Reform is a challenging topic and the decisions involved are usually complex ones that balance the costs and challenges of implementing the changes with the benefits and risks of doing so. I refer to the reform of procurement in the case of the Irish Public Service as a ‘no-brainer’ in that the case for change on behalf of the tax-payer is an overwhelming one, with the opportunity to save hundreds of million euros from the State’s almost seven billion euro annual spend on goods and services.
As we move in this reform programme from fragmented procurement efforts to addressing spend in a holistic fashion, it provides the State’s procurement staff for the first time with the visibility of our spend right across the public service. This will enable us to see what we are spending, with whom and at what price whether it is in a university, a hospital, a barracks, a county council depot or a government department. The power of this is not to be underestimated. It will provide the ability for procurement staff to benchmark prices, to identify and roll-out best practice, to harmonise specifications where possible, to find ways to reduce demand and to drive competition. Procurement reform is focussed on delivering better value for the tax-payer by centralising procurement expertise, driving further professionalisation of the function and reducing risk for the State.
There are fears as to how the changes will impact small businesses. As long as businesses are not complacent and respond to the changes, they can be successful. For example, this week we announced national tender outcomes for IT equipment where indigenous SME’s, such as Datapac, have been successful in winning government contracts and will create additional jobs in the economy. I believe that businesses who innovate, drive efficiency and are competitive can be successful in this market, but can also win abroad.
Whilst the case for change is overwhelming, the path for change is always challenging. This reform programme is ground-breaking in that it encompasses the entire public service in a functional reform. The new Office of Government Procurement (“OGP”) is now being formed and is targeted to be operational by the end of June. The management team have been appointed and recruitment is underway for the remaining jobs. The roles that procurement staff undertake, both in the OGP and in the sector procurement teams, will be key in working with the procurement function’s customers to deliver upon their needs, and to challenge norms and find ways to deliver much-needed savings. It is in this engagement that the reform truly takes place. The reform needs the support of staff and managers involved in buying decisions across the public service to be successful.
The programme has great support from Government, Ministers Howlin and Hayes, the Secretaries General, and from other key leaders across the public service. They all are lending their support through the cross-sector governance arrangements. The financial benefits that accrue from the programme will help our customer departments and agencies achieve the financial challenges they face. This year is a critical year in establishing the new structures and getting traction to the changes required in procurement decision making. Like all worthwhile change, success for this programme will not come easily but the benefits for citizens are considerable and so justify the hard work of reform.
Mr Paul Quinn, Chief Procurement Officer
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