Regulation and Comp Policy

Question 1

Why is competitive tendering great for the government?

Answer 1

Because by getting private sector firms to bid against each other for the contract, private sector firms will undercut each other’s prices and offer better quality.
This means that the government can make sure it’s getting the best value of money.

Question 2

What is competitive tendering?

Answer 2

Competitive tendering is when the government outsources specific job contracts to private sector firms. This will make private firms to bid and offer the best quality and value of money they can from which the government can then choose the best value of money offered and make it more efficient.