Government buyers take 22 months on average to procure tech
- Reference: 1662472810
- News link: https://www.theregister.co.uk/2022/09/06/public_sector_procurement_times/
- Source link:
According to a survey of 1,120 executives Gartner interviewed in November and December, including 79 from the government space, the typical time it takes to make a purchase is 22 months.
Almost half of the respondents claimed six or more delays when buying tech, with the cumulative consequence of these factors, including repeated changes in the scope of the project, adding seven months to the entire undertaking.
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"Technology acquisition brings challenges to the public sector that do not commonly exist in other industries," said Dean Lacheca, Vice President Analyst at the market watcher.
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"Each jurisdiction has its own procurement laws and policies, and within that, each agency or department can have its own interpretation of them. A failure to conform to the rules can have serious consequences, from unwanted publicity to personal risk of prosecution," he added.
One of the issues identified by Gartner is that public sector procurement teams can be large and complex, with on average 12 individuals with varying levels of participation in the process – so it may be a case of too many cooks spoiling the specification or pulling the project in different directions.
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This is perhaps compounded by the lack of senior personnel buy-in as 44 percent of respondents said C-level executives were less involved in tech purchasing in the public sector compared to 55 percent in the private sector.
[5]$10b National Security Agency contract re-awarded to AWS
[6]European antitrust watchdogs sniff around Microsoft cloud licensing deals
[7]Head of Big Tech Expertise? Believe it or not, it's a UK.gov vacancy for a Whitehall job
[8]Conflict of interest? We've heard of it. Amazon on selection panel to choose UK.gov's chief digi officer
This, said Gartner, is to steer clear of association with the buying process and avoid "creating the perception of political influence in the outcome." This flip side, however, is that these same C-suite folk are less "willing to defend the process if challenged by unsuccessful vendors or the media."
Disputes between government departments and agencies certainly seem more high profile than those between the tech set and the commercial sector, including [9]protests by AWS and [10]others in the long-running and [11]now defunct Department of Defense JEDI procurement .
Based on its findings, Gartner reckons buying teams in central and local government are also more likely to be comprised of lower level operational staff that then try to take on the role of "business subject matter expert."
"While the government equivalents of a C-level executive or executive governance body may have the authority to make the decision, they are heavily guided by the evaluation results and recommendations made by the subject matter experts," said Gartner.
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So what are the causes of these significant delays? Some of the big hold-ups to procurement often happen before the buying process even starts with 74 percent of respondents citing developing the business case, 76 percent blaming scope changes that necessitate additional research and evaluation, and 75 percent said the bottleneck is centered on agreeing budgets.
Lacheca said government purchase cycles can be long. However, "it is important to note that these time frames are not set." He added: "Initial planned timelines can be delayed as a result of a combination of both controllable and uncontrollable factors, especially when no external deadlines exist."
Some 68 percent of those surveyed said delays were based around buyers not being able to get hold of relevant information from vendors. Public sector entities are more likely to find value in references from existing clients than private sector buyers and this is because public sectors are less often in direct competition.
Perhaps Gartner should turn its attention to the build up of [13]technical debt in the public sector , which seems to be a disproportionate problem, at least in the [14]UK and US . The UK spends half of its multibillion-pound IT budget on keeping the lights on maintenance, and in the US the majority of the $100bn spent on tech in fiscal 2021 was for operating and maintaining existing tech, including legacy systems. ®
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[5] https://www.theregister.com/2022/04/28/nsa_wands_aws/
[6] https://www.theregister.com/2022/04/04/euro_commission_and_microsoft/
[7] https://www.theregister.com/2022/01/26/head_of_big_tech_expertise_job_ad/
[8] https://www.theregister.com/2020/08/26/aws_on_selection_panel_to/
[9] https://www.theregister.com/2021/04/28/aws_jedi_ruling/
[10] https://www.theregister.com/2021/07/02/oracle_jedi_supreme_court/
[11] https://www.theregister.com/2021/11/19/us_defense_jedi/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YxduliFVzkctuCeyAhfCggAAAMo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2021/08/13/mckinsey_awarded_3m_8_week_contract/
[14] https://www.theregister.com/2022/06/10/uk_government_legacy_systems/
[15] https://whitepapers.theregister.com/
Re: So what are the causes of these significant delays?
I think you meant when it becomes impossible to avoid and there is a real urgent need NOW due to all the delays.
Re: So what are the causes of these significant delays?
Many - too many interested parties who can throw a spanner in the works/delay the process by just not engaging, inability to access expert users (because ya know they're redlining it doing their day jobs), lack of clear reqs, scope, scope creep, budget (lack of), prioritisation, disinterest, empire building, empire preservation, swiping the legs out from under a competitor. You know, just the usual office politics.
Large scale public sector procurement is like fight club without the rules.
Re: So what are the causes of these significant delays?
Having been on the end of this running large procurements there are a number of issues:
1: Sort out the requirements in a way so that you do not ask for what you want in case you exclude someone. This can take months
2: Send requirements ujp to manglement for review.
3: Write the tender so that you cannot be sued by unsuccessful responses.
4: Add every last piece of minute detail so that it is "fair".
5: Have everyone and their pet dog contribute to the tender document AND review it.
6. Send it to procurement for review, this will go back and forth interminably as they complain about anything that might be specific.
7: If it is large enough it goes to legal where it is re-written and no longer resembles the tender!
8: Send it out to interested parties on a list, many of whom you would never ever want to deal with.
9 Wait some more and answer all the queries
10: Wait some more
11: Start evaluating the responses. They all meet the mandatory requirement because we gave them the answers & most meet the desirable unless they are really stupid responses.
12: Short list by sticking a pin in and look at what you think management want.
13: Send for review and get a completely different list back:
14: Spend a month or so repeating
15: Endless supplier presentations where everything is PowerPoint and lies.
15: Finalise supplier and send out contract award.
16 Dump supplier on the Techies/PMs to now unpick the utter disaster that does not meet the requirements in step 1.
Manglement happy, loads of lunches, golf etc from all the suppliers whilst everyone else tears their hair out.
I may have missed a couple of steps out but this is the general process.
One that really wound me up was a tender for server hardware where we needed to replace 100s of HPe BL480 blade servers using the existing enclosures Apparently we could not specify that the servers had to be HPe as that was anti-competitive. That the enclosures were full of switches and cabled into many racks passed procurement by.
Re: So what are the causes of these significant delays?
Currently trying to (simultaneously, it's that sort of year) work through a procurement pretty much as described and deal with the fallout of another one that has already "delivered" (a train wreck) I just have to ask...
Beer, or something stronger ?
Trussed me, for I have a plan: Nadine Dorries and Lady Harding (and some really nice whizzo chums), are going to develop this oven-ready, block-chain, algorithm Web App thingy that uses ML and AI and any other old IT buzzword shit that is doing the rounds at the moment, and it will solve procurment problems at a stroke!
It will all be delivered under budget and delivered in record time and also deliver wads of lovely cash to said chums!
Delivery wil be all important in order to make delivery work and delivering this crock of shit will mean that you know exactly what you are going to get delivered from this all-new Trussed-worthy administration! So concentrate really hard on the delivery and maybe not so much the end product will ya!
Well done, this post really delivered.
I hope there will be a role for lots of well-paid management and project consultants in there!
So what are the causes of these significant delays?
There is no upside if it goes well - the head of the agency doesn't get a bigger yacht, the civil servants don't get stock options and the minister has moved on to another dept.
If it goes at all badly - then the press rip apart the head of dept and the minister responsible, and the current head and minister who had nothing to do with it.
So the only motivation is to avoid every possible point of blame and ideally drag the process out until some new guy is in charge.