5 Government Procurement Practices That Stifle Innovation

5 Government Procurement Practices That Stifle Innovation

Nothing is simple when it comes to government contracting, especially for large technology projects. Yes, there are good reasons for having all those checks and balances in place. After all, taxpayers foot the bill for these projects, and there must be some assurance that the funds are being spent wisely, particularly given some of the high-profile failures of public-sector IT deployments.

But the downside is these rules can be so restrictive that they choke off competition and innovation. The number of vendors who are able to respond to complex procurements is limited, and that can leave agencies with fewer choices and less creative technology options.

Still, some agencies are finding creative ways to purchase more innovative technology while staying in harmony with procurement laws. Here’s a look at some of the procurement rules that most often stifle innovative technology and how some agencies are working to improve the situation.

No. 1: Budget rules encourage excessively large, “winner take all” projects.

Tight budgets mean government agencies often only have “one bite at the apple” for a project they want to complete. Other times, federal funding may come into play, allowing for a one-time only investment. Either scenario can pressure agencies into attempting to complete a huge project in one large chunk rather than smaller, more manageable pieces.

“The scoping of procurements in some states has become too large and complex for even some of the largest companies to take on,” said Michael Kerr, senior director for state and local government at TechAmerica, the trade association for U.S. technology companies.

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