DemandStar Boosts Prospects with Non-Profit Alliance

DemandStar Boosts Prospects with Non-Profit Alliance

By William Welsh, Staff Writer

JUNE 6 ?, a provider of business-to-government (B2G) e-commerce solutions, has signed an alliance agreement with The Innovations Group calling for the non-profit organization to promote DemandStar's electronic purchasing solutions to its more than 450 member organizations.

"Our mission is to create awareness of DemandStar among our membership," said Innovations Group President Robert Havlick. IG provides research assistance and training to city, town and county government members.

Under the agreement, announced June 5, Tampa, Fla.-based Innovations Group will promote Maitland, Fla.-based DemandStar and provide incentives for IG members to join DemandStar's network. In return, DemandStar will offer enhanced services and capabilities to IG.

DemandStar believes the agreement will allow it to markedly expand its position in the B2G market. At present, DemandStar has contracts with more than 65 public-sector agencies nationwide.'s electronic marketplace is designed to enable government agencies to purchase goods and services more efficiently and make it easier for suppliers to do business with the government. The company was spun off from HTE Inc. of Lake Mary, Fla., in May.

"IG represents a lot of government agencies, and as a result of their endorsing our solutions, this allows us to get to the decision-makers quicker and get authorization faster," said Gus Gornto,'s executive vice president and chief financial officer.

Under DemandStar's e-procurement business model, a government agency agrees to allow the company to handle its notification and bidding for goods and services on an exclusive basis through the company's Internet portal at no cost. On the other end, DemandStar charges vendors a set fee to access the information.

"The DemandStar program not only allows local governments to use the power of today's technology for products and services, but brings significant cost savings to each participating city and county," Havlick said. "Businesses benefit as well from increased opportunities to provide quality goods and services to increasing numbers of jurisdictions."

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