Procurement plays a key role when local governments acquire technology

Written by Michael Keating

When local governments plan to acquire technology, they need to follow a few key steps says Michael Maurer, a partner at the Best Best & Krieger (BB&K) law firm and a member of the firm’s Municipal Law team. He also serves as city attorney for La Habra Heights and San Jacinto, Calif.

Maurer says one best practice cities and counties should follow is to truly identify what the local agency’s current and future tech needs are. “Have a strategic plan and use procurement to implement that plan. Too often it is the other way around, with an inflexible procurement process dictating what’s possible for your agency. This leads to 21st century cities using 1990s technology.”

Maurer thinks buying technology should be a group effort. “A tech-buying team should be a collaboration between the utilizing department, the IT department and legal.” Another key player on that team is the procurement operation. And those procurement players need to be multi-skilled, Maurer believes. “On the buyer side, the most critical skill to have is cybersecurity knowledge. Government agencies are common targets for hackers and ransomware firms, and the risk increases with each new application. Just by necessity, security is most important. However, it’s also important to understand value, and this is where Internet of Things (IoT) and artificial intelligence (AI) skills are imperative.”

When they purchase technology, cities and counties need to focus on a couple of key areas, Maurer tells Co-op Solutions. “The primary issue is understanding the marketplace. Government agencies tend to prefer straightforward decision points: i.e., is the price higher or lower? Which product scored highest on a scoring matrix? But when buying technology, there are so many different products and variables that a more flexible procurement approach may lead to better value.”

Maurer says a second issue when governments buy technology, is the need to create competition and leverage as part of the buying process. “Especially when purchasing technology, government agencies tend to default to off-the-shelf solutions. But creativity and negotiating can often lead to better deals.”

Public agencies, Maurer says, need to understand any challenges, as a government entity, to implementing the newly acquired technology. “For example, a new tool might provide better data, but does it come at a cost of reduced privacy? Government agencies should be proactive in addressing these potential policy issues and in providing public outreach.”

Cities and counties sometimes choose to use cooperative contracts for their purchases, Maurer says. Price and convenience can be important factors in the decision. “Often, local agencies choose cooperative contracting because it is faster and more efficient than going through a separate, formal procurement process. Being able to ensure efficiency is important.”

He notes that in California, individual agencies can develop their own guidelines for purchasing, which may include specific authorizations for cooperative contracts. “Many agencies allow cooperative contracts because they can provide better value, but the agencies will still want to see that the contract was competitively procured.”

Maurer predicts that more local governments will be using cooperative contracts in the future, so they can potentially save time and get better prices, rather than go out for formal competitive bids. He is also hopeful that the number of cooperative contracting opportunities for vendors will continue to expand. “This is especially true in today’s challenging climate with both inflation and supply-chain issues. Finding efficiencies and economies of scale are even more important now.”

To successfully complete a cooperative contract transaction with cities and counties, Maurer says: “The biggest key to success is to have clear unit-based prices. If there is not price certainty, or if it is not clear how a price will apply to a piggyback contract, then there are not likely to be cooperative contracting opportunities.”

He says another important factor is that the contract must have fair terms. “A government agency can do an open procurement on its own terms; if I have to spend attorney time and cost renegotiating a cooperative contract because it is too one-sided, the agency might be better off just going out to bid.”

It’s Maurer’s belief that the private sector is much better than the government at recognizing that information has inherent value. He predicts, though, that governments are finding their way in exploiting data. “Using technology to gather and interpret more data is going to enable state and local governments to operate more efficiently and better serve their constituents.”

Maurer’s legal work often focuses on local government. Since he sits on BB&K’s Municipal Law team, Maurer advises cities on the legalities of their day-to-day operations. He guides public agencies in the areas of open government and ethics laws, land use, public infrastructure and construction. As a municipal attorney, Maurer works closely with local government boards, executives and staff members to find creative solutions to the challenges facing their communities. He also serves as assistant city attorney for Arcadia, Calif. He is general counsel to the Pasadena Glen Community Services District and Apple Valley Fire Protection District, as well as assistant general counsel to the Santa Clarita Valley Water Agency and Gold Coast Health Plan, all in California.

OMNIA Partners offers a robust portfolio of cooperative contracts in the public procurement space, and OMNIA Partners Public Sector lists dozens of cooperative contracts under the keyword of technology.

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