9.1 Procurement Principles

Categories: 9 Procurement and Implementation
Time of issue: 2022-04-28 10:12:42
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This chapter provides an overview of alternative procurement methods and outlines the procurement planning process. The information is very general and presented to introduce the local agency to the key issues and elements related to project procurement and implementation. Depending on the source of funds secured by the local agency to implement a project, procurement procedures may need to be followed that are specified by the funding agency. Because detailed procurement procedures are readily available from the different financial institutions, the reader is advised to review documents provided by the institution supporting the project.

The procurement activities begin with the identification of a need and end with the award of a contract. According to the content of a need, procurement inputs are classified into three categories:

Goods – supplies, materials, equipment, goods, and equipment needed during the project implementation (e.g., wastewater treatment equipment and supplies, printed materials, etc.
Works – civil work components of wastewater treatment stations, drainage, roads, buildings, etc.
Services – include general services (operation and maintenance of equipment, offsite storage, transport services, etc.) and consulting services (feasibility studies, project design, construction supervision, project management, technical or special studies, etc.).

The goal of public procurement is to award timely and cost-effective contracts to qualified contractors, suppliers, and service providers for the provision of goods, works and services to support government and public services operations, in accordance with principles and procedures established in the public procurement rules. The quality, timeliness, local appropriateness, and affordability of the procured inputs can largely determine whether the public investments will succeed or fail.

Public procurement principles are the foundation of procurement activities, which set the framework for a code of conduct for procurement practitioners and other parties of interest. Key principles of public procurement include:

Transparency – Information on the procurement process must be made available to all public procurement stakeholders unless there are valid and legal reasons for keeping certain information confidential.
Integrity – The integrity is twofold: i) for procurement practitioners, fraud, corruption or collusion with suppliers, contractors and consultants should be forbidden; ii) for procurement process, the publicly available documents should be unambiguous and dependable.
Economy – The ultimate purpose of sound procurement is to obtain maximum value for money. The prices paid for goods, works and services should be acceptable and represent good value for public funds.
Fairness – Suppliers should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. Decision–making and actions must be unbiased, and no preferential treatment should be extended to individuals or organizations.
Accountability - Everyone involved in the procurement process is responsible for their actions and decisions.
Efficiency - The procurement is simple and swift, producing positive results without protracted delays. In addition, efficiency implies practicality, especially in terms of compatibility with the administrative resources and professional capabilities of the purchasing entity and its procurement personnel.

A sound procurement system is one that combines all the above elements. The desired impact is to inspire the confidence and willingness-to-compete of well-qualified vendors.