State and local governments in the U.S. spend approximately $2 trillion on goods and services annually. The report Harnessing the Power of Public Procurement: Issues, Considerations, and Best Practices to Advance Equity in the Contracting of Public Goods and Services from Local Progress and In the Public Interest looks at how that transfer of public funds to the private sector can be used to further visions for a more equitable society. Currently, the status quo favors a race to the bottom for lower standards and prices, often enshrined in a requirement for governments to prioritize the lowest bidder.
This report examines cases and strategies to put equity at the center. While much of the report focuses on suppliers selling directly to government entities, the report names the Worker-driven Social Responsibility model as one of the few programs “documented to produce effective results” in supply chains. “By giving preference to vendors that participate in these types of programs,” the report concludes, “governmental entities can take initial steps to direct public dollars to down-chain supply vendors without poor track records of labor abuse.”