ART - Building Public Procurement Capacity & Capability 2008

The document is a report on a research study conducted by the Treasury. The study emphasizes the importance of good procurement in delivering high-quality public services. It brings together senior practitioners and leading academics from 17 countries to discuss and analyze cases related to building public procurement capacity and capability. The report identifies four key motives driving public procurement capacity and capability building. These include the development of public procurement as a profession, using procurement as a lever for change, addressing the information imbalance, and delivering procurement efficiencies through structural change. One of the main focuses of the study is the professionalization of procurement. It highlights the need to raise the profile and credibility of procurement and develop a common, transferable body of knowledge. The report also addresses the tensions that arise during the implementation of procurement capacity and capability building programs, particularly the conflict between short-term economic objectives and broader long-term objectives. It suggests solutions such as promoting the contribution of procurement through meaningful performance indicators and closer engagement with politicians. The influence of different procurement structures on procurement performance is also discussed in the report. It presents three main structures: centralized, decentralized, and collaborative procurement. While the optimal approach is not clear, countries that have recently transitioned from centrally controlled regimes tend to favor decentralized approaches, while Northern European and North American nations are considering more centralized and collaborative structures. The report acknowledges the importance of addressing contextual and cultural differences when building procurement capacity and capability. It emphasizes the need to respect an organization's cultural identity and notes that a "one size fits all" approach is not appropriate. However, there is potential for learning from the experiences of other nations, sectors, and levels of government. In summary, the report provides insights into the motives, challenges, and approaches in building public procurement capacity and capability. It highlights the significance of professionalization, managing tensions, considering different procurement structures, and respecting contextual and cultural differences in order to improve public procurement practices and deliver high-quality public services.