BY MARK EIGENBAUER ACCORDING TO A GOVERNMENT OF CANADA REPORT, PUBLIC PROCUREMENT ACCOUNTS FOR 15% OR MORE OF A COUNTRY’S GROSS DOMESTIC PRODUCT (GDP). 10 / Canadian Government Executive // October/November 2022 PERFORMANCE It’s incumbent on government agencies to maximize the value of every dollar spent on the procurement of goods and services. After all, these dollars come from hard-working taxpayers who’ve been battered for two plus years by a pandemic and economic hardships that include dramatic cost of living increases. Politicians and government officials are under increasing scrutiny for how they spend tax dollars, especially during this period of post-Covid economic recovery. Economists will tell you that a proven way for the government to extract maximum value for the money they spend is to create healthy competition for those tax dollars. Competition can unlock better prices and higher quality services from suppliers. Therefore, the goal of effective procurement should be to invite the participation of as many qualified suppliers as possible. Competition - An undeniable advantage Public/private partnerships are critical for rebuilding economies as we emerge from two plus years of pandemic battering. By increasing supplier participation, governments can stimulate three essential elements of effective procurement: 1. Stronger and more resilient supply chains 2. Greater cost savings 3. Propagating constant innovation There is a direct correlation between cost efficiency in procurement and increased supplier participation. Having more qualified suppliers drives down prices, ensures that higher quality goods and services are being sourced, and pushes suppliers to experiment and leap-frog development of new technologies in order to be considered for public contracts. IMPORTANCE OF INCREASED SUPPLIER PARTICIPATION AND HOW GOVERNMENT AGENCIES CAN ACHIEVE IT
RkJQdWJsaXNoZXIy NDI0Mzg=