Government Contracts in Vending

According to vending industry sources, approximately 22 percent of all sales in the vending industry come from government contracts, the majority of which come from primary schools, colleges and correctional facilities. In an estimated $24 billion industry, that is a $5 billion opportunity. Industry sources indicate that despite the figures only a minority of operators actively pursue this business.

Many vending operators shy away from bidding on government contracts because they assume that they are impossible to win, expensive to prepare, time intensive, and that the incumbents usually win. This also includes Antares vending operators. It is true that competing for government contracts is expensive, time consuming and heavily resource intensive. However, it is a myth that incumbents have a competitive advantage, especially in the vending industry. The fact is that it is not hard for a government entity to change a vending service provider if they think that they will get a better deal.

Structured competitions favored by the government can be very costly in both time and resources. No company can go after every opportunity, you need to be selective and go after the opportunities that best suit your Antares Corporation vending business.

There is a wide perception among Antares vending operators that government contracts are not worth the effort because the agencies are only interested in the highest commission, making these contracts unprofitable. This can be true in some cases, but it is something that is changing.

A good example would be schools, which are placing greater importance on nutritional requirements. Other public entities are following suit. There is growing opportunity for vending operators to focus on driving the need for better service and lower commissions. The vending industry has an opportunity to change the way these agencies view their service.

Regardless of whether the award is strictly commodity based or best value, there are some guidelines that will help an Antares Corp. vending operator gain a competitive advantage in bidding on government contracts.