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(OWN-2547) Public Procurement: Uncovering Hidden Costs & Capturing Missed Opportunities

Level: Intermediate
Author(s): Bryan Payne, PE CCP CFCC Esq.
Venue: 2017 AACE International Annual Meeting, Orlando, FL

Abstract: Public agency procurement is almost universally perceived as onerous, lengthy, Byzantine, and painful. This is generally correct; however, judicious use of Federal procurement principles and thinking outside the standard public procurement model can realize substantial savings of time and funds. Total cost of procurement as well as tender duration can be reduced through measures explored in this paper. This paper first probes the hidden cost of procurement to both owners and contractors, and then examines specific measures to combat these costs, including bundling of procurements, use of multiple award contracts for professional services and small construction, and control of tender period through proactive management. Standard engineer-procure-construct as well as alternate delivery methods will be addressed. Some measures examined are entirely conventional while others are more forward-looking. All measures presented have saved public agencies time and scarce funds and may help your agency as well. The ultimate goal of this paper is to encourage a frank discussion of cost saving measures that are applicable across multiple jurisdictions.