjust strategies as needed.

Conclusion: Strengthening Communities Through Procurement

Empowering local suppliers through thoughtful procurement practices is a win for governments and communities. It strengthens local economies, fosters innovation, and creates more resilient marketplaces. As procurement practices continue to evolve, supporting local businesses will become even more critical in building stronger, more sustainable communities.

By prioritizing local procurement and streamlining access for small businesses, governments ensure that every dollar spent contributes to meaningful progress—creating jobs, driving growth, and building a more inclusive, resilient society.