Heroes in our commmunities

Impact of Procurement

Topic:

Promoting the Value of Procurement

The field of public procurement is often misunderstood. In the past, it was considered a back-office function. However, over the years, the profession has transformed and today the procurement professional is a strategic partner and steward of maximizing the value of public spend. They are important agents in the public sector who strategically source suppliers and materials for activities that benefit the public’s health and safety in a variety of ways.

Without public procurement, roads wouldn’t get built and hospitals wouldn’t have the medical equipment they need to care for patients. Schools wouldn’t have textbooks and sanitation services couldn’t be improved. There’s a seemingly endless list of all the ways public procurement impacts the public to improve people’s lives and ensure their health and safety.

Benefits of Public Procurement

Public procurement is responsible for ethically sourcing contracts that benefit the public. Public procurement operates at the local, state, and federal levels. Here are some of the ways public procurement benefits all of us.

Environmental Benefits
Environmental Benefits

Finding sustainable ways to solve problems is an essential part of public procurement. Building roads and infrastructure using eco-friendly and sustainable materials and suppliers benefits the environment now and in the future.

By focusing on sustainable initiatives, public procurement can contribute to solving global environmental challenges, including the following:
- Reducing water usage
- Increasing energy efficiency
- Increasing sustainable agriculture
- Lowering greenhouse gas emissions
- Reducing air, water, and soil pollution
- Reducing waste and increasing recycling
Social Benefits
Social Benefits

Through careful and strategic sourcing, public procurement professionals and agencies can have a lasting impact on social sustainability locally and nationally. Some of the ways procurement can have a meaningful social impact include the following:
- Increasing transparency and accountability for those in public office
- Bridging inequality gaps by sourcing using ethical, non-discriminatory practices
- Improving the labor market by setting requirements on working conditions for suppliers
- A focus on sustainable procurement can lead to a quality of life increase for the public
Economic Benefits
Economic Benefits

Procurement strategically and carefully distributes public funds to provide services and infrastructure that benefit the public. Here are some of the ways public procurement benefits the local and national economy:
- Increased competition can lead to lower market prices
- Helps develop sustainable business models through a circular economy
- Procuring energy-efficient goods can save money in the long run and simplify end of life recycling

Environmental Benefits
Environmental Benefits

Finding sustainable ways to solve problems is an essential part of public procurement. Building roads and infrastructure using eco-friendly and sustainable materials and suppliers benefits the environment now and in the future.

By focusing on sustainable initiatives, public procurement can contribute to solving global environmental challenges, including the following:
- Reducing water usage
- Increasing energy efficiency
- Increasing sustainable agriculture
- Lowering greenhouse gas emissions
- Reducing air, water, and soil pollution
- Reducing waste and increasing recycling
Social Benefits
Social Benefits

Through careful and strategic sourcing, public procurement professionals and agencies can have a lasting impact on social sustainability locally and nationally. Some of the ways procurement can have a meaningful social impact include the following:
- Increasing transparency and accountability for those in public office
- Bridging inequality gaps by sourcing using ethical, non-discriminatory practices
- Improving the labor market by setting requirements on working conditions for suppliers
- A focus on sustainable procurement can lead to a quality of life increase for the public
Economic Benefits
Economic Benefits

Procurement strategically and carefully distributes public funds to provide services and infrastructure that benefit the public. Here are some of the ways public procurement benefits the local and national economy:
- Increased competition can lead to lower market prices
- Helps develop sustainable business models through a circular economy
- Procuring energy-efficient goods can save money in the long run and simplify end of life recycling

$4.45 trillion

U.S. government spending 2019
(US Spending)

$111 billion

State and local government
IT spending 2020

CDN 400 billion

Canadian government spending
(Canadian Spending)

PROCUREMENT FACTS

Procurement Facts

There are over 90,000 local governments in the United States, made up of 16,360 townships, 19,519 cities, 3,031 counties, 12,800 school districts, and 38, 266 special districts. (GovTech)

At least 45 states, plus the District of Columbia, have procurement policies designed to give preference to businesses meeting certain characteristics, such as being veteran-owned, using environmentally sustainable practices, or manufacturing within the state. (Institute for Local Self Reliance)

Overall, public procurement spend represents around 13 – 20% of GDP. (World Bank)
More Procurement Facts

Nearly three-fourths of states have a central procurement office with statutory purchasing authority across all areas of procurement within the state. (NASPO)

The number of state and local IT procurements has jumped from 5,104 in Q1 2012 to 9,369 in Q1 2020. (GovTech)

Procurement Facts
There are over 90,000 local governments in the United States, made up of 16,360 townships, 19,519 cities, 3,031 counties, 12,800 school districts, and 38, 266 special districts. (GovTech)

At least 45 states, plus the District of Columbia, have procurement policies designed to give preference to businesses meeting certain characteristics, such as being veteran-owned, using environmentally sustainable practices, or manufacturing within the state. (Institute for Local Self Reliance)

Overall, public procurement spend represents around 13 – 20% of GDP. (World Bank)
More Procurement Facts
Nearly three-fourths of states have a central procurement office with statutory purchasing authority across all areas of procurement within the state. (NASPO)

The number of state and local IT procurements has jumped from 5,104 in Q1 2012 to 9,369 in Q1 2020. (GovTech)

Impact of Procurement

Benefits of Public Procurement

Environmental Benefits

Social Benefits

Economic Benefits

Environmental Benefits

Social Benefits

Economic Benefits

PROCUREMENT FACTS