aleri Potapova/Shutterstock.com

What to Expect From Procurement in 2015

Streamlining agency purchasing systems can unearth surprising savings.

Government procurement accounts for $7 trillion in spending, annually. In light of this, it’s no wonder taxpayers are demanding better services and more insight into where all their money is going. But what does this look like, and what can procurement officials do about it?

When it comes to spending in 2015, obtaining a consolidated view of spending, gaining visibility into your procurement activities, and streamlining the process to reduce costs and best match your organization’s needs should all be at the top of your priority list.

The public sector needs to innovate to meet the need for transparency and deliver value beyond awarding contracts. Transformation is in order.

There’s a new model for public procurement excellence that can address all of these issues and bring transparency, efficiency and cost savings. Both technology and the people who adopt it, are driving the success.

And with a new year here, it’s time to act.

The federal procurement process historically suffers from a lack of transparency and efficiency. There’s a huge need to understand the basics: who agencies are doing business with, what they are spending their money on, and how much. Dirty, inconsistent data is plaguing the ability to get a clear view of spending.

In May, President Barack Obama signed the Digital Accountability and Transparency Act. The DATA Act is the nation's first legislative mandate for data transparency. It requires the Treasury Department and the White House Office of Management and Budget to transform U.S. federal spending from disconnected documents into open, standardized data, and to publish that data online.

Subsequently, GAO reported in June that USASpending.gov is missing at least $619 billion from 302 federal programs, and the data that does exist is “wildly” inaccurate. In fact, only 2 percent to 7 percent of spending data on USASpending.gov is fully consistent with agencies’ records.

“That's a problem,” Sen. Tom Carper, D-Del., the chairman of the Senate Homeland Security and Government Affairs Committee said in USA Today. "We live in a world in which information drives decisions. And given the budget constraints that our government faces, we need reliable information on how and where our money is being spent."

It’s impossible to make confident and informed purchasing decisions when access to reliable information is limited. Luckily, there are procurement technologies available to help improve visibility into spending by establishing a consolidated view of purchases and streamlining processes.

By automating procurement processes, you can move the entire award and bidding process online. Doing so helps procurement teams create a transparent bidding process and establish visibility into contract awards and procurement activities for buyers, suppliers and taxpayers. Much of the visibility also comes from the audit trails that these systems can create. Having this 360-degree view provides a central location for purchasing history, improving collaboration, control and compliance among everyone involved. Understanding this flow of information translates to informed negotiations and business decisions.

When multiple government agencies can use a common system, additional benefits unfold. Agencies can work together with increased negotiation power for volume-based discounts and improve operations efficiency. Using a simpler, automated system also boosts vendor participation in bids—often unearthing surprising cost savings. 

These systems also reduce errors and cumbersome manual tasks, allowing the purchasing team to focus on more strategic work such as relationship management, restructuring the value chain and building internal capability—ultimately delivering more value to stakeholders.

The first step needed for transformation is to get leadership and user support for change. When both buyers and suppliers can see that their lives are made simpler with these new processes and tools, adoption happens much faster.

To start the process, stakeholders must understand why this change is necessary, how the process will work, and how these new systems and tools will make their lives better. Creating a tiered rollout process is key. It allows employees to move at a comfortable pace and master the new sourcing technology process. Employees are more open to change when they know they have a support system in place.

Fiscal 2015 is here. Are you ready for public sector procurement transformation?

Dan Warn is vice president at supply management provider BravoSolution.

(Image via Valeri Potapova/Shutterstock.com)

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.