3.5 Managing costs effectively

LCCD programs have significant costs, and successful management of those costs is critical to the process of generating funding. One decision is whether the national government should adopt a national plan to minimize cost elements through economies of scale or whether local school administrations should adopt their own plans.

The scope of the project informs this decision. If the LCCD initiative is still in a pilot phase, then procurement may not require centralized intervention. Indeed, most pilots are small-scale efforts, often largely financed through development assistance and donations from equipment vendors. Therefore, they do not require a significant initial outlay from the government. Furthermore, local administrations might be better placed to form partnerships and more able to get the project off the ground quickly.

A large-scale implementation through the government’s education ministry, however, can aggregate purchases to achieve lower costs. The national government is also more likely to have procurement expertise and the capability to evaluate rival offers. One method of selection is to use a tender process, in which the project’s requirements are laid out in detail. In Brazil, for example, a tender process was integrated into the country’s “e-procurement” system.

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