Definition Of Procurement - How The Procurement Process Does Work

Definition Of Procurement, a dictionary answer- the act or process of the obtaining of supplies or services, usually by a government.

Definition Of Procurement, a practical answer- the two-layer process governments and government supported entities use to get goods and services. Layer one is the way the process is suppose to operate. Layer two is the way the process actually works.

This hub attempts to define procurement is concerned with the second layer. The second layer can be found here at Define Procurement.

Getting into the federal procurement system is difficult. There are many who try, but few who persevere until accepted. The benefits of being on the inside of federal procurement are solid. One is the federal government’s checks do not bounce. They are probably the best credit risk you will ever take, though you should be aware checks come slowly but they do come. Another reason is that once you make it inside the system, your inside for a long while. The government changes slowly and that includes vendors. And the main reason to slog it out for government procurement is that the government does nothing small including purchasing. The United States Government is the largest purchaser of goods and services in the world. That is a client worth chasing.

The Civil Service Mindset

To understand how purchasing works is trying to understand how the bureaucratic mind works. Essentially it is two paradoxical ends of a spectrum, and knowing that they coexist will help in a definition of procurement.

The first is to understand that government work as a profession has been sought after as a secure position where on does not get laid off, fired (except under extreme conditions), but does get an awesome retirement, and federal holidays. The downside is there is not much upward mobility (at least quickly), the environment does not like initiative or creativity, and the pay is typically lower than industry norms. So, the type A personality does not seek government positions (except maybe top tier Washing, DC jobs). Civil service workers want simple, uniform, and no pressure.

The second part of the mindset is that most people define themselves by what they do. Spending 40 hours a week doing is significant in one’s life. Consider also that most government positions are not simple joe jobs, but are careers. That means the people will define themselves by the job and somewhere, on some level will want to do a good job. Now, as there is little incentive for a civil service worker to do a good job, and little incentive to not do a bad job, so the innate desire to do something well is only the motivation some employees will have to do a job well.

This all adds up to say that the government will move slowly, no surprise there. But it also means that anything you can do to make their job easier will be a strong attractant. Indeed, that would be nice incentive for any sale, but with government workers it may be the only incentive. Civil service employees have strong restrictions against any form of renumeration, kickback, or bribe. So, your companies premiums, trips, freebies will not work. Work the low price or best value angle? This is the same government of $400 hammers and $2,000 dollar toilet seats, try again. Also out is the “be the hero” pitch or they will look good in the eyes of their supervisor. Most civil service employees would be happy if their supervisor did not they were around. The best approach (and maybe only) approach is to make the job go easier.

The Power Of Minority Certification

That is why minority certification is so powerful for government contracts. Purchasing departments already have a number of minority purchasing requirements (though no disincentive if the for not reaching quota). Say you are a 8(a), HUBZone, and disabled veteran owned business, you will be able to have contracting and purchasing reach a number of goals just for buying from you. 8(a) also helps with a set-aside, sole-source award up to $3 million dollars, that is instead of going through an arduous process to find a source to find a vendor, the agency can just contract with an 8(a) certified company. Gain the easiest path.

Why Incumbents Are Hard To Beat

This mindset also shows why incumbent vendors are hard to beat. Even if a contract is open and competitive, an incumbent has the inside track because the contracting officer would probably do what they can to make every nuance in their favor. That is because after an awarded contract there is still plenty of work for them to do, with reporting, contacts, invoicing, etc. An incumbent knows all that, and the agency knows them, and guess who makes the job easier? That is why often you will see solicitations leaning heavily toward incumbents and why contracts are renewed as long as possible rather than be put up for competition again.