A great deal of the discussion around State procurement has focused, correctly, on safeguards to eliminate and constrain corruption.
The unfortunate result of this is that improvements in the administrative processes underpinning procurement, which could lead to massive efficiencies and economies for the government fiscus, are overlooked.
As an example, let’s look at the procurement of vehicles by the South African Police Service (Saps).
I am amazed by the variety of vehicles that make up the Saps fleet.
Aside from the specialised units used in, for example, crowd control, or search and rescue, there must be a case to be made to standardise the operational fleet made up of patrol and response vehicles.
Instead, it appears that each province is allowed to procure vehicles according to their own whims and wishes.
No thought appears to be given to optimising maintenance and operational costs by standardisation.
This obviously results in much higher operational administration, as service protocols and service providers will vary greatly.
For many years, the Ford Crown Victoria was a stalwart in the American Government fleet.
Most federal agencies standardised their fleets around this model, which allowed the manufacturer to achieve economies of scale in production, driving down unit costs.
It also allowed operating departments to minimise their holding of spares, and ensured that a large proportion of vehicles were on the road because of the commonality of spares.
Scrapped or damaged vehicles could be ‘cannibalised’ for spare parts.
The powers that be seem to believe that the ‘competitive tender process’ – the well known ‘three quote’ practice, is the safest way to minimise corruption in procurement.
Clearly, this is a fallacy, as the skullduggery carried out by construction companies in the 2010 World Cup Stadium builds proved.
There must be merit in considering negotiated, multi-year contracts that ensure continuity and allow the service provider/supplier to continuously improve delivery quality and standards.
Imagine the impact on the delivery of textbooks to schools if a properly designed and executed procurement process was in place.
National departments should assume the procurement role for the key requirements of provincial departments such as Health and Education, for example.
At this point, many would jump up with indignation to wave the ‘local procurement’ banner.
In reality, how much of procurement is really done ‘locally’.
The use of ‘proxies’ masquerading as local suppliers is rife in all sectors.
With a little effort, national government could ensure that real local suppliers are given a fair shake to participate in tenders.
There needs to be a total overhaul of government procurement: one that does not abandon the safeguards against corruption, but refocuses on value for money, efficiency and equity.
Vijay Naidoo is the CEO of the Port Shepstone Business Forum. He writes in his personal capacity. The views expressed are the author’s own and do not necessarily reflect those of this publication.
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