Page 20 - Procurement guidelines for smart sustainable cities - A U4SSC deliverable

In June 2020, the Development Bank of Latin America (CAF) published its “GovTech Index 2020:
Unlocking the Potential of GovTech Ecosystems in Latin America, Spain and Portugal” . This index
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analyses 28 indicators and primary sources to understand the potential for countries to act in seven
policy dimensions: innovation environment; digital environment; industry environment; policy
environment; digital government; procurement frameworks; and procurement culture.

The CAF index states:

“The procurement system functions as the nexus element between startups and government. A
robust and transparent procurement environment enables startups to sell to government, and
government to buy from those startups providing the best solutions to their challenges. The
degree to which governments put in place startups-friendly procurement regulations varies in the
region.

The main challenge seems to be in the procurement culture, in that frequently, in place, these are
not enforced. In addition to this, corruption in procurement processes remains a fundamental
challenge. Solving these issues will be key for governments, as it will help build trust with startups
signalling that doing good business with government is possible and taken seriously.”

The e-Government Survey 2020from the UN Department of Economic and Social Affairs (UNDESA) is

a comprehensive survey of the online presence of all 193 United Nations Member States. It assesses
national websites and how e-government policies and strategies are applied in general and in
specific sectors for the delivery of essential services, including procurement. According to the 2020
Survey, 161 of the 193 countries surveyed released online announcements related to government
procurement processes. A majority of Member States provide the results of procurement/bidding
processes online (138 countries) and have functional e-procurement platforms (125 countries), and
about a third (67 countries) provide digital invoice services.

According to the Survey’s Local Online Service Index (LOSI), where the city portals are assessed,
procurement announcements and information on the organization, operations, management
and budget of the city/municipality are available on the portals of more than 60 per cent of the
cities assessed (the 2020 Survey covered 100 cities). Only around a third of the city portals (37.2
per cent) make procurement results and related information available The Survey also includes
recommendations on making procurement processes and contracting arrangements digital by
design and compatible with modern and agile ways of developing and deploying digital technology.

Some aspects relate to effectiveness, efficiency, transparency, accountability and public trust, and
digitally publishing government expenditures. Additionally, there are references to changing
procurement rules and practices and strengthening the relevant implementation capacities
of public institutions, as these are also central to digital government transformation. Indeed, it
states that archaic laws, old regulatory regimes, and overlapping and conflicting authorities, can
significantly complicate or even halt digital government implementation.

6 Procurement guidelines for smart sustainable cities | May 2023