Contracting to Win (Washington Keynote Summit 2010)

Contracting To Win Buyer and Seller Responsibilities in 21st Century Government Procurement

Contracting To Win
Building a Transparent, Collaborative and High-Performance Government Capable of Addressing the Challenges of the 21st Century

Contracting To Win
ONE THING . . .
Transparency
Collaboration
High-Performance

Contracting To Win Just ONE THING!

Contracting To Win
What is that ONE THING
In
Public Sector Procurement?

Contracting To Win
People buy
from whom they . . .
KNOW, LIKE & TRUST!

Contracting To Win
“ To really leverage vendor partnerships, solution providers need an in. For the public sector, that entre has to go beyond the program to the individual behind it who understands the market nuances and challenges that can hold partners back.”
From the article 25 Public-Sector Channel Leaders (ChannelWeb Network, March 19, 2007)

Contracting To Win
Transparency
Transparency is not the holding fast to the illusion of a level playing field, but is achieved through a clear understanding of the layout of the field itself.

Contracting To Win
What Is Transparency?
“ It is supposed to mean that one can see the results of any contractual “spend”. It may not be do-able in a practical manner, as has been pointed out by some answers already.
However, the stimulus program demand transparency – hence the tact that over half of the stimulus funds have yet to be awarded – no plan for transparency.
Be interesting to hear what you hear at the conference!”
Mark Amtower, Foremost B2G Marketing Consultant and Social Media Strategist

Contracting To Win
“ It is my observation that openness, honesty, transparency and ethics is for the plebs like me who believe in them. At a certain stratospheric level it is all about who can be sacrificed for the greater good.
Examples: 80+ billion disappeared intended for rebuilding Iraq, funds intended in the name of peace, billions taken from the American people and spread freely into corporate coffers in the name of security. Result… no peace and security.
Companies using corrupt unethical practices and when they are caught losing billions in government contracts. Result… Ethics courses commanded for the workforce with refusal as cause for termination for those who were in no way responsible for what happened.
Transparency… Bah! Humbug!”
Padric O’Rouark , Author at synergebooks, Title: Salvage, When Salvation Fails

Contracting To Win
“ I don’t know that transparency (people outside government seeing what people inside government are doing) is really the issue.
The bigger issue is what happens with the extra visibility?
An example from Washington State was performance audits were published that showed ways to reduce waste in current government programs.
The end result?
The politicians cut the State Auditor’s budget…and didn’t fix the problems.”
Mike McRitchie , Director of Operations at RealCom Associates, LLC

Contracting To Win
“ A pain in the butt as the processes can often go over the top in terms of simply doing business!”
Mark Buzan , Non-profit Government Relations & Strategic Communications

Contracting To Win
“ The process for winning government contracts is truly based on the ability of a supplier to legitimately and transparently win preference with government buyers.”
Judy Bradt, Seven Steps to Success: Jump Start Government Contracts (Blog Talk Radio)

Contracting To Win
Collaboration
“ Most suppliers consider the issuance of an RFP as the starting point in terms of pursuing government contracts, thereby ignoring the five critical pre-RFP tasks that enable successful bidders to Win True Preference status”

Contracting To Win
Waiting until an RFP is issued is like “showing up at the starting line of a long race without training and expecting to win.”
Judy Bradt, Seven Steps to Success: Jump Start Government Contracts (Blog Talk Radio)

Contracting To Win
ATTENTION SUPPLIERS
“ Are you winning contracts or are you winning money?”

Contracting To Win
The following data is from a 2009 GSA Schedule 70 contract for IT related commodities including services.
Over the year, the Government purchased $15.7 billion of IT related goods and services. A total of 5,333 firms won the contract, or more specifically won the right to sell to the government under this contract.
The top 25 firms received 42 percent of the total $15.7 billion in business available.
The top 100 suppliers accounted for 65 percent or an estimated $10.2 billion of the potential revenue that was available to contract winners.
The remaining 35 percent was distributed over a total of 3,271 suppliers, with a total of 1,962 suppliers who “won the contract ,” failing to generate a single dollar in revenue.

Contracting To Win
ATTENTION BUYERS
“ Where is the supplier disconnect between winning a contract and realizing a monetary return?”

Contracting To Win
Do you know if your procurement policies and practices helps or hinders your supply base?

Contracting To Win
This is an important question, especially given the fact that it takes most suppliers on average 18 to 24 months from first pursuing government business to actually winning the first contract.

Contracting To Win
The Commonwealth of Virginia 2001-07
The Commonwealth’s supply base grew from 20,000 in 2001 to 34,000 in 2007
The distribution of business also increased from 23% of all suppliers receiving orders in 2001 to more than 40% in 2007
The most telling statistic, in 2001 only 1% of the targeted $3.5 billion in spend was processed through eVA. In 2007 that number has increased to more than 80%.
The Commonwealth’s program has built up a surplus of several million dollars.

Contracting To Win
The City of Ottawa
According to the presentation at a recent workshop, the City of Ottawa receives on average only five bids per tender—and they want more companies to bid on their tenders.

Contracting To Win
Canadian Federal Government
Research between 1997 and 2004 indicated that the Department of National Defence paid on average 157% above going market prices on Indirect MRO materials costing 10s of millions of dollars.

Contracting To Win
Private Sector Challenges
A 2003 sample analysis, indicated that Best Buy was paying on average 23% above going market price on Indirect Materials as a result of an eroding supply base.

Contracting To Win
ATTENTION BUYERS & SUPPLIERS
“ Are you truly collaborating?”

Contracting To Win
According to 30 year public sector veteran and expert Colin Cram, it is at the execution level and more specifically the lack of a collaborative process that has been one of the main reasons why so many programs have failed.

Contracting To Win
High Performance
“ Latest Government of Canada Procurement Scandal Belies the Very Principles Associated with Effective Purchasing Practices (And Outcomes)”

Contracting To Win
Performance Roadblocks
“ The contentious issues cited in the Globe & Mail in terms of favoritism and pre-existing relationships being at the heart of contract awards are, in reality, a by-product of the way people naturally do business . More to point, people buy from people they “know, like and trust .”

Contracting To Win
“ When you add into the mix factors such as attrition within the public sector procurement workforce through retirement, this human inclination takes on even greater importance given the aversion to risk that permeates the government in general.”

Contracting To Win
“ The larger the expenditure, the greater the perceived risk and desire to succeed (or avoid failure). In a situation like this with whom are you more likely to do business?”

Contracting To Win
Can’t Win For Losing
“ The winning supplier is usually engaged for a period of several years during which time they are going to form strong working relationships with government employees at all levels of the public sector hierarchy they are servicing.”

Contracting To Win
“ The greater the expenditure of funds combined with the complexity of the service requirements associated with a contract . . . the deeper and more significant these relationships must become to ensure the that the required level of service is achieved.”

Contracting To Win
“ Communication builds a rapport that leads to trust and yes the natural formation of a relationship. You cannot ultimately succeed in any endeavor if communication, trust and a relationship are not established.”

Contracting To Win
I know nothing stays the same
But if you’re willing to play the game
It’s coming around again . . .
Lyrics from the song Coming Around Again by Carly Simon

Contracting To Win
ONE THING . . .
Transparency
Collaboration
High-Performance

Contracting To Win
The key to successfully building a Transparent, Collaborative and High-Performance Government Capable of Addressing the Challenges of the 21st Century is . . .

Contracting To Win
. . . Redefining our definition and beliefs as to what transparency, collaboration and high-performance are and . . .

Contracting To Win
. . . building relationships of trust and understanding both internally and externally through effective communication.

Contracting To Win
Broadcasting live from the summit, the PI Window on Business Broadcast Booth which this year is sponsored by Elcom International, will cover key sessions of the conference as well as on the spot interviews with conference attendees and participants.

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Contracting to Win (Washington Keynote Summit 2010)

by Jon Hansen on May 06, 2010

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Contracting to Win (Washington Keynote Summit 2010) — Webinar Transcript