Singapore is moving towards outcome-based purchasing with Senior Minister of State for Finance, Indranee Rajah, announcing in parliament that the new approach will be introduced into three key sectors.
Under the reforms, security, landscape and cleaning sectors will require a change in the tender process as well as amendments in how service providers are monitored.
Rajah said, “For example, rather than specifying headcount for security contracts, agencies could specify areas to be monitored and the response time expected of security officers in the event of an alert. This would enable tenderers to consider using technology and innovative deployment of their staff to support our efforts to raise productivity and raise wages in these sectors.
“Where government intervention is required to meet certain policy objectives, we generally do this through targeted measures rather than through conditions of procurement. This avoids mixing multiple objectives into the government procurement process which could result in distorted outcomes – that’s the broad principle.”
It was also noted in parliament that over the last three years, small and medium enterprises have secured over 60 per cent of total government value and 85 per cent of all government tenders.
After review, further details will be announced later this year.
PASA will be running a first CPO Exchange in Singapore on 22nd & 23rd September. If you are a Singapore based CPO or a supplier interested in the opportunity to meet with senior procurement decision-makers then please see further information here