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Summary:

The federal government, as are other governments, is making moves to buy smarter. In December of 2003, Public Works and Government Services Canada (PWGSC) was mandated, under the direction of Deputy Minister David Marshall, to reduce the cost of goods and services by 10 percent, reduce procurement processing time by 50 percent, reduce costs of purchasing by 10 percent, and simplify the procurement process to make it easier for the private sector to do business with the federal government. The challenge for governments is to entrench policies that balance the rigidity needed to ensure value and accountability with the flexibility required to respond in a timely manner to exigent circumstances. Improving general policies and processes will likely address some of the specific issues but a big part of solving the unique problems of IT projects lies in debunking a few myths: 1. Information technologies are complicated. 2. IT is an appropriate solution for every problem. 3. Information technology reduces expenditures.

Headnotes:

Extract:

Pay Little, Get Little

"It is unwise to pay too much, but it is worse to pay too little. When you pay too much you lose a little money; that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the things it was bought to do. The common law of business balance prohibits paying a little and getting a lot, it cannot be done. If you deal with the lowest bidder it is well to add somethi...



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