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Paper: How Technology Is Changing Procurement Processes

Technology innovation and related solutions are creating the need for changing procurement solutions, according to a white paper from two national associations.

The National Association of State Procurement Officials (NASPO) and the National Association of State Chief Administrators (NASCA) jointly released a white paper this week advocating for collaboration among their constituencies.

The paper, called Working Together: Procurement as a Partner (pdf), gives a sketch of the numerous challenges that confront state’ procurement process. The document includes a brief discussion on the role of technology:

In the ever-changing world, procuring cutting-edge products and services can prove a daunting task for procurement officials. As procurement needs changes, Chief Procurement Officers and State Chief Administrators can meet these challenges head on to determine innovative approaches to meet those needs. While many products can be procured through the low bid approach, complex procurements may be better suited to other solicitation methods. According to the 2011-2012 Survey of State Procurement Practices, 25 of the 43 responding states, states have developed some alternative competitive procurement practices, including Requests for Qualifications (RFQ), Invitations to Negotiate, best value bids with negotiated cost and 18 out of the 43 responding states have even awarded contracts based on return on investment (NASPO, 2012). It is logical to conclude that, as needs evolve, procurement must also evolve and new approaches must be considered to maximize quality, assure performance and minimize cost. Technology innovation and related solutions are creating the need for changing procurement solutions. For example, emerging trends in cloud-based technology and increasing public access to information and services through personal mobile devices are testing standard procurement acquisition platforms. High security requirements of private information resident on contractor servers combined with data ownership issues have caused our procurement officials to rethink a state’s standard terms and conditions and related acquisition methodologies that are mutually acceptable to our states and our contractors. Replacement of outdated legacy systems with new technology platforms challenge procurement officials to balance the benefits of long term development contracts with the core procurement principle of regular and frequent competition. Procurement processes and methodologies should not be stagnant and require adaptability to meet these types of changing government and citizen needs.
Matt Williams was Managing Editor of Techwire from June 2014 through May 2017.