U.S. Trade and Development Agency and George Washington University Announce New Partnership to Develop the Global Procurement Initiative
August 1, 2013
(USTDA)
Designed to Foster Best-Value Determination and Life-Cycle Cost Analysis in
Public Procurements
WASHINGTON, DC - The U.S. Trade and Development Agency (USTDA) and the George
Washington University (GW) have signed a Memorandum of Understanding
establishing a partnership to develop the Global Procurement Initiative:
Understanding Best Value.
The Initiative is designed to share best practices in procurement with officials
from emerging economies in order to foster fair and transparent procurement
systems that utilize best-value determination and life-cycle cost analysis.
Training activities will be tailored to decision makers responsible for
procurement in high-technology infrastructure sectors such as energy,
transportation and telecommunications.
Procurement policies in emerging markets often limit competition by relying upon
low-cost as the determining factor for award, failing to consider the benefits
that can be gained from high-quality products and services that include
warranties, maintenance agreements and reliable customer service. The Global
Procurement Initiative: Understanding Best Value will improve procurement
officers' abilities to make better informed decisions that take into account all
relevant costs of goods and services over their entire lifecycle. The Initiative
will improve the transparency and professionalization of the procurement
workforce, opening the door for increased competition in international tenders.
"Low-cost procurement methods limit the opportunities for U.S. companies to
compete in emerging markets," said USTDA Director Leocadia I. Zak. "Procurement
systems that utilize a 'best-value' determination will help to level the playing
field for high-quality, high-value goods and services provided by U.S.
companies.
"A predominant focus on low-cost procurement methods often leads countries to
acquire goods and services that fail to meet their long-term objectives over the
life of the investment. A more sophisticated analysis of the total cost of
ownership can lead to smarter, longer-term investments with overall savings to
our partners overseas."
As a first step, USTDA has already incorporated life-cycle cost assessments into
the economic analysis conducted for all of its feasibility study and technical
assistance projects.
"The George Washington University has made a commitment to preparing students
for an increasingly globalized society," said Law School Interim Dean Gregory E.
Maggs. "In keeping with this value, we are very pleased to partner with the
USTDA to promote best practices in government procurement. Drawing on the
knowledge and experience of GW Law School's Government Procurement Law Program,
the Global Procurement Initiative will be a resource for countries with emerging
economies, providing information and resources to help them make optimal use of
spending on public contracts to obtain the best value for their citizens."
The Initiative's curriculum will be guided by the internationally recognized
faculty of GW's Government Procurement Law Program, led by Associate Dean Daniel
I. Gordon.
Taking into account the importance of multilateral bank financing in developing
and middle-income countries, the Initiative will seek opportunities wherever
possible for collaboration with the major development banks, including the World
Bank, the Asian Development Bank, the Inter-American Development Bank, the
African Development Bank, and the European Bank for Reconstruction and
Development.
Director Zak said, "The involvement of the major financiers for development is
crucial to the success of this program. The value of their expertise on best
procurement practices and the importance of their central role in driving
emerging market public works cannot be overstated."
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