PPCC Training Manual 9 (1).doc

Public procurement can be organized either through

Info icon This preview shows pages 18–20. Sign up to view the full content.

View Full Document Right Arrow Icon
procurement. Public procurement can be organized either through competition or negotiation. 3.2 Competition Competition is the process whereby potential suppliers/contractors are invited to make a firm and unequivocal offer of the price and terms which, on acceptance, shall be the basis of the subsequent contract. Types of Competition a) Open tender: Prospective suppliers/contractors are invited to compete for a contract advertised in the press, the lowest evaluated tender generally being accepted. b) Restricted/Selective tenders: Prospective suppliers are invited to compete for a contract, the advertisement of which is restricted to appropriate technical journals of local newspapers. Tenders are also invited from suppliers/contractors on an 'approved list' who have been previously 'vetted' regarding their competence and financial standing. Negotiated Tenders 18
Image of page 18

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
A tender is negotiated with only one supplier/contractor so that competition i"s" eliminated. The contracts are known as sole sourcing/direct purchase or proprietary. 3.3 Preference for Competitive Methods The first and foremost conclusion to be drawn from the policy background is that procuring entities need to make use of competition for each individual contract in order to maximize economy and efficiency. The test then is who is able to make the most advantageous offer at that particular time for the particular contract. The consequence as to choice of procurement method is the preference for open tendering. The preference for open tendering is supported also by other public procurement policy objectives. Openness eliminates tendencies towards favoritism. Openness is an obligation on the part of a government deriving from its membership in a community such as the European Union, African Union, ECOWAS, etc. 3.4 The Case for Restricted/Selective Tendering No rule is without exceptions, and neither is the general preference for open tendering without exceptions. The method that comes closest to open tendering, while introducing an element of restriction, is selective tendering. These procedures recognize the procuring entity's interest in receiving offers only from firms of its own choice. Traditionally, this has been taken to mean that the procuring entity is under no obligation to advertise the opportunity to bid for the contract in question. Instead, the specialized nature of the contract and the procuring entities' reluctance to consider offers from firms without known and proven qualifications justifies the use of selective tendering. Both World Bank and EU procurement directives acknowledge, however, that an element of open competition should be maintained even in the selective procedures. This can be accomplished by using pre-qualification for major, complex contracts.
Image of page 19
Image of page 20
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern