How Do I Choose the Right Procurement Methods?

Government purchase mode refers to the methods and means adopted by the government to achieve procurement goals. China's "Government Procurement Law" stipulates that China's government procurement methods include: open tender, invitation to tender, competitive negotiation, single-source procurement, inquiry, and other procurement methods identified by the government procurement supervision and management department of the State Council. Public bidding should be the main procurement method for government procurement.

Government procurement methods

Government purchase mode refers to the methods and means adopted by the government to achieve procurement goals. China's "Government Procurement Law" stipulates that China's government procurement methods are:

1. Divided by tender scope ^[1]

1.

Establishing the government procurement method is to establish

1. Selection conditions of government procurement methods ^[3]

One,

1. High procurement costs ^[5]

In traditional government procurement activities, due to the use of labor and contact methods such as telephone and fax, communications and travel expenses remain high. Limited by conditions, the range of suppliers' choices is very small, and sufficient price comparisons cannot be made. Also, because the procurement catalogues are adjusted frequently in government procurement, procurement departments often do not consider the issue of procurement costs in order to ensure the timely availability of procurement materials.

2. Low procurement efficiency

Under the traditional government procurement method, the purchasing unit must apply to fill in various forms, stamp and approve them step by step, which takes a long time and is extremely cumbersome. For the government procurement center, it issues procurement announcements through newspapers and other channels, organizes meetings, and invites experts. Evaluation, reception, etc. are not only time-consuming, labor-intensive, and ineffective; for bidding suppliers, because there is no one place where centralized and fixed information can be obtained for bidding, multiple round trips are required to participate in the bidding, which costs a lot of travel costs. It will also affect the normal production and operation activities of the enterprise. At the same time, a large number of paper vouchers in procurement activities may also affect the entire procurement process due to errors or omissions in a single document.

3 Lack of communication and sharing of purchasing information

Due to the lack of real-time, dynamic, and two-way interactive information communication methods for traditional government procurement activities, government procurement information cannot be timely communicated and shared. Because each business department has its own policies and different perspectives, procurement information cannot be transferred in a timely and smooth manner in different government departments, which affects the normal conduct of the procurement process, and sometimes results in situations where the procurement materials do not conform to actual needs. Waste of resources may delay the normal work of government departments.

4 Geographical restrictions

In the traditional procurement business, the selection of suppliers by the procurement department is largely constrained by geographical location, and even some government procurement departments artificially set up barriers to exclude the entry of new and better suppliers from outside, which will inevitably cause procurement The "high quality and low price" of materials cannot well reflect the principles of "openness, fairness, justice" and "value for money" required by government procurement.

5. Difficult to monitor the procurement process

Under the traditional government procurement method, the government procurement link has always been the severe disaster area for corruption, such as rebates in procurement, shadow transactions, and hidden box operations. On the one hand, it is often due to the irregularity of traditional procurement transactions, irregular purchases, and random violations of contract terms; on the other hand, the opacity of the procurement process provides conditions for the occurrence of corruption.

6. Procurement bidding is often in the form of

In the traditional procurement bidding process, the procurement activities that actually achieve the purpose of the bidding are rare and many are in the form. Reflected in two aspects: First, due to geographical, supplier information and other conditions, can not allow the truly strong and dominant suppliers to participate in the bidding; Second, the bidding is limited to comparing the prices of various suppliers, but no bidding In the process, the bids provided by the successful bidders were more or less reserved, which affected the government's procurement costs to a certain extent.