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Amazon wins procurement contract

February 9, 2017

Amazon Business, the retailer’s B2B supplies arm, has agreed a deal in the USA.US_COMMUNITIES_LOGO

Government Technology reported on the procurement agreement, which has seen the US Communities “public purchasing cooperative” sign an agreement to “buy from Amazon Business”, in  a deal which will “give members the ability to buy directly from the website as part of a competitive procurement contract”.

The deal covers “select products”, and “opens up Amazon Business to orders from more than 90,000 education institutions and government entities” that form part of US Communities’ membership. A document linked to the contract saw the cooperative estimate “its members might spend as much as $500 million (€467 million) every year on purchasing through the arrangement”.

The 10 product categories that will form part of the agreement include office supplies, audio-visual and electronic equipment, clothing, school supplies, kitchen and grocery items, books, musical instruments, lab supplies, animal supplies and “miscellaneous”. Purchasers “will be able to bypass competitive contracting” as the agreement is “a blanket competitive contract”, which is “the model US Communities operates on”.

The cooperative also already has an agreement with a separate company, DLT Solutions, to “help customers buy cloud hosting from Amazon Web Services”. The new contract will allow members to “have access to free two-day shipping” on orders over $49 (€45), as well as “tax-exempt purchasing programmes and integration with e-procurement systems”.

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