All the CPO News That’s Fit to Print

New South African Chief Procurement Officer to Lead Transformation and Fight Huge Corruption

Earlier this week, South African Minister of Finance, Pravin Gordhan, said that a new Chief Procurement Officer, who will operate from within the National Treasury, will soon be appointed. Gorhan said that the top priorities for the new CPO will be to:

(1) Improve the current “price referencing” process that establishes fair market values for the goods and services purchased by the government

(2) Lead procurement transformation efforts within the the Departments of Health and Public Works

(3) Combat large and wholesale corruption – Minister Gordhan noted that the National Treasury is currently auditing 76 business entities with contracts worth R8.4 billion, which may have “infringed” upon the government’s procurement rules. This amount of corrupt spend is equal to roughly 10% of the federal government’s budget.

In the announcement Gordhan said that “there is very little visibility of all these transactions. While our ablest civil servants have had great difficulty in optimizing procurement, it has yielded rich pickings for those who seek to exploit it. There are also too many people who have a stake in keeping the system the way it is.”

In response to the announcement, the CEO of the South African Chamber of Commerce and Industry, (SACCI) Mr Neren Rau said, “The CPO may, in time, become a crucial measure to address the under-spending, overspending and misspending by government departments and municipalities.”

New Report: UK Procurement Strategy is Successful, Could Be Doing More

Earlier this week, UK’s National Audit Office (NAO) issued a lengthy report entitled “Improving  Government Procurement” which commended the current government procurement strategy as the most coherent approach to reform yet, and one that has resulted in savings. The report goes on to say that while progress has been made, there have been problems in implementing the reforms including the lack of enforcement of the mandate to use a centralized approach. The NAO believes that either the Cabinet Office will need to create more effective levers, or it will have to win ‘hearts and minds’, and demonstrate that it has the capability and capacity to deliver a high-quality central procurement function.

“The Cabinet Office will have to lead a major cultural shift across government if the centralising of buying goods and services is to deliver the significant benefits on offer. There are signs of real progress, but the success of the reforms cannot depend on whether departments choose to cooperate. Departments must commit as much of their procurement expenditure as possible to central contracts and the Government Procurement Service must be held accountable for its performance.” says Amyas Morse, head of the National Audit Office.

We plan to discuss and review the full report at some point in the near future.

Lockheed Martin Targets Small/Diverse Suppliers with “Supplier Wire”

In order to strengthen the company’s interaction with small business suppliers and provide additional opportunities to them, Lockheed Martin has introduced a supplier-focused website called Supplier Wire.

Supplier Wire offers a wide range of educational resources, including free webinars, video tips and supplier testimonials designed to help small businesses learn how to build, sustain and expand their business with the corporation. The site also features resources on immediate procurement opportunities; information on what Lockheed Martin buys, including a listing of corporate agreements with expiration dates; and a calendar of Lockheed Martin’s supplier diversity events.

To directly engage with small businesses, Supplier Wire will offer live chat sessions allowing firms to interact with subject matter experts and get answers to real-time questions. In addition, the site contains information on how to seek a partner on a proposal pursuit and how to get added to the Small Business Innovation Research directory. “Lockheed Martin is committed to small businesses and we continuously search for better methods to educate and engage with qualified diverse suppliers through more affordable solutions,” said Susannah Raheb , Lockheed Martin Corporate Supplier Diversity Leader.  “Supplier Wire allows us to reach a targeted audience and strengthen our relationships through enhanced connections in a virtual environment.”

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