PPP Management

Increasing competition into a market place keeps the suppliers on their toes, drives innovation, price improvement and helps reduce the potential for corruption. As a small business we are very much in accord with the sentiment above.  However, when I read the article ( http://www.supplymanagement.com/news/2014/meps-agree-changes-to-public-sector-procurement-rules  ) I was concerned by: The European Parliament voted with comfortable majorities to support the package of reforms, which aims to cut red tape by reducing paperwork, boost the participation of SMEs by breaking up big contracts into smaller lots and encourage the creation of public sector mutuals to run services. As procurement and project management professionals the red text above is a cause for concern and follows on the heels of the UK government's CPO's comment along similar lines, albeit related to IT projects.  Breaking up larger contracts into smaller contracts has the potential for creating benefit...

Here's a really good article that is as applicable to every procurement activity published by the NAO! http://www.nao.org.uk/report/memorandum-managing-governments-suppliers/ This is very much worth a read.  There are three great points to take on board: 1.  Scrutiny and ensuring competitiveness. 2.  Suppliers rights to making a fair profit. 3.  Compliance to standards and control. I've commented before on the need for due diligence and making sure that the buyer gets what they want.  Part of the activity in getting what you want is getting it at the right price.  Many years ago government used a Public Sector Comparator as a benchline.  This has changed over the years and is now effectively an "As-is" cost. The Olympics saw the problems with G4S, with the military stepping in to the breach to provide the service, clearly cost (and by default, profit) was the competitive driver.  Cost drivers limit profit and thereby make mar...