Infrastructure Act Rollout Faces Serious Execution Challenges Among Public Procurement and Supply Chain Partners, Ivalua Study Shows

• Only 30% of procurement execs are 'confident' suppliers are in compliance with IIJA regulations
• 90% say obtaining federal funds is complex and time consuming; 61% lack necessary resources; 56% cite staffing issues

REDWOOD CITY, Calif., June 27, 2023 /PRNewswire/ -- A majority (61%) of public sector procurement leaders lack the resources to properly allocate and utilize federal funds to ensure compliance with the recently passed Federal Infrastructure and Jobs Investment Act (IIJA), according to an independent survey commissioned by Ivalua, a leading global spend management provider. The survey included responses from 200 public procurement executives in the United States focused on budgeting and use of IIJA funds in local state and municipal governments.

A full 78% of the public procurement executives surveyed say they have already made plans for their IIJA funds, yet 61% say they lack the resources to properly allocate the funding. 56% of respondents say they lack the staff to manage IIJA funds.

When asked about the "ability to execute" on the sourcing and spending of federal funds, 70% of public procurement budget owners are still not "fully confident" their suppliers are prepared to meet all the requirements of the Infrastructure Act. Moreover, 70% say aligning their suppliers with regulations attached to IIJA will be "difficult," potentially putting the timely and on-budget delivery of projects at risk from the start.

A vast majority (90%) of public procurement budget owners at the state and local level report that the process of obtaining Federal funds is complex and time-consuming. Further complicating the process of dispensation are staffing challenges: more than half (56%) do not have sufficient staff to manage the influx of federal funding and 52% do not have a plan to address staffing shortages.

"IIJA is the most significant spending legislation since the G.I. Bill but its ultimate success hinges on the function of procurement," said Jarrod McAdoo, Smart Public Procurement Expert , Ivalua. "As part of the IIJA rollout, procurement and supplier partners face serious challenges putting IIJA into action and putting the funds to work. Legacy procurement systems cannot handle the scale of investments. Efficient execution will require digitized processes that can amplify and scale existing resources and drive collaboration throughout the value chain to ensure we realize the promise of this legislation."

Key Findings

• Supplier compliance is a challenge: Only 30% of public procurement professionals are confident that all their suppliers are in compliance with Infrastructure Bill funding regulations.
• Procurement partnerships are critical to execution: 67% of public procurement leaders partner with other procurement or government agencies to maximize the impact of federal funds.
• Sustainability, not cost, is a top priority in IIJA rollout: With specific ESG requirements outlined in this bill, 86% of public procurement budget owners say they are prioritizing projects that promote sustainability and resilience. In fact, 57% of public utility budget owners prioritize investing in sustainability over keeping prices down; 43% of public utility budget owners prioritize keeping prices down over investing in sustainability.
• Supplier collaboration is critical to IIJA rollout: 57% of public procurement officers say that collaborating with and clearly defining expectations is the best way to prepare the supply base for new incoming funds.
• Procurement leaders face challenges deploying funds and measuring success: 72% of public procurement leaders have established metrics and performance indicators to measure the success of projects funded by federal dollars. However, the majority of respondents (73%) recognize that there is a need to be more transparent with how these funds are spent.

Survey Methodology
Ivalua commissioned an independent research firm to survey 200 United States public procurement budget owners about their plans for using federal funds in 2023. The margin of error for this study is +/-5% at the 95% confidence level.

About Ivalua
Ivalua is a leading provider of cloud-based Spend Management solutions. Our complete, unified platform empowers organizations to effectively manage all categories of spend and all suppliers, increasing profitability, lowering risk and improving employee productivity. Trusted by hundreds of the world's most admired brands and public sector leaders and recognized as a leader by Gartner and other analysts. Learn more at www.ivalua.com.

Media Contact
Christian Morley / Michael Gallo
Lumina Communications for Ivalua
Ivalua@Luminapr.com

SOURCE Ivalua