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.

RFP instant notifications
While it is recommended that vendors search for available contracts on their own, DemandStar knows that you’re busy running your own business and managing projects and employees. Building your pipeline so that you’ve got the next job lined up is imperative but can sometimes fall to the wayside when there’s so much else to handle. DemandStar helps you find future jobs by sending government opportunities that match your qualifications right to your inbox with instant notifications. 

Online responses and eBidding
When all the forms and documents you need to complete are in one place, you’ll be able to quickly respond and bid on RFPs right from your vendor portal. You don’t have to reinvent the wheel every time you want to apply for a new project, either. Simply look through your previous bids and select one that’s close and updated as necessary. Having an easy-to-use online portal means never having to start from scratch. 

Competitive intelligence
The more information you have, the better! A competitive intelligence feature can provide immense benefits to vendors, especially those just starting out in government procurement. This will allow you to see which other vendors have downloaded the bid documents and submitted a response. Use this information to learn about the competition and then create a bid that will stand out

Bids posted directly from governments

There is plenty of bid scraping sites that pull bid details every once in a while from government websites and compile them for you. But these quickly go out of date as buyers update details and respond to queries from other vendors. With a dynamic process, it’s always much better to source your information from a procurement platform with a direct connection to governments. DemandStar for instance is updated directly by government buyers. Businesses can source opportunities with confidence knowing that they are receiving the most updated information and are therefore more competitive.

Are you looking for ways to proactively or passively get notifications about new government projects? Get started on DemandStar for free with free auto-notifications from one government agency near you!

The post The Benefits of the DemandStar Procurement Network appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

In order to make gains in these areas, school districts are now incentivized to ramp up their programs. In 2018, the U.S. Department of Education published a strategic plan that would increase STEM education across the U.S. over the next five years. The idea is to start kids young and set them on a trajectory toward STEM higher education. As the U.S. strives to catch up and schools work to incorporate a more comprehensive STEM curriculum, they’ll need to purchase resources to make that happen, which means an increased number of technology RFPs and technology vendors from public schools.   

Here are a few things to consider when responding to an RFP or STEM Services:

Computers – Computers are a cornerstone of STEM education. As government procurement agents in education look to get the best deal, vendors have an opportunity to be a strategic partners in this process.  Not every buyer will be a computer expert. Help them identify the needs of their students and why you’re in the best position to help long-term as their STEM program grows and changes.  Do you offer incredible support or strategic partnerships with other providers? Make sure to include all benefits and detail why those features are valuable to the future of their STEM program.   

Wet labs – Setting up a brand-new wet lab on campus can be a big challenge for a procurement agent. When bidding on wet-lab inquiries, be sure to include all necessary supplies for students and go above and beyond with offerings for greater accessibility, safety, and perhaps remote learning.  . By including all items that the school will need to get their program running, you’ll stand out as an expert and catch the attention of procurement agents.

STEM kits – STEM kits are a growing request, particularly for elementary education. Depending on the grade level, these kits often contain building materials such as blocks, simple machine sets, magnets, measurement devices, and even basic robotics projects. If you’ve compiled kits, include reasoning why you’ve selected each item so that procurement agents can understand how they relate to STEM development and new skill-building at each stage. 

 Be empathetic
Government procurement agents may not have an education or STEM background and as a  result, might not anticipate all the needs of students and their learning environment when making a technology RFP.  Establish yourself as an expert resource by making sure your bid includes the educational benefits of each item suggested, as well as thoughtful items and explanations of how your goods or services will enhance the quality of their STEM program.

Have you won a STEM contract recently? What did you learn? Why do you believe you were chosen? Share your story with interested government buyers at hello@demandstar.com, and sign up for our newsletter to stay up to date.

The post STEM Programs Mean More Technology RFPs. Take These Three Steps into consideration when responding to RFPs for STEM Services. 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.

Not all manufacturers are the same, and selecting the right manufacturer can mean the difference between a successful project and one that’s full of headaches and frustration. While selecting the lowest bid can be an attractive option for the budget, government procurement agents can ensure that a project runs smoothly by confirming that the bid meets some crucial factors. Here are a few things to look for when reviewing manufacturing bids. 

Customer service and management
Confirm that the contractor has processes and staff in place to communicate project progress and answer any questions. The last thing you want to do is be waiting days (or weeks) for a call back from the manufacturer. It’s important that procurement agents have a responsive contact to manage the project and handle day-to-day inquiries and activities.

Quality control
A solid bid will include a quality control process. This will include inspecting materials that are ordered for the project all the way through the manufacturing process, testing initial output, and through the completion of final production. Some manufacturers leave this important line item out of the bid to come in at a lower price. Unfortunately, the government agency then needs to either take care of that, themselves or add it in after the fact, increasing the cost of the project. 

What’s the backup plan?
It’s highly unlikely that everything will go according to plan with the project. It’s just a fact of the manufacturing process and something for which the vendor should be prepared. Confirm that the vendor can handle any bumps in the road with minimal disturbance to the timeline and budget. A vendor who has a backup plan already in place will deliver on time and within cost constraints. One that is unprepared will be scrambling to handle any issues that arise, which can significantly and negatively impact results.

Strong supply chain
That tempting lower cost may be due to a long supply chain. Shipping materials slowly and from far away can mean they come at a reduced price point, but that also means the chances for delay or supply chain breakdown are increased. A shorter supply chain may cost more upfront but could provide other benefits as far as timeline and efficiency are concerned, saving money in the long run. This is why procurement is important in supply chain management.

Vendor verified
Remembering to look beyond the price tag and confirm that the vendor is able to deliver on all aspects of the contract and that they have these particularly important elements addressed in their bid, is the first step to ensuring successful project completion. Each manufacturing agreement is unique, so there are likely more factors that government procurement agents will want to consider when assessing the viability of a bid, but it’s a good place to start.

As a government procurement agent, what specific items do you look for in a manufacturing bid? 

About Ben Vaught:
Ben Vaught is president and CEO of DemandStar. He founded DemandStar as an independent company to continue growing our network of government buyers and suppliers. Previously, he was director of government initiatives at Onvia, a public sector business intelligence firm. Ben led multiple innovation and strategy efforts as senior advisor to the Washington state chief information officer and spent six years at Microsoft, where he incubated Microsoft Hololens®. Ben holds 39 U.S. patents in mixed reality and technology applications. In 2012, he managed U.S. Representative Suzan DelBene’s first congressional campaign. He holds an MBA from the University of Washington Foster School of Business and dual bachelor’s degrees in English and government from Georgetown University.

The post Not All Manufacturers Are the Same. What to Look for in Manufacturing Bids appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

What’s a Supplier Diversity Program?
This is simply the strategy that guides your organization to reach its goal. You’ll want to establish a baseline and find out your current supplier diversity percentage and then plan from there. Create a timeline for incremental increases so that the goals are achievable. For example, in the first quarter of your program set a goal that 5 percent of your projects go to organizations run by underrepresented groups, then increase it by 5 percentage points every quarter so that you’re at 20 percent within the year. Be sure to lay out specific steps that your department or organization can take to reach these goals.

If you already have a Supplier Diversity Program, you’re one step ahead! Have regular reviews to track progress. If your organization is falling short of its goals, take action and adjust the strategy. When things are moving along smoothly, challenge yourself and your team to do more.

How do you know if a supplier is diverse?
A general rule is that if the company is 51 percent owned and operated by a member(s) of an underrepresented group, then they would be considered diverse. There are several certification programs and organizations that can help you identify diverse suppliers, and you could ask for these certifications on your upcoming RFPs. You could also reach out to these organizations to help you better understand supplier diversity certifications. Here are a few you may want to check out: 

8(A) Business Development (BD) Program is offered through the U.S. Small Business Administration (SBA) and aids companies owned and controlled by socially or economically disadvantaged individuals.
Women-Owned Small Business (WOSB) is offered through the SBA and aids companies in industries where women-owned businesses are underrepresented.
Historically Underutilized Business Zone (HUBZone) is offered through the SBA and gives support to small businesses in economically struggling communities.
Veteran-Owned Small Business (VOSB) is offered through the VA and supports veterans with priority bidding, tax relief, and extra resources and training to advance their business prospects.
Disability: IN is a nationally recognized certification program for business enterprises owned by people with disabilities (DOBE®), business enterprises owned by veterans with disabilities (V-DOBE®) and business enterprises owned by veterans disabled during service (SDV-DOBE®).
National LGBT Chamber of Commerce offers a nationally recognized certification to business enterprises owned by members of the LGBT community (Certified LGBTBE®) and aids businesses with corporate and government network connections as well as educational opportunities and skills development.

Does your organization have a Supplier Diversity Program? What will you do to increase vendor diversity?

The post The Best Way to Increase Supplier Diversity appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.