Procurement, where does it belong in the Organization; a strategic player,

or the step child of Finance

By Kirk W. Buffington, CPPO, C.P.M., MBA, Director of Procurement Services,

City of Fort Lauderdale, FL

Over the last several years municipal Procurement and Purchasing Departments
have been transforming from a process driven, support function to a true,
strategic, internal consultant to assist their agency in completing its’ goals and
missions. In essence, moving from a “gate keeper” to a strategic player; from
transaction-oriented to value-oriented facilitation; from high centralization; to
collaboration and empowerment; From Low Bid...
...To Best Value, as measured by

υ Total Cost of Ownership

υ Maintenance and Durability
υ Customer Efficiency/Effectiveness

At the City of Fort Lauderdale the mission of the Procurement

Department, as developed by the staff and in our movement toward
becoming a strategic player is as follows:

• Achieving excellent procurement services through technological

advancements, improved procedures and outreach programs,
performed with professionalism and teamwork.

Becoming a strategic player, as a separate department has the following

advantages, by empowering your staff to:

 Directly assist using departments, in identifying and studying

problems and opportunities at an organizational level -- SWOT
Analysis;
 Strengths
 Weaknesses
 Opportunities
 Threats
 Directly assist using departments to prepare Commission/Council
level recommendations; and
 Directly assist in the implementation of these recommendations, as
needed

Here at the City of Fort Lauderdale, this has been evidenced by our
efforts to drive the following changes:

• Technology driven small dollar purchasing (p-card and

internet)
• Driving the use of technology for our internal processes and
procedures
• Greater need for understanding of complex contract
requirements and managing risk potential (especially true in
Engineering Procurements)
• Electronic cataloging
 • Understanding of global/international commerce

The next logical step is the formation of Procurement as a stand alone

department with a “voice” at the table:

• Procurement needs to participate in the formulation of policies

and procedures involving the proper expenditures of Agency
funds. Some of these procedures may require immediate
adjustments in existing principles, policies and /or codes that
are not in the current best interest of the Agency for a
particular time. Becoming a department will assist in
enacting immediate change in spending behavior when
necessary, rather than having to work through the
bureaucracy from within another department.

• Procurement should be the center focus point between

Agency suppliers, using agencies, the taxpayers and
government. Each group attempts to champion their own
interests by trying to influence the Procurement office and
function. However, Procurement must not waiver from our
primary role of service, support and contribution to the
organization as a whole, acting in the best interest of the
Agency, not to the outside influence or source. Becoming a
stand alone department will provide a stronger foundation
of independence.

• Procurement is responsible for maintaining a system of quality

and integrity for every department and division in the Agency.
As such, our commitment to fair and equal oversight of proper
procedures, consistent with Agency standards must be beyond
reproach. No Agency employee or department should feel
that Procurement staff may treat one department or division
differently than another. Being a stand alone department,
not a division, would assist in dispelling any such
perception.

A recent poll1 of agency members of the National Institute of Governmental

Purchasing (NIGP) indicates that approximately 31% of participant’s
procurement offices report directly to the Chief Executive, Deputy Chief
Executive or elected board/council of their entity. It also shows that
approximately 62% of participants in the poll feel that those are the proper
placements for purchasing.

A second NIGP2 poll conducted in the Fall of 2004, found that 53.2% of
respondents believed that the procurement function would become more
strategic, while being in an advisory role was no longer considered part of the
procurement function. This result if up by greater than 10% from the same
poll conducted by NIGP in 2003.

1
NIGP (National Institute of Governmental Purchasing), Pulse Poll, July, 2003
2
NIGP (National Institute of Governmental Purchasing), Pulse Poll, December, 2004
Clearly, the role of Procurement is becoming both strategic in the
organization, and procurement professionals are seeing that transition taking
place.