Author: Jorge Navas, Govtech specialist, Madrid City Council

In a govtech process, once the innovation challenge has been properly defined and scouting has taken place, it is not over. Even if we already have a number of startups that can provide a solution to our problems, selecting the best option and awarding a contract is not immediate, especially in the public sector. 

In fact, moving  from govtech scouting to solution contracting is a complex process that requires careful planning and execution. In this blog post, we explore some of the challenges that organisations face during this transition and how they can be overcome. 

One of the key challenges is managing risk. Solution contracting involves a certain degree of risk, as organisations are committing to a specific solution to deliver a service for a specific period of time, within a fixed budget. It is important to carefully assess the risks associated with each solution and to develop a plan to mitigate those risks. This requires a thorough understanding of the solution and the organisation’s needs and requirements. In many cases, it is desirable to limit the scope of the pilot project to reduce the impact in case of a failed implementation. 

One of the main challenges in managing procurement contracts is to ensure compliance with procurement regulations and to ensure that the contracting process is transparent and fair. Organisations must be prepared to provide detailed documentation and justification for their procurement decisions.  

In a public procurement procedure, it is necessary to carry out an evaluation of tenders in order to select the most advantageous one. In this evaluation, it is sometimes necessary to compare different bids that deliver similar results but with very radically different ways of delivering a similar service - evaluating the trade-offs. Each solution has its own strengths and weaknesses, and organisations need to be able to evaluate these trade-offs to determine which solution is best suited to their needs The lack of understanding of the legal teams about innovative technology and innovative ways of innovation public procurement can pose significant challenges in this bid selection to public procurement. 

One way to evaluate the solutions is to use a well-designed weighted decision matrix. This involves assigning weights to each criterion based on its importance to the organisation and then scoring each solution against these criteria. The solution with the highest score (best value for the money) is then selected as the one that best meets  the organization’s needs. This approach can help organisations make more informed decisions and ensure that they select the solution that best meets their needs. This requires a clear understanding of the organisation’s goals and objectives, as well as a willingness to be flexible and adaptable. 

In summary, the transition from govtech scouting to solution contracting is a complex process that requires careful planning and execution. By managing expectations, risks, change, and costs, organisations can successfully navigate this transition and find the right solution for their needs. With the right approach, govtech scouting can lead to successful solution contracting and improved outcomes for all stakeholders.