Article
Why public procurement and NIGP are important
Don Buffum, president of NIGP, explains why public procurement and the NIGP are important to procurement officials and the profession of public procurement.
NIGP’s vision is to be a vibrant international association creating a world in which public procurement practitioners are highly regarded members of a respected professional order. Good public procurement can change the world in which we live. Through our professionalism, we can have a positive impact on people all over the globe. If money is spent without regard to good public procurement practices, its positive value will be greatly reduced. Yet, if those dollars are...
One way in which public
One way in which public procurement practitioners can provide the best value to their institutions is to be aware of best practices in a wide variety of areas of procurement. While all public procurement has an impact on those served by institutions, there are certain areas where the awareness of best practices promoted by the NIGP is particularly important. Some areas of procurement are relatively straightforward while others can be confusing and best practices can be difficult to disseminate. For example, the field of equipment maintenance can be confusing and difficult to determine the best value. Equipment maintenance contracts are typically offered by Original Equipment Manufacturers (OEM), Independent Service Organizations (ISO), and Equipment Maintenance Management Program (EMMP) – companies that cover the maintenance of an organization’s equipment. Each of these types of service agreements may be best suited to cover certain types of an organization’s equipment and it is a best practice to review all of the options available before purchasing a service contract. Unfortunately, not all procurement officials are aware of these different options and in many cases, will renew the OEM or ISO service contract because that’s what’s been done in the past. OEM and ISO contracts often do not provide transparency regarding the cost of equipment maintenance, further obscuring the best value. In many cases, EMMP companies are able to cover the cost of equipment maintenance on a wide variety of equipment and provide greater transparency. EMMP companies will typically review existing service contracts and offer a discount off of either OEM or ISO pricing. While some equipment might be best served on a Time-and-Materials basis or by continuing existing service contracts, it is certainly a best practice for a public procurement professional to review all options before coming to a decision.