14 30 u manu matthyssens b2-b mkt 2015 the procurement perspective
Government Procurement - A Supplier's Perspective
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Transcript of Government Procurement - A Supplier's Perspective
Copyright © 2015 Equinox Limited |
Government procurement:A supplier’s perspective
New Zealand Procurement AcademyBreakfast SessionPaul Ramsay – 28 May 2015
Copyright © 2015 Equinox Limited |
Equinox IT is New Zealand’s leading
independent IT consultancy, delivering
software development, consulting and
training services.
Established in 1995, we inject fresh
thinking to solve tough business
problems.
Equinox IT has over 70 staff based in
Wellington and Auckland.
About Equinox IT
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Copyright © 2015 Equinox Limited |
• Demand
• Consumer
• Agency
• Taxpayer interests
• Supply
• Enabler
• Sector
• Economic development
What you do is important
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Copyright © 2015 Equinox Limited |
• Inclusive
• Open
• Flexible
• Tailored
• ‘Bite-sized’
• Fit for purpose
• Exclusive
• Closed
• Fixed
• One size fits all
• ‘Big-bang’
• Perfect
How you do it is even more important
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Balancing conflicting demands
• Wants vs. needs
• Risk vs. reward
• Rigidity vs. agility
• Status quo vs. innovation
• Complexity vs. simplicity
• Unknown vs. certainty
• International commitments vs. local obligations
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‘Pick any two’ – you can’t have everything
Time
Cost Quality
Scope
Risk
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Questionable procurement practices
• Endeavouring to outsource every risk and all accountability
• Dubious interpretation and selective application of the rules
• The myth of the ‘level playing field’
• Predetermined outcomes
• Lowest cost at all costs
• Honest estimation (‘true cost’) is often penalised
• Exercises in self-justification – ‘win / lose’
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• The delivery of business value (‘results’) is ultimately the only outcome that really matters
• What is the ‘outcome’ you need?
• What does ‘value’ look like?
Delivering outcomes
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Concrete Lifejackets
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• Procurement occurs ina context:• Before (strategy)
• After (operation)
• Must consider:• Whole of life
• Total cost of ownership
• There is always a price to be paid – it is just a question of who and when
Procurement is a process not an outcome
Acknowledgement: Office of the Auditor-General, ‘Central Government: Cost Effectiveness and Improving Annual Reports’
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Copyright © 2015 Equinox Limited |
• Capability:
• Knowledge
• Skills
• Experience
• Maturity:
• Markets
• Organisations
• Individuals
Building on both sides
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• ‘Size and scale’
• Tender documents:
• Reader-centric
• Respondable
• Contracts:
• Intellectual property
• Liquidated damages
• Payment terms
• Are they clear, concise and complete?
Keeping it in perspective
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• Only ask for what you really need
• Don’t put in place any unnecessary barriers
• Allow the supplier to demonstrate excellence
• Make it simple and easy to respond
• Be mindful of the time and cost involved in responding
• Be open and transparent
Making it easy
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Copyright © 2015 Equinox Limited |
• What did we do well?
• What could we have done better?
• What should we do differently next time?
Learning from experience
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Copyright © 2015 Equinox Limited |
Some final observations
• What you do makes a difference
• Government use and referenceability is important
• Understand the wider implications of your actions
• Don’t hide behind process – look to engage with suppliers before, during and after procurement
• If you want innovation then you need to be innovative in how you procure it
• Don’t mitigate the opportunity when mitigating risks
• ‘The cost of quality is the expense of doing things wrong’
• Promote and acknowledge examples of ‘good practice’
• A strong, diverse and vibrant local market is in everyone’s best interests
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