Minnesota named a top state for excellence in public contracting and purchasing

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For Immediate Release

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Minnesota named a top state for excellence in public contracting and purchasing

Governing ranks Minnesota as third best state in a nationwide review of procurement best practices and innovation.


SAINT PAUL —The national policy publication Governing has named the State of Minnesota’s purchasing and contracting programs among the nation’s very best. In Governing’s first ever survey of state procurement programs, Minnesota was ranked in the top three states for best practices and innovative solutions in general purchasing and information technology (IT) procurement. 


The Minnesota Department of Administration (Admin) oversees the state’s purchasing of more than $2.2 billion in goods and services each year. Admin is responsible for ensuring that state contracting is both transparent and cost-effective. Additionally, the department has been leading state efforts to increase supplier diversity and environmentally-sustainable purchasing.


“Minnesota’s procurement policy is reflective of our state's overall philosophy of governing – innovative, ethical, and transparent,” said Administration Commissioner Matt Massman. “Our team supports that strong tradition by emphasizing the fundamentals as well as leading initiatives that provide greater access to minority, woman, or veteran-owned businesses and  drive environmentally-friendly purchasing.”

Governing specifically cited Minnesota’s initiatives to promote greater diversity and inclusion in procurement:

“Some states are using technology to help promote more diversity among suppliers. Here, Minnesota has launched a unique effort to support and promote businesses that reflect the makeup of the community. Last year Gov. Mark Dayton issued an executive order establishing an Office of Equity in Procurement and a Diversity and Inclusion Council to promote this goal. On recommendations made by the council, the state now has representatives who conduct in-person recruiting of minority-, women- and veteran-owned businesses to bid on state contracts. The procurement office is also developing an online portal where small businesses can apply for all their minority certifications, with the goal of eliminating the confusing paperwork many small businesses face when first working with the state.”

“I applaud the Department of Administration for this tremendous recognition of their efforts to ensure that state government works better for all Minnesotans,” said Governor Dayton. “This top ranking is a testament to their work to ensure that businesses operated by veterans, women, and Minnesotans of color are well-represented in state contracts.”

Governing reviewed state procurement processes noting that “[e]ffective procurement is at the heart of government’s ability to deliver service and maintain the public’s trust.” The survey was developed in collaboration with public procurement experts from around the country. The Governing Institute rated states on the following criteria:

  • Information Technology Procurement
  • Workforce, Training, and Certification
  • Use of Technology
  • Sourcing
  • Contract Administration
  • Organizational Structure and Authority
  • Organizational Culture and Leadership
  • Pre-sourcing and Procurement Planning
  • Relationship Management
  • Performance Measures

“This national recognition is affirmation of our Better Government strategy to make state government more accountable, and to provide better service to Minnesotans,” said Lt. Governor Tina Smith. “The Department of Administration’s award-winning procurement practices are making state government more efficient and cost effective, thanks to the great work by Minnesota's state employees. This award will inspire us to keep on working to make state government work better for Minnesota.”

More information on Governing’s procurement study can be found at: http://goo.gl/xKaArX.

Governing is a publication covering politics, policy, and management for state and local government leaders. The publication provides nonpartisan news, insight, and analysis on such issues as public finance, transportation, economic development, health, energy, the environment, and technology. The Governing Institute strives to improve state and local government performance and strengthen public-sector innovation, leadership, and citizen engagement. The institute advances better performance and outcomes through research, decision support, and executive education to help public sector leaders govern more effectively. More information on the Governing Institute can be found at governing.com/gov-institute

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For additional information, contact:

Deputy Communications Director Adam Giorgi at (651) 201-2565 or Adam.Giorgi@state.mn.us

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About the Minnesota Department of Administration

The Minnesota Department of Administration (Admin) provides best value administrative services to Minnesota's state agencies and other governmental organizations, as well as various other services to diverse audiences across the state. The department was established in 1939 by Governor Harold Stassen as part of an effort to reform state government’s administrative functions. Today, the department strives to meet that mission and continues to act as a leader in government administration and operations. With $176.5 million in annual operating costs and 475 full-time employees, Admin oversees $2.1 billion in state purchases, maintains 4.4 million square feet of owned space and leases an additional 3.6 million square feet of space for over 100 state agencies, boards and councils. The agency also insures $12 billion in property and 13,400 vehicles, and manages over 400 building projects and $166 million in capital appropriations.