Challenges in Public Procurement - unpcdc

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12 THAIlegislation before and after the reform and a comparison of some aspects ofa newly introduced system with some developed countries’ publicprocurement systems.In December 2003 the Canadian Prime Minister initiated acomprehensive review of Canada’s federal procurement, to ensure a “best ofbreed” approach with demonstrated high value for Canadian taxpayers, andcreated the Canada Parliamentary Secretary’s Task Force on Government-Wide Review of Procurement for this purpose. In “Government-WideReview of Procurement: Redesigning Canadian Procurement,” the TaskForce on Government-Wide Review of Procurement reported on the work ofthe Task Force to date (mid-way to its planned December 2004 report andrecommendations), and set out its initial conclusions. This government-widereview had examined all aspects of procurement, from fundamentalconcepts such as fairness and open competition, through procurementprocesses and organization, to management oversight and publicaccountability.U. S. Federal procurement agencies have many socioeconomic, and inparticular, small business goals, but these goals are currently measured on asingle metric: the percentage of total agency dollars that are awarded tosmall business. Finding the balance between the benefits of publicprocurement reform and benefits derived from small business participationis a public policy challenge. In “Balancing Socioeconomic and PublicProcurement Reform Goals: Effective Metrics for Measuring SmallBusiness Participation in Public Procurement,” Timothy S. Reed, Patricia G.Luna, William C. Pike support the argument that in order to accuratelymeasure small business participation in a ‘trans-procurementtransformation” environment, more effective metrics are required. In thechapter, the authors examined the effectiveness of the existing metrics andevaluated the effectiveness of two new proposed metrics. They found thatthe existing metrics are ineffective and that the new metrics measure smallbusiness participation with greater efficacy.Lessons Learned: Understanding Current Public ProcurementThe evolution of procurement, from a bureaucratic, manual process toan IT systems-based approach has not obviated the apparent need tocontinue the search for a perfect public procurement system. In “A Tale ofTwo Cities in the Search for the Perfect Procurement System,” GuyCallender and Jim McGuire examine the way in which two state-basedjurisdictions in Australia have sought to develop their unique versions of aperfect procurement system. Apart from the classic management choices
CHALLENGES IN PUBLIC PROCUREMENT 13between centralized or decentralized procurement platforms, theprocurement policy choices, represented by lowest purchase price or valuefor-money,also have to be resolved. Conflicting demands include the needto enhance government management of procurement within the constraintsof a tender-driven contracting policy framework, while assuring high levelsof probity, accountability and transparency, whilst also satisfying the diversegovernance expectations of stakeholders.Public/private partnerships have become more and more popular inpublic procurement, according to Alexander Batran, Michael Essig, andBerthold Schefer, in “Public-Private Partnerships As an Element of PublicProcurement Reform in Germany.” Just like in other countries,public/private partnerships (PPPs) are becoming increasingly more popularin Germany. At the moment, there are several cases which give deepinsights into the success factors of PPPs. As a result, PPPs are also seen asone key element for reforming the public sector in Germany, and leadingtowards many challenges for public procurement. In this chapter, theauthors provide a conceptual and theoretical overview of PPPs, andexamine comprehensively a PPP case, the German Aerospace Center(Deutches Zentrum Fur Luft- Und Raumfahrt E.V./DLR).According to Wendell C. Lawther and Lawrence L. Martin, in “PublicProcurement Partnerships,” recent experience with public procurementefforts in the U.S. suggests dissatisfaction with both governmental deliveryof services and resulting efforts to privatize or outsource these services.There is increasing recognition that both approaches should be combined toacquire increasingly complex goods and services, relying upon publicprocurement partnerships. Various trends have impacted public acquisitionin recent years, further supporting the need for partnerships. These includea declining public procurement workforce, an expanded role forprocurement practitioners, the complexity of acquiring informationtechnology systems, the need for flexibility in negotiating contracts andpartnership arrangements, as well as the increasing visibility of risks and theneed to manage them effectively. In light of these trends, four examplesillustrating a range of partnerships are discussed in more detail, illustratinginnovative responses from a variety of local, state and federal partnerships.In “An Exploratory Analysis of Public Procurement Practices inEurope,” Gustavo Piga and Matteo Zanza present some preliminary resultsof an exploratory analysis of public procurement practices in Europe. Theanalysis is realized by collecting and processing data and informationprovided by detailed questionnaires sent to a selected group of organizationsrepresenting twenty-four European countries. The organizations selected are
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