Socially Responsible Public Procurement and Set-Asides: A Comparative Analysis of the US, Canada and the EU

Abstract

Public procurement can be used to achieve goals other than purely economic ones. Such goals are often referred to as "social linkages". A preference for social considerations has been gaining ground against the dominant best value for money (BVM) paradigm over the past few decades. In the past, public procurement policies followed the principle of non-discrimination and free competition beyond national boundaries. Today considerations other than (purely economic) BVM have become relevant in public procurement policy and practice. Examples of social linkages in public procurement are found in various countries, from the well-known 'Affirmative Action Programs' in the US that advance minorities, women, persons with disabilities and veterans, 1 to specific set-aside programs made available to only less-competitive businesses, such as womenowned businesses, minority-owned businesses, businesses operating in economically disadvantaged areas, etc. Set-asides can be seen as social procurement linkages through the promotion of both supplier diversity and employment. The latter means that social use of public procurement can positively impact employment by providing opportunities to workers who are generally excluded from the labour market, while the former means that chances are given to less-competitive bidders. Set-aside programs have been widely developed in the US, which has a long tradition of set-aside contracts for special classes of small businesses, including small disadvantaged businesses, and in Canada where set-asides have been introduced for the development of Aboriginal businesses. However, the restriction of full and open competition that set-asides entail is frequently criticized by EU institutions. Despite this, the new European procurement framework also seems to have established set-asides as a means of providing economic opportunities to disadvantaged groups.

Higher Education, Information and Communication Technologies and Students with Disabilities: An Overview of the Current Situation

“…There appears to be very little research in the area of procurement of accessible ICTs for HE institutions, and there are conceptual issues related to accessibility that need to be included in the procurement process (cf. Cravero, 2017). As early as 2006 (Seale, 2006), Seale identified this as one of the key adjustments that institutions can make in response to disability-related legislation.…”

Multidimensionality of Sustainable Public Procurement (SPP)—Exploring Concepts and Effects in Sub-Saharan Africa and Europe

“…While many social aspects, such as adherence to collective agreements, compliance with external legislation, and regulation and preferential treatment of sheltered workshops, have been and are still possible, other qualitative aspects of the social dimension, such as preferential treatment for marginalized groups and other policies that entail a higher level of discretion for procurement entities are often forbidden (or very reluctantly allowed, only in clearly defined circumstances). Most countries apart from the EU integrate reservations for marginalized groups and other aspects of public procurement that incorporate social aspects beyond labor laws, such as human rights, into regulation and practices, as is the case in many SSA countries such as South Africa, Kenya, Zimbabwe, Namibia, Uganda, and Botswana, as well as in the USA and Canada (see [12]).…”

Sustainable Public Procurement in Central European Countries. Can It Also Bring Savings?

“…This is defined by the EC as procurement processes that take one or more social considerations into account, such as decent work, job opportunities, compliance with social and working condition rights, social inclusion, and access for all [12] (p. 7). The main purpose of the SRPP is to achieve societal objectives, such as the promotion of employment and equal opportunities, and inclusion and accessibility [35], by setting common standards for products and services, award criteria, as well as contract performance clauses. Therefore, as in the case of GPP, the application of social aspects may need to be considered as an investment with a return in the future.…”