Evaluation of LGED sustainable procurement from risk and performance management perspective: a case study on goods procurement

Abstract

The term "Sustainable Procurement" (SP) refers to a method of procurement that takes into account the social, environmental, and economic aspects of sustainability while also promoting good governance while preserving a healthy society and environmental constraints. Evaluating sustainable procurement from risk and performance management perspectives is crucial for ensuring business practices' longevity. By identifying potential threats like resource scarcity and ethical concerns, businesses can mitigate these risks. This holistic approach enhances operational efficiency, aligns with corporate social responsibility objectives, and contributes to long-term organizational success. The Local Government Engineering Department (LGED) is one of the largest public sector organizations in Bangladesh, entrusted with planning and carrying out rural, urban, and small-scale water resource infrastructure development work. It also handles large-scale procurement of goods, services, and works. A case study is conducted with LGED’s officials addressing three aspects of sustainability to know the current scenario of sustainable procurement practice in the public sector in LGED from risk and performance management practices. The study shows that officials have a moderate understanding of sustainability issues but lack preparedness to implement them in procurement processes. The LGED procurement system follows the lowest price approach, but lacks a mechanism to check environmental performance. A clear commitment from government and organizations is needed, along with adequate training for procuring entities, suppliers, and beneficiaries is necessary to increase knowledge for implementing sustainable procurement by reducing risk and ensuring sustainable related performance. . Advanced research needs to be conducted to get a deeper insight into the sustainability issue concerning public procurement.