Government entities are increasingly exploring ways to make the procurement process more efficient to drive innovation, using things like artificial intelligence and collaboration as tools to do so.
Pennsylvania’s efforts aim to increase competition for state contracts by making it easier for technology companies to partner with the state. Notably, IT project delays can be costly for taxpayers, and this initiative aims to protect those dollars.
The collaboration for this effort includes a partnership between the DGS Bureau of Procurement and the Commonwealth Office of Digital Experience (CODE PA) within the Office of Administration; these teams are working to standardize IT procurement practices for greater efficiency and transparency. The work is guided by a steering committee including OA, DGS, the Office of the Budget, the Office of General Counsel, and leadership from six agencies.
Essentially, this modernization effort aims to implement private-sector best practices in state IT procurement.
For example, partnering with a single large vendor can create potential risks in cost and project completion. Breaking a project into smaller deliverable components and issuing smaller contracts can reduce those risks — and create more business partnership opportunities with the state.
Secretary of the Office of Administration Neil Weaver said in a statement that by implementing private-sector best practices, officials “are ensuring the Commonwealth stays ahead of the curve, supports innovation, and delivers smarter solutions that maximize the use of taxpayer dollars.”
CODE PA and DGS are creating a new digital services Invitation to Qualify (ITQ) to streamline the vendor selection process. The process will allow vendors to prequalify for state partnership, rather than having to issue a full proposal — enabling access to requests for quotes for projects within the ITQ category. This aims to help the state work with more vendors that emphasize the user experience — a priority for the state CIO, Amaya Capellán.
A streamlined process launched in early February by CODE PA and DGS supports faster decision-making through the elimination of repetitive steps, enablement of reviewers working simultaneously, workflow automation, and improved tracking for pending requests. According to the announcement, this new process has resulted in a 75 percent reduction in the number of questions required for making an IT purchase.
Another component of this effort to increase the efficiency of IT procurement is policy. This includes the rescinding of a policy requiring agencies to negotiate a software license agreement with a vendor prior to learning how much the software costs. The state’s terms and conditions for IT contracts included 93 state IT policies with which vendors must comply; OA consolidated these policies to 34 in January and renamed them for simplicity.
In the coming months, OA is going to review and rewrite IT policies; this part of the project will also involve the use of generative AI to accelerate policy drafting and revision — subject to review by human experts. The goal is to reach a 60 percent reduction in the volume of policy documentation, to make it easier and more efficient for vendors to confirm compliance and partner with the state.
These modernizations work in parallel with the state’s 2024 launch of “vendor days,” when IT vendors have the opportunity to showcase cybersecurity and AI products and services, allowing technology suppliers to work with state leaders.
A like effort is the May 2024 initiative to solve a backlog of requests from businesses wanting to learn about how to work with the state; CODE PA automated the communication process and rewrote messages for clarity. This project not only helped the state address a backlog of requests, but will help officials keep up with the more than 6,000 requests made since.
“This collaboration is about building a modern, transparent, and efficient IT procurement process that delivers better results for the Commonwealth and our vendors,” Secretary of General Services Reggie McNeil said in a statement.
