Buying software and technology for your local government
Buying software and technology for your local government
Avoid these pitfalls when buying government software.
Buying things for your government agency can be intimidating. There are opaque and strict rules to follow. Sometimes we are tasked with buying something we don’t know much about. This is often the case when it comes to software and technology.
I’ve been on both sides of procurement, once as a local government buyer and now a vendor. Here are a few things I’ve learned.
Overly prescriptive requirements limit your vendor pool
Over-prescribing the solution will limit the number of vendors who can participate, as well as creative or different ways to solve your need.
Instead, describe the problem you are trying to solve or the service you want to provide. Include context, such as:
Desired outcomes
Strengths
Pain points
Root cause of the problem
Be clear about non-negotiable standards (like security, accessibility, privacy, and data ownership) but stay open to different approaches and functionality.
Don’t get locked into the mega vendor universe
Governments are often swayed by vendors with a suite of products because dealing with one vendor seems easier than managing multiple contracts.
The hidden downsides that come with this:
Mediocre products riding the coattails of a flagship product
Integrations that don’t work as well as they say they do (if at all)
You also increase your risk exposure to:
Cybersecurity threats
Business closures
Changes to services and pricing
Once you buy into multiple products from the same vendor, it’s harder to extract your agency in the long run. Instead, focus on finding the best vendor for what you need.
Learn more: Kitchen sink digital service: Why local governments must diversify technology vendors
Onerous procurement practices hurt small business
Small businesses can often be cheaper to work with due to less overhead. They are typically more flexible and responsive to your needs.
These (seemingly small) things burden small businesses while adding little to no value to you:
Inflexible insurance requirements
Notarized documents
Providing proposals in hard copy or on a USB drive
Business licenses and registrations for non-local companies
Including these may dissuade small businesses from bidding at all.
Be wary of private equity backed companies
There’s a lot of money to be made from governments. This has attracted private equity investors. Private equity investors typically prioritize short-term financial gains over long-term quality and stability. This is not a good fit for government institutions who serve the public.
A lot of money is spent on sales and marketing, not so much on product development. A lot of effort is made to hook you into their universe of services, not so much on providing actual customer service.
Use procurement to level up
Procurement is an opportunity to improve service delivery. This goes beyond the vendor you work with–this can also be a catalyst for internal change.
Seize this opportunity to:
Set ambitious goals
Be open to change
Adopt a growth mindset
Empower your team
Don’t settle for status quo
Learn more
Buy better (a chapter from Proudly Serving about buying public sector technology)
Buying local government websites (procurement guide and template)