7/28/2019 woineyet2

1/5

1

Public Procurement is the acquisition of goods, works or services through acompetitive, open, transparent and non-discrepancy process by public entities

using public funds.

The objectives of public procurement

* To use public funds to procure goods, service and works in a wise ,economic

and efficient manner.

* To ensure that public procurement is carried out in a fair, transparent and non-

discriminatory manner.

* To ensure that public procurement is based on value for money.

* To reduce corrupt practices in public procurement.

The role of five actors in the public procurement process

In public procurement process there are five actors who have the decisive role ;

These are

Ministry of Finance and Economic Development Public Procurement and Property Administration Agency Head of public bodies Procurement and property administration Unit Procurement Endorsing committee .

Ministry of Finance and Economic Development

issues general directives and guidelines for public procurement .

7/28/2019 woineyet2

2/5

2

Public Procurement and Property Administration Agency

Issue Procurement and property administration manuals, standard biddocument , and forms that are necessary for the implementation of

procurement and property administration.

Head of public bodies

Public bodies shall have overall responsibility for procurements they carryout and the property they administer.

Procurement and Property Administration Unit

Identify the procurement need and prepare the procurement plan of the publicbody which is supported by action plan enabling them to execute in due time,

the procurement necessary to implement their work program.

Procurement Endorsing committee

Ensure that Public procurement is executed in compliance with theproclamation, the procurement directives.

Identified procurement needs of the public body are in harmony with theannual procurement plan.

Review and endorse procurements within the financial limits set by thedirective.

Advise the head of the public office on methods of achieving effectiveprocurement.

Public fund mean any monetary resource appropriate to a public body from the

Federal Government treasury or aid grants and credits put at the disposal of the

public bodies by foreign donors through the Federal Government or internal

revenue of the public body.

7/28/2019 woineyet2

3/5

3

In procurement there are nine key concepts or principles. The key principles are

explain as follows:-

1. Professionalism is the discipline whereby education, experience, and professionalcertification in public procurement. Continually contribute value to the organization

and develop as a profession through educational standards in order to serve the public

good. There is, therefore, the need to put well educated, experienced and responsible

officers in charge of procurement in order that they can exercise skill, due care and

caution in the performance of their duties . Professionalism also develop, support, and

promote the highest professional standards in order to serve the public good and seek

continuous improvement through ongoing training, education, and skill

enhancement.

2. Competition In the acquisition of goods ,works or services throughpurchasing there must be full, fair and legitimate competition among

eligible suppliers. Procurement should be carried out by competition

unless there are convincing reasons to the contrary.

3. Value for money is defined as the optimal combination of whole lifecost, services, delivery and quality necessary to meet the end users

requirement. Procurement must be well organized, carried out correctly

with regard to quantity, quality and timeliness and at the optimum price,

in accordance with the appropriate guidelines, principles and regulations.

For all procurement activities through the optimum combination of

efficiency, effectiveness and economy we can get value for money.Therefore to obtain value for money we must ensuring that the goods

works or services procured meet the requirements for the task.

4. FairnessIn all stages of procurement process no preferential treatment or favor

should be given to any supplier or candidates. All suppliers must have

access to get the same information at the time during all stages of

procurement process. All tenders must, therefore, stand the chance of

being selected in the tender evaluation process.5. Transparency means that the same rules apply to all suppliers and that

these rules are publicized as the basis of procurement decisions prior to

their use. The contracting authority to create transparency by providing

information about the procurement procedure and how it will be

conducted. In order for tenderers to be afforded the same opportunities

7/28/2019 woineyet2

4/5

4

for the submission of tenders, contract documents must be plain and clear

and contain all of the requirements regarding the subject matter of the

contract.

6. Ethical approach is an act and conduct business with honesty andintegrity, avoid even the appearance of impropriety. In the execution ofpublic fund a person should have an ethical behavior. No person or entity

shall use his or her authority, position or office for any personal gain,

which will be defined as soliciting, accepting or otherwise benefiting

from anything of material value, in any form he or she maintain the

highest standards of honesty and integrity in all professional relationship.

7. Accountability means apply sound business judgment, beknowledgeable of and abide all applicable laws and regulations.

Therefore an individual or procuring entity fully responsible for allaspects of the procurement process over which their exert authority.

8. Efficiency and effectivenessProcurement processes should be carried out as cost effectively as

possible. Public bodies should meet the commercial, regulatory and socio

economic goals of government in a balance manner appropriate to the

procurement requirement.

7/28/2019 woineyet2

5/5

5

Reference

1. JM DEWAN, KN SUDAR SHAN (1996). purchasing and

material management. Discovery Publishing House New

Delhim_110002

2. www.europ_economic.com

3. Peter Baily, David Farmer, David Jessop and David Jones

(1998) purchasing principles and management. eight edition

FT prentice Hall

http://www.europ_economic.com/http://www.europ_economic.com/http://www.europ_economic.com/