People in the private sector like to opine that government should operate like a business, but that’s just not practical. The goal of the public sector is to provide the best possible services at the lowest possible cost, with a focus on the health, safety and welfare of the community. The goal of the private sector is to make a profit. These competing interests make it impossible for governments to run like a business; plus, there are some poorly run businesses no one should ever emulate.
But that’s not to say local units of government (LUGs) can’t learn a thing or two from the private sector. There are elements of successful businesses that can be incorporated into the business of government; particularly, certain procurement practices.
LUGs with decentralized or no formal procurement practice can benefit more than others, especially those that look at purchasing goods and services as only a task. The sooner the “done” box can be checked, the sooner they can get to the next issue du-jour.
LUGs often use bid networks and place orders with the, “lowest qualified bidder” no matter how many bidders participate. They also see over-specified bigger ticket items, many times prepared with the help of a vendor who then becomes the only person capable of meeting the requirements. Other potential providers can usually read between the lines in these cases and don’t bother submitting a bid.