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Global Procurement Initiative
Launched in 2013, USTDA’s Global Procurement Initiative: Understanding Best Value promotes a strategic shift in the planning and development of infrastructure away from lowest‐cost and toward higher‐quality in the planning and development of infrastructure .
The Government of Vietnam incorporated best practices from USTDA-funded GPI activities into national guidance. Its Public Procurement Agency (PPA) produced standard bidding documents that serve as the basis for procurement practices for several government agencies, and an e-procurement system has been put into operation that has increased the transparency of government procurement processes. USTDA also partnered with the PPA on a study to develop a contractor performance database system that will allow the Vietnamese government to rate and share contractor past performance and ensure greater quality for its public procurements.
Through in-country training and embedded technical advisors, the GPI is laying the foundation for transformative change in how Ethiopia procures public goods and services. In the power sector, USTDA partnered with Ethiopian Electric Power to draft new standard operating procedures and a new best-value procurement manual to guide its procurements. Skills learned from the GPI’s trainings have led the Federal Public Procurement and Property Administration Agency to utilize best value procurement methodologies in the procurement of vehicles, construction materials and consultancy services.
 Around the world, USTDA’s partners recognize that in order to make infrastructure investments last, it is necessary to appreciate and apply the procurement concepts of total cost of ownership and life-cycle cost analyses (LCCA) to determine the most sustainable and economically feasible option.
Through the GPI, USTDA tailors training programs that meet the specific needs of each partner government, while also funding in-country technical advisors that help partners implement new procurement models and put their in-depth training into practice.
The GPI represents a win-win for overseas governments and U.S. industry. By helping partner countries create a level playing field for their public tenders, the GPI consequently promotes more inclusive and competitive international procurements that encourage firms to offer innovative, higher-value goods and services.
This fiscal year, USTDA completed two LCCA pilot training programs in Panama and India, finalized an LCCA online curriculum and approved Jamaica as the newest GPI Partner.
The GPI supported Panama’s adoption of several key procurement best practices, including the improvement of contract oversight procedures, the use of non-price evaluation factors and the incorporation of LCCA. Working with partners including the Ministry of Public Works and the Directorate General of Public Procurement, USTDA supported dozens of the country’s leading procurement officials through training sessions, a U.S. study tour and technical advisory services customized to Panama’s specific requirements.
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