Procurement scandals haven’t been a priority coverage area on Spend Matters, but that may change soon. Monday's Afternoon Coffee column covered the news, broken by the New York Post, that the chief procurement officer for New York City’s Metropolitan Transportation Authority (MTA) has been fired for allegedly soliciting bribes from a contractor. There is of course a “lady friend” involved in this saga too, but I’ve gotten ahead of myself. But this got us wondering: How does this compare with other procurement-centered crimes? Here is a roundup of recent scandals, some more salacious than others.
The Public Sector Category
President Donald Trump followed through on one of his central campaign promises Monday by officially withdrawing from the Trans-Pacific Partnership (TPP). And while trade with China, Vietnam and other Asian countries is certainly of concern to most procurement groups, our neighbor to the south also needs to be on your radar for 2017.
President Donald Trump recently said, “Now, we’re going to have regulation, and it’ll be just as strong and just as good and just as protective of the people as the regulation we have right now. The problem with the regulation that we have right now is that you can’t do anything… I have people that tell me that they have more people working on regulations than they have doing product.”
So considering the evolving and heavily regulated labor market, how should we read these tea leaves?
Anne Rung, administrator of the Office of Management and Budget’s Office of Federal Procurement Policy, is leaving the public sector to head the government division of Amazon Business, several sources report. The hire is a boon to Amazon, which gains an experienced government insider who can help connect the Seattle-based company with huge market opportunities in state and federal e-procurement applications. So what exactly makes Rung a good fit?
Spend Matters welcomes this guest post from Alvarez & Marsal by Julie Diehl, managing director, Jefferson Howell, director, and Erin Campbell, manager.
The transition from a procurement organization serving as a process facilitator to a true strategic business partner is a daunting task — structures that have evolved without formal design, limited communication, resource skill gaps and disparate data can often create barriers to progression. Though these challenges are not unique to the public sector, the regulatory and statutory constraints under which these agencies operate are. In this article, we will walk through three ways agencies overcome these challenges and begin to move up the maturity curve to provide real, strategic value.
Our sister site Public Spend Forum recently launched its new Public Impact Podcast, which shares stories of professionals and suppliers innovating and making an impact in the public procurement space. As Raj Sharma, co-founder and chairman of the board at PSF, explained, the goal of the podcast is to “really bring those stories to light so we can see how each one of us can do the same and have a major impact of how we solve problems.”
Spend Matters' sister site Public Spend Forum has plenty of untold stories to tell on the government providing new and innovative ways to deliver goods and services to its citizens – and is now launching a podcast to tell them. The Public Impact Podcast is live with its first episode featuring Dave Zvenyach, acquisition management director at the Genera Services Administration's digital services division, 18F. We encourage you to subscribe and rate via iTunes, Android or email.
The U.S. federal government spent over 25% of its contracting dollars in fiscal year 2015 with small businesses, giving the government a grade of “A” on the Small Business Administration’s Small Business Procurement Scorecard. The SBA released the scorecard earlier this week, showing the federal government surpassed its goal of having 23% of prime contracting procurement dollars go toward small businesses. In all, the government spent $90.7 billion during 2015 on contracts with small businesses, or 25.75% of its contracting dollars.
Governments at every level constantly collect enormous troves of data, but how to use it, and specifically how to ensure that data is feeding the correct metrics to measure your procurement performance, has been an ongoing struggle for the public sector. We’ve heard this time and again from readers and members over at Public Spend Forum, so we’re hosting a free webinar titled “Procurement and Spend Analytics – Key to Driving Value” on Thursday, May 12, from 1 p.m. to 2 p.m. EDT. Professor Joseph Sandor from the Broad College of Business at Michigan State University will kick it off with an introduction to spend visibility, and then our sponsor BravoSolution will present a case study in which one of its public sector clients greatly improved its performance by improving its analytics.
The ISM and Spend Matters Global Procurement Tech Summit (#ProcureTech2016) kicked off this morning in Baltimore with Anne Rung taking the stage as the morning’s first keynote. Anne centered much of her talk on federal IT procurement, which within the Office of Management and Budget (OMB) represents over 10% of the overall Federal procurement budget — $51 billion in IT spend, to be precise).
There are only six days left before the ISM and Spend Matters Global Procurement Tech Summit. As we approach the kick-off to the event, I’ll share six different perspectives on speakers and areas attendees should be paying close attention to. Up first is one of our keynotes speakers, Anne Rung, who is leading a session titled “From the War Room: Technology Hits and Misses From the Federal Government.”
The U.S. government said 5.05% of its fiscal year 2015 contracting dollars were awarded to women-owned small businesses, hitting a goal it set back in 1994. The Small Business Administration (SBA) reported the $17.8 billion awarded to women-owned businesses in 2015 is a “historic contracting achievement,” for the government and sets a new standard upon which to build.