Keeping the wheels turning on the massive machine that is the federal government, is no easy task – in the best of times. Throw in a pandemic, an economic recession and a chaotic geo-political climate and the process of managing and acquiring the resources the government needs to function, can be even more challenging to overcome. To meet those challenges, outsourcing products and services has become more and more important to the government procurement process. But there are also some key questions to consider for any government outsourcing venture to be successful.
- Is the service or product being outsourced intrinsic to a core level of government that would render outsourcing inappropriate?
- Does a competitive market for the product or service exist that includes a number of high-quality suppliers?
- Can the potential value of the product or service being offered by the supplier be easily measured and quantified?
- Are there robust quality control standards and mutually established performance metrics?
Not that there aren’t hurdles to the process. Burdensome regulations, the tendency to award contracts based solely on price but with the expectation of the same level of quality, bid protests based on flawed solicitations – are all impediments that can create difficult challenges for both suppliers and contract managers. However, if the conditions of the proposed outsourcing venture effectively answer the above questions, the likelihood for success is much higher and can streamline the acquisition process for government agencies at the federal, state and local level. Not to mention the numerous tangible benefits associated with government outsourcing.
Benefits to Government Outsourcing
- A competitive market of suppliers can offer significant cost savings.
- Reduces the need for capital expenditures. For example – an agency in need of IT services can avoid the long-term expenses associated with hiring and training full time employees to perform core IT functions.
- Infrastructure needs can be met more quickly. With a plethora of options for competing suppliers, critical projects and essential supplies can be procured faster and more efficiently.
- Facilitates access to advanced technology, products and services that might otherwise be unavailable within the government itself.
- Ability to create economic stimulus in minority sectors through set-aside contracts that favor disadvantaged businesses.
- Reduces risk – outsourcing transfers the risk in large part to the provider, who are typically more capable of determining how to avoid pitfalls and risks in their area of expertise.
At the end of the day, government outsourcing makes it possible to get the right equipment, product or service into the right hands as efficiently as possible. If you’re looking for solutions to your procurement needs, contact the professionals at Precision Solutions. Our core mission is to deliver prompt, cost-effective solutions to some of the government’s most challenging supply chain issues. Contact us today for more information.