Chapter 2 – Public procurement systems
Equal opportunity and treatment. Equal treatment of participants in the public procurement system contributes to objectives, such as integrity, and is an objective in its own right. The concept of equal treatment holds that no distinction is made between firms, except where such a distinction is justified under law or regulation. For example, a distinction based on nationality of a firm would be inappropriate unless permitted by law or regulation. Fair treatment. Fair treatment is similar to procedural due process, which is the right to notice and the opportunity to be heard before a decision is made that adversely affects a firm. For example, the government should notify a firm of its intention to suspend or debar it from doing business with the government, and provide its representatives with an opportunity to be heard on the matter. Opening markets to international trade. Regional and international agreements designed to open public procurement markets to foreign firms, goods and services are among the most important developments in public procurement over the last two decades (Arrowsmith et al., 2011). As a result, many public procurement systems include the principle of non-discrimination against foreign firms, goods and services. Promoting socioeconomic, industrial and environmental policies. Although no less important than the objectives identified above, these policy objectives are labelled as ‘collateral’, ‘secondary’ or ‘horizontal’ because they are considered external to the process of acquiring the goods and services. Examples include enforcement of fair labour standards (socioeconomic), promotion of national industrial competitiveness (industrial), and the use of bio-based and recovered materials (environmental). Efficiency. An important goal of all public procurement systems is to acquire goods and services efficiently by minimizing unnecessary delays, waste of resources or costs. Source: Arrowsmith, et al., 2011.
Principles guiding procurement systems Most procurement systems are guided by three principles: transparency, competition and equal treatment. Transparency includes publicity for contract opportunities; publicity for the rules governing each procedure; a principle of rule-based decision-making that limits discretion of procuring entities and officials; and mechanisms to verify whether the rules have been followed and enforced. Transparency is important to combat corruption, collusion and nepotism. Transparency also helps to achieve other policy objectives, such as fair treatment and accountability. But transparency can come with costs. For example, it can increase the cost of doing business and reduce efficiency. Competition is important to achieving value for money because it pressures prospective contractors to put forward their best offers to win contracts. Competition also drives innovation and is important to achieving other objectives, such as equal treatment and integrity. Like transparency, competition can come with costs. Equal treatment is both a principle and an objective of most procurement systems (Arrowsmith, et al., 2011). The expression of these general principles and objectives vary from country to country.
Empowering women through public PROCUREMENT
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