THE ADVANTAGES OF PUBLIC SECTOR PROCUREMENT SYSTEM
Generally there are many advantages of public procurement system to the government sectors. In a developing country who have a limited resource the allocation and procurement of assets are mostly initiated using the public bidding. These advantages enable the government to procure products and services to which has a high quality value as well as low price.
The public bidding system is a good system that will cut cost the procurement method of the government because of its healthy competition option. The government in general can wait for good offer that they can trust and adapt so as to choose the best offer suitable for their needs. Let’s say that the government will need a supplier for basic office supplies, their option would be to open the procurement to the public in terms of bulletin board or other media such as prints ads, television or the internet.
They may even set up to bid on a certain areas so that supplier would be happy to come and bid for the government for a possible on the spot sales. If the government has found and assess the best products and the best price according to their needs they will both be happy to purchase. This system has become a very valuable process in procurement, low priced high quality products is what they got. A very economical ways and means is the basis for this transaction.
Procurement on the part of the government is a very economical in the sense that government buys in a large scale system. This means that the government procurement is not just retail or single transaction but procurement on a large volume. This method includes buying directly to the manufacturer. Let us say that a certain government agency would need a set of computers in their new offices the government would contact the supplier and ask directly for a discount because of its government function, the supplier will gladly allow the government for discount since this is another promotional strategy on their part. The government can acquire as much as fifty percent discount depending on the supplier’s capacity. This has been another very economical way of government procurement strategy.
Donation and sponsorship -- Sometimes government especially during election period can ask more than discount but donation or sponsorship on some companies. For example during election the commission on election of most areas would need office supplies specifically ballpen and papers, the government can ask for the manufacturer to donate some of their supplies for public use. Some government can even ask for medical supplies donation and sponsorship for medical and health related activities such as medical and dental mission. This way the procurement is lessen and the money had been saved and more so the services can be easily initiated to the public. Again this system is a very economical situation on the part of the government. Companies who support such government agencies can donate easily more than the government can ever ask for.
Public procurement system is very economical in the sense that most supplier can easily give in to some sort of system that the government have been using. Such system is easily acceptable and widely been used in government and some participating companies and organization. This does not necessarily mean that government does not buy on a regular basis. It’s simply goes to show that the government can maximize its best potential to save some amount for other future expenditure.
There are also governing laws on government procurement depending on state or cities where you belong. But generally most of these governing laws are in favor to the government proposition to buy in a systematic and economical ways that can save the government from too much spending. The government procurement system is a government contract that needs hones and diligent transaction. Too much spending may lead to some improper acquisition and too much waste on government funding. This governing law will control the illegal and unnecessary activities perform but government agencies.
Unfortunately the government system in procurement may not always enhance the capability of its institution; this can also be used for personal gain. Upon procurement and government budget some dishonest employees may not disclose such procurement process so as to get the budget of such transaction which result in government lost in funding as well as material acquisition that have a hidden agenda of releasing funds. This type of procurement may be unlawful therefore illegal in nature. If a certain individual would be engage in such activities chances are they may not provide the right services than they should give to people.
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