In Onvia’s latest study, 10 Hotspots in Government Contracting for 2016, our market analysis team discovered that productivity and workforce assessment contracts in the state, local and education (SLED) government market grew 17% in 2015 over 2014. Out of nearly 500 unique industry categories analyzed for the report, bids & RFPs related to productivity and workforce assessments represent the #7 ranked area for growth in the SLED government contracting market.
Tight Budgets Push Agencies to Find Efficiencies in Everything
Over the past few years, an environment of tight budgets has motivated SLED government agencies to seek greater efficiencies. One way that agency procurement officials are doing this is by looking for private sector help to evaluate programs and workflows, track progress and figure out cost-saving solutions that can enhance productivity.
These services are required to happen at pre-determined intervals by external regulators. However, when the volume of bids & RFPs for the category increases in a significant way, a change in the market may be occurring – signaling an even greater push by agencies towards efficiency and accountability.
Consulting firms who specialize in administering related tests, performing audits and reporting objective findings have an opportunity to secure long-term government business as a result.
For contractors looking for these types of projects, a variety of keywords will be used in the bid documents, which can be easily searched in Onvia’s comprehensive database of government contract opportunities, such as:
- Workflow optimization
- Program evaluation
- Performance evaluation
- Organization optimization
- Organizational assessment
- Staffing analysis
- Response time assessment
Which Agencies Issue the Most Productivity and Workflow Assessment Contracts?
Onvia’s analysis shows that firms pursuing SLED government contracts related to productivity and workflow assessment are most likely to find the largest share of opportunities at the state level. State agencies accounted for a 37% share of bids & RFPs analyzed for the report.
Even though city agencies issue the second most related contracts at 26%, productivity and workforce assessment firms should also consider opportunities from county governments. Onvia’s analysis shows that larger and more complex agencies (i.e. state and county agencies) have grown at a faster rate of increase for issuing related contracts at 26%, while the generally smaller city level of government grew at a much slower pace of just 6%.
Businesses can further narrow their pursuits by focusing their efforts on the top 5 states for issuing productivity and workflow assessment contracts highlighted in the heatmap below:
How to Get Ahead of the Competition and Win More Productivity and Workforce Assessment Contracts
With the awarded contract value of SLED productivity and workforce assessment contracts averaging $616,000, contractors have the opportunity to secure long-term government clients by embedding their services in large agency efforts related to increasing workforce efficiencies for years to come.
Onvia recommends that businesses who are interested in pursuing these contracts first focus their outreach efforts on state and county agencies, which are outpacing smaller levels of government in terms of the growth rate of productivity and workforce assessment contracts issued annually.
Agencies will look to optimize for efficient workforce processes are often discussing these initiatives years before issuance of the competitive bid or RFP. Therefore, the firms who track early mentions of keywords and phrases related to “productivity” and “workforce assessment” in agency budgets and capital improvement plans can greatly increase their chances of winning more contracts.
Productivity and Workforce Assessments Aren’t the Only Growing Areas in Government Contracting
Watch the video below to learn about 9 other contracting hotspots that have seen notable growth rates in bids & RFPs over the last two years: