Overcoming Barriers

promising solutions to common challenges
Challenge Solution
Contract is too large for any existing local and/or diverse vendor to handle on their own. Break up the contract into smaller sizes, unbundling particular items.

Require partnerships between large, majority vendors and smaller local, diverse vendors.

Encourage tier-one vendors to subcontract to smaller local, diverse vendors

Examples: University HospitalsParkland Health and Hospital SystemGrady Health System, CHRISTUS Health, Duke University Health System

Existing contracts prevent switching to or working with a local, diverse vendor. Leverage contract renewal negotiations to encourage current vendors to sub-contract with local and diverse vendors.

Examples: University HospitalsDuke University Health System, Johns Hopkins Hospital and Health System

Sector considered too competitive for mentor-protégé relationships.

 

Pair vendors from different sectors around common business functions such as back office support, etc.

Examples: MD Anderson Cancer Center

No existing vendors provide the good or service needed. Identify local philanthropic, business development, cooperative development, local government, anchor institution and/or other partners to incubate a business that provides that good or service

Examples: University Hospitals, University of Chicago,

Potential local, diverse vendors have no healthcare experience. Utilize sub-contracting, contract “flipping,” or mentor-protégé relationships to help local vendors build capacity.

Conduct vendor education around healthcare-specific requirements.

Identify lower risk opportunities for initial contracts.

Examples: MD Anderson Cancer CenterMedical University of South Carolina (MUSC),

Item cannot be procured locally. Focus on localizing distribution channels:

Include requirements in contracts such as working with local distribution companies, warehouses, or transportation services.

Offer the opportunity of a long-term contract to encourage a firm to expand to your location and require inclusive, local hiring

Examples: University Hospitals, Charleston Area Medical CenterDuke University Health System, Johns Hopkins Hospital and Health System

Public regulations prevent preferences for local and/or diverse vendors. Require local and diverse participation forms with bids that ask for a statement on how they will encourage local and/or diverse purchasing

Examples: Parkland Health and Hospital System

Contract with Group Purchasing Organization (GPO) limits the amount of discretionary spending available. Leverage future contracting opportunities with GPO to encourage a switch to local and diverse vendors.

Encourage GPO to identify local, diverse options as its customer.

Develop plan to reduce institutional dependency on GPO procurement

Examples:

Parkland Health and Hospital SystemUniversity Hospitals