18F/18f.gsa.gov

---
title: "The current future of 18F marketplaces"
date: 2015-11-18
layout: post
authors:
- chrisc
- vdavez
- noah
- andrewmcmahon
tags:
- acquisition services
- procurement
- agile bpa

excerpt: "In August, we announced the Full-stack Development Pool vendors for the Agile Delivery Services Marketplace. As we continue to work on the alpha version of this marketplace, we're beginning to plan out additional <em>micro-markets</em> as well."
description: "In August, we announced the Full-stack Development Pool vendors for the Agile Delivery Services Marketplace. As we continue to work on the alpha version of this marketplace, we're beginning to plan out additional <em>micro-markets</em> as well."
---

In August, [we
announced](https://18f.gsa.gov/2015/08/28/announcing-the-agile-BPA-awards/)
the Full-stack Development Pool vendors for the Agile Delivery Services
Marketplace. As we continue to work on the alpha version of this
marketplace, we're beginning to plan out additional "micro-markets" as
well. By micro-market, we're referring to a cohesive grouping of
technology-related products or services that are aligned to the targeted
needs of both 18F and other government agencies.

Given our current mode of thinking, our approach to developing future
micro-markets will share a common set of characteristics.

## Lean startup principles

For each new marketplace that we create, we’ll continue to use a
lean-startup approach: an initial “alpha” version (accessible only to or
through 18F) for us — and vendors — to gain experience, followed by a
“beta” version (potentially accessible to all of government) that
incorporates lessons learned from the alpha phase. And further
iterations, as necessary.

We can say with great confidence that we got a number of things right
with the Agile Delivery Services Marketplace thus far, but there’s also
an equal number of things we’d definitely do differently. Things we
couldn't possibly have predicted, no matter how many months of planning
or preparation. We believe designing learning cycles into the
development of our marketplaces will produce better results in areas
such as the quality of vendors.

## Creative evaluation methodologies

We’ll continue to explore new ways of evaluating vendors based on two
core principles: (1) demonstrated capabilities over written narrative
and (2) minimally sufficient evaluation criteria over completely
exhaustive evaluation criteria.

The second principle requires a little explanation. If, for example, it
only takes three out of 100 questions to determine whether or not
someone can actually do a job, there’s no point in asking the other 97.
To do so puts an unnecessary cost burden on both vendors and the
government. We’re very sensitive to keeping the bid and proposal expense
on vendors as low as possible. By doing so, we’re avoiding a situation
in which vendors have to pass that additional cost onto the government
in the form of higher prices. Not only that, they can invest more in
hiring people who actually do the work (for example, engineers), as
opposed to those who write about it, which the first core principle
encourages as well.

## Contract vehicle strategy

Regardless of how simple or well-thought-out designing a contract
vehicle is, it’s still a lot of work and has the potential to duplicate
something else that already exists in the federal government. Not only
that, it creates a lot of extra work for vendors who have to bid on
yet-another vehicle for which they already qualified for at another
agency. For each marketplace, we’ll do our homework to ensure we’re not
unnecessarily duplicating what’s out there.

## Industry engagement

Our formula for [engaging industry during the pre-award stage of the
Agile Delivery Services
Marketplace](https://18f.gsa.gov/2015/02/12/highlights-from-the-agile-delivery-services-industry-day-events/)
was highly effective and useful, for both vendors and the government. We
made several positive adjustments to our acquisition strategy (for
example, creating a separate award pool for design companies) based on
interactions with industry.

We’ll replicate the same process for engaging industry, to include the
following steps: new marketplace announcement, request for information,
one or more industry days, pre-solicitation conference, solicitation,
question and answer, and awards.

## Separate marketplaces for related products and services

Where appropriate, we’ll create separate marketplaces for categories
that can easily be divided into sub-categories. For example, data
management or cybersecurity can naturally be divided into at least two
sub-categories, such as software products and professional services.

Often, the government needs to use a combination of products and
services together to solve a business or technical problem (for example,
software to detect when a network device is down and a human to resolve
the incident). From an acquisition standpoint, however,

they require different methodologies and expertise to evaluate and
manage. Separate marketplaces also allow us to handpick which individual
products and services “go on the shelf” as a way to assure
complementariness and quality, as opposed to leaving those decisions to
a reseller or systems integrator.

Bottom line, we’ll treat related products and services as related, but
separate contracting activities.

## Not just for the federal government

Since [announcing the Agile Delivery Services
Marketplace](https://18f.gsa.gov/2015/01/08/creating-a-federal-marketplace-for-agile-delivery-services/),
we’ve received a number of inquiries from state and local governments
expressing interest in using this marketplace. As 18F has come to learn,
GSA has a long history of providing acquisition support services to
customers at all levels of government, as [permitted by
law](https://www.law.cornell.edu/uscode/text/40/502). We’ll look to
build on this tradition by designing future marketplaces to be
accessible to them as well.

## Tooling to support marketplace activities

Our ability to develop, manage, and scale high-quality marketplaces —
and to create delightful contracting experiences — requires proper
tooling. Currently, we’re in the process of developing an electronic
form for agencies to initiate and execute interagency agreements with
18F so they can work with 18F more efficiently. Shortly, we’ll begin
work on another tool to streamline the question-and-answer process
between vendors and the government during a solicitation. But it won’t
end there. More tools will be needed, and we’ll build them.

## Lowering barriers to entry

Every company who meets the minimum qualifications for doing business
with the government should be given the opportunity to do so in the most
frictionless way practicable. This is why we’re partnering with the
GSA’s [Federal Acquisition
Service](http://www.gsa.gov/portal/content/105080), and specifically
the [Office of Integrated Technology
Services](http://www.gsa.gov/portal/content/105150), to make it easier
for vendors to onboard onto government-wide contract vehicles like IT
Schedule 70. Recently, GSA released [an
RFI](https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=1ef7f71d50667f4e38b1fafe5dc4ca78)
(now closed) to better understand these barriers. We’ve also [piloted a
fast lane process](http://www.gsa.gov/portal/content/252215) for
onboarding. In addition, we’re working closely with the [FedRAMP
program](http://www.fedramp.gov/) to even further streamline the
process for assessing and accrediting the security of cloud-based
products.

## Cross-functional teams

One of the big reasons agile works is because it emphasizes the use of
cross-functional teams. When a team possesses comprehensive domain
knowledge and the breadth and depth of skills needed to complete a
project, several things happen: shared vision, fluid communications,
creative problem solving, cross-training, and steady work progress
(skillset redundancy helps to avoid resource capacity bottlenecks). This
gives any project, not just software development, a much greater chance
of success.

We’ll create our marketplaces no differently — using cross-functional
teams with expertise in law, acquisition, technology, etc.

## Value-added services

Many of the marketplaces will require new ways of buying (for example,
modular contracting). To support agencies in making this transition, we
will provide a variety of value-added services from hands-on acquisition
and technical consulting to training workshops.

## Openness and transparency

Openness and transparency are two of the foundational operating
principles that pervade everything 18F does, from the [code we
write](https://github.com/18F/open-source-policy) to [how we
deliver](https://pages.18f.gov/guides/). There are so many benefits for
doing so — cost savings, reusability, knowledge sharing, public
accountability, etc. Where legally permissible, we’ll design our
marketplaces to be equally open and transparent, from the code vendors
write to the quality of that code to how well they’re performing on
contracts.

## Vendor performance science

Healthy competitive dynamics drive companies to perform at higher and
higher levels. Openness and transparency will help foster this
competition, but to push it even further, we will develop systematic and
data-influenced ways to understand which vendors consistently perform
above or below “the bar” based on a variety generic and
marketplace-specific performance attributes. Those companies who are
above the bar will continue to earn more opportunities for work, while
those who aren’t will earn fewer — and may be competitively replaced
with new marketplace entrants using onboarding and offboarding
mechanisms.

Ultimately, understanding and influencing the factors that contribute to
healthy competitive dynamics will better equip us to create and maintain
high-performing marketplaces.

## Planned marketplaces

Without further ado, here are the marketplaces that are currently on our
radar, in no particular sequence and without specific timetables due to
a host of planning uncertainties at this early stage in the game:

**Horizontal marketplaces** (support the specific needs of a wide-range
of government buyers across different mission areas such as justice,
defense, healthcare, homeland security, and finance/economics):

-   **Infrastructure/platform** (products, services)
-   **Data management** (products, services)
-   **Developer productivity tools** (products)
-   **Cybersecurity** (products, services)

**Vertical marketplaces** (support the specialized needs of a specific
group of government buyers):

-   **FinTech** (products, services)
-   **Health IT** (products, services)

We’re truly excited about the opportunities that lie ahead for the
vendor community and the government. Stay tuned for information about
the ongoing development of the 18F marketplaces.