The procurement balancing act
Delivering cost savings for government
Shifting the direction of procurement to deliver mutual gains for government, business and the broader community
Economic benefits of better procurement practices
Deloitte Access Economics was commissioned by Consult Australia to quantify and model the economic benefits of better procurement practices.
The report finds that savings of up to $2.5 billion out to 2030 can be generated across government by improving procurement of professional services for public infrastructure projects. This can deliver long term benefits for the broader economy, estimated at $5.1 billion in additional GDP over the period.
Following consultation with government on the extent and causes of these issues, the report identifies seven next steps to shift the direction of procurement. This includes establishing procurement teams with a mix of skills, reallocating resources to better focus on project objectives, removing contract clauses that do not stack up, and developing and applying limited liability guidelines. While verification of brief information and streamlining compliance processes will remove inefficient bid costs, governments should also evaluate and adapt procurement frameworks to encourage innovation.