Procurement the right way

Procuring goods, works and services is integral to public service delivery. Even where public services are delivered by an organisation’s own staff they will almost always need some equipment or services, such as a computer or phone, an office with a desk and chair, a mode of transport and so on. 

All of these goods and services have to be procured, and in the public sector there is an expectation that what is procured is good value for money. One way of evaluating whether a purchase is good value for money is to use the 5 rights of procurement. This means, were the goods, works or services procured:

- of the right quality

- at the right quantity

- delivered to the right place

- at the right time 

- and for the right price?

The 5 rights apply as much to private sector business as it does to the public sector. I don’t really care how people in business do things (though business owners would care) but I do care about how public money is spent. When it comes to government spending, therefore, I think we need to add a sixth right: the right way.

The right way is about openness, transparency, fairness, integrity and accountability. It’s not about awarding contracts to friends or family members without competition, or giving an advantage to suppliers who know the phone numbers of ministers, or doing favours in return, or expecting a seat on the board at some future date.

Although I have said a sixth right is needed, I think it should be seen as the first one. Public procurements have to be done the right way in order to get the right goods or services at the right price, etc.

I know the last year has been unusual but that is an argument to follow proper processes, not throw them away. Here in the UK the Comptroller and Auditor General has written “Uncompetitive procurement practices must not be allowed to become a new norm.” I agree with him.

If you want to know something about the right way to do public procurement you could download my free e-book or register for my Introduction to Public Financial Management course.