Note to cities: Watch out for security gaps and hidden expenses as you acquire new IT systems

Government purchasers need to be aware of the security concerns new technology can introduce into a network or system, says Jeffrey Jones, a national security and global trade attorney with the firm of Lowenstein Sandler LLP. “State and local governments are soft targets for ransomware actors and cyberattacks because smaller government entities often lack the resources to maintain adequate cybersecurity protections. A cybersecurity attack can take down a government system for weeks and can be extremely expensive to remedy.”

He adds that limited resources often constrain state and local governments, making the purchase of technology an especially tricky task. “A mistake made in a technology purchase cannot always be quickly remedied and may take a long time to recover from, because the money just may not be available to correct the error.”

To avoid costly mistakes, Jones advises municipal and state governments to remember these points prior to making a technology buy:

• Safeguard new technology against unauthorized access. Technology manufactured in countries like Russia and China can contain backdoors into a small government’s information systems, which can allow cyber actors to gain easy access into the network and cripple the network’s ability to function properly. “Consequently, to the extent the new technology touches a communications network, it is essential that the network administrator fully understands the security vulnerabilities the new technology may introduce into the government information system prior to procurement. That way they are capable of identifying the risks associated with new technology and determine whether they can implement appropriate risk mitigation procedures to address the vulnerabilities.” Jones concludes: “If adequate security measures cannot be implemented, the new technology should not be procured.”
• Yes, there can be a significant time lag between an identified government need and the government’s ability to ultimately procure the technology. “This can result in the acquisition of technology that is a step or two behind the most recently developed capability and create a situation where the government is constantly chasing the most viable solutions, which can become expensive or result in governments being dissatisfied with its technology solutions,” Jones says. He concludes: “It is important for local and state governments to consider the lifecycles of its existing technology and plan for new technology purchases prior to the end of a particular technology’s useful life.”
• Keep in mind that most technology requires frequent updates and upgrades. Jones says this characteristic may mean additional costs for training the existing technology support staff to perform the repairs and updates. “Further, if the technology is particularly new or innovative, it may even require hiring new technically proficient employees to perform the necessary technology support or contracting for that support from a commercial vendor. Additionally, if the technology contains parts that can wear out or break, it might also be prudent for governments to ascertain how difficult it will be to obtain the parts prior to procuring the technology.” His conclusion: “These are all hidden costs that governments must factor into the buying decision prior to acquiring the technology.”
• Government administrators will need to monitor hardware and software performance, especially if the newest acquisition is particularly cutting-edge or if the local or state governments are replacing a technology that has been a mainstay for many years. “They will need to pay careful attention to how the users of the technology will adapt to using the new equipment. There may be additional costs associated with training government employees on the new systems.” Jones offers this conclusion: “With a new acquisition, governments should be prepared for a potential drop in productivity or an increase in the number of mistakes as the employees learn how to properly use the technology.”
• New technology is not always compatible with older equipment. “The purchase of new technology may require the replacement or reconfiguration of older equipment in order for the new equipment to function properly,” Jones explains. He says to avoid downtime and data processing delays, state and local governments need to maintain a good accounting of existing systems and conduct a careful review of whether the new technology can be matched with the older technology with which it will have to interface.

Jones says cities should observe several best practices when considering buying new IT equipment. One is to ensure that the decision to purchase the technology does not solely hinge on the affordability of the upfront cost of the technology. To go along with his list (above) of how to avoid costly mistakes, Jones observes: “There are several hidden factors to maintaining technology that can create significant future costs for the government—both from outlays of additional money and potential losses of productivity due to disruptions.”

To help avoid these significant future costs, Jones urges state and local governments to consult experts regarding the secondary costs associated with procuring IT. He says knowledgeable consultants can offer an opinion on the support, lifecycle and security of the new technology.

Cooperative purchasing agreements to acquire IT equipment can deliver significant time savings to the public sector, Jones believes. He says that through cooperative deals, government departments avoid having to conduct all the many steps of a traditional procurement process. “This is because another department or agency has already performed all of the work to identify, solicit and negotiate a price for the technology.” Jones adds these points for procurement teams to ponder: “The downside is that the purchaser is relying on the work of another entity to perform the vetting process. The factors that lead one agency to decide to purchase a piece of technology may end up being very different from the criteria another agency would use.”

OMNIA Partners Public Sector has descriptions of many cooperative contracts that offer IT solutions. Go here for information on the firm’s contract portfolio.

Michael Keating is senior editor for American City & County. Contact him at [email protected].