Part Two – Group Procurement
In the second part of our most recent Blog Series, Blue Harp Consulting discusses how municipalities could help local businesses or residents by setting up or supporting group procurement. The theme of this blog series is about Municipal Solutions for Increasing Sustainable Local Economic Activity. Part One was about PACE/CEIP programs, and can be found here.
Many businesses and residents have similar needs and wants. Local businesses for example, are often looking for ways to reduce their energy consumption, improve building efficiency, and save on other utility or operating costs.
Businesses seeking the same types of products or services could stand to benefit if they work together when buying. Could a municipal government help facilitate this? We think so. This may be a challenging endeavor; however municipal governments are connected and often have departments that are dedicated to supporting local businesses.
Here is simple scenario where a municipality could identify and engage with local businesses to help them procure a solution for their need or want:
1) Municipality sends out a survey which seeks to identify each business’s major upcoming needs.
2) Municipality gathers data from survey and analyzes if there are any common needs between businesses in their jurisdiction.
3) Municipality then re-engages with businesses who share the same needs to gather more critical information.
4) Municipality goes through internal process to approve devoting resources to supporting the creation of a group procurement for local businesses.
5) A group procurement platform is initiated by the municipality to help businesses achieve bulk pricing, time savings, and other benefits.
An example of a product or service that this could be used for could be building energy audits. Perhaps if a municipality supports 20 businesses procure energy audits for their operations, there could be savings (financial and human resources) compared to if each business went out and completed their own procurement. A second example could be on-site energy systems. If multiple residents or building owners seek to install a rooftop solar facility or electric vehicle charging stations and they purchase together, then bulk pricing may be achieved and provide an economic incentive.
This type of cooperation between businesses and municipality may help improve local business environments and if successfully implemented could offer a competitive advantage to local businesses and help promote sustainability.
Blue Harp Consulting is currently working with various Governments to originate and develop community focused energy projects. We will work collaboratively with your municipality to help increase sustainable local economic activity: just reach out to us to book a no obligation consultation to learn how we can help. Our clientele span from governments to corporations to Indigenous groups to international organizations.
Also, feel free to follow our company page on LinkedIn and stay tuned for our next blog article.
Do you have questions about our consulting services or this blog post? Connect with Dave via email at: dcarscadden@blueharpconsulting.ca
