Corrections Telecommunication and Technology
F. Warren Benton, Ph.D.
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Purchasing of goods and services is a basic management function. In the public sector, there are many procedures and systems to assure purchases at competitive prices, and to assure open access for vendors to the purchasing process. When purchasing systems perform well, they provide convenient access to goods and services, at low prices with accountable results. However, sometimes purchasing procedures require time and paperwork, without necessarily achieving the best quality and price.
Just as the Internet is central to re-engineering many business processes, the Internet is also at the heart of major changes in public sector purchasing. The Internet is providing new sources of consumer information for public managers, along with new and more efficient approaches to the purchasing process. The Internet also enables new vendors to reach markets -- such as correctional programs and facilities -- that had previously been impractical to serve.
Many services are immediately available to you at no cost, but you have to seek them out. There are important new types of purchasing services available on the Internet that you should know about.
State Purchasing
State purchasing agencies face a large and complex responsibility -- maintaining up-to-date information on thousands of products and services while conducting a fair, open, and almost continuous competition based on price and quality. Given this challenge, it is not hard to understand how the reputation of state purchasing agencies has been mixed at best.
Today, most states are upgrading their purchasing agencies, including web sites to support their purchasing systems. In most states, correctional agencies in state and local governments are eligible to use these services. The National Institute of Governmental Purchasing maintains a listing of state purchasing sites. Common features of many of these new sites include the following:
Correctional Industry
Of course, most correctional agencies and an increasing number of other governmental agencies, are designating correctional industries as their primary source on many goods and services. Correctional industries are not only updating the quality and availability of their products. They are also marketing their products over the Internet. The Correctional Industries Association maintains a list of correctional industry links. Customers can search for products online, see pictures and summaries of specifications, and place orders.
Electronic Markets for Corrections
Purchasing a laser printer or a desk is a relatively simple project. However, if your agency seeks specialized goods and services, such as a consulting project, contracted group home services, or a health care private management program, then the standard web sites will not provide what you need.
Corrections Connection provides a general service for correctional agencies and vendors to share RFPs for major purchases of goods and services. A correctional agency can post and RFP and get wide exposure at no cost. The most common types of RFPs are for contracted services, such as specialized treatment or monitoring services, and for computer systems.
Purchasing Engines
Some of the most labor-intensive purchases involve items of equipment that are not normally on state purchasing contracts. For example, you mignt need a specific model or specification of projector for training presentations. Normally, if a product is not on contract and is below a threshold cost, the manager must obtain written price quotations for a set of vendors before proceeding. In some states, purchasing procedures also allow purchases of identical products from alternate vendors if the price is below the state contract price. A new type of web search engine has emerged, designed for shopping on the Internet. The following is a list of some of these sites:
On the Horizon - XML
Purchasing on the Internet will continue to improve. Today, a comprehensive search of price and availability for a product or service is impractical, because there is no standard way to code the data about the products. Extensible Markup Language (XML) is a new language for web pages that is related to Hypertext Markup Language (HTML), the traditional web page coding format. An important feature of XML is that it allows data structures to be clearly defined and identified, so that web pages can share data. For example, trade groups can define standard formats for product information on the web, allowing purchasing search engines to provide clear and complete summaries of the prices, features, and availability of products from a range of vendors. Search engines like BottomDollar and MySimon will be able to provide more complete and comprehensive information about more products, from more vendors.
Purchasing on the Internet
by F. Warren Benton,
Ph.D.
Copyright Corrections
Managers' Report, October/November 1999
If you have not checked out your state purchasing agency online, you may be missing out on an opportunity to save money and improve services.