Tech Data's Government Division Unveils Exclusive Programs

At the distributor's TechSelect conference of SMB and government solution providers in Washington this week, Tech Data's government division unveiled several initiatives exclusive to TechSelect members. One is a new Prime Contractor Referral program, in which the distributor helps disadvantaged and minority-owned solution providers partner with national integrators to win federal government small-business contracts.

Other new initiatives in the government market include extended 60-day floor plan financing terms, up from 45 days, from GE Commercial Finance; extended 60-day credit on products from Cisco Systems, Enterasys and Lucent; bid and performance bonding from Textron; and solution provider advertisements in end-user government magazines.

Doug Oakley, vice president of sales at CyberCore, a $50 million solution provider in Timonium, Md., is most excited about the partnership program. Tech Data has helped other small solution providers partner with large integrators to win government contracts, but this is the first time the distributor has formalized the program. Beginning this month, it will provide the service exclusively to TechSelect's 340 members.

CyberCore recently signed several contracts worth more than $100 million over a two- to three-year period with Lockheed-Martin to provide products and services to government accounts, Oakley said. The company is working on about five more similar deals that it would not have been introduced to without Tech Data's help, Oakley said.

"The buying power, the multiple warehouse locations, the financial resources and the proven track record of a major distributor made [the large contractor] more comfortable in dealing with us," he said. "As a small business, without the resources and support of Tech Data, it would be tough for Lockheed to come to us."

So far, Tech Data has partnered one other Tech Select member with a large integrator to win a federal contract earmarked for disadvantaged or minority-owned businesses but plans to involve more solution providers in coming months, said Erich Ohngemach, director of government field sales at Tech Data.

Jay Kishur, president of California Integrated Solutions, a solution provider in Diamond Bar, Calif., said he will take advantage of the partnering and credit opportunities.

"Tech Data's name in itself will help us because most of the large integrators already deal with them," he said, adding that his company could gain millions of dollars in yearly incremental business by subcontracting for a larger company.

Kishur and other solution providers also said the extended credit programs will help to relieve financing pressures. Many customers, they noted, take more than 40 days to pay. Oftentimes solution providers have to pay for a full product order even though a piece of it may be missing. They cannot bill the customer until the full order is delivered, which further extends the payment cycle and drains credit.

"Credit extension is a big deal," Kishur said. "It helps take some of the strain off us."