How does TIPSTHE benefit government contractors?

TIPSTHE provides government contractors access to a large pool of potential customers, reducing the need for individual marketing and sales efforts to each entity. By securing a contract through TIPSTHE's competitive process, contractors gain a streamlined path to sales with member organizations.

What should a contractor consider before pursuing a TIPSTHE contract?

Contractors should carefully evaluate TIPSTHE's specific requirements, including pricing structures, service level agreements, and administrative processes. Understanding the scope of the contract and the potential volume of sales is also crucial.

TIPSTHE (Interlocal Purchasing System) | GovCon Glossary

TIPSTHE (Interlocal Purchasing System)

What is TIPSTHE (Interlocal Purchasing System)?

TIPSTHE, short for The Interlocal Purchasing System, is a national purchasing cooperative that streamlines the procurement process for governmental entities such as school districts, higher education institutions, and local governments. By leveraging the collective purchasing power of its members, TIPSTHE negotiates competitively priced contracts with various vendors, offering a diverse catalog of products and services. This arrangement simplifies procurement for member organizations and provides contractors with a readily available channel to government customers.

Definition

TIPSTHE functions as a cooperative purchasing organization, meaning it pools the purchasing power of its members to secure better pricing and contract terms from vendors. This system operates independently of the federal government but serves a similar purpose on a state and local level as a federal supply schedule. Participating government entities can then purchase directly from these pre-established contracts without needing to conduct their own full-scale competitive solicitations, saving time and resources. For government contractors, being awarded a TIPSTHE contract offers a significant advantage, effectively pre-qualifying them as an approved vendor to a large network of potential buyers. This system adheres to relevant state and local procurement laws ensuring compliance and efficiency in public spending.

Key Points

Membership Benefits: Governmental entities benefit from streamlined purchasing processes and favorable pricing.
Contractor Opportunities: Contractors gain access to a large pool of potential customers through a single contract.
Compliance and Efficiency: TIPSTHE contracts adhere to state and local procurement laws.
Simplified Procurement: Member organizations can bypass lengthy bidding processes by utilizing TIPSTHE contracts.

Practical Examples

School District Technology Purchase: A school district needing to upgrade its computer labs can use a TIPSTHE contract to purchase laptops and software from an approved vendor, avoiding the need to issue a separate request for proposals (RFP).
City Vehicle Fleet Management: A city seeking to procure new vehicles or maintenance services for its fleet can utilize TIPSTHE's pre-negotiated contracts with automotive dealers and service providers, saving time and ensuring competitive pricing.
Higher Education Furniture Procurement: A university looking to furnish a new dormitory can source furniture through TIPSTHE contracts, benefiting from volume discounts and simplified ordering procedures.

Frequently Asked Questions

Membership in TIPSTHE is available to a wide array of government entities including K-12 school districts, higher education institutions, cities, counties, and other governmental bodies. Private schools and organizations can also participate in some cases.