Documents/4P4BPS/4: Collaboration/4.1: Procurement

4.1: Procurement

Improve procurement of products and services

Other Information:

Improving government's procurement of products and services -- Governments have come under fire for paying too much for products and services. Reducing the cost of government inputs (most of which are sourced from the private sector) is one of the main levers for doing more with less. One way the US government has accelerated the procurement process and lowered procurement costs is through its platform, which has been used by more than 50 federal agencies to invite companies and citizens to submit responses to "challenges" -- in effect, requests for proposals. The top submissions, as judged by the requesting agency, are awarded a cash prize. The $10 million X Prize challenge supported by the Department of Energy yielded over $100 million in private investment. In response to the $50,000 Blue Button challenge, a company in just six weeks installed a function that made personal health records downloadable from a system used by approximately 200,000 doctors. With, the government gets more people thinking about how to solve tough problems, and it pays only for solutions that work.