Government procurement

The CMD is currently engaged in a major initiative to reform procurement processes run by government. In broad terms, our objective is to assist government procurement agencies to transition from simple one-size-fits-all tenders, often including bilateral negotiation, to designed procurement electronic auctions including internet bidding. While some large private firms have already upgraded their procurement processes along these lines, governments around the world are only beginning this transition. The governments of Brazil, Mexico and some local governments in the UK have been early leaders in procurement reform. The results in these jurisdictions have been spectacular in terms of cost savings and process efficiency. The Federal Government of Brazil, for example, claims a 20 per cent cost saving of goods procured for government business and significant reductions in internal process costs.