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Focus On Series


Procurement of Goods and Services Using the Traditional Procurement Approach

Government procurement represents a significant proportion (10-15%) of the economic activity of developed countries. Each year, governments in Canada spend billions of dollars procuring goods and services. While there is a trend towards the increasing use of new procurement approaches (for example, Public-Private Partnerships), the majority of large procurement projects are still conducted using the ‘traditional approach’ under which a government provides specifications for its needs, selects one or more contractors to deliver goods or services that meets these specifications (usually following a competitive tender process), finances the project with public funds and remains responsible for lifetime operation and maintenance requirements. Under this traditional approach, governments are also responsible for project risks like design flaws, delays and cost over-runs.

Audits of traditional procurements tend to focus on:

  • Compliance with procurement policies and procedures.
  • The adequacy of project risk management systems and practices.
  • The adequacy of monitoring processes to ensure contractual obligations are met by contractors.
  • The adequacy of project management oversight.
  • The fairness and transparency of procurement processes (including tendering).
  • The justification and documentation of significant decisions.

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