Procurement strategy pointers: Why it pays to derisk your procurement process with technology

Successfully delivering a major government project is no mean feat. It’s invariably the culmination of years of hard work, from the stakeholders who’ve sponsored it and the project team charged with its successful delivery.

It’s the latter who are typically responsible for shepherding a project through every stage of the process, from the development of a business case to the securing of funding and the selection of a supplier.

They’re also the parties who are likely to find themselves in the hot seat, should legal or political challenges to the project arise at any stage. It’s a given they’ll be held accountable, should extensive delays, quality issues or contract disputes push the project completion date out, inflating the final bill.

Cautionary tales abound, of major infrastructure projects where this has occurred. Given the extraordinary sums of money that are at stake – today, many major infrastructure initiatives carry a 10-figure price tag – the repercussions for those involved tend to be significant. 

A poorly executed project reflects badly on the government entity running the procurement process and has negative reputational implications for project leaders in charge. It’s also a poor use of finite taxpayer funds. A serious cost over-run can mean other important government programs and initiatives need to be postponed or cancelled. 

Making risk mitigation a priority

That’s why project teams need to do everything they can to de-risk major projects and set them up for success from the outset.

Generally, that includes developing a robust business case study, using historical data and market research to develop accurate cost estimates and budget forecasts, early market sounding and evaluating potential suppliers to ensure they’re capable of delivering the project. Monitoring supplier performance and project progress so emerging issues can be addressed promptly is also vital.

Robust operational processes can play a significant part in risk mitigation, at every stage of the procurement journey. Teams should, for example, be able to registers bidders easily, share information with them efficiently and securely and ensure their bids remain confidential until the submissions deadline has lapsed. As the procurement process progresses, they need to be able to provide accurate and complete responses to bidders’ questions, maintain a comprehensive audit trail of those interactions and negotiate with shortlisted bidders in a consistent, transparent and auditable way.

For government entities that don’t take advantage of technology, establishing and maintaining this high level of project oversight and accountability can be challenging and time consuming. 

Struggling to identify and mitigate a range of risks 

That’s because major projects are becoming ever-more-complex and data rich. Using legacy tools, such as Excel and paper based registers, matrices and tracking reports, to identify and mitigate risks is an inefficient and risky way to operate. 

Teams that don’t maintain project oversight and control necessary to identify and mitigate risks can all too easily run into serious trouble.

For example, in the absence of comprehensive evidence proving that bids have been assessed and contracts awarded in a defensible, transparent manner, there’s a strong possibility the integrity of the procurement process will be called into question.

And if the project team doesn't take a data-driven approach to the monitoring and managing of the procurement process, issues can be easily overlooked and milestones missed.

Tools to make the task easy

This is where technology has a transformative role to play. It can be used to map and monitor all the steps and activities that comprise a rigorous procurement process, and one which complies with the relevant government regulations in your jurisdiction. 

Information flows, including document version controls and exchanges of sensitive decision documentation, can be tracked, and procurement milestones and timelines actively monitored and managed.

Deploying a single, secure online data repository makes it easy to do all these things efficiently and well, while reducing the risk of sensitive documents being inappropriately accessed or distributed.

Deploying a virtual data room to mitigate the risks of project failure 

Given the benefits they can deliver, it’s easy to see why a growing number of public sector organizations are investing in virtual data rooms to help them manage the procurement of their major infrastructure projects.

The term is used to refer to a secure online space where confidential documents are stored and shared with authorized parties.

Virtual data rooms can help organizations mitigate risk more effectively by replacing legacy record keeping and disparate document management processes and practices with a streamlined, secure digital alternative.

Deploying one makes it easier to manage complex documentation and monitor key project metrics in real time, not months after issues have begun to emerge. It’s enabling technology that helps the project team steer their initiatives safely from conception to completion.

Doing more to derisk your procurement journey 

It’s easier to progress a high value major project with the right tools. A virtual data room will help your team mitigate the risks that stand in the way of successful project procurement.

Select a solution that’s been developed by professionals with firsthand experience planning, procuring and overseeing major infrastructure initiatives and you’ll give them the best chance of capitalizing on the benefits this transformative technology can deliver.

If you’d like to learn more about how digital data rooms are helping government agencies drive better public sector project outcomes, Ansarada is here to help. Get in touch to talk to one of our customer success specialists.