DGS Wins Innovation Award for GenAI-Driven RFI2 Procurement Model

California’s DGS Wins National Procurement Impact Award

California’s Department of General Services (DGS) has been recognized on a national level for its collaboration with various state departments. The DGS recently received the inaugural Procurement Impact Award, presented by the National Association of State Procurement Officials (NASPO) in partnership with the National Association of State Chief Administrators (NASCA) and the National Governors Association (NGA).

This prestigious award celebrates DGS’s innovative approach to procurement, specifically highlighting a project titled Request for Innovative Ideas, or RFI2. This method deviates from the traditional vendor solicitation process. Instead of simply requesting specific services or products, RFI2 invites vendors to propose their own solutions to defined problem statements. For instance, rather than seeking particular hardware or software enhancements for a state agency call center, DGS presents problems for vendors to address creatively.

Embracing Generative AI in Procurement

DGS’s noteworthy initiative was centered around the “Generative Artificial Intelligence in Procurement Operations Project,” as noted by NASPO. By collaborating with various state departments—such as the California departments of Technology (CDT), Transportation (Caltrans), Tax and Fee Administration (CDTFA), Public Health (CDPH), and the Government Operations Agency (GovOps)—DGS effectively crafted problem statements targeting challenges where generative artificial intelligence (GenAI) could provide viable solutions.

The DGS announcement elaborates, stating, “As a result, five solicitations were released in January in the form of Requests for Innovative Ideas, or RFI2s.” Following this, ten proof-of-concept contracts were awarded, enabling each selected vendor to work closely with state teams. They employed real, publicly available data to authentically represent state operations and test GenAI-driven solutions.

Fostering Collaboration Among State Departments

At the California Government Innovation Summit last month, key tech leaders from state government praised the collaborative efforts spurred by the RFI2 process. The discussion featured notable panelists, including Angela Shell, the state’s chief procurement officer and DGS’ deputy director for procurement.

Scott Gregory, the deputy director of technology for the California Department of Forestry and Fire Protection (CAL FIRE), noted how the RFI2 method not only fostered inter-departmental relations but also enhanced internal understanding of collaborative potential. He remarked, “The RFI2 process kicked off a brand-new unit within CAL FIRE. Our intel group merges various forms of information to assess fire threats effectively.”

Tiffany Angulo, deputy director of statewide procurement for CDT, echoed similar sentiments. She highlighted how the RFI2 process is beneficial in addressing gaps left by previous unsuccessful procurements. “If procurements have failed, it’s an ideal opportunity to explore RFI2,” she noted, emphasizing the potential for industry innovators to reshape the procurement landscape.

Innovating Through Generative AI Solutions

The collective efforts of these departments signal California’s commitment to integrating advanced technologies into its operational frameworks. By utilizing GenAI, DGS and its partners aim to innovate and streamline the governmental procurement process, ensuring that the state remains at the forefront of technological advancements.

Through RFI2, departments can tailor their requests to align with modern challenges, opening the door for cutting-edge solutions from the marketplace. This adaptability is crucial for responsive governance and effective resource management.

The collaboration highlights a forward-thinking mentality among state departments, showcasing how embracing new procurement avenues can lead to meaningful enhancements in public service. The ultimate goal is to enhance operational efficiencies while ensuring that technological innovations are effectively harnessed to meet state needs.

By prioritizing inter-agency cooperation and innovative problem-solving, California sets a benchmark in procurement practices, aiming to create lasting impacts through adaptive strategies and community-driven technology solutions.

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