Government procurement is defined as the process of procuring goods and services that work on their behalf for certain projects. A great portion of the USA’s total economy comes from the government procurement accounts that prove how important it is for the country. It is a very important procedure because the government can’t fulfill all the inputs for things they offer themselves. That’s why, they hire others to ensure that all the projects get completed within the stipulated time.
According to a recent report from the Center for American Progress, there are more than $400 billion dollars saved by the federal government using procurement strategies. According to xfactorgov the procurement also makes things attractive for contractors who perform the work for the government. In this post, we will give important information about the government procurement used by the federal government.
What are the major phases of government procurement processes?
Most of federal government procurement processes are performed in three phases that we have explained in detail below:
· Planning
It is the most important phase where the top authorities find out how much goods and services they need to shop for the project. This critical step needs to be performed rightfully for getting adequate results later on. Proper planning makes sure everything stays at the place for success of the project.
· Negotiation
In this phase, the procurement authorities try to find out a suitable deal for their work. It includes a variety of work ranging from inviting the suppliers for bidding on their projects to have negotiation with them. Everything that is planned in the first phase is discussed with the supplier in this phase.
· Management
The entire procurement process is managed and controlled in this phase by various officers, managers, and other officials to ensure all the products and services get completed within the stipulated time. It is very critical to manage the entire process carefully for quick results.
What are the major techniques for cutting costs in government procurement?
There are tons of notable examples that are used by the US government for minimizing the costs in the government procurement process. We have detailed about them in detail with proper explanation below:
· Demand Estimation
It is very important to have a highly accurate estimation of things needed for predicting the operational capacity. It assists in giving right information to the suppliers for boosting the ability of the government to set a perfect price.
· Better Planning
Another perfect strategy for making government procurement better is minimizing the costs that can be done by consuming fewer resources. To do so, it is very critical to match the purchase requirement with the identified requirement for getting the best possible results.
· Maximizing Competition
It is an old school trick that is still used by the federal government of many different states across the United States. Having tough competition can help in lowering costs and boosting innovation to a different level. It not only helps in making the performance better, but also attracts tons of bidders.
· Simplification & Automation
There are lots of federal governments who have implemented the simplification and automation for eliminating the things that deter competition. Automating the process improves the system for both the government as well as bidders.
Has covid-19 pandemic affected the government procurement in the USA?
Covid-19 has taken the world by storm and the same goes for the government procurement process in the United States. The Biden administration has changed procurement policies after taking up the office as they are targeting products and solutions from the United States. Furthermore, they have passed the order with the tagline “the future will be made in America”.
The main reason for this decision by the government is to provide financial stability to American economy that was negatively affected during the pandemic era. They are working to provide better procurement opportunities to the small businesses in the country.
What future holds for government procurement projects in the USA?
It clearly looks like the Biden government will focus on the American-made products and solutions for the foreseeable future. They are looking for bidders within the borders of the United States. It will definitely help in boosting the economy of the country that is struggling after this pandemic.