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Open and Government procurement Jan 2010


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How can government procurement support open?

Presentation at LCA2010 (linux Conference Australasia) Government mini-conf Wellington January 2010

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Open and Government procurement Jan 2010

  1. 1. How can Government Procurement better support Open ......<br />LCA MiniConf<br />19 February 2009<br />Laurence Millar<br />
  2. 2.
  3. 3. Open what?<br />
  4. 4. Government must shift….<br />… to Wholesale<br />From Retail…<br />
  5. 5. Why should we free our data?<br />People have funded the collection of the data, and want/are entitled to access it<br />Public access improves quality<br />Marginal cost of distribution is minimal<br />Agencies do not have the resources or the innovative skills to respond to the variety of needs/uses of the data<br />Increases economic and public value<br />
  6. 6. How do we set it free?<br />Located at<br />and<br />
  7. 7. To here<br />From here<br />
  8. 8. Open what?<br />
  9. 9. Intellectual Property Rights – current guidelines<br />CROP and edit<br />
  10. 10. Open what?<br />
  11. 11. Government Policy on Open Source<br /> NZ Government Agencies are encouraged to assess open source software alternatives (where these exist) alongside commercial software, and should choose based on cost, functionality, interoperability, and security.<br /><br />
  12. 12. UK policy on Open Source<br />Feb 2009<br />take further positive action to ensure that Open Source products are fully and fairly considered throughout government IT<br />ensure that we specify our requirements and publish our data in terms of Open Standards<br />seek the same degree of flexibility in our commercial relationships with proprietary software suppliers as are inherent in the open source world.<br />UK Cabinet Office<br />Sep 2009<br />“Government Open Source Policy Lacks Teeth”<br />"The UK has one of the best-written policies out there — the problem is policing it,“ <br />“Large procurements simply ignore it, and this is not being picked up” <br />News report: Eweek Europe<br />
  13. 13. Discussion<br />What should be done to improve government procurement?<br />...<br />But first, a brief summary of the current state<br />(from<br />
  14. 14. Government procurement principles<br />best value for money over whole of life; <br />open and effective competition; <br />full and fair opportunity for domestic suppliers; <br />improving business capabilities, including e-commerce capability; <br />recognition of New Zealand's international trade obligations and interests; and<br />requiring sustainably produced goods and services wherever possible, having regard to economic, environmental and social impacts over their life cycle.<br />
  15. 15. Business concerns (1)<br />some companies don’t bother bidding for government work as they perceive that there are already preferred companies who will win the tender; <br />agencies cost business time and money by going to tender for contracts that they have no intention of awarding, just to get ideas or inform budget bids; <br />a lack of consistency and/or standardised processes/conditions of contract, adding compliance costs, this can mean that every tender from government has to be checked by lawyers; <br />the requirement in many government contracts for unlimited public indemnity insurance is unreasonable and prohibitive, as it is not actually possible for businesses to obtain this. Businesses therefore have to run the risk of being potentially bankrupted should the government exercise a claim; <br />
  16. 16. Business concerns (2)<br />poor and inconsistent documentation among agencies, requiring detailed answers to questions that are not always directly relevant such as sustainability, with little information provided on the actual criteria (and corresponding weighting) that will be used to select the successful supplier; <br />agencies are generally averse to sharing risk in the development and application of innovative solutions; <br />concerns that intellectual property/ideas are solicited by agencies and used without permission and/or that confidentiality of innovative offerings is not maintained, eliminating the incentive to be innovative in proposals; <br />uneven or low procurement capability within agencies, making the cost of liaison and engagement higher than it should be and reducing the ability to have open strategic discussions about options to reduce risk or increase value; <br />long contract periods (sometimes up to 16 years) for fairly routine goods and services, effectively locking out competition. <br />
  17. 17. Procurement Reform <br />Key Reform aspects<br /><ul><li>4 Year programme
  18. 18. Not just about savings
  19. 19. Transform procurementthinking
  20. 20. Build Procurement as a strategic activity</li></ul>Four Themes<br /><ul><li>Cost savings
  21. 21. Build capability and capacity of procurers
  22. 22. Enhanced NZ business participation
  23. 23. Improved:</li></ul>governance, <br />oversight and;<br />accountability<br />
  24. 24. Centre of Expertise<br />Government Technology Services (DIA)<br />IT Equipment <br />($290m over 5 years)<br />Multi-functional devices (printer, photocopier, scanner, fax)<br />($92.5m over 5 years)<br />Other products and services in future – “informed by spend analysis” <br />
  25. 25. So... <br />What messages would we send to the people leading procurement reform?<br />
  26. 26. Attributions<br />Slide 2<br />Slide 3<br />Slide 4,0.jpg<br /><br />Slide 7<br />Slide 8<br />Slide 9<br />Slide 10<br />