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Harnessing the industry's innovation and delivery capabilities - Time to maximize the interaction between the public and digital sectors

Public procurement
It is a fact that the IT and telecoms industry is an important partner to the public sector. The digitization of society is increasing and the industry offers necessary and smart solutions for, among other things, public administration, welfare, health, education and care. State and municipal administration has a great need for basic equipment and services from our industry, which has become even clearer during the corona crisis and that the need remains and will increase in the future cannot be denied. It is in all our interests as taxpaying citizens that these investments are efficient and that the procurement process is effective, market-driven and competitive. More companies need to take an interest in operating in the public market and public authorities need to be better at harnessing the industry's innovative power, for the benefit of all.

Both suppliers and customers see development potential and through interviews with representatives from both groups, challenges and opportunities have been identified in our new report. Suppliers point out, among other things, that their potential is not being utilized, that there is a lack of dialogue throughout all phases of the procurement, long processes from decision to payment, price pressure, varying competence among purchasers and that a one-sided and excessive risk is placed on suppliers. The public sector points, among other things, to the lack of a national market for the dissemination of innovation projects, as well as to suppliers' understanding of the mission and unprepared suppliers at the start of delivery. Given these challenges, we have identified six priority development areas that we believe are both possible and desirable to act on in the near future.

  1. Reducing the number of appeals
    Mainly through two measures:
    - Shortening the time for reviews - the government needs to set a maximum limit of 90 days at first instance.
    - By strengthening dialog at all stages of the procurement process. Here we also encourage authorities to provide feedback to suppliers who have participated in a procurement process about why they chose another supplier.
  2. Prioritizing innovation
    Contracting authorities and entities need to be bolder in procuring on function and desired outcome instead of detailed and unnecessary specifications. Innovation is chosen over the risk of review. The latest solution is missed based on real needs, which may also be more cost-effective.
  3. Increasing transparency
    The report shows that only 62 of our 290 municipalities and 4 of our 21 regions had procurement plans in place and made them available online. At least 167 of the municipalities had no procurement plans at all. This must change. Authorities, regions and municipalities are encouraged to draw up procurement plans and make them available. This will give suppliers more opportunity to plan and prepare for a procurement.
  4. Better cooperation and dialogue
    Mainly through two measures:
    - The Swedish Agency for Public Procurement should set up a national forum for issues of a strategic procurement nature - for issues of a general nature, outside individual procurements. Where industry and authorities can meet. This promotes innovation and competition in IT and telecoms.
    - Authorities and contracting entities need to increase dialog before each procurement. Internal dialog is equally important for procurers to understand the real business needs. Dialogue during the contract period is also important for the supplier to be able to deliver in the best way within the framework of the contract.
  5. Supporting and motivating businesses
    Businesses need to be equipped to participate, both by authorities and us as a trade association, for example through training on laws and enforcement in the field.
  6. The industry needs to take responsibility
    Suppliers obviously have a responsibility and a requirement for commitment and willingness to understand customer needs. They also need resources to engage in dialog, build trust and confidence.

If these areas of development are realized, the government procurement process will benefit. In other words, it is time to step up cooperation to create even more benefits. And industry stands ready to contribute.

Frida Faxborn
Industrial policy expert, IT&Telecom companies

Report: Providers of societal benefits
(Updated version October 2, 2020)