Expert: Government tech buyers should acquire systems that offer continuous improvements

The rapid pace of change makes it difficult to outline best practices for government tech-buying teams, says Chris Dixon, senior manager of state, local and education (SLED) industry analysis at Deltek, a global provider of software and solutions for project-based businesses and governments. It also issues reports that identify current government contracting trends and market outlooks. The company recently announced the release of its 13th annual “Deltek Clarity Government Contracting Industry Study.”

“The most savvy buyers and sellers these days know that client demands and technological capabilities are evolving too rapidly to nail down a tactical set of best practices.” He says government IT leaders have to work toward an operational model of brokering vendor relationships and managing services that can be continuously upgraded. Those upgrades, he adds, can generally be handled through cloud implementations.

Dixon says the top complaint he hears from IT contractors is that government-issued RFPs are too technically prescriptive. He explains that that’s okay when it comes to commodity-types of services and products, but is not well suited to more holistic, mission-driven solutions. “In those cases, contractors would rather work toward more of an outcomes-based delivery model with some flexibility in implementation. Commodity needs are best left to cooperative purchasing or statewide contracts.”

Dixon defines a commodity as either a product or service that has become standardized in the buying community. He says the term “commodity” covers a sizable list of products as well as services. “It’s really more about limiting features and options to a very small number of combinations that have been proven to meet a broad range of buyer needs.” Staff augmentation services, software programming or units of cloud-based storage could all come under this definition of “commodity” in Dixon’s view.

Dixon says rosters on an agency’s tech-buying team may change, from one IT acquisition to the next. “Of course, the strategic, operational and security components of IT should be informing all of the decisions along with a partner from the procurement office.” He adds that outside of those constants, the cast of stakeholders will change depending on what mission is served by each acquisition. Another factor to be considered and weighed in the process: Who are the primary customers to be served through the IT acquisition? These could include agencies, citizens or other stakeholders. Dixon’s studied view: “The IT side understands the technical environment for success. The mission-driven stakeholders should define the desired outcomes, not the technical inputs.”

Collaboration and cooperation are crucial among tech-buying team players, Dixon believes. “The ideal skill set is one that rises above the particulars of technical and operational concerns and fosters high-level collaboration on outcomes. The technical team should be able to mold the IT environment to the mission of the solution being acquired.” In an ideal world, Dixon offers this view of what the purchasing players should offer: “Procurement should be able to translate those technical parameters and operational goals into a solicitation that attracts a competitive response.”

Dixon provides this view of the key players. “Historically, the buyers have looked at vendors as a school of sharks circling for business and who are best kept at arm’s length.” Suppliers, he adds, need to be in it for the long haul. “For their part, vendors need to play the long game as partners-in-waiting for the right time to step in and then grow the relationship.”

Dixon is a big believer in cooperative purchasing agreements—that they can potentially help SLED buying teams save time and/or reduce agency resources needed on acquisitions. “Absolutely. In one of GovWin’s surveys of procurement staffers, we asked them about the top benefits of using a cooperative contract. About 70 percent of the buyers indicated that saving time was a key motivation. With all of the tools at their disposal, such as e-Procurement and cooperative buying, we expect governments to continue to keep a lid on procurement staffing, forcing a slow and steady uptake in use of cooperative contracts.”

Dixon points out that cooperative deals can deliver other benefits on tech buys to SLED buying teams. “When our survey of SLED buyers and procurement staff asked for reasons for choosing a co-op deal, 80 percent said that ‘saving money’ was a key motivator, pointing to the proven value-generating benefits of these purchases that are made possible by pooling the purchasing power of many governments together into lucrative long-term contracts for vendors and suppliers.”

He notes that the GovWin survey spotlighted two more cooperative contract benefits. “A third big motivator was having access to ‘proven solutions’—cited by 71 percent, and finally, the ability to ‘fill a gap or last-minute request,’ cited by 54 percent of the respondents—this was a key driver during the pandemic lockdowns.”

Dixon explains that during a crisis such as the COVID-19 pandemic, when buyers lack the time to be an expert in every area and struggle to meet needs, knowing that these convenient purchase items are all proven with a previous track record of use in SLED government can instill confidence among buyers. The cooperative deals may also help reduce any risks that might be associated with skipping a traditional competitive bid process.

Solutions for the government marketplace

Deltek provides several tools and solutions to the contractor community. The company’s GovWin IQ solution provides a nationwide opportunities database that allows vendors to identify projects well before the bid or RFP is released. The GovWin IQ government profile tools help account planners research the market, build sales territories and identify the most promising government prospects. The firm also provides tools for teaming and centralized management of all SLED agency registrations.

The company also has agreements with some public sector associations whereby they can feed Deltek relevant opportunities data to government decision-makers. Those public sector officials can use the data to research what other governments are buying. The officials can then use the insights from that data to craft their own bids.

Michael Keating is senior editor for American City & County. Contact him at [email protected].