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in collaboration with:
Faculty from NC State University's Supply Chain Center

Barriers to Entry
in Government Markets

A Public Spend Forum “Open Government Markets” Initiative
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Barriers to Entry Findings Report

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As part of our mission to create “Open Government Markets” around the world for over $10 trillion in public procurement spending, we initiated a survey and interviewed government leaders and suppliers across Federal/State/Local US governments. Our goal was to start to build an evidence-base to understand barriers faced by suppliers and even more importantly, solutions being pursued by government.

This report is just the start of our work. Please join us as we build a toolkit of solutions that can be leveraged by government, suppliers as well as highlight case studies we can all learn from.

Barriers to Entry in Public Sector Markets

Barriers As Highlighted by Suppliers

Entry Barriers

Complex, Costly
& Inefficient Processes
Challenging Legal
& Regulatory Environment
Poor Communication and Relationship between Public Sector Agencies and Suppliers
Incumbent Supplier Advantages
Decision-Making
& Political Uncertainty
Complex, Costly & Inefficient Processes Complex, Costly & Inefficient Processes
Challenging Legal & Regulatory Environment Challenging Legal & Regulatory Environment
Poor Communication and Relationship between Public Sector Agencies and Suppliers Poor Communication and Relationship between Public Sector Agencies and Suppliers
Incumbent Supplier Advantages Incumbent Supplier Advantages
Decision-Making & Political Uncertainty Decision-Making & Political Uncertainty
Source: Public Spend Forum Barriers to Entry Survey, 2021

Solutions for Addressing Barriers in Public Sector Markets

Engage Suppliers Early
Engage Suppliers
Early
Meaningful and collaborative supplier engagement early in the procurement process. Examples include Reverse Industry Days and better designed RFIs.
Simplify Requirements and Align Supplier Evaluation
Simplify Requirements
and Align Supplier Evaluation
Streamline requirements including more use of “problem statements”; align supplier evaluation criteria to goals and differentiators
Target Programs for New, Innovative, Emerging Suppliers
Target Programs for New,
Innovative, Emerging Suppliers
Actively develop and implement programs and procedures targeted specifically at innovative and emerging suppliers
Simplify and Cost Manage the Procurement Process
Simplify and Cost Manage
the Procurement Process
Remove unneeded terms and conditions and onerous paperwork that increases costs for both suppliers and government
Invest in Marketing and Outreach to Suppliers
Invest in Marketing
and Outreach to Suppliers
Improve messaging, materials and resources; provide more transparency into public agency opportunities & aggressively market to non-traditional suppliers
Source: Public Spend Forum Barriers to Entry Survey, 2021

Stay tuned for resources, including templates, tools and case studies, to shatter barriers.
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Additional Resources

Barriers to Entry Got You Down?

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Barriers to Entry in Government Markets Webinar Brings Experts

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Continued Discussion on Barriers to Entry: Candid Supplier Perspectives

Read more

How Small Businesses Can Overcome Barriers in Government Procurement

Read more

Understanding the Cost of Selling to the Federal Government

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Barriers to Entry Survey

To better understand the barriers faced by all companies, large or small, new to government or incumbent, Public Spend Forum and GovShop are proud to work Ivalua and the Director of the Supply Chain Resource Center at North Carolina State University to launch a Barriers to Entry in Government Markets global study and survey.

By gathering input from thousands of suppliers across industries, our goal is to identify the top barriers faced by suppliers. In addition to the survey, the study team is conducting extensive secondary research and interviewing government leaders and suppliers to gather deeper insights and examples.

Complete Survey

Complete 5 Minute Survey Today!

The data collected through the interviews and survey will remain anonymous and will be aggregated and analyzed into what we believe to be a groundbreaking report. We expect the report to highlight issues and solutions that can be used by policymakers and practitioners to plan for lowering barriers and opening up the government market.
For your participation, you will be the first to receive a detailed report of the findings as well as invitation to related discussions. Your responses will be aggregated into our overall findings, with no reference to you or your organization.

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