Procurement can be defined as the activity through which the provision of strategic and non-strategic goods and services takes place in the support of the operational activities of any particular company. This is done in accordance with the quantity, quality, and timeframe at the best possible price through applied risk management control.
It is important for an individual to remember that procurement activities are preceded through proper planning, referring to other business plans, and with the online expansion strategy of the company. There are also five basic principles that are followed during procurement. And those five basic principles of procurement are mentioned below.
● Transparency
This is one of the most important principles when it comes to procurement. It is important for an organization to ensure that the information related to any public procurement process should be accessible to all procurement stakeholders including suppliers, contractors, service providers, and the general public.
This principle should be followed in all cases except the ones where there are specific valid and legal reasons for keeping the information confidential. An example of this type of exception includes procurements related to defense or military. Further, any and all announcements of public procurement should also contain all the necessary information that one would need to apply for that tender.
● Integrity
When it comes to the topic of public procurement then, the topic of integrity is twofold. First is the integrity of the public procurement process and second is the integrity of the public procurement practitioner. The integrity of the public procurement process simply refers to the value of integrity. This means that bidders and the stakeholders must be able to trust any information that is spread through the procurement identity, either formally or informally.
On the other hand, the integrity of the public procurement practitioner means that all individuals working as government officials or procurement entities should go to great lengths to display public and professional integrity. There should not be any sort of inconsistencies between these two types of integrity. One should always be perceived as honest, responsible, trustworthy, and reliable. The main purpose or aim of the procurement should never be removed from the mind of all the parties that are involved in the procurement process.
● Economy
This is the third basic principle that is majorly similar to the principles of efficiency, value for money, and commercially reasonable price. The economy also refers to the principle of managing public funds with extreme care and due diligence so that the prices that are paid for the services, goods, or other works are acceptable. Those prices should further represent good value for the public funds that are spent on them.
● Openness
It is important for all public procurement requirements to open and accepting of all qualified organizations and individuals. This means that every qualified organization or individual should be free to apply for any tenders that he or she wants to.
Confidentiality should also be maintained when it comes to proprietary information that belongs to the organization or individual who is participating in the procurement procedure. The evaluation of all the offers that have been received should also be kept confidential.
● Fairness
This is the last basic principle of procurement. According to this principle, all bidders and parties that are involved in the process of public procurement should be treated equally. This can be done by ensuring that all decision-making actions are unbiased, no preferential treatment should be given to anybody, and every party reserves the right to challenge any decision if he or she believes that it has been made in an unfair manner.
There are also some other important principles that should be followed during procurement including competition and accountability.
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About The Author
Anita Sharma
Anita Sharma is a Master in English and European Literature currently works with many organizations as a freelance content writer. Apart from it, she has her own blogging website.
