Yaneek Page | Progressive approach needed for government contracting and procurement

It is high time for a transformation. As the largest purchaser of goods and services in Jamaica, and one of the most significant in the region, our government must boldly embrace progressive public procurement and government contracting.

This shift is not just necessary but urgent, for the benefit of our people, as we prepare for seismic global changes on the horizon. The climate crisis and technological threats should rank high on that list of existential vulnerabilities. Therefore, the cornerstone of the proposed transformation must be progressiveness, tailored to our unique world view.

Earlier this week, The Gleaner reported that Member of Parliament Fitz Jackson raised concerns about foreign contractors with histories of racist practices being involved in Jamaican government projects. Speaking during the Sectoral Debate in Gordon House, Mr Jackson reiterated his party’s commitment to crafting legislation that disqualifies such bidders from participating in government contracts.

Readers can explore in detail Jamaica’s current procurement policies and statutes on the website of the Office of Public Procurement via https://procureja.gov.jm and the website of the Ministry of Finance and the Public Service.

Fitz Jackson’s position scratched the surface of a broader need for a progressive and comprehensive overhaul in government contracting, one that prioritises economic development, human capacity building, wealth creation for Jamaicans, wealth retention in Jamaica, and the equitable participation of our vulnerable and disadvantaged businesses and groups.

We, therefore, must go much further than clarifying who we wish to exclude and be laser focused on precisely who is overrepresented, underrepresented, and which groups and what outcomes we must include for the betterment of our nation.

In recent years, public procurement has seen major transformation in several countries, with a progressive agenda driven by the need for greater equity, efficiency, transparency, and sustainability.

But what exactly does that mean from a practical standpoint, and how is it different from what obtains in Jamaica today? It means a focus on social value and parity in participation, climate crisis, digital transformation and simplification, and integrity in the supporting frameworks. It means a deep application of data science to interrogate and critically assess the current inadequacies of our procurement framework and making informed decisions on targeted solutions.

One of the leading examples can be found in the United Kingdom and its new Procurement Act, set to go live in October 2024. Unlike our current procurement framework, the act prioritises the participation of small and medium enterprises, emphasises social value, climate-change mitigation, prompt payment of suppliers, and is strategically crafted to set a new standard for public-procurement practices. The UK is also seeking to eliminate the disparity between what is on the books and in the code, and what is actually done in practice – in other words, ensuring integrity by way of transparency and vigilant compliance monitoring.

These are all critical gaps in the Jamaican landscape.

The new UK procurement model promises to be the crown jewel in an economic ecosystem that is flanked by the already impressive human development inner guards: the Apprenticeship Levy and the Public Services (Social Value) Act.

The Apprenticeship Levy mandates that large employers invest in apprenticeship programmes, ensuring that government contracts contribute to workforce development across various industries.

The Public Services (Social Value) Act encourages and rewards government suppliers who create social value as part of their procurement bids such as local employment and tangible, sustainable community benefits. It is not just who bids the lowest. And ‘value for money’ has been redefined to include environmental and social imperatives. Progressive and impressive.

Likewise, Germany and Australia have integrated vocational training, apprenticeships, and workforce development as key pillars of their public-procurement framework in addition to prioritising social inclusion in wealth creation opportunities

In Canada and the United States, the progressive public procurement agenda continues to evolve with a deepening focus on integrating human-capital development, workforce investments, and apprenticeship programmes into public-procurement frameworks. There is a huge focus on data science, with lawmakers keenly eyeing new reporting and data-collection methods to better understand who is bidding, who is winning, and where the winners of government contracts are reinvesting.

We are already seeing the richness of this information driving spanking new policies and programmes that deepen social value, improve equity, and open new opportunities for constituents previously excluded. The world has woken up to the reality that procurement outcomes that favour one set of people all the time make for ugly social, economic, and environmental realities.

Finally, there is also an emphasis on the future of work and industry, and ensuring wider and more steady channels for high-quality jobs, nurturing talent for high-potential industries.

Inspired by these examples, Jamaica must transform its public-procurement infrastructures to drive sustainable economic growth, mitigate pressing social and environmental exigencies, and create a highly competitive, skilled workforce.

These are imperatives in this technologically precarious era. By taking these actions, the country may be able to eke out a much brighter future for all our people: one in which public spending not only meets immediate needs, but also contributes to long-term national-development goals.

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Yaneek Page is the programme lead for Market Entry USA, and a certified trainer in entrepreneurship. Email: yaneek.page@gmail.com