|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
|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.|
|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|
|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.
|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.
|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.
promising solutions to common challenges