Texas DIR Contracts - FY2020

Updated: Mar 17

IT governance in the state of Texas is so broad that their contracting vehicles cover the entire nation! Any public entity - school, local gov, special district, etc. - can purchase off of contracts negotiated by the state's enterprise IT organization, the Department of Information Resources. This program allows public entities to take advantage of the massive purchasing power of the state of Texas without having to sort through complicated procurement processes. It also provides customers with a large selection of products, services, and vendors to choose from.

In Fiscal Year 2020, Texas DIR contracts brought in nearly $2.6B in sales!

Vendors

Over 400 vendors made sales off of DIR contracts in 2020. However, the top ten account for nearly all sales. Dell's sales alone account for $622M for computers. Two other vendors selling computers also racked up hundreds of millions in sales in FY2020 - Apple ($284M) and HP ($111M). The tree map below breaks down sales from Texas DIR contracts in FY2020 by the largest vendors. You can easily see the massive proportion that is covered by only a few vendors - Dell, Apple, Cisco, SHI, HP, Oracle, etc.

Customers

Besides Assistance Organizations and Out-of-State customers, DIR contract sales come predominantly from government and education. About 1/3 of sales come from K-12, about 1/4 from state & local gov respectively, and about 15% from higher ed. The chart below shows a complete breakdown.

While customers from around the country can and do purchase from Texas DIR contracts, the vast majority of sales come from within Texas. However, there are two other states that use these vehicles very frequently - Oklahoma and Arkansas. The map below shows the distribution of FY2020 DIR contract customers from those three states.

Categories

Customers can find almost any tech product or service on a DIR contract ready for purchase. This includes items like graphing calculators and printer ink to desktop computers and cloud services. The six largest categories account for approximately 98% of all sales.

Hardware alone accounts for over half of sales at $1.3B.


The Takeaway

  • Texas DIR contracts provide attractive benefits for vendors and customers.

  • Sales are dominated by large vendors and resellers - partnerships are key to succeed in this market.

  • Your customers anywhere can take advantage of these contracts and their benefits.

Data Source: Texas Open Data Portal

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