Governance Studies at Brookings hosted a panel discussion this week on improving the federal government’s procurement processes, particularly for small businesses.
“There have been many efforts over the years to streamline the applications process and make it easier for small businesses and disadvantaged firms too,” moderator Darrell West said at the "Federal Procurement and Acquisition Policies: Removing Barriers to Reform" panel discussion held April 4.
West, a Brookings senior fellow in the Center for Technology Innovation within the Governance Studies program and co-editor-in-chief of TechTank, spoke with Bibi Hildalgo, associate administrator for Government Contracting and Business Development of the U.S. Small Business Administration; Elaine Kamarck, a senior fellow in the Governance Studies program and the director of the Center for Effective Public Management at Brookings; and Mathew Blum, associate administrator, Office of Federal Procurement Policy at the Office of Management and Budget.
The federal government spends approximately $665 billion each year on goods and services from outside contractors, accounting for 10% of its total budget, according to the panel. The agencies purchase items including software, hardware, defense and security equipment, security systems, construction materials, professional services, travel, and office supplies.
Fairness, transparency, and equity in federal awards are important given the magnitude of external money spent and workforce contracted. Government procurement can be difficult to navigate for businesses without experience in submitting bids or understanding agency requirements and processes.
Kamarck said the Clinton administration found two problems with federal procurement.
“One was just the amount of red tape that had developed around the procurement system," she told the panel. "And that was driving federal workers crazy."
The second problem was buying information technology that became outdated before the process was completed, she said.
“Part of what we’re really focused on right now is how we create that access to opportunity to not just small, disadvantaged businesses, but also underserved firms among small disadvantaged businesses,” Hildalgo said to the panel.
She said categorization management tiering created efficiencies and significant opportunities for the firms that can partner with the federal government.
Kamarck said gargantuan defense projects go to large corporations with hundreds of subcontractors.
“Secondly, have a look at the subcontractors and are those subcontracts have these enormous military contracts? Are they going to minorities and women-owned businesses and disadvantaged businesses?” she said in the discussion.
“For a lot of our cost-type purchases, we want to be able to take advantage of those economies and buy things off the shelf just like commercial buyers and not make companies develop separate business lines or invest heavily in understanding government unique requirements that really aren’t as important in that market,” Blum said to panelists.
West, director of the John Hazen White Manufacturing Initiative, researches artificial intelligence, robotics, and the future of work, according to Brookings. He was the John Hazen White Professor of Political Science and Public Policy and Director of the Taubman Center for Public Policy at Brown University. His books include “Divided Politics, Divided Nation” and “Turning Point: Policymaking in the Era of Artificial Intelligence.”
