GTY Technology Holdings Inc. (Nasdaq: GTYH) (“GTY”), a leading provider of SaaS/Cloud solutions for the public sector, through its business unit, Bonfire Interactive Ltd. (“Bonfire”) has released the 2019 State of the RFP Report, a benchmarking study which provides insights to improve the effectiveness of the public sector Request for Proposal (RFP) process.
Now in its third instalment, this much-anticipated annual report is based on analysis of anonymized first-party data from the Bonfire Strategic Sourcing platform, comprised of over $1.4 billion in combined spend across 6,000 public sector RFP projects. The report includes a forward by Terry White, Associate Senior Analyst with Ovum.
“In the age of digital transformation and citizen-centricity, public sector organizations will need more RFPs to gear up to meet citizen needs, and they will need to process RFPs faster and more efficiently,” said White. “The data provided in the State of the RFP offers powerful insights to inform improvements in RFP cycle times, quality, and processes, ultimately providing more choice and better costs to the public sector.”
Key insights from the report
● Public sector RFPs struggle to attract a competitive vendor pool. Twelve percent of public sector RFPs receive only one vendor submission, and 45% received three or fewer vendor submissions. This limits procurement’s ability to ensure best value for public funds.
● Vendor disqualifications are on the decline. The number of vendor submissions that are disqualified from RFP competitions is four percent, down from nearly 15% in 2014. In parallel, there has also been a significant decrease in the number of proposals disqualified for missing documents. As adoption of digital submission tools increases, human error in the vendor submission process is greatly diminished, leading to more viable submissions.
● Increased competition is a key to increased cost savings. The average RFP achieves 22% in cost savings. However, given that each additional vendor increases the price spread (and thus savings potential) by 3%, attracting more vendors is a key lever for procurement teams to improve cost savings.
“Data is a game-changer for procurement teams as they ascend from clerical function to collaborative partner in public organizations,” said Corry Flatt, CEO of Bonfire. “We’re committed to putting timely, relevant procurement data in the hands of procurement teams to help them build a better RFP process and deliver RFP outcomes to advance their organizations’ strategic goals.”
Flatt will be sharing the results of the 2019 State of the RFP Report in an exclusive webinar today at 1 pm EST. The report will be available immediately following the webinar. To register for the webinar and access the full report, visit the Bonfire website.
About Bonfire Interactive Inc.
Bonfire Interactive Inc. (“Bonfire”) is a subsidiary of GTY Technology Holdings Inc. and a leader in strategic sourcing and procurement software. Bonfire empowers organizations to find the right vendors and make the right purchasing decisions with ease and confidence. With tools to support the entire vendor lifecycle (sourcing, contract management, and vendor performance), Bonfire goes beyond traditional mechanics of standard procurement suites to make complex decision-making easy. The combination of flexible technology and world-class customer service makes Bonfire the solution of choice for both public and private sector organizations. Bonfire is an award-winning solution recognized by industry-leading outlets including Gartner, GovTech, Spend Matters, Best in SaaS, and the International Business Awards.
About GTY Technology Holdings Inc.
GTY Technology Holdings Inc. (NASDAQ: GTYH) (“GTY”) brings leading government technology companies together to achieve a new standard in citizen engagement and resource management. Through its six business units, GTY offers an intuitive cloud-based suite of solutions for state and local governments spanning functions in procurement, payments, grant management, budgeting, and permitting: Bonfire provides strategic sourcing and procurement software to enable confident and compliant spending decisions; CityBase provides government payment solutions to connect constituents with utilities and government agencies; eCivis offers a grant management system to maximize grant revenues and track performance; Open Counter provides government payment software to guide applicants through complex permitting and licensing procedures; Questica offers budget preparation and management software to deliver on financial and non-financial strategic objectives; Sherpa provides public sector budgeting software and consulting services.
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s expectations with respect to future performance and anticipated impacts of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the ability to recognize the anticipated benefits of GTY’s recent business combination transaction, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably and retain its key employees; (2) costs related to the business combination; (3) the outcome of the New York and California lawsuits among the company, OpenGov, Inc. and the other parties thereto; (4) the inability to maintain the listing of the company’s common stock on The Nasdaq Stock Market; (5) changes in applicable laws or regulations; (6) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; (7) any government shutdown which impacts the ability of the company’s customers to purchase its products and services; and (8) other risks and uncertainties included in the company’s registration statement on Form S-1 (File No. 333-229926), including those under “Risk Factors” therein, and in the company’s other filings with the SEC. We caution you that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.