{"id":3424,"date":"2015-03-26T14:56:40","date_gmt":"2015-03-26T14:56:40","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2015\/03\/26\/proof-that-government-procurement-reform-is-politicians-undiscovered-supertool\/"},"modified":"2024-09-18T06:15:51","modified_gmt":"2024-09-18T10:15:51","slug":"proof-that-government-procurement-reform-is-politicians-undiscovered-supertool","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/proof-that-government-procurement-reform-is-politicians-undiscovered-supertool\/","title":{"rendered":"Proof That Government Procurement Reform Is Politicians&#8217; Undiscovered Supertool"},"content":{"rendered":"<p>Last Summer, I gave a presentation to an association of regional government purchasers.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>I always get nervous when I speak to government purchasers.\u00a0 There always seems to be two types of government purchasers:<\/p>\n<ul>\n<li>Those that acknowledge that government purchasing is behind private sector purchasing and want to apply private sector purchasing best practices to their work in order to catch up; and<\/li>\n<li>Those that don\u2019t even want to hear about private sector purchasing because \u201cit doesn\u2019t apply to government purchasing\u201d<\/li>\n<\/ul>\n<p>So, one of the first things I wanted to do in my presentation was to see what type of folks were in my audience.\u00a0 I requested a show-of-hands in response to two questions I had:<\/p>\n<ul>\n<li>How many of you are allowed to negotiate?<\/li>\n<li>How many of you have a cost savings goal?<\/li>\n<\/ul>\n<p>The responses were a bit shocking for me.<\/p>\n<p>Only about half of the people in the room were allowed to negotiate.<\/p>\n<p>And \u2013 get this \u2013 only one person even had a cost savings goal!<\/p>\n<p>So, if you were a taxpayer in the organizations represented by these government purchasers, how well would you think your tax dollars were being managed?<\/p>\n<p>I know how I\u2019d feel.\u00a0 And let me put it bluntly\u2026constraints like these are bad business!<\/p>\n<p>Now, I know that a decent percentage of people reading this are, in fact, government purchasers, so let me make it clear that I do not blame the purchasers themselves for these constraints.\u00a0 But I do blame the elected officials that have bestowed \u2013 or continued to allow \u2013 such fiscally-questionable restrictions on government buyers.<\/p>\n<p>One can argue that government is not business.\u00a0 But, I would argue that anything involving the exchange of money for goods or services <em>is<\/em> business.\u00a0 And good business involves not spending any more than you have to.<\/p>\n<p>There\u2019s the perennial debate in government\u2026what programs must be cut to bring expenditures in line with tax revenues?<\/p>\n<p>Well, I\u2019m here to say that this debate is short-sighted.\u00a0 I\u2019ve seen good procurement practices save organizations up to 20% or more per year.\u00a0 A government agency that cut its spend by 20% while getting the same products and services may not have to cut <em>any<\/em> programs.\u00a0 Or it could cut programs and pass along an even bigger tax reduction to taxpayers.\u00a0 Or it could even adopt <em>new programs<\/em> that it couldn\u2019t afford in the past.<\/p>\n<p>Any one of those outcomes would make a politician a hero.\u00a0 Political heroics are usually pretty hard to accomplish.\u00a0 But getting procurement out of the dark ages would be relatively simple.\u00a0 It\u2019s amazing that procurement reform hasn\u2019t been adopted by more politicians in either their tenures as elected officials or as part of their campaigns.<\/p>\n<p>To me \u2013 based in part on my experience speaking for the aforementioned government purchasing association \u2013 procurement reform is politicians\u2019 undiscovered supertool.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Summer, I gave a presentation to an association of [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Proof That Government Procurement Reform Is Politicians&#039; 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