Last update: 04/06/2012
Standard commodity codes will help transform purchasing
Enterprise Services is taking a lead role in transforming procurement practices in Washington by providing a standard commodity code system for statewide use. Although to most people the use of codes is not particularly enthralling, a new National Institute of Governmental Purchasing (NIGP) Commodity Code System offers enormous changes in state government’s business practices:
- Enhanced tracking of consumables and assets.
- Better management and analysis of state purchasing.
The importance of commodity codes for procurement
Commodity codes are used both for procurement and inventory purposes throughout the state. Washington currently uses an outdated commodity code system. The Washington State Information Services Board has established a commodity codes data standard for the NIGP Commodity Code.
The state borrowed the current system from the federal government in the 1960s and it has outlived its usefulness in three key ways:
- No uniform structure.
- Duplicate and unused codes.
- Confusion for state purchasing professionals and private vendors.
Replacing the commodity code system in Washington will create a process that is useful for both the public and private sectors as they work together.
What’s happening to change the system
Since October 15, 2010, state government began transitioning to the new commodity code system. State government licensed to the NIGP code structure – which is currently used by more than 30 states.
Transitioning to the NIGP commodity code used by so many other states will allow Washington to get regular updates as the system evolves with market and technology changes. NIGP manages the commodity code system.
Each Washington State agency, and members of the Washington State Purchasing Co-op, are entitled to one "seat", or administrative login, to NIGP (www.nigp.com) which allows access to the code search. Please contact customer service at 360-902-7400 or webscustomerservice@ga.wa.gov with any questions.
