Public Sector Podcast: Government Procurement Innovations

Show Notes

In this episode of Public Sector Podcast, we sit down with Angela Shell, California’s Chief Procurement Officer and Deputy Director at the Department of General Services, to discuss the future of state procurement. Angela shares her insights from 30 years in public service, breaking down how procurement can be a driver of innovation, efficiency, and digital transformation rather than a barrier.

What is Public Sector Procurement?

Procurement is often viewed as a complex, bureaucratic process, but it is also one of the most powerful tools for driving innovation in state government. Angela emphasises how procurement can support technology adoption, efficiency, and vendor collaboration while still maintaining compliance with government policies.

California’s procurement system balances oversight and flexibility through:

🔹 FISCal System – A state-wide platform for budgeting, accounting, and procurement that improves transparency and efficiency.
🔹 Leveraged Purchasing Agreements (LPAs) – Pre-negotiated contracts that expedite procurement and secure competitive pricing.
🔹 Innovative Procurement Methods – Challenge-based approaches like Request for Innovative Ideas (RFI²) that encourage vendors to propose new solutions rather than just respond to rigid requirements.

Key Initiatives and Strategies

1. Using Data and Digital Tools to Streamline Procurement
 🔹 FISCal System enables real-time tracking of state procurement, helping agencies see who is buying what and identify opportunities for shared purchasing.
 🔹 Digital dashboards provide transparency and reduce redundancies, making procurement more strategic.

2. Faster, More Flexible Contracting
 🔹 LPAs & Cooperative Agreements offer pre-negotiated contracts with thousands of vendors, cutting down on administrative delays.
 🔹 Agencies can use Request for Offers (RFOs) instead of lengthy RFPs, reducing procurement timelines from months to weeks.

3. Inclusive and Sustainable Procurement
🔹 California has mandatory small business (SB) and Disabled Veteran Business Enterprise (DVBE) participation goals, ensuring diverse vendors have access to state contracts.
🔹 Green procurement policies promote eco-friendly purchasing, pushing vendors to meet higher sustainability standards.

The Role of Collaboration

Procurement isn’t just about compliance—it’s about partnership. Angela highlights how agencies, vendors, and policymakers can work together to:
 🔹 Reduce procurement bottlenecks.
🔹 Identify cost-effective, innovative solutions.
🔹 Ensure diverse and small businesses have a fair chance in public contracts.

Driving Innovation in Public Procurement

California is pioneering new procurement models to speed up government innovation:

🔹 Challenge-Based Procurement (RFI²) – A problem-first approach where agencies present challenges and vendors propose creative solutions.
🔹 Generative AI Testing – California is using sandbox environments to test AI use cases before committing to large-scale contracts.
🔹 Scalable Procurement Contracts – Smaller, phased contracts allow agencies and vendors to iterate before committing to long-term projects.

Looking Ahead: The Future of Procurement

Angela envisions a procurement system that is:
✔ Faster – Streamlining approval processes to support agile decision-making.
✔ More Transparent – Leveraging digital tools for real-time insights and better accountability.
✔ More Collaborative – Ensuring agencies, vendors, and policymakers work together to drive innovation.

Key Takeaways

✔ Procurement is a tool for innovation—not just a compliance exercise.
 ✔ Data and digital systems help agencies track spending and optimise procurement.
 ✔ Flexible contracting models reduce delays and encourage vendor collaboration.
 ✔ Sustainability and diversity are integral to California’s procurement strategy.

Join us as we explore how procurement can be a catalyst for transformation in public sector operations.