What is the path forward?
It seems that reverse auctions are a “love them or hate them” proposition. The vast majority of small businesses I know who actively use reverse auctions have negative attitudes toward the use of this tool, for the same reasons highlighted in the testimony. The overwhelming feedback is that they are being used for the wrong procurement (e.g. wrong requirements for the wrong price point), and not necessarily think that reverse auctions in and of themselves are a negative procurement method.
Saturday, December 14, 2013
Friday, November 29, 2013
Thursday, November 7, 2013
|Photo by ActiveRain|
After weeks of reports about the debacle known as healthcare.gov (here and here), the latest news and actions around preventing the next IT boondoggle are now headed in the direction of reforming IT acquisition.
Although President Obama got in on the action, I do not expect any significant reforms to take place, until the root cause of the problems are addressed. Further, “fixing” IT acquisition is not a silver-bullet endeavor, but as the Professional Service Council highlights in their latest report, there are some fundamental approaches to improving the current situation that do not require any new legislation or further regulations (thankfully).
Nonetheless, if real IT acquisition reform is to be realized, the answer is to dig deep and not focus on outlying issues. Not an easy proposition.
Fixing IT Acquisition: Strip It Down to the Bolts
Just weeks before the failed launch of healthcare.gov, I was having an interesting and enlightening debate with Clay Johnson on LinkedIn regarding innovation and RFP-EZ. Clay is CEO at The Department of Better Technology and one of the original Presidential Innovation Fellows of the RFP-EZ project.
He and I were debating about the need for IT innovation and its definition, in addition to creating software and technologies that provide rapid capability at a fraction of what most IT projects cost. That is to say, it is possible to create and deliver technologies and capabilities that meet end-user expectations for functionality without breaking the bank or requiring being hauled before Congress.
My main concern regarding RFP-EZ is that this technology already exists; mainly through Federal Business Opportunities or FedBizOpps.gov. Wasn’t RFP-EZ a redundant technology? Shouldn’t we be more focused on fixing the real IT acquisition issues, like the workforce?
No question infrastructure, human capital, and execution are major problems, but after seeing healthcare.gov rolled out, and Clay’s remark about the possibilities that exist to solve the issues of IT in the federal space, I believe his vision to reform how government purchases technology is what can lead to real change.
“Big Bang” Means “Big Bucks”, With Little To Show For The Investment
One of the biggest issues I see is simply culture, as government is fully entrenched in purchasing large programs with thousands of disparate requirements and no clear vision of what capabilities are desired. Combined with an aversion to change how business is conducted, and further exacerbated by strong business (e.g. lobbyists) interests that prefer the status quo, this will be one of the hardest issues to combat.
Recent federal leadership comments, I believe, illustrate this point. Comments by former Department of Homeland Security CIO Richard Spires and former acting administrator at the General Services Administration, Jim Williams, illustrate this problem. Although their recommendations are very useful and helpful, one has to wonder about the level of success of IT programs at their respective agencies when they held their respective positions. Furthermore, they both effectively state “Next time we undergo another large program like healthcare.gov, we need to do better.”
To realize real change, we need to put the brakes on this “Big Bang” approach to purchasing IT and ensure return on investment is at the forefront of future technology acquisitions.
Everyone talks about how there is ample competition in the federal acquisition marketplace, and how regulations promote this competition. If you really believe this, I have a bridge to sell you.
There is a reason that such a vast majority of federal business is won by a small number of firms, and this entrenched environment is part of the “IT Cartel” that former Federal CIO Vivek Kundra discussed. Although this moniker was regrettable, and pounced on by large government contractors and the media, his analysis was very accurate.
Although his “25 Point Implementation Plan To Reform Federal Information Technology Management” laid the groundwork for real transformation, I would argue that little has been done to fully execute these initiatives, outside of cloud computing and data center consolidation.
Until government understands that huge multi-million dollar IT programs simply are a continued recipe for waste and little innovation, we will continue to build more projects like healthcare.gov.
What Does Real Change Look Like?
For starters, Requests for Proposals (RFPs) that are hundreds of pages of requirements, that no one understands (especially with requirements that are TBD), go away. After 30+ RFP amendments and months, if not years to award the final contract where the technology requirements are now obsolete at contract award, who thinks this is a good idea anymore?
Further, getting more small businesses in the federal technology space is what will drive more innovation in technology, and improve the level of technological capability that IT projects deliver. As opposed to the business model of requiring large businesses to run these massive legacy systems at enormous expense that total billions every year, smaller firms are simply closer to cutting edge, ground-breaking technological capability that is required to change the paradigm, and improve the level of services the federal government delivers.
All at a fraction of the cost, I might add.
The requirement for Open Systems Architecture would also go a long way to improving capability, since the current environment is to purchase “Commercial-of-the-Shelf” technologies, then spend hundreds of millions of dollars to customize the software for government use that ultimately creates proprietary software, and a nightmare for data rights and licensing fees. This only encourages less competition, since usually only the incumbent (a large business) has the resources to manage these enormous undertakings, or compete on them for that matter. Security issues, for the most part, are also nothing more than a red herring at this point.
Of course, holding those accountable for failure is also woefully lacking in the federal environment. Only in the federal government can you manage a program that wastes millions of dollars, only to have it fail, and possibly canceled, and the only response seems to be a shoulder shrug.
Risk taking and bad management are two separate things, and the former is what needs to be encouraged. Combined with using more Agile development techniques, and a renewed focus on workforce capabilities and not just box-checking certification requirements, are further areas of improving the status quo.
We do not need the next healthcare.gov to drive change. I think we taxpayers have had enough.
Monday, July 22, 2013
The article, “MythBusting – Communications with Industry,” (subscription required through NCMA membership), written by Jeffrey D. Claar, a senior procurement analyst with the Program Executive Office for Simulation, Training and Instrumentation (PEO STRI), describes the successes at the establishment of monthly PEO STRI Acquisition Center Procurement Administrative Lead Time (PALT) Industry Days.
These monthly forums demonstrate the way procurement offices are changing the dynamic of what most “normal” Industry Days entail, which are time-consuming ways for government to advertise requirements that most commercial professional business development types know better than government personnel at the front of the room. Further, rarely are productive question asked, as industry attendance is normally for scouting competition or finding potential teaming partners.
However, living the spirit of the Office of Federal Procurement Policy's MythBusters is principal assistant responsible for contracting (PARC), Joseph A. Giunta, Jr., who stated these forums are “a means of providing ground truth and situational awareness of PEO STRI’s Acquisition Center procurement process and ongoing procurements.”
The article goes on to talk about the value of the program, and how communications have helped foster a collaborative environment.
…Since August 2011, PEO STRI PALT Industry Days have grown exponentially, serving the contracting community, requiring activities, and industry partners alike. The monthly PALT Industry Day venue provides industry representatives with the status of PEO STRI programs, ongoing procurements, and the distinct opportunity to request updates on specific procurements of interest in a Q&A-type forum. These types of venues have indeed enhanced communication and have enabled PEO STRI to respond faster to critical, emerging requirements with innovative acquisition and technology solutions, thereby putting the power of simulation into the hands of our nation’s warfighters.
Recently, as a result of sequestration, PEO STRI’s monthly PALT Industry Days have swelled to more than 220 industry representatives and taken on a “standing room only” reputation. As a result of this overwhelming desire by industry, alternative overflow seating and viewing capacity have been predicated…
Further, the exchanges have been helpful and productive for both parties, which one would expect when open and honest transparency, combined with a spirit of collaboration are created, to develop better requirements and provide actionable information for industry consumption:
…At its core, the PALT Industry Day sessions are driven by industry’s questions and not a fixed government agenda. Industry attendees routinely ask questions to a senior PEO STRI panel—consisting of the PARC, deputy PARC, division chiefs, program managers, and legal representation, as well as the Small Business Program Office and a host of contracting officers—about contract types and PALT milestones associated with a specific procurement. This has enabled industry representatives to better allocate resources and facilitate their investment decisions.
In this unscripted setting, industry partners have been more open and comfortable with sharing information, and in turn, as Giunta noted, “Better information is obtained for the acquisition community and for industry partners to support their pre/post-award activities.” Giunta went on to state, “While the sessions are in essence driven by industry, we do have the ability to push information to industry, leading to an educated partner.”…
As the sequestration vice tightens, it is even more important than ever for industry and government to share vital information on how missions will be supported with even more limited resources and contract opportunities.
It is encouraging to see procurement shops proactively improving their relations with industry through communications, and we can expect better outcomes as a result.
Thursday, June 6, 2013
Last week, the American Council for Technology and Industry Advisory Council (ACT-IAC) conducted their inaugural 2013 Mythbusting Awards to three Federal agencies for their work in improving vendor communications in the acquisition process. The program also contained a forum on Mythbusting, in addition to breakout sessions on various MythBusters issues related to the previous memos and survey results released by ACT-IAC. Lastly, the program recognized the agencies (Department of Homeland Security or DHS, The National Reconnaissance Office, The Department of State) making improvements in the way they interact with collaboration, and to share those results and best practices with the group.
Having attended the event, I think any opportunity to acknowledge and discuss the value of industry and government collaboration is an important step in improving acquisition outcomes. Like most ACT-IAC events, it was well done and productive.
I discussed this event with an acquisition official that did not attend, but more importantly, did not think this event or initiative had any merit. His belief was that government officials should not be rewarded simply for doing their jobs, and industry should not be granting awards acknowledging what they should be doing in the first place.
He makes a valid and interesting argument, no doubt. However, it is too easy to dismiss recognizing those that are making a positive impact on government management.
In fact, these types of awards should be handed out with more frequency, as the knowledge transfer would be invaluable to reverse the trend of the closed-door policies that seem firmly entrenched in regards to government and industry relations.
In these fiscally austere times, communications between industry and government are vitally important to develop affordable programs, and to ensure that requirements for programs are done in an environment of realism.
I am not talking about what passes for market research these days, which is the government issuing a Request for Information, and then that is it. In the award citation by ACT-IAC, DHS was cited for creating initiatives to lower barriers to effective communication:
The Department of Homeland Security emphasizes quality government-industry communication as part of its strategic plan and its new vendor communication framework. DHS created an industry liaison council and a small business council to increase the effectiveness of its dialogue with industry. DHS has rolled out industry- led seminars to educate the acquisition workforce on private sector business processes, and appointed two personnel as centralized resources for vendors seeking information about DHS acquisitions. DHS has also developed seven industry-government communication metrics to measure its success.
It is about, as Office of Federal Procurement Policy Deputy Administrator Lesley Field noted, "institutionalizing Mythbusting." That is to say, creating a culture where effective industry and government relations, communications, and collaboration are the norm and not the exception.
Further, we are in a desperate need of shifting the culture of risk aversion and lack of accountability, combined with an understanding of the value that effective communications with industry bring to the table.
It is a fact that better relationships between government and industry create more value to the taxpayer, through improved outcomes, and less fraud, waste, and abuse. Now is not the time to shut doors, but to open them, so that government can communicate what it can afford, and industry can communicate what value it can provide at the affordability targets. Will revisions in requirements be necessary? What about adjusting expectations?
No question. However, how do we do that if we are not talking to each other?
Industry is not the enemy. There is no silver bullet here, but we must continue providing the opportunities and tools to the acquisition workforce on how to conduct market research, and the value it brings.
“There is no time” is not a valid excuse. There seems to be endless amounts of time to correct mistakes, but never enough time to prevent them for occurring in the first place. Acquisition planning and forecasting is a strategic initiative that must be made a priority with leadership, and not be treated as a paper-pushing exercise.
Until then, let’s keep presenting these awards.