Optimizing government procurement through social procurement policy innovation: insights from cross-sector collaboration at the Ministry of Health, Indonesia

PurposeThis paper responds to the need for more construction project management research in the emerging field of social procurement. It contributes by exploring the potential value of cross-sector collaboration and project-based intermediation in meeting new social procurement imperatives.Design/methodology/approachA thematic exploratory case study analysis is presented of seventy-three interviews undertaken with stakeholders involved in a unique project-based intermediary developed by a major Australian construction company to leverage the power of cross-sector collaboration in response to social procurement imperatives on its projects, based on semi-structured interviews with 33 disadvantaged job seekers, 40 organisational stakeholders (employment agencies; not-for-profits, Indigenous, disability and refugee support organisations; training organisations; subcontractors; government agencies and departments; community organisations) and observational and documentary data over the duration of a unique project-based intermediary called a Connectivity Centre, developed by a major Australian contractor to deliver on its emerging social procurement requirements.FindingsThe results show that cross-sector collaboration within the construction industry can produce highlight numerous cognitive, behavioural, health, situational and affective social impacts for the project community and shared-value benefits for the range of organisations involved. However, it is found that cross-sector collaboration through project-based intermediation in a construction context is challenging due to the fragmented and dynamic nature of construction project teams and the communities they have to engage with. Encouraging people and organisations to collaborate who operate in industries and organisations with different and sometimes competing institutional logics and objectives (even if they are linked by common values) requires a set of knowledge, competencies and relationships not recognised in current global project management competency frameworks.Originality/valueThis research contributes new insights to the emerging but embryonic body of research into construction social procurement by demonstrating the value of emerging theories of social procurement, social value, cross-sector collaboration and intermediation in enhancing our currently limited understanding of the complex challenges involved in responding to new social procurement requirements in the construction industry. It explores and documents the potential value of project-based intermediaries in developing and managing the new cross-sector relationships, roles, relational competencies and practices, which are required to effectively respond to and measure the impact of emerging social procurement policies in the construction industry. These findings have a potentially significant social impact by providing new insights for policymakers and the construction industry, to optimise the industry’s response to emerging social procurement policies.

Pengadaan Barang dan Jasa Pemerintah adalah mekanisme pengeluaran pemerintah yang memainkan peran penting dalam pemanfaatan anggaran negara. Pengadaan Barang dan Jasa Pemerintah melibatkan jumlah uang yang sangat besar, sehingga pemerintah disebut sebagai pembeli terbesar di negara ini. Dalam praktiknya, secara umum pelaksanaan pengadaan barang/jasa konstruksi Pemerintah sering menimbulkan masalah, termasuk pelanggaran baik prosedur pengadaan barang/jasa konstruksi dengan konspirasi yang tidak tepat dan pelanggaran yang merugikan Negara atau terkait dengan tindak pidana korupsi yang dilakukan oleh organisasi pengadaan barang/jasa konstruksi. Hasil penelitian ini pada akhirnya memberikan jawaban bahwa penyebab korupsi, kolusi dan nepotisme dalam pengadaan barang dan jasa pemerintah di Provinsi Lampung adalah 1) Dana yang sangat besar dikeluarkan untuk mengubah proyek menjadi penggoda yang kuat untuk mengundang koruptor, 2) Sejumlah besar data ternyata dilengkapi dengan administrasi rencana proyek pemerintah yang tidak jelas dan tertutup. Sedangkan upaya penanggulangan korupsi, kolusi dan nepotisme dalam pengadaan barang dan jasa pemerintah di Provinsi Lampung meliputi: a) Tindakan pencegahan, dalam bentuk: Pengawasan dan Pengadaan Elektronik (E-Procurenment) dan b) Tindakan represif, yaitu: hukum penegakan hukum dengan penerapan sanksi pidana yang ketat. Saran dari penelitian ini adalah bahwa itu harus dirumuskan dengan jelas tentang pertanggungjawaban pidana dalam pelaksanaan pengadaan barang dan jasa pemerintah dari penyedia barang dan jasa serta pada pejabat yang berwenang dalam pelaksanaan pengadaan barang dan jasa pemerintah.

Social procurement is becoming an increasingly important requirement in the delivery of private- and public- sector construction projects across the world, yet there is relatively little research done in this area. Mobilising Furneaux and Barraket’s social procurement typology, semi-structured interviews were conducted with senior managers from eight tier-one contractors in the Australian construction industry to explore and classify the types of social procurement strategies used in projects, the types of social value created and the barriers to implementation. Documentary data were collected in the form of company policies and contract requirements. Results demonstrate the conceptual merit of Furneaux and Barraket’s typology in a construction industry context by highlighting different constraints on social value creation for each type of social procurement. These results also indicate that approaches to social procurement in the Australian construction industry are generally driven by a philosophy of risk mitigation rather than opportunity maximisation, and are confined to low-value and low-risk construction activities and are constrained by a lack of existing and new supply chain social-value creation capacity. Construction industry social value chains are fragile in Australia, and it is concluded that in building the sector’s significant untapped capacity to deliver social value to the communities in which it builds, priority should be given to three main strategies: third sector capacity building; barrier-to-entry reduction and skills development in managing new cross-sector collaborations among public, private and third sector organisations.

Emerging social procurement imperatives are driving new forms of cross-sector collaboration between private, public and social enterprise sectors in the construction industry. Yet there is little understanding of how and why social enterprises and private construction firms collaborate in meeting new social procurement imperatives and of the institutional and organizational factors shape these practices. Drawing on theoretical insights from governance, management and policy studies and three case studies of major organizations from across the construction social value chain, the organizational and institutional factors that drive cross-sector collaborations are explored. Documentary analysis of social procurement strategy and policy, non-participant observation of social procurement initiatives in action and in-depth interviews with senior social procurement champions suggest that existing processes of social value co-creation through supply chain relationships more closely reflect a cooperative than a collaborative model, are largely driven by commercial concerns and influenced by industry norms and institutional imperatives. It is concluded that there are significant differences in experience and opportunity for collaboration based on supply chain position and organizational scale and that these have notable effects on the co-creation of social value and the legitimacy of different social benefit providers in the construction industry.

ЗДІЙСНЕННЯ «ЗЕЛЕНИХ» ПУБЛІЧНИХ ЗАКУПІВЕЛЬ: ПОТЕНЦІЙНІ ПЕРЕВАГИ ТА ВИКЛИКИ ДЛЯ УКРАЇНИ

This paper addresses the current imbalance in construction social procurement research toward Western countries with neo-liberal models of public governance. It does this by exploring the potential value of construction social procurement in the Chinese centralized unitary state and socialist market system. Findings from a survey of one hundred and sixty-four professionals from the Chinese construction industry are reported. They highlight the institutional foundations into which social procurement could be implemented and the significant untapped social value that could be created. However, they also show that for social procurement to achieve its full potential in the Chinese construction industry, such policies need to be underpinned by meaningful industry consultation, effective education and clearly mandated targets that create a market for social value. This paper contributes to the global advancement of social procurement research in construction by providing new insights into the implementation of social procurement beyond the narrow confines of the Western political and governmental orthodoxies where such research has hitherto been focused.

PurposeThis paper aims to explore how social procurement (SP)-related capabilities might be developed within public authorities.Design/methodology/approachThe paper utilizes qualitative research, based upon an inductive research design. This leads to a model to inform future research and practice.FindingsWithin the context of a “disconnected and nascent institutional field of practice” (Loosemore et al., 2023), the research generated rich data illustrating how certain English public authorities have developed relatively mature SP capabilities and applied them within the procurement process. The former included the appointment of “champions”; the founding of groups/units; training using webinars, online resources and case studies; “toolkits”, including policy documents, process guidance and measurement tools and networking. The latter included consultation with social value recipients and close engagement with both internal stakeholders and suppliers. The research also revealed the internal political skills of “champions”, as SP challenges incumbent logics regarding procurement objectives and practices.Practical implicationsFirst, the paper provides a potential roadmap for organisational capability development. Second, the research makes clear that public authorities should not seek to reinvent the capability wheel. Engagement with peers, advisory bodies, established “toolkits”, etc. is imperative, with much expertise publicly available. Third, it also suggests that smaller public authorities might seek to act as part of a consortium rather than go it alone, given the investment required for effective SP. Fourth, the research showed that practitioners need to understand SP as not simply a development challenge but also a political one.Originality/valueThe paper contributes to the literature by analysing SP from the largely overlooked resource-based perspective, by providing rich data on buy-side practice, by usefully adding to the literature's emerging “practice theme” and by offering guidance to buy-side managers within public authorities.

The article presents the questions of reviewing models and mechanisms of public administration in the procurement of goods, works and services in the field of construction. A comparative analysis of the types of public procurement mechanisms in construction, based on a set of features, has shown the superiority of a centralized type of mechanism that facilitates the introduction of efficient and flexible procurement methods, for example, the conclusion of framework agreements. The author’s vision of the mechanism of state building purchases, in the form of a conceptual model and system differences, is proposed. It is determined that a decentralized model of public procurement management involves the independent implementation by purchasers of procurement, that is, allows each customer to procure goods, works and services in the field of construction. The centralized model of public administration is characterized by the implementation of public procurement in order to provide the general needs of a single body on public procurement, that is, customers commission the implementation of public procurement on their behalf, a centralized body. According to the combined model of management, public procurement in the construction industry takes place under contracts implemented under the centralized model, and the direct ordering and receipt of goods, works, or services takes place according to the rules of a decentralized model. It is noted that according to the system-wide understanding of the mechanism of public administration in the procurement of goods, works and services in the field of construction, it represents a set of specialized management technologies (methods, techniques and tools) that ensure the organization of the process of public procurement of construction products by authorized agents. The direction of this process is determined by the need to implement the principles of vali- dity and innovation, fair choice of the best bidding, prevention of corruption and ensuring the high efficiency of the implementation of public public procurement.

This study aims to explain in detail the analysis of the problems of the implementation of government procurement of goods/services that occurred in Indonesia in the 2023 period. The procurement of government goods and services in Indonesia is a complex process and has a significant impact on the success of national development. This study also aims to analyze several procurement cases that occurred in 2023, as well as evaluate the effectiveness of policies, challenges faced, and opportunities for improvement in the procurement system in Indonesia. The research focuses on new policies, the application of technology in procurement, and issues such as transparency, efficiency, and accountability. Data is taken from various official government reports, articles, and interviews with related parties. The research method, used is a qualitative method, with a total of 105 informants. The results of the research, government procurement of goods and services in Indonesia in 2023 show some progress in terms of policies and technology, but still face major challenges related to transparency, accountability, and human resource competence. Technological capacity building and stricter law enforcement need to be done to realize more effective and efficient procurement. The update, in this study, is that providing recommendations for improvement based on the cases analyzed, the government needs to strengthen policies and the implementation of procurement that is more accountable and transparent. This can be done with several steps, including regular human resource training, holding regular training for government procurement personnel to improve their competence in understanding the latest procurement regulations and technology. Improving technology infrastructure, ensuring that information technology infrastructure throughout the region can support the implementation of SPSE and e-Catalog. Strict supervision and law enforcement, conducting stricter supervision of the procurement process and taking firm action against any form of irregularities to reduce the risk of corruption.

This article is dedicated to the analysis of the essential hallmarks of social services procurement. The attention is focused on the absence of the unity of the scientists’ thoughts as for the definition of the term “social procurement”. It has been determined that in the foreign scientific literature the scientists to denote the term “social procurement” use the notions “social contracting”, “social order” and “social commissioning”, and they use these notions with slightly different meanings. Therefore, the notion “social procurement” is defined as: 1) activity of a country; 2) form of the state support; 3) complex of measures; 4) legal mechanism. The article has grounded the expediency of the definition of social procurement in the legal relations of social care as a special legal way to influence the behavior of the parties of the social care legal relations.
 The publication advocates the idea that social procurement is one of the conditions for the rise of the state and private sectors partnership. The state-private partnership in the legal relations regarding the provision of social services is proposed to be defined as cooperation between Ukraine, AR of Crimea, territorial communities represented by the competent state bodies, self-government bodies (authorized bodies in the sphere of social services provision) and legal entities, but for the state and municipal enterprises and establishments, and organizations (providers of social services) regarding the provision of social services, which is carried out on the basis of an agreement and under the procedure set by the Law of Ukraine “On Social Services” and other legal acts that regulate the social care legal relations.
 The article substantiates the thesis that the subject of the social procurement is social services and resolution of social issues of the state/regional/local levels in the aspect of the satisfaction of the needs of people/families for social services (state/regional/local programs of social services).
 It has been determined that the main forms of realization of the social procurement in the social care legal relations are public procurements of social services and financing of the state/regional/local programs of social services. The public procurement of social services is carried out under the procedure set by the Law of Ukraine “On Public Procurement” taking into account the special features determined by the Law of Ukraine “On Social Services”. The social procurement in the form of financing of the state/regional/local programs of social services is decided upon the results of the tender announced by a client according to the plan for realization of the corresponding target program.

PurposeThis research addresses the lack of project management research into social procurement by exploring the risks and opportunities of social procurement from a cross-sector collaboration perspective.Design/methodology/approachA content analysis of five focus groups conducted with thirty-five stakeholders involved in the implementation of a unique social procurement initiative on a major Australian construction project is reported.FindingsResults show little collective understanding among project stakeholders for what social procurement policies can achieve, a focus on downside risk rather than upside opportunity and perceptions of distributive injustice about the way new social procurement risks are being managed. Also highlighted is the tension between the collaborative intent of social procurement requirements and the dynamic, fragmented and temporary project-based construction industry into which they are being introduced. Ironically, this can lead to opportunistic behaviours to the detriment of the vulnerable people these policies are meant to help.Practical implicationsThe paper concludes by presenting a new conceptual framework of project risk and opportunity management from a social procurement perspective. Deficiencies in the Project Management Body of Knowledge (PMBOK) are also highlighted around an expanded project management role in meeting these new project management requirements.Originality/valueSocial procurement is becoming increasingly popular in many countries as a collaborative mechanism to ensure construction and infrastructure projects contribute positively to the communities in which they are built. This research addresses the lack of project management research into social procurement by exploring the risks and opportunities of social procurement from a cross-sector collaboration perspective.

Procurement of goods and services for the benefit of the government is one tool to drive the wheels of the economy, in order to improve the national economy to the welfare of Indonesian life, for the procurement of goods and services, especially in the public sector is closely linked to the use of the state budget. Through normative juridical research, this study found the legal aspects of government procurement of goods and services, especially in terms of a review of the juridical rules of government procurement. Arrangements regarding the procedures for the procurement of government goods and services in Presidential Decree No. 54 Year 2010 jouncto Presidential Decree No. 70 The year 2012 is expected to increase conducive investment climate, efficiency of public spending, and accelerating the implementation of APBN/APBD. Government procurement of goods and services currently on aspects of administrative law, civil law and criminal law. In the procurement of goods and services should apply the general principles, good principles that have long been known in state financial management, such as the principle annual, the principle of universality, the principle of unity, and the principle of specialty as well as the principles of the new as reflecting best practices (application of the rules good) in the management of state finances.

Tujuan makalah ini adalah untuk memahami dan menganalisis prinsip transparansi pengadaan barang dan jasa pemerintah berdasarkan Keputusan Presiden No. 4 2015 tentang Pengadaan Barang dan Jasa yang dapat diterapkan dalam pengadaan barang dan jasa pemerintah melalui ruilslag. Metode penelitian menggunakan pendekatan hukum normatif, karena penelitian ini akan meneliti dan menganalisa berbagai prinsip dan peraturan perundang-undangan yang terkait dengan prinsip transparansi pengadaan barang dan jasa pemerintah melalui ruilslag. Hasil penelitian ini menggambarkan secara mendalam prinsip transparansi pengadaan barang dan jasa sesuai Keputusan Presiden No 4 2015 tentang pengadaan barang dan jasa sebagai amandemen keempat dari peraturan presiden No.54 tahun 2010 yang dapat diterapkan dalam pengadaan barang. dan layanan melalui ruilslag dengan tujuan untuk dapat diakui oleh para pihak / pemangku kepentingan mengenai perumusan kebijakan, organisasi dan perusahaan pemerintah mengenai pelaksanaan ruilslag, untuk mencapai tujuan pemerintahan yang baik.

This paper discusses the legal development policy in the Government's Procurement of Goods and Services and to reveal the legal development sector in the regulation as well as a comparison of the Government's Procurement of Goods and Services policy between Indonesia and the Philippines. The method used in this paper is normative juridical with a statutory study approach (statue apporouch). The results of this study indicate that the direction of the government's procurement of goods and services policy is the achievement of the output and outcome of government agencies, economic improvement for both business actors and the community through economic equity and sustainable development, as well as comparisons related to government procurement of goods and services in Indonesia during the New Order era with integrity. The State Budget, however, is entering the decentralized Reform period and there are new regulations in the Government's Procurement of Goods and Services with the formation of an auction committee at each Office/Work Unit/Project Leader/Project Section. In the Philippines, it is formed in the Government Procurement Reform Act which is the basis for the regulation of Government Procurement of Goods and Services in the Philippines.

PurposeSocial procurement policies are an emerging policy instrument being used by governments around the world to leverage infrastructure and construction spending to address intractable social problems in the communities they represent. The relational nature of social procurement policies requires construction firms to develop new collaborative partnerships with organisations from the government, not-for-profit and community sectors. The aim of this paper is to address the paucity of research into the risks and opportunities of entering into these new cross-sector partnerships from the perspectives of the stakeholders involved and how this affects collaborative potential and social value outcomes for intended beneficiaries.Design/methodology/approachThis case study research is based on a unique collaborative intermediary called Connectivity Centre created by an international contractor to coordinate its social procurement strategies. The findings draw on a thematic analysis of qualitative data from focus groups with 35 stakeholders from the construction, government, not-for-profit, social enterprise, education and employment sectors.FindingsFindings indicate that potentially enormous opportunities which social procurement offers are being undermined by stakeholder nervousness about policy design, stability and implementation, poor risk management, information asymmetries, perverse incentives, candidate supply constraints, scepticism, traditional recruitment practices and industry capacity constraints. While these risks can be mitigated through collaborative initiatives like Connectivity Centres, this depends on new “relational” skills, knowledge and competencies which do not currently exist in construction. In conclusion, when social procurement policy requirements are excessive and imposed top-down, with little understanding of the construction industry's compliance capacity, intended social outcomes of these policies are unlikely to be achieved.Originality/valueThis research draws on theories of cross-sector collaboration developed in the realm of public sector management to address the lack of research into how the new cross-sector partnerships encouraged by emerging social procurement policies work in the construction industry. Contributing to the emerging literature on cross-sector collaboration, the findings expose the many challenges of working in cross-sector partnerships in highly transitionary project-based environments like construction.