‘Monumental change’ in works for procurement

Craig Milley, Central Procurement Office Director

(CNS): A new law to manage government contracts and the purchase of goods and services is in the works and will bring “monumental change” to the current failing system, according to the new procurement director, Craig Milley. Accounting for more than 27% of public spending, how government buys things and awards major contracts will fall under the new legislation next year, officials have said. Milley maintained the new law will herald a simpler, much more transparent, accountable and fairer system, giving value for money and greater opportunities for local businesses.

Speaking at a ‘Be Informed’ session at the Chamber of Commerce last week, Milley, the director of the Central Procurement Office, who was appointed last February, and Peter Gough, the ‘strategic advisor’ to the deputy governor, explained the motivation behind the new law and how it will work.

Pointing to a history of criticism by the auditor general and his numerous reports, as well as wider concerns in the business community that the system is unfair, Milley described the aims and ambitions of the legislation, which is the first ever attempt at a law to manage how government purchases what it needs.

With a significant amount of changes to the system, starting with the need for a business case for all major purchases all the way through to debriefings for unsuccessful suppliers and the introduction of more accountability and transparency, Milley described entirely new methods of procurement and an end to tailor-made requests for proposals (RFPs).

The Canadian procurement expert told a small audience of business owners that the law would affect every government department and every supplier of goods and services. Milley said the law’s success would require a significant amount of training for government workers and public awareness campaigns for the local business community.

The new regime will pave the way for entirely different types of procurement than the current open tender. It will allow conversations with possible suppliers before an RFP, and the publication of all contracts and much more transparency.

Milley said that the public “is the best policeman” when it comes to preventing potential abuse of government contracts and address the criticisms that have been made of the regime, from the risk of fraud and corruption to the failure of the current system to provide value for money.

The objectives of the new law, which is still being formulated, is to improve governance, transparency and reporting and to limit political involvement. It will also provide for different ways of awarding contracts, make contracts more accessible to more local businesses as well as create a regime that collects and publishes data on public contracts.  Milley said that at present no statistics or information about procurement and which business are reviewing what is routinely collected, which he said was “unacceptable”.

In a comprehensive and detailed presentation of the law, the new procurement office, future procurement committees and a procurement code of conduct for companies doing business with government, Milley said the new regime would be fairer, more reasonable and, above all, much more transparent, including undertakings by winning bidders, such as employing local workers, so that they can be more easily held to account if they break conditions of contracts.

Milley also spoke about the need for much more transparency regarding business cases for a given project or purchase before it happens as well as after the fact.

When and if the law is passed, it will apply across the board to all public sector entities.

Peter Gough told the audience that while all chief officers and major authorities, such as the Water Authority, are on board and supportive of the new much more rigorous regime, some of the smaller government companies and statutory authorities were less enthusiastic because they saw the new law as a threat to their independence. Government is, however, determined to press ahead with the legislation and improving procurement, Gough stated, adding that it was expected to reach parliament early next year, depending on the workload of the currently hard pressed legal drafting department.

Check back to CNS later for the full presentation.