government procurement

Government procurement business

Government supply chain management supply chain management

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Research on Government Procurement under the Environment of Supply Chain Management

Research on Government Procurement in Supply Chain Management

& lt& lt technology and management & gt01released in 2005.

Yang Guanghua, Xu Kang, He Kangping

Supply chain management provides new ideas and models for the reform and development of government procurement. In the supply chain management environment, government procurement pays attention to the concept of informationization, initiative and whole process. Using integrated information operation mode to solve the complexity of government centralized procurement supply chain. Procurement planning, timely procurement, supplier management and information technology are the basis of its implementation.

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Summary of government procurement

For developed countries, government procurement of goods and services usually accounts for 10- 15% of GDP, and for developing countries, it is as high as 20% of GDP. In order to control this important part of the international economy, WTO members signed a plurilateral government procurement agreement in Uruguay Round 1994 (binding only on WTO members who choose to sign). The agreement is based on 1979 Tokyo round government procurement agreement. There are currently 26 signatories, including Canada, the European Union, the United Kingdom and the United States. [1] The remaining signatories are mainly developed countries. [2]

The purpose of the Agreement on Government Procurement is to ensure that the government's decision on government procurement of goods and services does not depend on the place where goods are produced or services are provided, nor does it depend on the foreign affiliation of suppliers. The first step for GPA signatories to establish "non-discrimination" is to set up a working group at the Singapore 1996 ministerial meeting to investigate the transparency of government procurement. All WTO members are represented in the working group.

The Working Group on Transparency in Government Procurement examines issues such as: Does a government disclose the criteria on which its procurement decisions are based? Are procurement opportunities announced so that all suppliers know about them? Does it encourage competition among potential suppliers? After investigating these and other issues, the working group will make efforts to formulate policies to open competition in government contracts.

Many countries restrict government procurement of goods and services for various reasons. Some countries do this to encourage domestic industries, although many developing countries have limited domestic service industries, so they turn to foreign service providers. Some developed countries hope that the Agreement on Government Procurement will become a multilateral agreement. This step will increase the market opportunities of their own companies and allow them to bid for foreign government procurement in a "level playing field". The biggest supporters of multilateral GPA are the United States and the European Union.

Proponents of multilateral GPA also regard it as part of the "good governance" agenda of developing countries-they believe that the more transparent the procurement process, the less opportunities for corruption and rent-seeking for domestic governments and suppliers. [3]

Although these countries hope to reach a multilateral GPA in the future, the voices against multilateral agreements come from several developing countries (especially India, Pakistan and Egypt) and relief organizations such as Oxfam. [4] These parties believe that the opening of government procurement is not a way to obtain a "level playing field", but a situation in which developing countries and least developed countries may be replaced by expanding industrial countries. Developing countries and aid organizations are worried that if large and established foreign companies are allowed to bid for government contracts with domestic companies, the growing industries in developing countries will be at a disadvantage, which will lead to balance of payments problems.

In addition, other countries with objections believe that government procurement laws limit their ability to solve some non-trade issues, such as environment, eco-labelling and human rights issues. For example, at present, if the government has specific labor standards, it can stop human rights violations in the workplace by purchasing only from companies that meet the standards. These countries believe that if the government procurement law will eliminate their discretion in deciding similar issues, then issues such as labor standards and environmental protection will decline.

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purchase

The total public sector expenditure on goods and services in Scotland is about? 8 billion a year. The procurement guide manages the procurement of these goods and services in the fields of IT and telecommunications, health and education services, and local governments.

The public procurement reform program aims to improve the standards of public sector procurement of goods and services to ensure that taxpayers' money is used as wisely as possible.