Study Suggests Disregarding Federal IT Procurement Rules Can Affect Competitiveness

By Christine Kern, contributing writer

A report released by Government Business Council (GBC) and sponsored by Brocade suggests that inadequate attention to IT procurement regulations may be more common and have a more serious impact on market competitiveness than previously thought, according to a press release.

Some procurement offices are apparently not always following the letter of the regulations regarding vendor neutrality, and it’s damaging the agencies’ ability to innovate, according to an infographic based on the survey’s findings.

“We believe this study sheds light on several major challenges that may still not be understood outside the procurement community,” Zoe Grotophorst, manager of research and strategic insights with Government Business Council, says in the release. “Limiting inappropriate procurement practices and improving market research as a core competency can help ensure that agencies have access to high-value IT products and services while strengthening public trust in the process.”

The study found several significant factors influencing the way federal procurement is designed to be carried out, versus the actual practices:

• Although limiting competition to a single brand is prohibited almost universally by regulations, 4 in 10 federal employees reported that brand-specific sourcing is common in their agencies, with 1 in 4 reporting inappropriate use at least some of the time.
• Despite the fact that competition among resellers isn’t really competition if it’s limited to a single brand, 69 percent reported that a contract solicitation would meet competitive guidelines if it receives multiple bidders who carry only a single brand of IT products.
• And while agencies must justify brand sourcing decision by using supporting market research, only 38 percent reported that acquisition personnel have the appropriate market research skills and only 37 percent understand commercial IT markets.
• And while vendor lock-in is proven to hurt competition, 58 percent said that their agency has experienced vendor lock-in over the past five years.

“This study reveals many barriers to the effectiveness of the current federal IT procurement process. Limiting competition and failing to follow federal acquisition regulations reduces opportunities for innovation and wastes limited budget dollars,” said Anthony Robbins, vice president of federal for Brocade. “By minimizing vendor lock-in and other prohibitive federal acquisition regulations, government agencies will be free to procure the IT solutions and services necessary to successfully carry out their mission objectives and responsibly spend taxpayer dollars.”

Tony Celeste, director of federal sales at Brocade, explains in an interview with NextGov: “The most important thing I can tell federal managers is to assess their agency’s long-run mission objectives and to define their requirements and desired capabilities within that context. It’s not as if IT is simply a commodity. That’s why it’s so crucial that procurement offices take the time to set their requirements based on sound market research.”

“It’s essential to build on the current momentum. Reaffirming the federal government’s commitment to a vendor-neutral, requirements-based acquisitions process will drive competition, reduce costs for federal agencies, incentivize R&D, promote innovation, create jobs, and improve the quality of services provided to the warfighter and taxpayer. To me, at least, that seems like a pretty compelling idea.”