Commonwealth Local Government Forum

Innovating service delivery with public procurement

24 January 2025

 

Public procurement is one of the main instruments cities have to innovate public service delivery. Most cities need the contribution of the private sector, in the form of providers of services, PPPs, CSOs etc. to deliver on public services, construction works, transportation, waste collection and many other services.

Challenges of contract management

Managing public contracts is inherently challenging. The level of decentralisation in a country can be beneficial if the city has the necessary legal framework and human resources to procure goods and services effectively.

 

National procurement legislation, however, might be outdated, or fails to respond to the changing needs of local governments. For instance, national procurement laws and regulations are often crafted for ministries or national departments, focusing on large companies and substantial contracts. In contrast, local government processes are typically much smaller in scale and may lack adequate local competition. Other challenges lie in the rapid evolution of technology, the types of construction materials, and the management of services through digital means etc.

 

Many procurement regulations have been designed primarily for buying or building and are not suited for more complex management systems that must take into account energy efficiency, environmental impact, inclusion of those who need it the most, and the future maintenance costs of services and infrastructure.

Promoting sustainability and transparency

Public procurement can also be used to promote sustainable development policies, by utilising criteria that looks beyond the lowest price. For example, promoting women owned businesses, climate neutral companies, social enterprises, etc. 

 

Contracts are also very important in terms of transparency and prevention of corruption. Increasingly, open local government initiatives are being utilised to enhance citizen participation in the negotiation of contracts for essential public services, fostering transparency while also considering the perspectives of end users.

Procurement guidelines

UNDP has worked with a group of international experts to elaborate their first ever Guidelines on procurement in cities. The document wants to raise some questions that local governments should ask themselves before, during and after contracting out public services. It is not a universal guide, as local conditions and regulations may differ, but rather encourages the consideration of some useful aspects that can help guide decision making.

 

The document tries to give some guidance on the following questions:

 

  1. What do the citizens need? Preparation and planning, Developing a comprehensive procurement plan and preparing a Needs Assessment.
  2. Looking for the perfect counterpart, supplier/vendor selection.
  3. Contract negotiation, management and sustainability

Further help and advice

More information about the UNDP Guidelines can be found here and further advice is available by contacting Catherine Adodoadji-Dogbe at the UNDP Ghana Country Office.

 

 

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