Stimulating innovation through procurement
Good procurement practices have the potential to generate new solutions.
Identifying where to look can help agencies better find new solutions while using early market engagement is essential to get an idea of the different solutions are possible and good ways of stimulating market ideas. Furthermore, using different competitive procurement processes encourages suppliers to suggest different solutions to achieve the required outcome. Establishing evaluation criteria and process are needed for considering alternative solutions while it is also important to provide useful feedback on tenders to help firms improve their future proposals. Establishing contracts open to new developments can help improve services during the agreement. Working together with contracted suppliers can help develop new solutions and improve outcomes.
Government Rules of Sourcing encourage the development of new solutions in a few areas:
- ‘Agencies should use competitive procurement processes’ - it does not have to be a tender process. Alternatives approaches include - competitive dialogues, prize competitions, bake-offs, hackathons, and many others.
- ‘Exemption from open advertising’ for winners of design competitions, purchasing prototypes, running pilots, and responding to unique unsolicited proposals.
- ‘Publishing Annual Procurement Plans’ to give the suppliers an idea of future needs so they can start thinking about possible new solutions.
Helping agencies to identify where they could be looking for new solutions can involve talking to suppliers about what new ideas are coming up and go to industry conferences or expos. Furthermore, use of market-knowledge can help show agencies new ideas about how the market could respond to agencies objectives. Another strategy is to use the development of Annual Procurement Plans and 4-Year Plans to talk to operational and policy managers about where they need new solutions and to give them ideas about how different market engagement approaches could generate new solutions. Organising Innovation Labs is also a way for suppliers to show operational and policy professionals new ideas on the market.
In this Challenge, we would like you to share your thoughts and experience on procurement and its potential for stimulating innovation.
- What are your thoughts on the above mentioned ideas?
- How can your area of work/sector or other industries benefit from innovation through procurement?
Challenge Opened: 03:41 AM, Wednesday 25 July 2018
Challenge Closes: 02:00 PM, Tuesday 07 August 2018
Time to go: Closed