{"id":1056,"date":"2019-07-30T19:35:13","date_gmt":"2019-07-30T07:35:13","guid":{"rendered":"https:\/\/wpdevtest.topaz.nz\/?p=1056"},"modified":"2023-12-10T13:26:43","modified_gmt":"2023-12-10T00:26:43","slug":"government-electronic-system","status":"publish","type":"post","link":"https:\/\/wptopaz.otting.info\/index.php\/2019\/07\/30\/government-electronic-system\/","title":{"rendered":"The Tender Process and GETS"},"content":{"rendered":"\n[et_pb_section][et_pb_row][et_pb_column type=”4_4″][et_pb_text]\n

I was perusing a blog on LinkedIn expressing frustration at the government for the tender process it insists on, and it wasn\u2019t until I got three quarters the way through I realised it wasn\u2019t an IT company, rather a civil engineering contractor. It seems us IT types aren\u2019t so special after all!<\/p>\n\n\n\n

That got me thinking about why the tender process is so frustrating and then I had cause to read the Government procurement rules from end to end. See https:\/\/www.procurement.govt.nz\/procurement\/principles-and-rules\/government-rules-of-sourcing\/<\/a>.<\/p>\n\n\n\n

It struck me that the overriding principles were reasonable,\nenlightened even, and all the rules and guidelines had some logic to them. So why\nare government agencies so often more difficult for vendors to deal with than the\nprivate sector?<\/p>\n\n\n\n

I think its lack of trust. <\/p>\n\n\n\n

It\u2019s easier for the private sector to trust its decision-makers, because getting it wrong can get you fired. Trust in the public sector is reduced because it\u2019s much harder to sanction poor decisions by firing people.<\/p>\n\n\n\n

\u2018Getting it wrong\u2019 in the private sector means getting the wrong outcome no matter what process is followed. In the public sector getting it wrong means not following a prescribed process. I wouldn\u2019t be surprised if there are instances of a government agency gaining a high quality, cost-effective and innovative solution only to be chastised by auditors for not following process.<\/p>\n\n\n\n

Speaking of auditors, the Auditor General\u2019s recent report\n\u2018Introducing our work about procurement\u2019, see https:\/\/oag.govt.nz\/2018\/procurement\/docs\/procurement.pdf<\/a>, makes interesting reading. <\/p>\n\n\n\n

The sections discussing issues of principle make little mention of value for money being a core principle. As a taxpayer, I rate value for money ahead of all other considerations, except corruption. <\/p>\n\n\n\n

This includes being fair!<\/p>\n\n\n\n

In the private sector, purchasers give preference to vendors they trust, because experience tells them this gives the best outcome. When your job is on the line, being fair takes a back seat to getting the decision right. I don\u2019t have a problem with this if the purchaser is transparent, thus enabling their preferences to be \u2018market-tested\u2019.<\/p>\n\n\n\n

However, government procurement guidelines on fairness mean agencies can\u2019t take this approach and so are incentivised to hide their preferences within the tender process, even though this conflicts with the transparency guidelines. So, on occasion, they \u2018game the system\u2019 by skewing the process to deliver a pre-determined outcome. <\/p>\n\n\n\n

This can lead to the agency wasting money on an unnecessary\nevaluation process and vendors wasting time responding. But more importantly it\nprevents any bias being subjected to market scrutiny. This hides weak\nmanagement, discourages \u2018left field\u2019 solutions and encourages poor outcomes.<\/p>\n\n\n\n

We had a situation a couple of years ago where the choice of the\n\u2018independent\u2019 consulting firm and a flawed RFP, indicated a pre-determined\noutcome. However, because the agency wouldn\u2019t be up front, we couldn\u2019t\nhighlight why the pre-determined outcome was the wrong solution. Thus, we\ndeclined to respond, as I\u2019m sure did other vendors who, like us, could have\ndelivered a far more appropriate and cost-effective outcome. <\/p>\n\n\n\n

The result was a grossly overpriced and completely inappropriate\nchoice. The good news is that eventually sanity prevailed, and the project was\ncanned. The bad news is the agency and the vendors who responded all wasted\nconsiderable time and money.<\/p>\n\n\n\n

Had the agency been upfront about its preference, it would have been\nsubject to market scrutiny and its highly likely a good outcome would have been\nachieved at far less cost to all parties.<\/p>\n\n\n\n

In short, I\u2019m of the opinion that the government procurement\nprocess needs to place more trust in its people and allow for personal\npreference based on experience, while at the same time mitigating the risk of\ncorruption by strengthening its commitment to transparency and value for money,\nboth in process and outcome.<\/p>\n\n\n\n

A simple mechanism would be to be encourage all vendors who download\na GETS document, to quantify their reasons for not proceeding or succeeding. I\nsuspect the aggregation will show patterns that will make life a little\nuncomfortable for some agencies, consultancies and individuals.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"

I was perusing a blog on LinkedIn expressing frustration at the government procurement process and it wasn\u2019t until I got three quarters the way through I realised it wasn\u2019t an IT company, rather a civil engineering contractor. It seems us IT types aren\u2019t so special after all!<\/p>\n","protected":false},"author":4,"featured_media":1057,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n

I was perusing a blog on LinkedIn expressing frustration at the government for the tender process it insists on, and it wasn\u2019t until I got three quarters the way through I realised it wasn\u2019t an IT company, rather a civil engineering contractor. It seems us IT types aren\u2019t so special after all!<\/p>\n\n\n\n

That got me thinking about why the tender process is so frustrating and then I had cause to read the Government procurement rules from end to end. See https:\/\/www.procurement.govt.nz\/procurement\/principles-and-rules\/government-rules-of-sourcing\/<\/a>.<\/p>\n\n\n\n

It struck me that the overriding principles were reasonable,\nenlightened even, and all the rules and guidelines had some logic to them. So why\nare government agencies so often more difficult for vendors to deal with than the\nprivate sector?<\/p>\n\n\n\n

I think its lack of trust. <\/p>\n\n\n\n

It\u2019s easier for the private sector to trust its decision-makers, because getting it wrong can get you fired. Trust in the public sector is reduced because it\u2019s much harder to sanction poor decisions by firing people.<\/p>\n\n\n\n

\u2018Getting it wrong\u2019 in the private sector means getting the wrong outcome no matter what process is followed. In the public sector getting it wrong means not following a prescribed process. I wouldn\u2019t be surprised if there are instances of a government agency gaining a high quality, cost-effective and innovative solution only to be chastised by auditors for not following process.<\/p>\n\n\n\n

Speaking of auditors, the Auditor General\u2019s recent report\n\u2018Introducing our work about procurement\u2019, see https:\/\/oag.govt.nz\/2018\/procurement\/docs\/procurement.pdf<\/a>, makes interesting reading. <\/p>\n\n\n\n

The sections discussing issues of principle make little mention of value for money being a core principle. As a taxpayer, I rate value for money ahead of all other considerations, except corruption. <\/p>\n\n\n\n

This includes being fair!<\/p>\n\n\n\n

In the private sector, purchasers give preference to vendors they trust, because experience tells them this gives the best outcome. When your job is on the line, being fair takes a back seat to getting the decision right. I don\u2019t have a problem with this if the purchaser is transparent, thus enabling their preferences to be \u2018market-tested\u2019.<\/p>\n\n\n\n

However, government procurement guidelines on fairness mean agencies can\u2019t take this approach and so are incentivised to hide their preferences within the tender process, even though this conflicts with the transparency guidelines. So, on occasion, they \u2018game the system\u2019 by skewing the process to deliver a pre-determined outcome. <\/p>\n\n\n\n

This can lead to the agency wasting money on an unnecessary\nevaluation process and vendors wasting time responding. But more importantly it\nprevents any bias being subjected to market scrutiny. This hides weak\nmanagement, discourages \u2018left field\u2019 solutions and encourages poor outcomes.<\/p>\n\n\n\n

We had a situation a couple of years ago where the choice of the\n\u2018independent\u2019 consulting firm and a flawed RFP, indicated a pre-determined\noutcome. However, because the agency wouldn\u2019t be up front, we couldn\u2019t\nhighlight why the pre-determined outcome was the wrong solution. Thus, we\ndeclined to respond, as I\u2019m sure did other vendors who, like us, could have\ndelivered a far more appropriate and cost-effective outcome. <\/p>\n\n\n\n

The result was a grossly overpriced and completely inappropriate\nchoice. The good news is that eventually sanity prevailed, and the project was\ncanned. The bad news is the agency and the vendors who responded all wasted\nconsiderable time and money.<\/p>\n\n\n\n

Had the agency been upfront about its preference, it would have been\nsubject to market scrutiny and its highly likely a good outcome would have been\nachieved at far less cost to all parties.<\/p>\n\n\n\n

In short, I\u2019m of the opinion that the government procurement\nprocess needs to place more trust in its people and allow for personal\npreference based on experience, while at the same time mitigating the risk of\ncorruption by strengthening its commitment to transparency and value for money,\nboth in process and outcome.<\/p>\n\n\n\n

A simple mechanism would be to be encourage all vendors who download\na GETS document, to quantify their reasons for not proceeding or succeeding. I\nsuspect the aggregation will show patterns that will make life a little\nuncomfortable for some agencies, consultancies and individuals.<\/p>\n","_et_gb_content_width":"","footnotes":""},"categories":[31,30],"tags":[],"class_list":["post-1056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-news","category-topaz-help"],"yoast_head":"\nThe Tender Process and GETS - Topaz Solutions Test Site @ otting.info<\/title>\n<meta name=\"description\" content=\"Topaz takes a look at the public and private tender process especially in relation to supply of IT services thoughout New Zealand\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wptopaz.otting.info\/index.php\/2019\/07\/30\/government-electronic-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Tender Process and GETS - 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