10 tips: Local Government Purchasing

Welcome to the top 10 tips for Local Government Purchasing. Bob Kittle from Munetrix provides 10 of the best tips for the public sector, and we believe in the power of sharing best practise and expertise. We are very happy to be sharing our insights into this topic as well, with over 10 years experience as a business implementing digital transformation and smart solutions in over 45 countries, we are in a really great position to be able to offer some learning and value, and hopefully give you all some notes and ideas to take away to support you in your projects and organisations.

Top 10 Public Sector Purchasing tips

Below we have outlined the overview of each tip. We will then go into detail for each tip, giving you insight into how a smart city project, can become a digital transformation success.

  1. One bidder does not make them the lowest qualified
  2. Consider being product vague in your bid/ search.
  3. Consider trying commodity prices to longer-term contracts.
  4. Build strategic openers into long-term contracts.
  5. Ask for cost breakdowns, then use the data to set targets.
  6. Ask for other suggestions.
  7. Consider a Best and Final Offer (BAFO) strategy.
  8. Send anybody involved with procurement to negotiations and other training classes.
  9. Consider “make vs. buy” comparisons.
  10. Use a weighted Decision Analysis tool (PUGH)

One bidder does not make them the lowest qualified:

It usually means there was something wrong with the Request For Proposal; tear it up and start over.

Consider being product vague in your bid/ search.

In other words, don’t over-specify what you want to buy, instead explain the problem you are trying to solve; let the experts present their solution or alternatives. With technology changing so fast, there may be a Next Best Thing out there you’ve never considered.

Consider trying commodity prices to longer-term contracts.

If your purchase involves a supply of resource – This creates partnerships, where swings in the price or fuel or other energy-related costs or resources can be adjusted at specified intervals.

Build strategic openers into long-term contracts.

Ask for cost breakdowns, then use the data to set targets.

It’s not uncommon to see aggregate prices for a road project (for instance) or development resource pricing be quite different across multiple bids, when the price of aggregate or development, for example, is not that elastic.

Ask for other suggestions.

A great standard line in an RFP is, “In the case of a similar or tie bid, what differentiator could you add that would make your submission more attractive for our community to consider?”

Consider a Best and Final Offer (BAFO) strategy.

There is an old adage in the world of sales and procurement; if you don’t ask, you’ll never get. Be bold! You (the customer) are in the driver’s seat and the bidders want your business. Use that to your advantage.

Send anybody involved with procurement to negotiations and other training classes.

Especially during second and further stages where inhouse pitches and presentations are made, this is the time for well-trained negotiation.

Consider “make vs. buy” comparisons.

You don’t have to own everything. Consider “make vs. buy” comparisons. If you can find a product or service on the open market which will allow you to deliver the service without jeopardizing quality, use this as a productivity gain to help offset the problem you will be facing in the future as you experience staff attrition.

Use a weighted Decision Analysis tool (PUGH)

Always build detailed bid comparisons to easily see key elements of a bid, and consider using a weighted Decision Analysis tool (PUGH) to quantify the value proposition.

Find out more about BookingLive and its partnership with digital transformation organisations, and how BookingLive can bring its 10+ years of successfully servicing the public sector to support you with your department’s digital transformation goals, please contact us via email to speak with one of our public sector solutions specialists via the link below, or call 0117 933 8632.

Call Us 0117 933 8632