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10 years ago, we launched the Open Contracting Partnership from a single desk in snowy Washington DC with the grand ambition to transform publicprocurement, the world’s largest marketplace. We were never just after a bit more transparency though, we wanted to transform how procurement is done.
Publicprocurement spending accounted for an average of 30% of total public spending across the region [1] and as much as 74% of that spending is wasted due to inefficiencies [2] , according to data from FISLAC , an analytics platform developed by the IDB’s Fiscal Management Division (FMM). What is Smart PublicProcurement?
Challenge: Uganda’s publicprocurement authorities lack adequate resources and manpower to monitor many major contractors across the country’s more than 100 districts, leading to abandoned projects, missing deliverables and time and cost overruns. We were asking ourselves how we can have real-time interventions.
Throughout the evolution of project and publicprocurement management, terms and expressions in the field have increasingly been used interchangeably. Single Source : In some cases, procurement may rely on a single known supplier , especially when no alternative options exist, or time constraints make broader competition impractical.
It’s an appropriate workplace for the woman spearheading efforts to increase transparency and oversight of public spending in Rwanda, by digitalizing the platform running the country’s publicprocurement and professionalizing its workforce and processes. Rwanda has useful experiences to share with the rest of the region.
However, one critical element often overlooked in these discussions is publicprocurement. Far from being a mere bureaucratic task, procurement is the mechanism through which governments acquire the infrastructure and technology needed for this transformation.
Integrating blockchain and artificial intelligence (AI) into publicprocurement processes holds significant promise for enhancing efficiency, effectiveness, and transparency, potentially reducing corruption. AI’s Role in PublicProcurement AI enhances procurement by improving decision-making and streamlining processes.
Publicprocurement needs to be more transparent, efficient, and accountable to tackle the major social and economic challenges faced by governments across the world. I have had opportunities to support more than 60 countries across the globe in reviewing and advising their e-procurement (e-GP) initiatives.
As these systems begin to play a more important role, the government needs to uncover the risks associated with using artificial intelligence in procurement, and what steps need to be taken to manage these risks effectively. AI compliance in publicprocurement remains a developing process.
Publicprocurement of AI between opportunities and risks Introduction In the past year, the growth in hype around AI and machine learning has been considerable. transparency for image manipulation), or substantial requirements (e.g. for law enforcement and essential public services), or not used at all (e.g.
Challenge: In 2020, publicprocurement in the Dominican Republic lacked public trust and credibility due to several high-level corruption scandals. The island’s procurement agency faced more than 250 open complaints and allegations of collusion and low competition in the procurement process.
But these businesses rarely take part in publicprocurement due to long-standing cultural barriers, overly bureaucratic processes and the sense that to win public contracts, they must have the right connections. The bidding process was also restructured to lower the barriers for such businesses to register and submit bids.
Publicprocurement should be all about people. We want to enable one billion people to live in more equitable, prosperous and sustainable communities by 2030 by improving US$2 trillion in publicprocurement spending. Our world runs on public contracts. It’s a means to an end, not an end in itself.
Challenge : In 2020, only 5% of Lithuania’s publicprocurement spending by value used green criteria that favor environmentally friendly products and services. Results : Levels of green procurement uptake across Lithuanian public institutions have increased to 94% by value and 93% by total procedures as of 1 December 2023.
Open data is often lauded as a magic pill for anti-corruption: reveal what’s going on, inform the public, and, presto, government will become more accountable. We have written elsewhere about the institutional and political challenges that can hinder the transparency –> accountability transformation.
As we celebrate, we find ourselves at the crossroads of progress and potential, confronting the myths holding women back from participating in publicprocurement and attaining certain heights in leadership. We built capacity to show that there is an opportunity to change how things are done. Happy International Women’s Day!
Public sector agencies need to be able to access the cloud, and they do so through publicprocurement processes. Procurement’s role in supporting modern, digital services for governments is the subject of a report from the Open Data Institute (ODI) and Open Contracting Partnership (OCP).
Why Procurement Differs Between the Public and Private Sectors Procurement in the public and private sectors has very different goals and regulatory frameworks. The fundamental goals of publicprocurement are to get value for money, to be open and fair in procurement processes, and to use taxpayer funds effectively.
Challenge: Indonesia’s publicprocurement sector is highly vulnerable to corruption. Open contracting approach: The open contracting risk monitoring platform Opentender.net empowers auditors to prioritize which procedures to investigate, gather evidence and respond to public complaints more effectively. billion). “We
Public Sector Procurement has always had a fairly poor perception of being in the dark ages. However, a lot has changed in the last few years, many Public Sector Procurement organizations have woken up to the potential improvements and impact of modernizing PublicProcurement and many are well down the transformation road.
The research also examined the procurement agency’s processes and capacity, making recommendations for improvements and highlighting opportunities to collaborate with other agencies, civil society and other stakeholders for better procurement outcomes. PhilGEPS was such an important partner in the project,” says Abante.
Photo credit: Flickr While carrying out research on the impact of digital technologies for publicprocurement governance, I have realised that the deployment of artificial intelligence to promote sustainability through publicprocurement holds some promise. In my view, it should be a matter of high priority. *
The intention is to encourage consideration of ways to simplify and open opportunities for SMEs to efficiently participate in more publicprocurements. The suggestions apply to all segments of competitive bidding, including the SME segments of Supplier Diversity, Indigenous and Social Procurement.
PublicProcurement: Building Business Cases and Driving Momentum. For the Government, supplier diversity programs are something procurement professionals in the United States (US) have accepted as a key element to their procurement success. Ethical Spend Toolset.
If there is a good understanding of the number of potential bidders and their capacity this minimizes the requirement for market analysis. The most common public sector form of market analysis is a jurisdictional scan by contacting other provinces, municipalities or Group Purchasing Organizations (GPOs).
I am delighted to present to How to Crack a Nut readers an outline of my recently published book Framework Agreements, Supplier Lists and Other PublicProcurement Tools: Purchasing Uncertain or Indefinite Requirements (Hart Publishing, 2023).
GTI-WP/2020:01, Budapest: Government Transparency Institute. It establishes a robust methodology to explore what impacts can be measured and also explores the channels through which transparency is indeed impactful – e.g. who are the stakeholders and enablers that are the actual drivers of change using increased transparency.
VIGIA is a unique initiative that allows entrepreneurs to easily find publicprocurement business opportunities in Paraguay, as well as provide real-time high-quality feedback about irregularities. The platform was co-developed by OCP and the business community together with the government. For us, this was a discovery.
All countries in the region have signed the Paris Agreement, which aims to increase countries’ resilience and adaptive capacity, as well as stabilize global warming below 2°C and as close to 1.5°C C as possible. This objective implies two major challenges for finance ministries.
The UK’s Digital Regulation Cooperation Forum (DRCF) has published a report on Transparency in the procurement of algorithmic systems (for short, the ‘AI procurement report’). Some of DRCF’s findings in the AI procurement report are astonishing, and should attract significant attention.
David is the founder of reAcción , a grassroots anti-corruption civil society organization that empowers young people in Paraguay to fight for government transparency and social accountability. For the people that need to be heard the most, it’s not even about the digital divide, it’s about their capacity to contribute.
Challenge: Despite ongoing government reforms, corruption and inefficient spending remains pervasive in Kazakhstan’s publicprocurement. They share educational resources with the general public and each other. And two-thirds of public spending is conducted through an opaque quasi-governmental sector.
Latin America and the Caribbean are at a crossroads of environmental sustainability and inclusive development; and public governance plays a critical role in a fair green transition, especially given existing inequalities, limited fiscal capacity, and deteriorating public trust.
To improve this, government officials and civil society leaders launched a systemic reform designed to change the legal framework, build entrepreneur capacity, improve data, and advocate for greater awareness of the problem and interventions. Tackling a systemic challenge like gender inclusion in public contracts requires a systemic solution.
The Canadian Public Sector Landscape The Canadian public sector is characterized by its commitment to diversity, inclusivity, and transparency. These qualities are essential in the public sector, where collaboration and public engagement are key.
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