Increased Emphasis on Improving Procurement Practices

The acquisition of goods, works, and services through public fund is called public procurement. Public procurement is obligatory for the successful implementation of public projects. Public procurement encompasses following processes: - Preparation of annual budget after estimation of needs by the procuring agencies, - Preparation of annual procurement plans following budgetary allocation, and- Accomplishment of procurement plans through a procurement process which includes submission of bids, bid opening, evaluation of bids, contract award, and contract management.The main objective of public procurement is the provision of quality and cost effective goods, works and services to the public through public projects.Public procurement begins with the identification of needs and stimuli required for implementing public projects; categorization of these requirements into goods, works, and services; cost estimation; suppliers management; contract award and management; supply and receipt of goods, works, and services; efficient and effective utilization of goods and services procured to achieve desired results; and maintenance and disposal.Gone are the days when public procurement was considered as just the simple task of purchasing of goods, works, and services which was handled by clerks and store keepers. Recent years has seen public procurement as a complex procedure, which includes involvement of multiple stakeholders. Public procurement in our time is conducted and managed by qualified and competent professionals.Governments introduce public projects to improve the standards of living of the public. The main objective of these projects is to convert available resources into timely, cost-effective and quality services. Adhering to public procurement rules and regulations is vital for accountability of public spending and supports good governance. It also helps to improve economic and social development of a country. Efficient public procurement is essential to ensure timely acquisition of goods, works, and services intended for the public.The magnitude of public procurement in every country is accumulating rapidly, resulting from mammoth growth in economic activities across the nations. A boom in information technology has increased the awareness among the public about their rights of access to benefits from public projects; they are now at a vantage point to dare and analyze the outcome of public procurements. They are aware of the fact that poor procurement practices can inhibit them from receiving benefits of these projects.Public pressure on their governments for timely, quality, and cost-efficient delivery of services is increasing consistently. This growing pressure obliges governments to focus more cuttingly on improvements in procurement legal framework and procedures; with emphasis on risk management, accountability, probity mechanisms. The governments are searching for innovative techniques, including e-procurement, public private partnership and green procurement etc.Public procurement reforms are largely dependent on how a government addresses the capacity-building needs of procuring agencies and public officials to successfully conduct a procurement process. The aim of effective application of procurement reforms is to have a significant impact on the economic development of a country's public and private sectors. Nevertheless, in developing countries, minute consideration is paid to capacity building of the procuring agencies and development of the private sector for and through public procurement.

"Companies of all sizes are seeking to transform their procurement and supplier relationship management processes: activities that have a tremendous upside potential for improved supply chain effectiveness and efficiency. Now, two leading consultants and researchers offer a comprehensive approach to creating customer value through strategic sourcing and procurement. Unlike texts focused primarily on day-to-day operations and tactics, Delivering Customer Value through Procurement and Strategic Sourcing focuses on helping senior executives and managers gain sustainable competitive advantage from their supply chains."--Publisher's website.

Procurement is playing an increasingly strategic role as a lever for sustainable development and social and environmental responsibility. Greater regulation on sustainable procurement in the public sector, including significant changes to the EU Directive in April 2014, are driving this change.This comprehensive guide to sustainable procurement by practising legal experts Colleen Theron and Malcolm Dowden distils key developments in EU and UK public sustainable procurement legislation, government guidance and policy; provides an introduction to sustainable procurement more broadly; provides case studies and practical examples on contractual aspects of procurement; shows you how to set up a sustainable procurement strategy; and contributes to the development of sustainable procurement policy. There is also increased emphasis on "clean" supply chains in the private sector, as best practice seeks to mesh with public sector requirements and reduce the risk that bids for public contracts might be undermined by adverse environmental impacts or social misconduct along the supply chain.Private sector companies should act now to establish best practice sustainable procurement principles to minimize the risk of litigation; several international standards are embedding the principles of sustainable procurement into their requirements.The book also offers practical examples of what sustainable procurement entails, whether the organization is bidding for public sector contracts, in need of meeting tender requirements, looking to obtain certification for a standard, or is simply seeking to improve its supply chain management and implement best practice.

As an industrial process, construction is unique. The procurement processes used to achieve the successful completion of built assets requires a different approach to that adopted in most other industries, due to the design of buildings being bespoke and the sites being geographically varied. The procurement process is central to the success of any construction project and many of the problems which impact construction projects can be traced back to the procurement phase, so a good understanding of the methods of procurement, the development of a procurement strategy and the influence it has on project success is essential for all those working in the industry. Much has changed in the global construction industry since publication of the second edition of Building Procurement, for example the increase in debt burden of many major economies, widespread adoption of Building Information Modelling (BIM) Technology in the industry and the United Kingdom's exit from the European Union. This new edition has been rewritten to take account of these significant developments, but at its core it continues to provide a critical examination and review of current procurement practices in the UK, continental Europe (including EU procurement procedures), China, Middle East and Sub-Saharan Africa and the USA. It retains its original strong emphasis on the need for clients to establish achievable objectives which reflect the project business case and focuses on development of suitable strategies and management structures to meet those objectives in the current construction climate. Building Procurement will be essential reading for senior undergraduate and postgraduate students of construction management and practitioners working in all areas of construction management.

The OECD Principles for Integrity in Public Procurement are a ground-breaking instrument that promotes good governance in the entire procurement cycle, from needs assessment to contract management.

The public sector in England spends around £2 billion per year on food and catering services, including in schools, hospitals and armed forces bases. This NAO report examines how public sector organisations can improve their food procurement practices in order to reduce costs whilst maintaining the quality of meals provided. The report finds that the public sector could achieve efficiency gains of £224 million by 2010-11, with significant scope for improvement in relation to: developing market knowledge and buying practices; employing joint procurement to increase purchasing power; establishing greater transparency in contract caterers' charges; promoting the professional development of catering staff in the public sector; reducing costs and environmental impacts through efficient operational practices; and increasing the take up of meals and income generated by them. Two accompanying documents are available separately: Case studies (HCP 963-II, ISBN 0102937435) and a Good practice guide (HCP 963-III, ISBN 0102937443).

Department of Defense (DOD) spending on service contracts approaches $100 billion annually, but DOD's management of services procurement is inefficient and ineffective and the dollars are not always well spent. Recent legislation requires DOD to improve procurement practices to achieve savings. Many private companies changed management practices based on analyzing spending patterns and coordinating procurement in order to achieve major savings. This report evaluates five companies' best practices and their conduct and use of "spend analysis" and the extent that DOD can pursue similar practices.