Public procurement systems
It used to be perceived as simple ordering or clerical function of government. It is now a function to obtain the right goods, capital assets or services (meeting quality requirements) in the right quantity, for delivery at the right time to the right place, from the right source (a responsive reliable supplier); at the right price.
Principles of public procurement
- Value for Money:
- Efficiency, effectiveness & economy:
- Transparency:
- Open competition:
- Fairness:
- Accountability:
- Confidentiality:
- Equity (non – discrimination):
- Value for Money: Value for money can be referred to as the optimum combination of whole lifecycle costs and total quantity appropriate to meet the requirement of any procurement need. Do not waste money. Do not pay more for less. Avoid unnecessary value adding costs. Value for money decisions should be sought while arriving at any procurement decision.
- Efficiency, effectiveness and economy: procurement is supposed to provide goods or services that help an entity to deliver its mandate. When making procurements, the purchasing organisation needs to consider value for money. This is why price is usually important in the procurement process.
- Fairness: To be fair to all, there is need to arrive at procurement decisions without bias whatsoever. In case a conflict of interest occurs, there is need to withdraw from the procurement process by
signing up a Declaration of Interest Form (DIF) and declaring this to the Contracts Committee. - Accountability: Procurement professionals should always be willing to be held accountable for the outcomes of their decisions. They should justify to stakeholders the reasons for their actions. To ensure accountability, auditing the procurement process is enforced through procurement audit or a complaints mechanism.
- Confidentiality: Procurement professionals are required to jealously guard confidential information and only give it out on orders of court. Information, for instance, concerning evaluation of bids is required to be kept confidential until after the procuring entity has already notified the best evaluated bidder of the award. Usually the report of evaluation and information about the best evaluated bidder are displayed on the notice board before notification of the successful bidder and award of the contract. Procurement laws and regulations in different countries require that all the parties engaged in the bidding/procurement process ensure confidentiality and accuracy of information in the procurement process.
- Equity (non – discrimination): Discrimination occurs when one party treats another less favourably than others, either on grounds of race, ethnicity, colour, sexual orientation, religion or beliefs. The procuring entity should ensure that all bidders are treated fairly or equally. Whenever there is need for clarifications to bidders by the procuring entity, the clarification should be given to all the bidders. All bidders should have the same information about the bidding process in which they are participating. This will promote equity and ensure non-discrimination.
Consequences of non-compliance with procurement principles
- Biased decisions
- Emergency procurement
- Cost overruns
- Waste
- Collusion, fraud, bribery and extortion which are contrary business ethics
- Infighting among key players
- Delays in procurement and delivery of what had to be purchased
- Court cases
Key principles of professional ethics
- To be impartial and act objectively
- Observe the principle of confidentiality
- To avoid a conflict of interest in your work
- To always ensure that you observe the duty of care
- To ensure openness and full disclosure
- To ensure optimal use of resources of the organization
- To observe professional responsibilities as prescribed by both the letter of appointment and the professional ethical code of conduct.
- Duty of care is discussed in the section of business and law
