lecture 6 Flashcards
What does public procurement involve?
Goods, services, works (infrastructure etc)
What is the main difference between public procurement and private?
Those in public procurement have a limited budget and do not work for profit
External demands for PP?
Transparency, integrity, accountability (sped the budget wisely)
What are 3 internal demands for PP?
Deal with many goals at the same time, deal with political goals, there are many stakeholders
What are the phases of tendering?
- Post announcement
- Get suppliers reaction
- Get request for quotation
- Get offer from suppliers
- select the best fitting supplier
- Announce the award/choice result
What are the objectives of EU directives?
Stimulating competition by announcing orders, have the same legislations for all EU members, sustainability, social inclusion
What are key objectives for PP?
Job creation and employment, strengthening the industry, diversity, innovation, sustainability
What are 3 EU directives principles?
No discrimination against suppliers, have the process be transparent, be objective in supplier selection and awards
What is an open free choice tendering?
Where all interested suppliers can make an offer
What is a restricted free choice tendering?
Where there is a pre qualification for all interested suppliers, only selected suppliers can make an offer
What is maverick buying?
When someone from within the organization purchases a product without involving the procurement department, doesn’t take into consideration the entire purchasing procedure and disregards any price comparison, negotiation, or contract agreement
What are benefits for contracting procedures in the case of buyers?
Makes the purchasing process more professional, bring more attention to specification, a bigger market can be approached
What are threats for buyers in contracting procedures?
the process must be well organized, the buyer must organize the process very well
What is restricted procedure?
When there is a extra step in selecting suppliers (pre-qualification), where few suppliers can make an offer, normally 5 or less bids to look at, done when confidential information is involved in specifications, specs can be changed at the first step
What is open procedure?
Done in contracting for when a small number of offers is expected, all specifications must be ready and cannot be changed, done relatively quick
