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Government COTS IT Procurement Vehicles Market
Frost & Sullivan, Dec 2011, Pages: 46
The U.S. Government has a number of procurement vehicles for the commercial off the shelf (COTS) information technology that they buy on a routine basis. This market is experiencing a shift regarding the acquisition of products and services. Within the past few years, agency-specific contracts have garnered more attention from federal agencies due to key factors such as adaptability and lower pricing. Alleviating risks related to procurements is the overall key reason for federal agencies gravitating towards agency-specific contracts. With the General Services Administration (GSA) offering strategic partnering for those agencies, not only can procurement risks be mitigated, but monitoring of contracting activity increases significantly.
Drivers Explained:
Federal Acquisition Service (FAS) is Likely to be at the Forefront of IT Procurement:
- The FAS system seems to be government agencies’ primary choice for IT procurement because it is highly reliable. The user-friendly nature of the system should elevate market growth.
- Web tools, such as eMod and eOffer, have had significant success with contractor procurement within the last year. According to GSA, use of eOffer
has grown to xx percent in 2010 from xx percent in 2009. Also, use of eMod has grown to xx percent in 2010 from xx percent in 2009, as well. The
numerical growth for both web-based tools is a significant measurement as government agencies continue to shift towards on-line procurement.
Smaller Procurement Activity Decreases IT Acquisition Issues:
- Because the IT industry is changing at a rapid pace, Frost & Sullivan expects the buying behavior of the government to change as well. A fast procurement process will ensue, and IT projects could get canceled due to the overhaul of transaction procedures.
- Smaller procurement activity will minimize the acquisition process issues, and both agencies and contracting officers will have a better handle on the overall acquisition process. Even though challenges—such as an increased number of contracts and additional project oversight requirements—might occur, smaller focused projects are ideal for alleviating time restraints and other procurement problems.
Cohesive Strategic Sourcing Strategies can Lower Government Acquisition Costs:
- The GSA and the Treasury Department launched strategic sourcing in 2005 as a convenient way to improve the government’s buying process. Through thorough analysis, an organization is able to determine how much more value it can attain from its supplier network.
- Price is still a major factor. However, the value concept becomes more pertinent when describing the objectives and requirements of a potential project.
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