Manitoba has announced the implementation of its procurement modernization strategy.
The announcement was made by Finance Minister Scott Fielding that PricewaterhouseCoopers Canada (PwC) will assist the provincial government in developing and implementing a procurement modernization strategy.
“The province currently sources goods and services on a project-by-project basis, which can be costly and inefficient,” said Fielding. “PwC will help implement a strategy to enable the provincial government to become a ‘smart shopper’ by bundling contracts to reduce costs.”
Manitoba currently issues individual contracts for projects and often goes through separate tendering processes for various goods and services. Reviews in 2012 and 2016 identified the need to modernize procurement services in the Manitoba government as a way to achieve cost savings.
Manitoba’s new approach to procurement will utilize the category management methodology, allowing for more effective planning. One contract can be issued for a particular category of goods or services for several departments, instead of several separate contracts. This allows government to negotiate lower costs through larger purchases of a product or service, as well as better contract management.
The minister noted the Nova Scotia government is currently updating their procurement services in a similar way.
“PwC has been supporting this work in Nova Scotia, which is already seeing positive results,” said Fielding. “In year three of the implementation process, the current savings are more than $25 million per year. Manitoba will benefit from their experience with this type of reform, and we expect to see real cost savings while maintaining the quality of services Manitobans expect and deserve.”
As part of the modernization strategy, PwC will support the implementation through transformation governance, staff training, program management, change management support and benefits tracking.