How Are Government Agencies Growing Procurement Needs for Marijuana?

BidPrime News Sep 22, 2015

Regardless of your personal stance on the prohibition of Marijuana, the data of its overall effects and economic windfall are difficult to ignore. In the short period of time that Medical Marijuana, or MMJ, and recreational Marijuana use was made legal in five US states, we have seen numbers that have boggled the mind.

It is being called the “fastest growing industry” in the US economy, with numbers from the swollen state coffers in Colorado driving home the point. It has produced results that have many in the Centennial State jumping for joy. Colorado was the first state to make recreational use of Marijuana legal. Since that historic vote in 2013, the state has been studied extensively to see how the real world returns and projections looked.

Recently released reports on the economic and social impacts created by the legalization of the plant show unprecedented spikes in growth very few saw coming. So much so that many onetime critics of its legalization are beginning to change their tune. Money has a way of swaying Public Opinion like few other means. The numbers are that stark.

On a broader scale, the U.S. market for legal cannabis grew 74% in 2014 to $2.7 billion, up from $1.5 billion in 2013. While these dollar amounts are staggering, creating the internal infrastructure with which to adequately handle an entirely new industry have been thrust to the forefront.

Growing Government Coffers

It has been reported that the inaugural pot state reaped $44 million in just the first five months of 2015. This is a precipitous spike over the $25 million accrued over those same five months in 2014. On a broader scale, the U.S. market for legal cannabis grew 74% in 2014 to $2.7 billion, up from $1.5 billion in 2013. While these dollar amounts are staggering, creating the internal infrastructure with which to adequately handle an entirely new industry have been thrust to the forefront.

The procurement needs for Colorado’s new Marijuana industry have soared higher than expected. So what does a state need to properly legalize, produce and distribute marijuana? Will these unknown new vendors just appear like vapor? Also, how are the other four states handling their own initiation into this green new world?

Beyond Drug Testing

Judging from a bevy of Requests For Purchases available for vendors to consider, the answers are a hazy mixture of services and equipment. The procurement requests seem to start with educating the Public on what many still consider the evil weed. Each state has handled the progression differently. From Town Hall meetings, meant to help each community understand what can be expected to the acquisition of the seeds, one thing is made imminently clear: The Marijuana industry is here to stay.

Sample Active Bids/RFPs


State and local government agencies are responsible for providing the platform in which vendors can fulfill these lucrative contracts. There are no existing codes for the Marijuana industry, as is the case for other new and emerging business sectors. The difference in this case being the expeditiousness with which these intrinsic needs will matriculate to a state and city near you.

Pioneer Pot Spots

Anything learned from these pioneer pot spots will serve as an invaluable framework for the eleven states expected to follow suit in 2016. What we have seen thus far are the need for a Registry to control the movement and supply by each Agency. This not only affects the procurement needs on the state level because, in many cases, the County or City governments hold the reigns for implementation and enforcement of these new laws.

For better or worse, Coloradans have taken the lead role as they forge ahead in controlling the seemingly endless growth the industry has shown. While they stand to reap an economic bonanza, they must deal with a new procurement landscape fraught with unknowns. The stage has been set for many other states that will be joining this green tinted fraternity in the next few years. In addition, new vendors will capitalize on the emerging industry. With early successes and failures being dissected on multiple levels, a more comprehensive paradigm will hopefully emerge.

One thing is certain, though. The marijuana industry has cemented its spot in the public procurement playing field.

For even more information about this industry and associated government bids, call us at 888.808.5356 or visit BidPrime.

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