Why an Unheralded Executive Order Could Mean Big Opportunity for Some Prospective Contractors

This past December, President Biden signed Executive Order 14058: Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government. The directive largely flew under the radar, but it could be a boon for some opportunistic companies. 

Customer experience (CX) became a boardroom buzzword roughly a decade ago, and executives across the private sector moved quickly to make it a strategic priority. Today, some leading firms even view it as their most critical differentiator. While the federal government doesn’t need a competitive advantage, “a government for the people” does need the trust of the people, and right now they don’t have a lot of it. Leaders are well aware of this fact — as the name of the executive order suggests — and they clearly view customer experience (CX) as both the problem and the solution.  

No time like the present 

This isn’t the first CX-focused mandate signed by a President, but it could be the most significant of all of them in terms of creating contracting opportunities. For starters, President Biden specifically calls for more collaboration with the private sector on CX design. While major consulting firms and technology providers have been working alongside federal employees for years to modernize customer service delivery, the executive order is proof enough that there’s plenty more to be done—and more companies will need to get involved to make it happen. 

But isn’t it insanely hard to break into the government space? 

The short answer is maybe not. 

Here’s the thing: the government is more receptive than ever to new firms in the space. Historically, past performance (prior experience working on government contracts), was almost non-negotiable. If you didn’t have a strong track record of business with federal clients, you had little chance of even being considered as a potential contractor.

To be sure, past public sector is still extremely helpful—and may be mandatory in the case of some contracts—but recent legislation suggests the government is interested in loosening requirements to allow more firms to compete for awards. This is especially true for small businesses. If you can demonstrate value and a solid track record of success in the private sector, agency procurement offices are increasingly willing to look past your lack of past performance on government contracts. Moreover, the initiatives detailed in the executive order should open up new roles for more private sector partners. Of course, technology firms will continue to help advance government CX initiatives, but technology alone can’t solve the public sector’s CX problems.  If you’re a business leader thinking about competing for government contracts, now could be a good time to take the leap, especially if you have expertise in any of the areas below:

Customer engagement

Biden’s executive order calls on agencies to design and deliver “services with a focus on the actual experience of the people” they’re meant to serve. Companies with specialized expertise in customer research and engagement will be needed to help federal employees understand that experience. 

If your team is familiar with human-centered design methodologies and excels at collecting consumer feedback, the government could probably use your capabilities. The directive places a heavy emphasis on the need to design services that are equitable and accessible, which means agencies will have to ensure that all of their various constituents are heard from and accounted for. A recent Wall Street Journal article detailed an initiative recently implemented by the Office of Management and Budget (OMB), which will require extensive interviews with people who have gone through various life events that coincide with the need for government services. Given the growing diversity of the American populace, firms that have foreign language outreach capabilities, knowledge of various cultural sensitivities, and similar domain expertise could be in high demand as more agencies look to directly engage their constituents.

Modeling and Advanced Analytics

The COVID-19 pandemic forced a modernization effort that spanned the entire public sector, equipping agencies with new tools for collecting and storing data. However, Biden’s executive order is more evidence that there will be an ongoing need for companies that can help them analyze that data effectively and use it to develop effective programs.

The government understands that the services it provides are a direct reflection of its performance as a fiscal steward — and it provides a lot of services. Firms that have specialized financial and modeling expertise can help agencies capitalize on their data while minimizing unique risks in an increasingly unpredictable economic environment. With recent improvements to its digital infrastructure, the public sector will continue to be a goldmine of opportunity for data teams.

Change Management

The dramatic pivot after the pandemic showed that the government can evolve quickly when it needs to. In order to meet constantly rising consumer expectations shaped by Amazon and other tech giants, it still needs to.

Agency leaders will inevitably look for partners in the private sector to help them redesign internal processes in pursuit of a variety of goals. Some will need expertise to help them develop and manage new compliance-related processes. Some will want to improve program efficiency with automated tools. Some will want all that and more, but all will need experts guiding them through ongoing transformation.

Executive Order 14058 states that “improving service delivery and customer experience should be fundamental priorities” for the federal government. Whether or not you have past contracting experience, these “new” priorities should get your attention. The mandate calls for 36 specific actions across 17 agencies designated as High-Impact Service Providers (HISPs), but the guidance is directed at all agencies, which means there could be lots of new RFPs released in the months ahead. For private sector firms that have the capabilities needed to design and deliver great CX, these will definitely be worth tracking.