Please ensure Javascript is enabled for purposes of website accessibility Wins a Contract to Build a Federal Government E-Commerce Platform

By Rhian Hunt – Updated Jun 29, 2020 at 2:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The platform aims to help agencies with their $6 billion in annual purchases of equipment.

After branching out into financial technology to supplement its e-commerce business, (OSTK -2.28%) says it just won a contract with the General Services Administration (GSA) to construct a business-to-business e-commerce platform for the federal government. Two other companies, Thermo Fisher Scientific (TMO 1.17%) and (AMZN -0.12%), through its Amazon Business segment, were also selected for the initiative by the GSA.

The program, which is described as a pilot, is intended to streamline procurement of necessary furniture and other items for various agencies, increasing security and saving money. CEO Jonathan Johnson says his company is "thrilled GSA has selected us for this exclusive group of online retailers to participate in this proof-of-concept pilot program which will allow us to supply key items like office furniture and equipment to government agencies."

Letterpress .Gov concept.

Image source: Getty Images.

The GSA also issued a statement saying the test period of the program will continue for three years. During this time, the business-to-business e-commerce arrangement will focus on supply purchases below $10,000, termed "micro purchases" by the government.

Emily Murphy, GSA administrator, says the contracts are "an important step in offering a solution for purchasing commercial products online that protects our federal supply chain against malicious and counterfeit goods, furthering our national security." According to her, the plan will provide "better security practices, better data, and better pricing."

The GSA wants the new e-commerce platform up and running within 30 days. says the agency's expectations "align nicely" with the company's experience in building online infrastructure. Overstock also said it will boost efficiency by offering its new federal client "concierge customer-care service."

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned Stock Quote
$26.16 (-2.28%) $0.61
Amazon Stock Quote
$120.95 (-0.12%) $0.14
Thermo Fisher Scientific Stock Quote
Thermo Fisher Scientific
$546.27 (1.17%) $6.34

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.