Startup friendly public procurement mechanism that enables government departments to identify,pilot, procure,and scale innovative solutions from eligible startups

• Problem Description Government departments often face operational problems that could benefit from innovative startup solutions, but conventional procurement processes are generally designed for standardised goods and established vendors. Departments may find it difficult to formulate outcome-based problem statements, discover suitable startups, evaluate novel technologies, structure controlled pilots, manage intellectual property and data, measure pilot results, and transition successful pilots into compliant procurement or scale-up.Startups may struggle with prior-turnover or experience requirements, long sales cycles, unclear payment milestones and limited visibility of departmental demand. The challenge is to create a transparent, competitive and legally compliant innovation-procurement pathway.

• Expected Solution / Outcome A structured end-to-end mechanism for challenge identification, startup discovery, eligibility screening, expert evaluation, sandbox or pilot design,milestone-based contracting,performance measurement, payment,independent validation and scale-up decisions. The mechanism should provide standard templates for problem statements, evaluation criteria, pilot agreements, data/IP clauses, cybersecurity, risk management and procurement pathways. It may integrate with recognised startup databases and government e-marketplaces. Expected outcomes include faster discovery and testing of innovative solutions, higher quality pilots, reduced departmental risk, timely startup payments, evidence-based procurement decisions and successful scaling across departments or districts.