PPCC Training Manual 9 (1).doc

Constant improvement through effective planning and

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constant improvement through effective planning and investigation of the global supply market. The functional scope of procurement covers; a. Specification of the kind and quantity of goods or services to be acquired; b. Investigation of the market for supply, and contacts with potential suppliers; c. Placing the order or contract, including negotiation of terms; d. Supervising delivery and performance; e. Taking necessary action in the event of inadequate performance; f. Payment; and g. Dealing with disputes. 2.4 Public and Private Sector Procurement There is the need to draw a distinction between public and private procurement in view of the difference in methods applied in public procurement, on one hand and procurement for the private sector, on the other hand. Public procurement is different from private also in its general purpose and normative context. Governments and taxpayers want to see value for public funds spent on procurement of goods, works and services. Economy and efficiency therefore are the main objectives in public procurement at the national level. Non- discrimination, transparency and public accountability are complementary objectives, which while on the whole supporting the overall economy and efficiency targets, can in some instance give rise to internal policy conflict. The complementary objectives constitute an integral part of public procurement policy, however, primarily because a government owes a duty of non- discrimination, transparency and accountability to its constituency, ie, the general public. In addition, economy and efficiency are not as easily demonstrated in the public sector as in the private. While private procurement is tested in the ultimate 14
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Profitability of the buying company or organization, a similar test is not as easily passed on the performance of the public buyer. Private procurement is also normally based on the cultivation of long-term relationships, whose continuation will depend on the mutual benefit gained and demonstrated through the profitability of the joint business activity. While public buyers may indeed argue in favour of establishing long-term partnerships with private suppliers, the secondary policy objectives and notably that of non-discrimination and transparency, tend to give greater weight to procedural aspects and a preference for public contracts being awarded one at a time on the basis of competition and without any promise of continuation. Public buyers, therefore, and sometimes reluctantly, find themselves obliged to give much more attention to procedure, including openness and non-discrimination, than private sector colleagues. Private procurement does not follow set procedures. It serves simply to achieve a good economic result for the buyer.
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