Info De Procurement

JOURNAL OF PUBLIC PROCUREMENT, VOLUME 2, ISSUE 1, 29-53

2002

PROCUREMENT PRACTICES IN THE SINGAPORE CIVIL SERVICE: BALANCING CONTROL AND DELEGATION David S. Jones*
ABSTRACT. The article examines the extent that public procurement in Singapore remains under centralized control and how much has been delegated to the line agencies, which are the recipients of the goods and services purchased.The article shows that Singapore has adopted a mixed hybrid model of public procurement. Procedural rules and evaluation criteria relating to procurement are imposed by centralized authorities, which also undertake bulk purchasing. Operational functions such as interpreting the rules and criteria, making purchasing decisions and awarding contracts are performed by the line agencies. The balancethus achieved between centralization and delegation arises from the desire to meet the divergent requirements that shape the government procurement system. INTRODUCTION

An important question in public procurement is to what extent it should be controlled by central procurement authorities within the government bureaucracy, or delegated to operational agencies responsible for public programs,which are the recipients of the supplies and services acquired. Determining where the appropriate balance lies is an important question, given the percentage of the public budget spent on procurements, and the impact of procurements upon the effectiveness and efficiency of public programs (Thai & Grimm, 2000). This question --------------------* David S. Jones, Ph.D., is an Associate Professor,Department of Political Science, National University of Singapore. His teaching and research interests include government budgeting, performance management in the public sector, and regulation and enforcement, as well as public procurement.

Copyright © 2002 by PrAcademics Press

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has assumed increased salience with the delegation of greater operational autonomy to line agenciesunder budgetary and other reforms associated with New Public Management, which have been implemented in many countries, including Singapore. Part of that delegation has been the increased responsibilities for procurement exercised by line agencies in recent years, replacing centralized purchasing. This has happened in Singapore as well as in other countries. The article will focus on the balancebetween centralization and delegation in the public procurement process in Singapore. It will first consider the policy and practices of public procurement in Singapore, the different types of procurement which have been adopted and the processes followed in the purchasing of goods and services. The article will then examine those aspects of the public procurement process subject to centralizeddirection, and those which are delegated to government agencies as recipients of the goods and services purchased, in each case explaining the rationale for the authority exercised whether centralized or delegated. Also considered is how budgetary reform has affected the balance between centralization and delegation in the public procurement process. In conclusion, the article will identify the model ofpublic procurement that Singapore has adopted as determined by the extent of centralized control and delegation, and will evaluate how appropriate that model is in light of the underlying values and circumstances which shape the role of the government bureaucracy.
THE PUBLIC SECTOR AND GOVERNMENT EXPEDNITURE IN SINGAPORE

The central institution of government administration in Singapore is theCivil Service, which consists of 15 Ministries, sub-divided into Departments. In addition, there are 40 Statutory Boards, each set up under an Act of Parliament, which undertake specialized and commercial activities within the state bureaucracy. Whilst formally separate from the Civil Service, each Statutory Board is affiliated to a Ministry. Many Statutory Boards are funded totally or partly by...