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It is an efficient and cost-effective way to consult the market, it ensures a level playing field for all bidders, and allows for contradictions and potential issues to be flagged early in the procurement process. In October 2024, use of the pre-bidding module became mandatory for Mexico City’s buyers. What’s next?
I am reading a leaflet for a contract management portal when I overhear a conversation between a buyer and a supplier. “I says a buyer. AI might be fast, but buyers cannot rely on it to be a subject matter expert. If a bid is incorrectly evaluated, the buyer can hardly hold the AI response generator accountable.
More recently, as EU procurement policy increasingly seeks to promote cross-border collaboration, procurement is also becoming a driver (or an irritant) for the transnational regulation of administrative processes and a living lab for experimentation and legal innovation.
As well in June, we had Meet the Buyer National, a great event that took place in Hampden Park in Glasgow, where businesses, social enterprises, and third sector organisations, all came together with Scottish public procurers. The guidance focuses on the use of AI for bidders. A really good and enjoyable event.
Seasoned practitioners in public procurement can be jaded from situations that have gone wrong, and it is common for inexperienced public buyers to experience risk aversion and fear of the unknown. Relationships will benefit when buyers promptly respond to SMEs’ queries and consider them as a valuable and positive part of the job.
They leveraged Paraguay’s high quality, publicly accessible open contracting data to measure the existing participation of these smaller businesses and to understand their challenges in working with government buyers. One key recommendation was to require government buyers to pay advances to MSME suppliers at 20% of the full contract value.
Procurement promotes the use of digital tools, resources and applications to drive sustainable innovation across multiple sectors and determine the systems needed to achieve a more environmentally conscious transition. In most instances, buyers and sellers are required to report project sustainability during procurement.
Competition in public procurement is not limited to financial competition; it is a key source of innovation and guarantees the fair allocation of public contracts. If not resolved quickly, these issues could lead to higher costs, less innovation and missed opportunities to improve public services.
ChileCompra has not only established a formal channel for bidders and citizens to report questionable contracts to authorities for the first time, it has also published the Observatory’s investigation reports and statistics on complaints from the public, making oversight of the procurement system fully transparent.
But if they aren’t designed properly, RFPs can backfire, leading to low response rates, poor bidder fit or proposals that are time consuming to evaluate. Buyers sometimes feel tempted to be vague in RFPs in the hope it will draw varied and innovative solutions from bidders.
The fundamental tenets of fairness, value for money, and transparency form the foundation of public procurement and contribute to the development of an atmosphere that benefits suppliers as well as buyers. Supplier variety and market innovation are fostered by this competitive process.
Following the same rhetoric of transformation, the PPDS Communication now stresses that ‘ Integrated data combined with the use of state-of the-art and emerging analytics technologies will not only transform public procurement, but also give new and valuable insights to public buyers, policy-makers, businesses and interested citizens alike ‘ (at 2).
Some of the most notable issues that emerged from our conversations with buyers included the lack of authority to curb cases of misconduct and the lack of resources for effectively designing and executing purchases. One key issue that became increasingly evident was the limited engagement between entrepreneurs and buyers.
The divergence from commercial practice will limit competition, innovation and, ultimately, value to the customer. In addition, this increased competition will enhance value, savings, and innovation over the long term. The current draft RFQ/SOW incorporates requirements that are inconsistent with commercial practice.
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