ONLY about one per cent of the Government’s annual procurement spending currently reaches micro, small, and medium-sized enterprises (MSMEs), a disparity Finance Minister Fayval Williams says the upgraded Government of Jamaica Electronic Procurement portal (GOJEP 2.0) is intended to address. The platform will increase MSME access to public contracts.

Speaking during Thursday’s launch of the updated digital procurement portal, Williams said the modernised system eliminates outdated technical requirements, and creates more opportunities for local businesses to access a share of the Government’s roughly $470-billion annual procurement spend.

“Let me put the scale in perspective. Each year, the Government of Jamaica spends roughly US$3 billion — translated into Jamaican dollars, that’s about $470 billion, depending on the currency at any point in time – and this procures goods, services, and works from the private sector. This is close to, I think, about 13 per cent of our GDP (gross domestic product). And yet, of that enormous sum, only about one per cent reaches our micro, small, and medium-sized enterprises,” the minister pointed out.

“That imbalance is exactly what we are determined to correct so that more Jamaican businesses can share in the billions that Government spends each year, particularly as we rebuild in the wake of Hurricane Melissa. So every procurement decision carries real responsibility. It must inspire public confidence, deliver value for money, create economic opportunity, and make certain that every dollar entrusted to Government works harder for the people we serve,” she said during the event held at AC Hotel Kingston.

According to Williams, GOJEP 2.0 is an upgraded version of the Government’s online system for buying goods, works and services from the private sector. She explained that the remodelling of the digital portal will see the removal of outdated barriers, put in place stronger record keeping aimed at making the process faster and more transparent.

“It’s easier to use. You no longer need to install extra software just to submit a bid. You log in from any ordinary web browser on any device, including your phone. It’s better connected. The system now talks to other government systems, so the same information doesn’t have to be entered twice, it keeps a proper record digitally,” explained the minister.

“Every key decision made during evaluation is captured and tracked automatically instead of living in a paper file or in someone’s memory. It cuts duplicate paperwork for government staff, and it collects far better data on how long procurements take, how much competition is there, and how well our small business set-asides are working,” Williams added.

She also pointed out that bidders and buyers will now be able to follow opportunities that the government brings to market, and see who ultimately wins the work. Furthermore, she assured that GOJEP 2.0 was not the finished product, noting that upgrades will continue overtime.

“It is a catalyst for the next era of public procurement in Jamaica. And, over the next years, we will build a fully integrated end-to-end digital procurement system, one that connects planning, tendering, evaluation, contract management, supplier performance, and payment.

“Imagine in a year or two being able to open GOJEP and see the goods, works, and services that government intends to buy over the coming years. A business could then prepare, assess its capacity, build partnerships, secure certification, arrange financing, and position itself to compete. For our MSMEs especially, that advanced visibility can be the difference between watching from the sidelines and winning the work,” said the finance minister.

Meanwhile, Chief Public Procurement Policy Officer Jovell Barrett also highlighted the gap that exists for MSMEs, pointing out that of the 300,000 active businesses registered with the Companies Office of Jamaica, less than 10,000 unique people and entities are awarded government contracts each year.

“Government is one of the largest purchasers of goods, works and services. And so, the question that we have asked ourselves at the Office of Public Procurement Policy is how many Jamaican businesses see government as a potential customer? How many entrepreneurs look to the public procurement system as an opportunity? And perhaps most importantly, how many do not see public procurement as an opportunity — and if they don’t, why?” said Barrett.

He hailed Thursday’s launch of GOJEP 2.0 as an opportunity to ensure that every taxpaying Jamaican has a fair chance to participate in the public procurement process.

“That’s the vision that I have and that’s what I want to see as a Jamaican. Why? I want to see more Jamaicans participating in public procurement. When public procurement operates as I want to see it happen… small businesses, hundreds and thousands of them in each community, [will] become a mechanism through which public procurement will work best and will be able to develop our economy more. It becomes the instrument of change that Government really wants it to be. That is the power of public procurement,” he said.