Understanding Selective Procurement in Government and Membership Organizations: Challenges and Solutions

Consumers and households can be very selective in who they do business with. They may even be selfish in patronising a few vendors, whom they like for whatever reason. This is not the case with some institutions like governments or membership organisations. These are bound by a different set of rules and usually cannot be that selective.

Governments through their procurement regimes will seek to ensure that the big firms as well as the small share in their acquisition of goods and services. Similarly, membership organisations, if they must procure products, will adopt systems to either rotate vendors, spread the opportunities across a number of members and even facilitate cooperative ventures. On occasion, despite the best efforts of these entities, there are still those who will complain that a section of the constituency is not benefiting from the opportunities available.

There is cause for concern when such accusations are factual.

Government, with the widest population, has a greater moral responsibility to the whole. The cry that too few companies in construction, professional services, entertainment and other general services are benefiting from government’s procurement, cannot go on deaf ears.

Small firms in a recent focus group gave examples of what they term selective procurement by government – one real estate firm appears to benefit from government’s property sales or property development projects. (The slaves who died on the Drax Hall plantation would be rolling in their graves if they got wind of the development with that sale); few construction firms were contracted to build or repairs roads; despite complaints about the poor quality of food by a particular catering firm, that company was usually contracted for many state events because of ‘connections’. The list is long and varied.

The modernisation of government’s procurement regime was intended to address some of this inherent bias by ensuring greater transparency and accountability to the public. The project, which was funded by the Inter-American Development Bank (circa 2012), contemplated a technological framework where all procurement opportunities would be posted online and the award to vendors monitored. The modern iteration of this regime portends a similar construct but is still to be meaningfully operationalised. More so, the recent Procurement Act, provided for a percentage of government procurement being assigned to specific groups. The absence of any transparent reporting renders the effectiveness of this regime almost impossible.

Protagonists of selective procurement will argue that issues of poor quality and lack of capacity of some providers cannot be ignored. It is true there are examples of businesses both big and small, that lack the capacity to deliver on time, with the desired quantities and at acceptable standards. Whether small contractors or service providers, the issue of capacity cannot be easily refuted.

Business Basics is concerned with an intrinsic ideology that is underpinned by a commitment by government to carry along the masses in the development process. The approach must be to help firms build capacity and grow, notwithstanding the need to maximise profitability and ensure efficiency. The objective is to spread the opportunities so all firms can participate in a measured way, thus ensuring equity and enfranchisement.

The architects of Barbados’ Constitution contemplated a democratic socialist construct so that citizens can equally participate in the governance of the country at the same time share in the prosperity of the State as it develops. Unfortunately, administrations have failed to advance this ideology, with a few exceptions along the way. Consequently, the wealth is not being spread equitably and the divide between the rich and the poor continues to widen. Based on current data the poverty levels in Barbados continue to increase.

A modern Barbados should not be defined by circumstances where Black governments fail to introduce policies for the enfranchisement of black populations.

Some argue that Barbados is practising a more a neoliberal style of governance than is expected.

Dr Keston K. Perry, Assistant Professor in the Department of African American Studies at the University of California, wrote a telling article on the style of politics observed in Barbados and concluded that we had deviated from our original socialist moorings. He argued that ‘neoliberalism has profoundly harmed Global south countries, dramatically increased inequalities and exploitation of working-class peoples, and irreversibly harmed the environment’. Dr Perry opined that:

• The current administration’s economic policies as neoliberal – the article details actions like public sector worker layoffs, pension reforms, and support for free-market tourism that the author associates with neoliberalism.

• The policies have not addressed inequality – the excerpt claims the government policies have not challenged the wealth gap between the Barbadian working class and the elite, contradicting the idea of progressive leadership.

• The stance on reparations and climate justice does not hit the mark – the author argues that proposals for debt relief and climate change mitigation have not challenged the existing power structures but maintain a neoliberal framework.

Even those watching from the sidelines of global affairs have concluded that on the current trajectory, existing policies will not address inequalities and social justice.

It is evident that the current approach is ineffective. A new vision is needed that is truly democratic socialist not only in the ideals espoused but by the policies and programmes implemented. Government must carry along the masses in the development model for the country and ensure the chasm that exists between the rich and poor is obliterated. It’s time to spread the wealth, equitably.

The Small Business Association of Barbados (www.sba.bb) is the non-profit representative body for micro, small and medium enterprises (MSMEs).