Government agencies are faced with the challenge of searching for new vendors using traditional market research tools to find contractors. To support the administration’s goal of expanding the industrial base, agencies are turning to Artificial Intelligence (“AI”) to find better ways to assist contracting officers in identifying more small and disadvantaged businesses for the government contracting pool.

That’s where the Procurement Innovation Lab (“PIL”) at the Department of Homeland Security (“DHS”) stepped in with an innovative solution – an AI tool for market research. This AI tool has so far proven to be a game-changer, improving the search for new contractors and accelerating the procurement process.

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Government procurement officials have been struggling with market research for years. The PIL, by collaborating with vendors experienced in AI, has developed an AI-powered market research tool, which is in beta testing.

The AI tool scrapes public databases to provide contracting officers with a list of companies that have previously worked in specific industry sectors such as cybersecurity or software development, along with additional information about their past work, business size, and other relevant data.

The AI tool presents the most relevant vendors, saving contracting officers time and effort. It allows them to flip through and review a curated selection of potential contractors, considering their capabilities and past performance. With this starting point, contracting officers can then conduct more targeted market research, focusing on a select few companies for further information.

The goal of using AI is to speed up the procurement process by providing contracting officers with valuable insights to identify trends in past purchases made through prior government contracts. Additionally, the AI tools assist in determining whether a contract should be set aside for small businesses by providing information on past instances of such preferences.

By offering valuable market research information early in the acquisition process, the AI tool empowers contracting officers to make more informed decisions and streamline their procurement cycle.

DHS is sharing the results of its efforts and allowing other agencies to take advantage of this innovative technology. DHS has briefed the Chief Acquisition Officer’s Council and the Acquisition Innovation Advocates Council, generating interest among other government agencies in conducting their own AI pilot programs.

The appetite for such tools is driven by the contracting officers’ desire to reduce the time spent on mundane tasks and focus on high-value work. The AI tool aims to alleviate the workload, allowing contracting officers to prioritize critical tasks and achieve better outcomes.

The introduction of AI tools for market research is revolutionizing the government contracting landscape. With the help of these tools, contracting officers can quickly identify potential contractors, gain valuable insights, and expedite the procurement process. The success of the pilot program has generated interest among other agencies, emphasizing the need for innovative solutions that save time and enhance the efficiency of government contracting.

Small businesses seeking to enter government contracting should focus on avenues for recognition so that AI tools can more easily identify their business and capabilities. Internet presence becomes a key with a professional website and social media presence, including a capability statement and government landing page.

FedBiz Access (“FedBiz”) has an experienced team that works with small businesses and takes the time to get to know your business and ask questions to ensure you have a solid contracting plan. FedBiz is a leading government contracting business development and marketing firm that provides engagement strategy coaching, SAM & DSBS registration, set-aside certification registrations, GSA Schedules, and targeted market research.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.

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