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Jan 22, 2024

Striking Balance: The Build vs Buy Dilemma in GovCon Contract Management

Posted by Unison

GovCon companies are often at a crossroads when deciding on technological solutions. Do they build a custom system from scratch or buy an off-the-shelf product? This decision isn't just about choosing software; it's about setting the course for your business's future and growth in a highly competitive market.

The Build Option: Total Control with a Catch

The allure of building your own contracting software lies in the complete control it offers. You're the master of your domain, tailoring every aspect of the software to meet your unique requirements. The U.S. government is a prime example of this approach, historically favoring contractor labor for software development.

The build route isn't without its perils, though. Projects can spiral without clear deliverables and milestones, leading to cost increases and schedule overruns—something the U.S. government and many large companies are all too familiar with. Moreover, the technology built today might need a complete overhaul tomorrow, causing repetitive investments and wasted time. While appealing for its customization, the build option often becomes a side job, lacking the evolution and advancement a dedicated software company can provide. Even worse, when companies who have built their own software get to the operations and maintenance phase, they often cannot get resources to complete required upgrades and run into I.T. scheduling challenges for pressing bug fixes and system changes.

The Buy Approach: Efficiency and Evolution

On the flip side, buying off-the-shelf solutions is often the commercial world's preferred route. These solutions offer the immediate efficiency of a plug-and-play system backed by years of development and refinement. Companies opting to buy benefit from a wealth of shared knowledge and a product honed by a diverse customer base, re-focusing the time spent building a software system into the foremost value they offer to their customers and stakeholders.

The downside? Off-the-shelf solutions don't always fully align with the specialized needs of government contracting operations, forcing you to mold your processes to fit the software rather than tailor the software to your unique requirements. A prime example of this misalignment can be seen in the handling of Federal Acquisition Regulation (FAR) clauses. Commercial off-the-shelf Contract Lifecycle Management (CLM) systems typically don't accommodate the intricate complexities and specificities of FAR clauses, which are critical in GovCon. This gap means that GovCon businesses often manually integrate these crucial clauses into their contract management processes, a task that can be both time-consuming and error-prone.

Hybrid Approach: Best of Both Worlds

The good news is the decision doesn't have to be binary. The most forward-thinking GovCon firms are finding a middle ground. They're choosing off-the-shelf products that offer room for custom configuration and the ability to influence the product roadmap. This approach allows companies to influence software development without getting lost in the intricacies of building a brand-new tool from the ground up. Participating in user advisory councils or collaborating closely with a software provider's team can shape the product to meet specific needs.

This model presents a win-win scenario. You get a solution that is tailored yet not rigid, flexible yet not unfamiliar. It saves time, leverages market expertise, and keeps the door open for customization without the burden of building from scratch.

Buy to Solve a Business Problem

This approach requires GovCon teams to understand their organizational and system requirements before starting the purchasing process. Building out these requirements should be iterative, and teams should look to the acquisition software industry as well as their internal processes and culture to ensure that the decision process results in a tool that aligns with the business and will fit the technical and operational needs of the teams. Fortunately, many companies, including Unison, maintain a staff of Contracts SMEs who can help analyze and identify the core functionality needed for future success.

Making the Right Choice

Ultimately, deciding to build or buy isn't about choosing one absolute over another. It's about assessing where you stand, what you need, and how much you're willing to adapt. The most successful strategy is leveraging the market's best offerings while keeping a hand on the wheel, guiding the product and its flexibility to suit your unique needs.

This hybrid approach saves time and ensures that your solution stays relevant, efficient, and, most importantly, aligned with functional and technological advancements. It's about finding that sweet spot where technology aligns with your unique processes and business goals, driving your company toward a competitive advantage and strategic upper hand.

Unison CLM: Tailored for GovCon

Unison CLM was created by GovCon professionals who knew the benefits of a hybrid approach. Used only in the GovCon market and with FAR clauses built-in, Unison CLM offers robust out-of-the-box functionality while ensuring plenty of room for customization. With Unison CLM, you get efficiency and a tailored fit, providing your GovCon contract management software is as dynamic and responsive as your business requires.

Click here and reach out to us to learn more about CLM.

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