Outcome-based Considerations in Awarding Criteria in Government Procurement Processes
Ministry of FinanceSpeakers
Summary
This question concerns whether government procurement processes incorporate outcome-based considerations and their application in industries adopting the Progressive Wage Model (PWM). Ms Yeo Wan Ling asked about specific awarding criteria, and Deputy Prime Minister and Minister for Finance Lawrence Wong responded that outcome-based contracting (OBC) is implemented where outcomes are measurable and industries are ready. He highlighted that most new tenders for cleaning, landscape, and security sectors now focus on service quality and response times rather than fixed headcounts. This enables service providers to better optimize manpower and technology, though specific requirements remain for critical operations like security escorts or national garden maintenance. Deputy Prime Minister and Minister for Finance Lawrence Wong noted that more OBCs will be adopted for other PWM sectors as measurement capabilities improve.
Transcript
46 Ms Yeo Wan Ling asked the Deputy Prime Minister and Minister for Finance (a) whether Government procurement processes have started to take into account outcome-based considerations in their awarding criteria; and (b) what are some of these considerations especially for industries that have or are adopting Progressive Wage Models.
Mr Lawrence Wong: The Government adopts outcome-based procurement where appropriate and feasible. Such adoption is only possible if the outcomes can be measured or monitored and when there is industry readiness to bid for outcome-based specifications. These considerations apply to all industries, whether they are adopting Progressive Wage Model (PWM) or not.
In support of the implementation of the PWMs for the cleaning, landscape and security sectors, most new tenders called by Government agencies for these sectors today adopt Outcome-Based Contracting (OBC). For instance, agencies specify the response time expected of security officers or the cleaning outcomes and service quality to be maintained, rather than specify headcount for the contracts. This allows service providers to suggest solutions that integrate and better optimise manpower, technology and processes. However, there are still some instances where specific manpower and technology requirements may be spelled out due to critical operational requirements, such as for security escort operations and landscape maintenance in national gardens.
Where we are able to measure or monitor the outcomes, we will similarly adopt more OBCs for other PWM sectors that the Government procures from.