Case Study – Government Buying & METL – Content Management Software

What is the buying criteria for the government? What are they concerned with in the buying process? The government?s buying criteria is made up mostly of quality control measures and time constraints. Government entities such as the American Association of State Highway and Transportation Officials (AASHTO) advocates transportation related policies. They are trying to set stringent standards in the transportation industry, and they provide accreditation services to businesses across the nation. A federal agency such as AASHTO is build on quality, and thus, they likely would not involve themselves in any buying process where good quality and ethics are not out in the forefront. Their business is based on extending education to facilitate better workmanship, and thus, they probably expect the same from their clients.

The government also likes to buy under the umbrella of a contract. As seen within the study, many of the larger government and airport clients locked themselves into 1-3 year contract deals, as provided by Materials Engineering and Testing Laboratories (METL). By placing themselves in a contract, government agencies can rely on a guaranteed price structure for the duration of an individual agreement. They can also secure a client to do a specific job for an exact amount of time, so they are less likely to be left high and dry in the presence of a crisis or variables/fixed cost fluctuations. The government, though sometimes frugal in their spending habits, tends do buy based on value and sustainable relationships rather than price alone. Mr. Orban?s company and values seem to be built on the premise of getting the job done right, and offering quality over quantity ? as evident by his lack of numerous clients. A few big clients with larger contracts seems to suffice, as they fit his business model much better than if he had many smaller, non-agreement based deals. Mr. Orban and government agencies have many similarities in their buying/selling tendencies.

It is my thought that the government places their trust in Mr. Orban over his company, METL. Mr. Orban worked for the state government at TxDOT for several years before retiring and venturing out on his own. Through his past work and networking, Mr. Orban generated strategic business relationships with high ranking executives. Many of Mr. Orban?s contacts now work with him, serving as valuable employees, who offer a variety of experience and know how across multiple applications. Some of these contacts have also afforded Mr. Orban the opportunity to win several contracts from clients in need of METL?s services, as noted on page 575.

Mr. Orban has been government employee for years. He also knows various other government employees, and has clearly used their influence in some cases to benefit his business. I feel that the government sees tremendous value in Mr. Orban and what his company does. I think that they know he is trust worthy based on his past work with TxDOT, and I feel that this trust translated into an immediate trust being extended to METL. Orban seems to do everything the right way ? from incentivizing his employees to successfully pass certification exams, to using specific workers for specific jobs where they fit in best; even if it means traveling across the state of Texas multiple times each week. Orban seems to run a tight ship, and it appears as though he has nothing to hide. All in all, I think the majority of the government?s trust is in him and his knack for getting a job done, rather than his company?s name.

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