But are disparity studies the be-all-end-all of fixing the problem of diversity in public sector spending? The short answer is no – all procurement teams should know that disparity studies, while useful, have their limits.

In the rest of this post, we’ll take a look at why disparity studies can be helpful, where they fall short, and what you can do to implement change and increase diversity in your procurement efforts.

What Are Disparity Studies?

Disparity studies are meant to help governments take a deep look at how they are buying and purchasing, and whether or not their procurement process is handled in a fair and equitable way. The data often helps show businesses how they’re excluding minorities, women, and other types of disadvantaged groups like veterans from being able to win government contracts.

Why Are They Needed?

Municipalities need a way to better understand if they lack supplier diversity in their procurement processes so they can address these disparities. It wasn’t until a 1980s Supreme Court case that many local governments began looking for a way to prove there was possible discrimination so they could enact legislation around improving the bias. This is where disparity studies came in.

Historically, many local governments haven’t had a great track record of awarding contracts in a fair manner – most went to white, male-owned businesses. Unfortunately, this trend continues today.

For example, over the last two decades, the value of contracts given to minority-owned businesses in Massachusetts has fallen 24%, equal to $135M per year. In 2020, the City of Boston reported that about 7% of its contracts went to minority- and women-owned businesses; while this was up almost 2% from the previous year, Boston still lagged far behind the supplier diversity of other large cities like New York (19% contractor diversity), Chicago (29%), and Philadelphia (31%). 

Why Don’t These Studies Always Help with Supplier Diversity?

Many U.S. cities and municipalities want more inclusion and equality and are taking steps to conduct disparity studies. So why are we not seeing the impact on supplier diversity after decades of studies?

Often, when local government procurement teams are asked to improve supplier diversity and better procurement results for the community, their ideas are often met with red tape and excessive bureaucracy. Simple improvements require legal approval and are met with the following response, “We’ve never done that before and I don’t know if we can, so let’s hold off for another year.” Before you know it, a year turns into a decade.

Similarly, even if disparity studies come with a list of suggestions for improvement, governments are often unable to implement these ideas effectively because they treat them as a simple checklist. But when a suggestion such as “lengthen your solicitation time from 3 to 5 weeks” is tried, procurement teams often see no change because the problem was never with the length of time – it was that the exact same companies who always see your RFP ads are again the only ones who see it, and no new audiences of diverse business owners are reached.

What Can I Do About It?

Procurement departments are often the first to be blamed for supplier diversity gaps in government spending, but this doesn’t have to be the case. In fact, these teams can accomplish better results in their procurement process with buy-in from higher levels of authority.

With support from upper-level management and other departments, procurement teams can get the attention and resources to achieve more. 

Upper-level management and departments should support the ideas and requested changes coming from procurement teams. After all, they need tools and resources just like the finance department needs payroll and budgeting tools. Cities and towns that have successfully implemented programs that produced real results often have their mayor and state governors supporting the procurement department’s goals and initiatives. For example, Broward County Schools hosts an annual diversity event to encourage different types of suppliers to bid on projects.

Later this summer, we’ll be having a deeper conversation with a key organizer of Broward County Schools’ diversity events to discuss how to get the attention of new suppliers, enable new businesses to bid, and embrace changes in the procurement process. Join us at NIGP 2022 in Boston this summer to be part of the conversation!

The post Why Disparity Studies Aren’t Enough to Improve Supplier Diversity appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

“DemandStar has been a great addition to our bidding process at the University. It is user friendly and has allowed us to simplify our bidding process by becoming more electronic.” – Ashley Sliger, Contract Compliance Manager, Missouri State University.

375 local government agencies joined DemandStar in 2021, accessing its online network of over 100,000 businesses of all sizes to drive increased competition for their bids/RFPs. Over 112 local governments have joined in 2022 to date.

“Government spending is coming back, and more than ever it’s going online,” said DemandStar CEO Ben Vaught. “More and more local governments are resuming projects put on hold at the beginning of the pandemic, and they’re turning to online purchasing marketplaces like DemandStar for help.”

DemandStar member agencies span from local cities, libraries, and fire stations to statewide governing bodies, county-wide public-school boards, and highway infrastructure organizations. Businesses range from large government contractors to many small businesses, minority & woman-owned businesses, and businesses seeking their first government contract.

New government agencies added include:

• Las Animas County, CO
• Embrey-Riddle Aeronautical University, FL
• Walton County, FL
• Cherokee County School District, GA
• Idaho Association of Highway Districts, ID
• Arlington Heights Park District, IL
• Housing Authority of DeKalb County, IL
• Housing Authority of East St. Louis, IL
• Saline County, KS
• Kentucky Educational Development Corporation, KY
• City of Litchfield, MI
• City of Republic, MO
• Missouri State University, MO
• Raleigh Durhan Airport Authority, NC
• Consolidated Utility District of Rugherford County, TN
• City of Manassas, VA
• Town of Herndon, VA
• Racine County, WI
• Essex Westford School District, VT

Government partners and businesses looking to join DemandStar’s government procurement marketplace can learn more at demandstar.com.

ABOUT DEMANDSTAR
DemandStar builds communities by connecting government agencies quickly and efficiently with quality suppliers of all sizes. Founded in 1998, they pioneered the online marketplace concept for bidding on government contracts and now serve as the gateway for public sector partnerships between government agencies and suppliers both locally and nationally throughout the United States. For more information, or for government agencies and suppliers interested in joining the DemandStar procurement network, please visit DemandStar.com or call (206) 940-0305.

Original source located at Yahoo Finance.

The post Leading Public Sector Online Marketplace Adds 1,000th Local Government, Surpassing $4.6B in Annual Contract Value appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Ask for a reference
It never hurts to ask! Try reaching out to neighboring counties to see if any other procurement agents can provide you with a vendor reference. At least you know the referral is from a trusted source that must meet the same criteria you have. It’s highly likely the vendor will be a good match as they’ve already done a similar job for another local government agency. Plus, having already worked for a neighboring county, the vendor will be familiar with what it takes to complete a government contract.   

Do a little investigation
If you’re a government procurement agent, it’s highly likely you know about other projects happening near you, or you may recognize public sector work when you see it. You may even use a procurement site like DemandStar to search for other bids by other local agencies. Make a note of projects and see how they turn out. If you think it’s quality work, reach out to the procurement agent for that county and get the vendor’s name and contact info. This is a great way to find local vendors that, even though may be out of your county, are still close to your area. You never know when you might need someone to do a similar project. This way you’ll have a good start on vendor lead before you even send out your RFP.  

Flip the script
Maybe you’ve just worked with an incredible vendor and are impressed with their work. Reach out to your neighboring county procurement agents and offer the referral to them! You’ll be able to connect with other agents in your area and provide them with a resource for future projects. Then, if you happen to need to reach out for a referral, it won’t seem awkward or odd. You’ve already established that you’d like to share references by putting up a vendor of your own, so your ask won’t seem out of place. 

Be neighborly
Looking to your neighboring counties for contracts is a smart way to find vendors that are qualified and understand public sector work. By asking directly for a reference, investigating promising projects, or even volunteering a reference of your own, you can establish a good relationship with other procurement agents and get some much-needed help in your contractor search.

Are you a government procurement agent that has reached out to a neighboring county for a reference? Do you feel like you got a good vendor lead from the interaction? 

The post Looking to Neighboring Counties for Contractors appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Teachers and parents are looking for educational software that will ease the remote learning process and become a solid base for education and scholastic growth. Government purchasing agents have massive amounts of educational software options, and their decision on which educational software to select will have an enormous impact on educational outcomes. Here are a few things to keep in mind as they vet educational software: 

Focused on instruction – There’s a difference between instruction and sharing information. Instruction will allow teachers and students to communicate back and forth instead of simply having the student read or watch information in an educational silo.

Engages Students – It’s vital that the software engages students in a variety of ways and also has some sort of positive reinforcement that keeps students focused and on track. This could include gamification functionality.

Intuitive interface – Navigation and user interface are key. Especially for younger elementary students, you’ll want the software to be easy to use. Also, think of parents who will be working from home and assisting their young students. You don’t want them to be hunting around for the next lesson. Make sure it’s simple.

Student progress tracking – Just as in the classroom, teachers will want to be able to monitor the progress of their students as well as allow them to revisit lessons that could use more attention. Select software that allows teachers to see individual students’ progress.

Communication – Teachers, students, and parents all need to be able to communicate with each other through the software interface. Keeping everyone on the same page is essential to student success and progress.

Privacy and Security – Protect teachers and students from bad actors by ensuring that the educational software you purchase has the highest levels of privacy and security. This will safeguard both student progress (keeping it private) and secure the classroom from outside interference. 

Reviews and recommendations – Online learning isn’t new; it’s simply commencing at a higher level of saturation. Reaching out to teachers who have already been facilitating the process for years can be helpful. Check out reviews of potential software and then confirm with teachers who are experts. They may be able to pass on valuable insight. 

Go vet it!
Government procurement agents can have an incredibly positive effect on the upcoming school year by taking time to thoroughly evaluate and invest in education software that facilitates a holistic online experience including a wide range of instructional capabilities.

Have you already found educational software for your district or county? Share your choice and reasoning with us in the comments!

The post How to Vet Good Educational Software appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Following compliance guidelines is an important part of what a procurement agent does. By adhering to guidelines, they can ensure that their department is free from ill-advised spending, corruption, and fraud. Here are the top five compliance traps that procurement agents should be aware of, and some tips to avoid them: 

1. Rushed procurement
When the process is rushed, things are bound to fall through the cracks. Procurement agents should make sure that they have plenty of time to go through a proper bidding and selection process. A rushed process may open the procurement agents to picking a vendor that’s not the best fit or failing to follow other selection guidelines. By standing their ground and insisting on enough time to follow all procurement steps, agents will help themselves by allowing the process to flow properly from beginning to end.

2. Contract compliance
Procurement agents have so much on their plates, that keeping track of everything can be overwhelming. However, it’s not enough to simply follow the procurement process, they must also follow up throughout the project and make sure that vendors are actually doing what their contract indicates. This will ensure that governments get their money’s worth and that vendors that don’t comply with contract stipulations do not get rehired. 

3. Lack of standardization
There is security and transparency in a standardized procurement process. The procurement process should be the same for every project. While each project of the course will be different, there should be a set of guidelines and steps to follow. This will help procurement agents prove that all vendors applied and were selected through the same process, reducing the opportunity for any corruption or fraud claims. 

4. Favors
While it may be tempting to do a favor here or there for a city council member or higher-ranking official, this opens the door to accusations of corruption and fraud. It’s vital that all procurement projects are treated the same, and that no favors are granted to any individuals. This will help procurement agents avoid any favoritism or impropriety allegations. 

5. No purchase order
Part of compliance is accurately tracking the budget and spending. By ensuring that the proper paperwork has been filed for each project and that a purchase order is attached to every item or service procured, government agents can prove that spending is on track. When money goes missing, people get nervous. Even if the spend is approved, by simply making sure that all expenditures can be connected with proper purchase orders, procurement agents will save themselves the headache of having to go back and explain any undocumented money spent.  

It’s a trap!
Procurement agents are responsible for upholding the department’s reputation and preventing costly mistakes. Compliance traps can be easily avoided by following some simple steps, such as being aware of the dangers and taking the time to do things properly. Ensuring that the procurement process is standardized, makes it less likely for compliance issues to arise. 

What traps have you come across? What compliance tips do you have to help avoid these traps?

The post The Top 5 Compliance Traps Made by Government Procurement Agents appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Review your ask – Check out your RFP and really look at what you’re asking the vendor to provide. Will their bid end up looking more like a novel? Vendors may be weighing the time required to addresses each point of your RFP against the likelihood of them securing the job. If they’re thinking it’s not worth the time, they won’t send a bid. If you’re asking for a bid with the moon and the stars, adjust your RFP to be a little more down to Earth.

Revise for clarity – A confusing RFP is likely to get passed over. Vendors don’t want to take the chance that they submit the wrong information, but they also might not want to reach out to verify certain points. Ask someone else to read your RFP and see if it makes sense. If they’ve got questions, potential vendors likely have the same concerns. 

Extend the timeline – Did you ask for a 24- or 48-hour turnaround? Many vendors run their own businesses and they might not even have time to read your RFP within the first couple of days of receipt. If you asked for a rapid response you might just have to face the fact that your timeline is not realistic. Try extending the deadline and see what happens.

Check your specs – Have you detailed every aspect of the project with no room for the vendor to make suggestions? Or on the contrary, have you included so few details that the vendor doesn’t know what you want? Review the specifications and adjust them to allow vendors to know what the final project needs to accomplish but give them the flexibility to suggest a path forward.

Spread the word – Did you only post your RFP in one spot? Make sure that word gets out so that you get more bids. You may want to check out a procurement network, like DemandStar, that will help you reach a wider range of vendors. A procurement network also can match your project with high-quality vendors and email the RFP right to their inbox. 

Price check – We know working within a budget, especially a government-provided budget, can be challenging. However, if none of the above suggestions increase your bid numbers, it might be time to consider that the budget is off. Check with other agencies in your area on similar projects and see what their budget was and compare to see if yours is on target. 

Have you ever posted an RFP and had no bids? Did you find out how to get more bids for your project? What did you do to spark interest?

The post What to Do if No One Responds to Your RFP appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Determine your needs
The first step will be to determine your needs. How much storage space is required and what is your budget? There may be an opportunity to pool your resources with other departments and rent one collective space as opposed to finding your own individual space. Consider how items need to be stored. For a variety of smaller items, a simple shelving system may work. Larger items may require pallets and forklifts. Medical supplies or food items could need refrigeration. Think in advance of ordering and determine what is needed to store all of your items before looking for a storage facility. 

Think outside the box
Traditional storage facilities are wonderful for certain types of storage needs, but they aren’t the only game in town. IMany storefronts or private warehouses have unfortunately had to close, and it’s unlikely that new businesses will be leasing those spots in the near future. Commercial real estate landlords might be interested in extending short-term rental of one of those spots which could be the right fit. Some may have shelving already built-in. In the case of empty restaurants, there may be refrigeration and temperature control units already installed. Pop-up shops have been widespread over the last few years but, depending on location, may not be able to operate at this time. Landlords will likely be thrilled to have some income flowing in from a reduced rental rate on property that would otherwise sit empty. Additionally, locations in a strip mall or free-standing warehouse with an outside entrance will allow for easy access to your stock. 

All about that space
As government procurement agents keep up high-volume ordering, they will have the added task of finding storage for the incoming items. It could be construction equipment storage that needs space for heavy machinery to have space. By keeping their options open and with a bit of research, they may be able to find a unique solution that’s the right fit. 

Are you a government procurement agent who needs to store a large quantity of excess equipment? What unique solutions have you found to your storage needs?

The post Need Storage? Find a Place (and a Partner) for Your Excess Equipment appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

What is cleantech?
One of the main areas that procurement officers can expect to start acquiring as the government goes more and more green is cleantech. Cleantech (short for clean technology) is any product or service that provides sustainable use of resources, facilitates energy efficiency, and protects the environment by reducing harmful impacts. Cleantech can also help eliminate waste and improve energy production. As an example, one piece of cleantech that is familiar to most is the solar panel. However, there’s a slew of other products and services that would qualify as cleantech.

What to look for in cleantech procurement?
If you haven’t made environmental RFPs before, here are a few things to keep in mind:

Gets the job done – At the end of the day, you still need the product or service to successfully complete the task. Make sure that your cleantech solution performs the same or better than what you would regularly purchase.

Meets standards – Any cleantech product or service will be expected to meet all government standards. That means companies will need to have appropriate certifications, follow all safety guidelines and submit a bid just like all other companies.

Provides measurable benefits – As can be true with any emerging industry, there will be some players that are doing cleantech well, and some that are just jumping on the bandwagon. Confirm that any product or service you select will offer measurable benefits in either reducing consumption of natural resources, increasing available renewable energies, or significantly reducing waste. 

It’s innovative – The last thing you want to do is invest in technology that’s about to be obsolete. Confirm that the solution you’ve selected is innovative and up to date. It doesn’t necessarily have to be the newest, most cutting-edge option, but it shouldn’t be on its way out the door either.

Government goes green
The government can have a huge impact on what technologies get adopted. More environmental RFPs are popping up around procurement, so it’s likely that you’ll start to see more cleantech products showing up in bids. As more government money starts flowing into cleantech, more innovation will take place. With the government taking an interest, cleantech solutions will also likely become a place for grants and other investments. Procurement agents can play a role in this exciting new trend in government procurement by looking for cleantech solutions that will provide the biggest impact.  

Have you invested in cleantech for your government agency? What are your tips for looking for the best option?

The post Going Green: What Procurement Officers Should Look for in the World of Cleantech appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Be detailed, but don’t micromanage
The bottom line is government purchasing agents know what they need. So, when they share all the detailed ins and outs of the project, they’re just helping the vendor, right? Sadly, this isn’t always the case. When agents dictate minute details of how a project must be completed, that could close the door to vendors with innovative ideas. Some vendors may know more efficient ways of getting projects done and may be able to suggest a better option. By detailing the exact way government agents want the project completed, they may deter some vendors with inventive ideas from responding.  

Dazed and confused
RFPs that are lengthy can be confusing. If a vendor has to read through the RFP several times and still isn’t clear on what is needed, the likelihood of them creating a good response is small. In order to avoid rambling RFPs that cause confusion, procurement agents should re-read and edit the RFP before posting. This will ensure that the project is clearly and succinctly described so that vendors know what is expected. 

Time prohibitive
Some vendors may not even bother with an RFP that’s too long or they may not know how to respond to the RFP questions. Many run their own businesses, and wading through a huge RFP can take a lot of time. They also know that they’ll have to then create a response, which involves collecting resources and information and addressing each item in the overly detailed RFP. Many vendors, simply can’t invest that much time in creating a response for an RFP they might not get. In order to attract more vendor responses, a shorter RFP is more attractive and can open the lines of communication with more vendor options.

 Short and sweet
Government procurement agents want to get the best responses to the RFPs they post. That means sometimes they might find themselves creating lengthy documents that try to best communicate their needs. The truth is that while detailed RFPs are helpful, clarity and brevity are equally as important.

Are you a government procurement agent that regularly creates RFPs? How do you ensure that your RFP length stays within a reasonable range?

The post All in the Details, and Then Some. When RFPs Are Too Long for Their Own Good. appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Consider cost
Obviously, any fleet purchase needs to be within budget, but it’s not just the cost of the vehicle that should be considered. Procurement agents should also review fuel costs, regular maintenance costs, and likely repair costs before making any final decisions. A vehicle may have a lower initial investment, but if it offers poor fuel efficiency, or requires costly parts to repair, it may not be the best fit for the budget (or for the environment). 

Manage risk
Properly maintaining your fleet purchase is an important step in managing the risk of owning a fleet. By keeping track of all regularly scheduled maintenance items such as oil changes, brake checks, tire rotation, hydraulic systems, and general vehicle health inspections, procurement agents can reduce the likelihood that a vehicle will break down while in use. Additionally, these regular maintenance items could prevent larger issues. For example, regular oil changes prolong the life of a vehicle’s engine, increase fuel efficiency, reduce the risk of more exhaustive (costly) repairs and extend the life of the fleet purchase, ultimately saving dollars.

Use smart tools
With potentially thousands of vehicles in their care, procurement agents should consider engaging with a smart technology tool to help them keep track of not only vehicle status and maintenance, but an abundance of other data points as well. Software companies in the telematics space provide GPS and AI insights that would otherwise be inaccessible to procurement agents. GPS tracking can make sure vehicles are going where they need to go and keep track of their physical location. It can also suggest faster routes, saving time and fuel costs. AI technology can communicate updates to fleet managers about maintenance needs and if a vehicle should be taken off the road for repair. This will make the fleet safer and more efficient.

 Fleet feat
Keeping a fleet on track is no small feat! A fleet purchase can be a daunting task without the right tools. But, by considering making a fleet purchase strategy, managing risk, and engaging with smart tools that help with tracking, procurement agents will be well on their way to a “smart fleet” that runs safely and efficiently.

What are your “smart fleet” tips and tricks? What procurement strategies do you find most useful in maintaining your fleet?

The post Procurement Strategies for a “Smart Fleet” That Are Safe and Economically Sound appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.