{"id":34007,"date":"2022-11-16T14:06:52","date_gmt":"2022-11-16T14:06:52","guid":{"rendered":"https:\/\/digileaders.com\/?p=34007"},"modified":"2022-11-17T15:50:57","modified_gmt":"2022-11-17T15:50:57","slug":"how-to-make-public-procurement-smart-and-sustainable-by-design","status":"publish","type":"post","link":"https:\/\/digileaders.com\/how-to-make-public-procurement-smart-and-sustainable-by-design\/","title":{"rendered":"How to make public procurement smart and sustainable by design"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Look beyond the digital and technology functions to deliver impactful, sustainable digital transformation, says <\/span><b>Warren Smith<\/b><span style=\"font-weight: 400;\"> in this <\/span><a href=\"http:\/\/www.aws.amazon.com\/institute\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Amazon Web Services Institute<\/span><\/a><span style=\"font-weight: 400;\"> blog<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whole-of-government digital transformation must be based on internet-era principles, methods and work practices. Multi-disciplinary teams that are user-centred, design-led, data-driven and work in the open are successful. This approach can turn blocks to modernisation, such as procurement, into change accelerators.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3>Complex, not complicated<\/h3>\n<p><span style=\"font-weight: 400;\">Procurement is a critical and under-leveraged area of public policy, governance, transparency, and accountability. With the global cost of corruption, fraud and bribery estimated to <\/span><a href=\"https:\/\/www.weforum.org\/agenda\/2018\/12\/the-global-economy-loses-3-6-trillion-to-corruption-each-year-says-u-n\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">cost the global economy US$3.6 trillion every year<\/span><\/a><span style=\"font-weight: 400;\">, public procurement has the potential to ensure vast sums of money are directed towards investment in vital public services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Procurement isn\u2019t complicated. However, in the public sector context, it is complex for a variety of interconnected reasons.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, procurement is big business and can be opaque. <\/span><a href=\"https:\/\/www.open-contracting.org\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">The Open Contracting Partnership<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/spendnetwork.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Spend Network<\/span><\/a> <a href=\"https:\/\/www.open-contracting.org\/wp-content\/uploads\/2020\/08\/OCP2020-Global-Public-Procurement-Spend.pdf\"><span style=\"font-weight: 400;\">estimate<\/span><\/a><span style=\"font-weight: 400;\"> that, globally, governments spend US$13 trillion each year through public contracts, but less than three per cent of that is publicly declared.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Second, procurement is highly regulated in most countries. This governs principles such as transparency, fairness, equal treatment, non-discrimination and proportionality, information to share publicly via notices, procedures and systems to use, and timescales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Third, years of organisational custom and practice create bureaucracy: procurement customs become misinterpreted as statutory law.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, procurement carries integrity risks throughout its cycle, from pre-tender to post-contract award. An Organisation for Economic Cooperation and Development (OECD) report <\/span><a href=\"https:\/\/www.oecd.org\/gov\/ethics\/Corruption-Public-Procurement-Brochure.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Preventing Corruption in Public Procurement<\/span><\/a><span style=\"font-weight: 400;\"> found that of the cases reviewed under the OECD Convention of Bribery of Foreign Public Officials in International Business Transactions, 57 per cent occurred to obtain a public procurement contract.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3>Public procurement needs service design<\/h3>\n<p><span style=\"font-weight: 400;\">There are four important conditions that produce benefits for citizens, civil servants and governments around the world.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mainstream, human-centred design, data-driven and open approaches in public procurement;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invest in multidisciplinary and cross-functional teams, which are founded on the right working practices, behaviours and culture, based on honesty, transparency, collaboration and integrity;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use public procurement approaches that are fit for the 21st century, as a lever to achieve inclusive, equitable and sustainable policy outcomes that have positive economic, social and cultural, and environmental impacts;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seize the opportunities provided by digital government, open data, new technologies, and innovation, throughout the full public spending lifecycle \u2013 from planning, informing the market, evaluation and award, and managing delivery.<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Between October 2018 and April 2021, I led the <\/span><a href=\"https:\/\/gds.blog.gov.uk\/2019\/01\/22\/how-gds-is-helping-tackle-global-corruption\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Government Digital Service (GDS) Global Digital Marketplace Programme<\/span><\/a><span style=\"font-weight: 400;\">. The UK Foreign, Commonwealth and Development Office Global Anti-Corruption Programme funded this initiative as part of the former Cross-Government Prosperity Fund. I worked on projects in Colombia, Indonesia, Malaysia, Mexico, and South Africa. For one project in Indonesia the team collaborated with specialists from World Commerce and Contracting to <\/span><a href=\"https:\/\/www.worldcc.com\/Resources\/Content-Hub\/View\/ArticleId\/9908\/Co-designing-Indonesian-government-contracts-for-the-digital-age\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">co-design government contracts for the digital age<\/span><\/a><span style=\"font-weight: 400;\">. This work naturally built on what we had achieved with the UK government.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I\u2019ve shared the UK story in the <\/span><a href=\"https:\/\/aws.amazon.com\/institute\/#Design_public_procurement_for_digital_transformation\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">full version of this blog<\/span><\/a><span style=\"font-weight: 400;\">, written for the Amazon Web Services (AWS) Institute, and in <\/span><a href=\"https:\/\/aws.amazon.com\/institute\/#Design_public_procurement_for_digital_transformation\"><span style=\"font-weight: 400;\">a short video<\/span><\/a><span style=\"font-weight: 400;\">. The UK story illustrates that even if the challenges can seem great, the significant results make the transformation process worthwhile.<\/span><\/p>\n<p><a href=\"https:\/\/aws.amazon.com\/institute\/#Design_public_procurement_for_digital_transformation\"><span style=\"font-weight: 400;\">Read the full article with the UK story<\/span><\/a><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span class=\"btn-container\"><a class=\"btn btn-md btn-primary\" href=\"https:\/\/digileaders.com\/insights\/\">More thought leadership <i class=\"far fa-caret-right\"><\/i><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Look beyond the digital and technology functions to deliver impactful, sustainable digital transformation, says Warren Smith in this Amazon Web Services Institute blog Whole-of-government digital transformation must be based on internet-era principles, methods and work practices. Multi-disciplinary teams that are user-centred, design-led, data-driven and work [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":34008,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"class_list":["post-34007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","topic-digital-inclusion","topic-public-sector","topic-sustainability"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to make public procurement smart and sustainable by design | Digital Leaders<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/digileaders.com\/how-to-make-public-procurement-smart-and-sustainable-by-design\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta 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