Essentials of Procurement

Policymakers crafting a sound procurement system must balance a number of goals - transparency, competition and integrity are the most important. If a government’s procurement system reflects all three elements, the system is much more likely to achieve the best value in procurement and maintain political legitimacy. 

Figure 1: Essentials of a procurement system

1. Transparency

A transparent procurement system ensures that rules are followed, non-compliance can be identified and addressed and all the stakeholders can monitor the process. A sound procurement system generally involves:

• Publicity of procurement opportunities and the disclosure of the rules to be followed.
• Undertaking procurement processes publicly and visibly, according to prescribed rules and procedures that limit the discretion of officials.
• The provision of a system for monitoring and enforcing applicable rules.

2. Competition

Competition in public procurement usually means that two or more bidders act independently and engage in a contest for the opportunity to secure the procuring entity’s contract by offering the most favourable terms. It is an important driver of innovation and helps achieve the best value-for-money- lower prices and better quality of goods, services and works.

3. Objective criteria in decision-making

Objectivity in decision-making in the context of public procurement refers to striving (as far as possible) to reduce or eliminate biases, prejudices and subjective evaluations.

• Closely linked with the principles of non-discrimination, equal treatment (fairness) for providers and integrity.
• No distinction should be made between providers of goods, services or works except where this is justified based on relevant objective considerations.
• Integrity requires objectivity at all stages of the procurement process and ethical conduct by all parties involved, as well as an independent and effective remedy system

All the purchases should be made in a transparent, competitive and fair manner to secure the best value for money.

Resource

Good Practices in Ensuring Compliance with Article 9 of The United Nations Convention Against Corruption; United Nations Office on Drugs & Crime, 2013.

Assessment