What are the benefits of awarding public procurement?

Public sector contract is a process by which government agencies and other public authorities select and contract commercial companies to provide goods and services. This is done as an alternative to the agency or body that carries out the service itself. The main advantages are reduced costs and the ability to benefit from expertise. In most capitalist countries, these benefits are almost read, which means that any argument usually concerns the extent and procedure of public publication of the public sector.

The logic for entering the public sector is double. The first main advantage is that it allows the public body to choose between multiple suppliers. This should set a price competition, reducing the cost of the agency and finally a taxpayer. This can simply be a matter of expertise; Advertising will often have a better ability to identify, hire and train employees for a role than an agency that processes a number of tasks. There are also savings of the range. Public bodyErý must only perform a specific task on a limited basis, it will not always find that it is worth investing in the type of specialized machine that the commercial company buys or benefits so much from bulk discounts on materials.

Some benefits of the public sector's public contract are questionable. One of them is the idea that the ability to select the cheapest supplier will always be the best choice. There is a debate on whether this could lead to the supplier doing poor -quality work or threatening safety standards. As a result, many public agencies use public procurement policies known to terms such as "best value". This requires the body to assess potential suppliers on a number of criteria, such as expertise and quality, a rane only price.

Another potential limit for the benefits of public public sector commissioning is the loss of control and responsibility. It is possible that SOThe terrible supplier hired to perform the task will not do so in time. If this happens, the public authority will have a financial return in terms of sanctions, but that does not change the fact that the project is not completed. On the other hand, it may have political consequences for elected officials.