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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.
At 2 am on Saturday morning, the day after the 10th Conference of the States Parties to the UN Convention against Corruption (UNCAC) was meant to end in Atlanta, exhausted negotiators finally adopted a resolution on “ Promoting transparency and integrity in publicprocurement in support of the 2030 Agenda for Sustainable Development ”.
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.
Introduction In publicprocurement , effectiveness and efficiency are crucial for achieving optimal results using public resources judiciously. The interplay between these principles ensures the responsible and transparent management of public funds, crucial for meeting community needs while optimizing economic benefits.
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. Procurement authorities become the initiators,“ says Uwingeneye.
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.
In the era of digital transformation, blockchain technology emerges as a beacon of hope for enhancing transparency and integrity in publicprocurements. Key Takeaways Aspect Impact of Blockchain Transparency Ensures real-time visibility and traceability of transactions.
Publicprocurement is like the heartbeat of public spending in most of Africa – by some estimates, it accounts for 17% of the GDP of African Countries. Procurement was long seen as a clerical administrative function, rather than a strategic lever. This was not always the case.
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.
Competition in publicprocurement 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.
For years, the benefits of transparency as a policy tool to increase accountability and counter corruption have been lauded. In publicprocurement, this has given rise to a global movement promoting procurement data transparency, a.k.a. open contracting. But what do these commitments look like in reality?
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.
On 13 November 2023, the UK Government published guidance setting out its ambitions for innovation procurement under the new Procurement Act 2023 (not yet in force, of which you can read a summary here). This further expands on the ambitions underpinning the Transforming PublicProcurement project that started after Brexit.
The National Institute for Government Procurement (NIGP) released their 2017 PublicProcurement Benchmark Survey. This report provides metrics that can assist procurement professionals in everyday decision making. Enhance the use of auctions for procurement purposes. Improve the tracking “soft-cash” savings.
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.
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.
Local governments face issues that range from balancing public safety and individual privacy rights to managing vast amounts of data securely and efficiently. Transparency and accountability are crucial to maintaining public trust and require clear policies on surveillance use and data access.” What about cooperative contracts?
There are high economic stakes at play in publicprocurement—which represents around 12% of GDP and over a third of public expenditure in OECD countries , and even higher proportions in other economies. However, this model does not appeal to the public sector.
Most procurement software projects are focused on efficiency; however, transparency needs to have equal attention. Trust is the cornerstone of procurement and transparency builds trust. Below is an example of public solicitations from the City of Vancouver, Washington.
Improving transparency in publicprocurement, that is publishing more and better-quality data, supports accountability by enabling greater scrutiny over processes and outcomes as well as helping to achieve greater competition and better value for money. Dávid-Barret, E., Full text PDF Adam, I., Fazekas, M.
Chile’s publicprocurement agency, ChileCompra, created its “ Public Contracting Observatory ” service in 2012 to detect, prevent, and fix irregularities in government contracting procedures. In the beginning], looking at and monitoring the processes was a voluntary initiative,” says ChileCompra’s Director, Verónica Valle. “We
Challenge: In Ukraine, a lack of machine-readable data about procurement appeals made it difficult for government suppliers to defend their rights and interests. At the same time, the Antimonopoly Committee received more than 10,500 procurement complaints with a total value of UAH 70.1 of all procurement appeals in Ukraine.
Dávid-Barret, E., GTI-R/2020:02, Budapest: Government Transparency Institute. Publicprocurement constitutes about one-third of government spending or 13 trillion USD per year. Corruption in publicprocurement can lead to: 1) Overpriced publicprocurement contracts contributing to larger budget deficits.
It is thus important to understand the shortcomings inherent to this approach and to the model AI clauses, before assuming that their use will actually ensure the ‘trustworthy, transparent, and accountable development [and deployment] of AI technologies’. Much more is needed than mere reliance on the model AI clauses.
How the School of Applied Research in PublicProcurement trained community leaders to dig into government contracting issues in Kazakhstan, Tajikistan and Uzbekistan. It inspired the creation of a free self-guided e-course on Open Contracting Basics too.
The Procurement Act 2023 (the Act) receiving Royal Assent in October of last year was the first step in the long-awaited implementation of the publicprocurement reforms. Regulation 43 confirms that the Act does not apply in relation to regulated health procurement (healthcare services) and will instead be regulated by the PSR.
The Procurement Act 2023 (the Act) receiving Royal Assent in October of last year was the first step in the long-awaited implementation of the publicprocurement reforms. Regulation 43 confirms that the Act does not apply in relation to regulated health procurement (healthcare services) and will instead be regulated by the PSR.
At #OGPEstonia, we had the pleasure of hosting about 200 frontline reformers sharing their experiences, challenges, and successes in boosting inclusion, integrity, participation, and digital transformation in publicprocurement. Another great story on that here.
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.
The Procurement Act 2023 (the Act) receiving Royal Assent in October of last year was the first step in the long-awaited implementation of the publicprocurement reforms. Regulation 43 confirms that the Act does not apply in relation to regulated health procurement (healthcare services) and will instead be regulated by the PSR.
Fast forward to today, having many different systems with separate pockets of data has created not only transparency issues, it increases the amount of manual work that must be done to answer even the most straightforward inquiries. The public sector needs to emphasize transparency, to show the public ‘the money’.
Challenge : The City of Des Moines in Iowa wanted to leverage procurement to improve equity and sustainability, but knew its current procurement processes and tools were insufficient. Current, closed, and awarded bids can now be found online, increasing transparency throughout the process.
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. Most e-governance technology that attempts to turn citizen feedback into actionable recommendations, is really about upward accountability.
Embarking on an eProcurement implementation can result in more efficient government, improved compliance and increased transparency. There hasn’t been an implementation project that I have been a part of where the team walked away without lessons learned for future implementations, and public sector implementations are no exception.
Government accountability, climate resilience and supporting inclusive economies remain top priorities for leaders around the globe, and stronger publicprocurement will play a critical role in delivering on them. We moved from transparency to transformation. February: The UKs new publicprocurement regime goes live.
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.
The PublicProcurement Glossary Publicprocurement can feel like a maze of unfamiliar terms and endless abbreviations. Thats exactly why this Publicprocurement glossary existsto make things simple. What Is PublicProcurement? Youre not alone!
Around the world, governments are embracing “green procurement” – environmentally sustainable strategies to reduce global greenhouse gas emissions and other forms of pollution. A ” catalogue ” of green procurement strategies in the European Union and the United States, prepared by the European Commission and the Office of the U.S.
Last week in Rome, we brought together over 100 leaders from 26 European governments , EU institutions, global organizations like the World Bank, OECD, EBRD, and UNOPS, civil society, and the private sector for the 3rd International Open and Sustainable PublicProcurement Conference 2024. This trend started long before Covid.
Publicprocurement encourages collaboration between government and private enterprises, in turn allowing public authorities to achieve sustainable and circular practices. The following blog will provide a more detailed exploration of creating sustainable procurement strategy, their benefits and challenges during implementation.
One of the relatively recent developments in the post-Brexit review of UK publicprocurement law is the February 2021 proposal for the replacement of the current rules on the commissioning of healthcare services for the purposes of the English NHS (for background, you can watch here ), with a new provider selection regime (‘the proposal’).
The system will provide a consumer-like shopping experience for state and local government users and the businesses that supply goods and services to the Commonwealth, and improve transparency into the public purchasing process. This project continues Ivalua’s momentum in the public sector, both in the U.S. and internationally.
Nitor, the leader in source-to-pay transformation, and Ivalua, a leading provider of global Spend Management Cloud Solutions , announced the successful launch of the Maryland Department of General Services’ new e-procurement system, eMaryland Marketplace Advantage (eMMA), which deployed on schedule and on budget.
Publicprocurement can shape our world. On 15-16 June, together with the governments of Albania, Italy and the Netherlands, we held a conference on Open and Sustainable Procurement in Europe for about 100 procurement leaders from 25 European countries. There were many, many more great examples to share.
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