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Vendor Lock-in: How to Spot It & Mitigate It

  • Has your government ever stayed with a long-term supplier because switching felt harder than just renewing?  
  • Do you find some of your contract renewals are less driven by performance and more focused on settling for what’s readily available in a limited market? 
  • Does your department rely on proprietary or outdated systems that drive up costs and limit flexibility in contract negotiations? 

If you answered “YES” to any of these questions, your government might be experiencing symptoms of vendor lock-in!

Every day, public procurement professionals make critical purchasing decisions that directly impact their communities, including which suppliers to partner with to deliver critical goods and services. Vendor lock-in occurs when supplier scarcity and long-term dependence on an incumbent vendor drive purchasing decisions or contract renewals — rather than vendor performance, innovation, or best value—making it costly, disruptive, and technically challenging to switch to new suppliers.

The Procurement Excellence Network hosted a peer roundtable exploring signals when contracts are drifting toward a potential vendor lock-in –and strategies to mitigate it. This session featured an interactive case study on the City of Boston’s experience implementing a bold strategy to disrupt a long-standing vendor lock-in, inviting more vendor competition and innovation during a critical contract transition for city-wide parking services.

  • Post-event Forum: Participants were invited to stay for a bonus discussion after the event, to connect with peer governments, learn from each other’s experiences, and share additional insights on this topic!