The Rise of the “Gig” Economy in the Federal Government

The U.S. Government is the largest purchaser of project Gregory A. Page, MSCM, CPM management services in the world. As needs continue to grow, how does the everOwner growing gig economy play into the procurement process, and Page Building Group what are the pros and cons to using a “Gig’’ project manager? As conditions and the landscape of economy and global dynamics continue to evolve and grow, the needs of the federal government and those that provide products and services to the world’s largest buyer must evolve as well. As the federal government acquires services and goods to support billions of dollars in projects across the world, they also require the experience of qualified project managers (PM) to oversee many of these projects. PMs should familiarize themselves with the process of identifying the plentiful contracting opportunities that exist within the federal government. While the environment has shifted to a hybrid of virtual and face-to-face environment, demand for services will continue to increase over the next ten years. For that reason, gig project managers will be in high demand. PMs must also understand the following:

• how to navigate the acquisition systems to find opportunities,

• constantly changing matters that impact the economy and needs of the government, and

• the pros and cons of seeking this type of contract work. Each project is unique, and each government organization is unique to a certain degree, therefore the procurement manager may need to tailor the procurement process (PMI, 2017). There are several considerations that must be evaluated when tailoring procurement including but not limited to “governance and regulatory environment” which refers to laws and regulations regarding procurement activities (PMI, 2017). Federal government acquisition procedures vary slightly from agency to agency, however all agencies must abide by the Federal Acquisition Regulations (FAR). These regulations are the primary set of rules used by all Federal Executive agencies in their acquisition of goods and services.

Typically, the government will issue what is known as a Sources Sought Statement. The purpose of the Sources Sought Statement is to solicit interest in a project under consideration by an agency and/or to determine if there is an existing contract that can be leveraged. Sources Sought Statements can be found through the federal acquisition system, formerly known as Federal Business Opportunities (FedBizOpps), which is now located at www.beta.SAM.gov, System for Award Management (SAM) platform. SAM is the tool used “Retaining a Gig project manager’s services has both good benefits and its challenges, but if done correctly, both the government and the individual can create a win/win for all.”

to identify contracting opportunities. SAM is also a federal government acquisition system used by federal contracting professionals to conduct market research and used by private sector companies to find contracting opportunities.

Current Matters Impacting Government Procurement

In 2020, the world experienced a pandemic that has caused significant disruption in the typical government acquisition process. The adoption of teleworking across the entire federal, state, and local government is transformative. Collaboration software tools and virtual workspaces are the new normal and the corporate experience/expertise will have to evolve and be agile. One of the main concerns facing the procurement process today is that a virtual acquisition process limits access to the contracting officers. It does not give the gig project manager the ability to forge relationships before the solicitation is released. Building relationships with contracting officers in advance of any procurement announcement is critical to a gig PM’s success. In the traditional commercial market, the project manager is usually retained very early in the acquisition process. Another concern for this new hybrid environment is how upper management will bridge the divide between the younger generation who are more comfortable transacting business in the digital space and the seasoned procurement officers that are more comfortable having in-person meetings and transacting business face-to-face.

The acquisition process must adapt to the market. In addition to the change in the everyday work environment, how does the new virtual market affect the Federal Acquisition Regulations? The demand to procure project management services will continue to increase. Still, the process in which those services are procured must be improved to allow for an easier process without having to write a justification statement and to be able to retain the services, based on contracting vehicles formerly known as minority certifications and not necessarily financial capacity. In all, gig project managers’ procurement will continue to be a valuable tool for contracting officers that need staff augmentation. Still, the government has to decide how they will continue to keep all stakeholders executing as the global landscape evolves.

The Pros to Using Gig Project Managers

By using Gig PMs, some advantages that are associated with it, such as:

• Gig project managers are usually agile and adapt as, conditions change.

• Gig project managers are generally less expensive than hiring a firm to provide the same service.

• Gig project managers add value by reducing the workload on the federal program or project manager, which allows the federal managers to focus their attention on other tasks.

• Ownership gig project managers take ownership of the work and provide the same level of quality service that the government expects.

The Cons to using Gig Project Managers

Also when using Gig Project Managers, there are a few significant negatives that should be carefully considered below.

• Gig Project Managers are constantly looking for the next gig, so it can be tough to focus on the matter at hand at times.

• Lack of corporate elements, not being part of the culture can cause communication breakdowns and lead to misunderstandings.

• Gig employees usually work remotely and independent of the team.

• Due to the FAR, gig project managers are not allowed to make modifications to contracts. As a result when a project manager has to wait for the federal contracting professional to make a modification, it could possibly slow the process and cost the government more to complete projects. Retaining a Gig project manager’s services has both good benefits and its challenges, but if done correctly, both the government and the gig project manager can create a win/win for all.

Reference:

Project Management Institute. (2017). A guide to the Project Management Body of Knowledge (PMBOK guide) (6th ed.). Project Management Institute.

Photo Source: Fabrik Brands. (2021). https://fabrikbrands.com/what-is-the-gig-economy