Everything changes…especially government contracting!
by Mary Scott Nabers, CEO of Strategic Partnerships, Inc.
The large and lucrative public sector marketplace is attractive to companies of all sizes and types…but changes are occurring and wise contractors should pay close attention to what is happening.
Contracting with government is usually difficult in the beginning, but any firm that performs well can become an entrenched vendor or service provider. When that happens, the contractor has an advantage and can be hard to unseat.
However, in spite of any entrenched advantage, government contractors must stay abreast of changing trends, political shifts, leading-edge technology, regulatory mandates and funding flows. Otherwise, savvy competitors will unseat the incumbent in a heartbeat.
The public sector marketplace is competitive and to be successful, contracting partners must be smart, agile and quick to see changes in the environment.
Public sector decision-makers want to know that their contracting partners are safe, reliable and credible…but they also demand more. They must be convinced that their partners are aware of what is happening in the larger world of government.
Contractors should continually bring new ideas, processes, innovations and technology to the table. And, they should be prepared to lead the way when changes are occurring and policy shifts are evident. That said, all contractors should be watching the procurement environment throughout the country today. The rules of competition are shifting quickly.
What are the newest trends? What is the political mood? What are politicians advocating? Where is the funding? What are the immediate problems that must be solved? What are public officials, legislators and the media discussing?
Some current trends that bear watching include the following:
- New procurement rules are being introduced at the federal level of government. It will be interesting to see how long it takes the new rules to filter down to state and local entities. There is no doubt that this will happen because rules and mandates always follow federal funding as it flows to states.
- Companies that do business with government may be contacted by public servants from Washington who ask about pay, employee benefits (such as health care), safety policies and environmental compliance.
- Social scoring (by Washington standards) may apply to the whole organization, which means that parent companies will get scrutiny any time their subsidiaries bid on large government contracts.
- Very few contracting awards are being made on low price. Value is what every organization seeks. This applies to all governmental jurisdictions. Awards are flowing to contractors who offer the exact type of benefits the public entity is seeking.
- Private sector financing being offered to public entities through contracting agreements is a growing trend.
- State and local government entities are giving preferential procurement status to home-grown firms and public entities are reluctant to award contracts to firms that use offshore employees.
- Outsourcing and public/private partnerships will continue to be a major procurement trend.
Mary Scott Nabers is president and CEO of Strategic Partnerships, Inc., a 15-year-old procurement consulting and procurement research firm headquartered in Austin, Texas.
