Knowledge is POWER
I remember when I was just a “cub” contract officer, one of my first bosses told me that, “Knowledge is power, and you don’t share power.” He played everything pretty close to the chest and didn’t tell anyone what purchasing did or how we did it. As a result, the general consensus of our entity’s management and users was that purchasing didn’t do anything!
The only thing more powerful than knowledge, is ignorance on the part of the powerful! There is nothing more frightening than those in positions of public leadership who don’t know what they don’t know; especially when it comes to how public funds must be spent effectively, legally, and ethically.
However, before we start chastising the politicians and venting at our top management, let’s take a hard look at the facts. Our political leadership generally comes from a background of success in the private sector. Because of their private sector paradigm, they seldom recognize or understand how and why public procurement is different. The differences exist in four major areas:
1. The Law: In the private sector, purchasing can be conducted in ways that are not prohibited by law. That certainly leaves some room for creativity. However, public procurement can only be conducted in ways that are specifically allowed by the law. Now that’s a different kettle of fish, isn’t it? (Or should I say “Fish Bowl”?) Because we are spending public funds, we must follow a specific set of consistent rules and regulations that ensure the public trust. That’s what “enabling legislation” means. The law is necessary to authorize government officials to spend public money. Public trust takes primacy over profit!
2. The Marketplace: In the private sector a purchasing manager is able to narrow the number of potential bidders down to a few known, qualified competitors who are responsive and responsible suppliers in support of the company’s specific product needs. Public procurement touches every aspect of public service—from toilet paper to technology. In dealing with a high volume of multi-faceted suppliers, we must ensure that anyone who wishes to bid has an opportunity to do so.
3. The Customer: In the private sector the purchasing manager works for the company’s CEO. A profit-oriented company has a focused product and customer in the marketplace. In the public sector EVERYONE is our customer…including the suppliers!
4. The Equity: This is the least understood area of public procurement and the single greatest cause of “gastric distress” for procurement professionals and public administrators alike. Only in the public sector is the procurement officer tasked, by law, to ensure equitable treatment of all parties to the procurement/contract. The procurement officer must be protectively insulated from political influence in order to objectively ensure equity of the entire process from acquisition through award, contract administration and completion/termination of the contract.
A fundamental understanding of the above differences between the private and public sectors can make life much easier for everyone involved with public procurement. The question is: “Who is going to share this knowledge?” The answer is: “The trained and certified public procurement professional—YOU!” No one else can.
Knowledge shared is power gained.
Editor’s Note: Beau Grant, CPPO, is a Master Instructor for the National Institute of Governmental Purchasing (NIGP) and President of Beau-Geste Enterprises. Readers can reach Grant by e-mail at: [email protected].
