1 a. Discuss the reasons that make it necessary to ensure that the process of public procurement is economical and efficient as possible. How would this differ from private procurement?
UNCITRAL: Public procurement is the acquisition of goods, construction works or services by a procuring entity.
According to the Public Procurement and Disposal Act, public procurement refers to the acquisition by purchase, rental, lease, hire purchase, license, tenancy, franchise or by any other contractual means of any type of works, assets, services, or goods including livestock or any combination by a public entity.
According to the same Act, public entity means:
• Government or any government department
• The courts
• Commission established under the constitution
• A local authority
• A state corporation
• The central bank of Kenya
• A co-operative society
• A public school
• A public university
• A college or any other educational institution maintained or assisted out of public funds
Public procurement is funded by public funds, which include: money appropriated to procuring entities through the budgetary process as well as extra-budgetary funds, including aid grants and credits put at the disposal of procuring entities by foreign donors and revenues of procuring entities.
According to the World Bank, a simple definition of public procurement: procurement by a procuring entity using public funds.
Public procurement is different from private procurement because in public procurement the economic results must be measured against more complex and long term criteria. Furthermore, public procurement must be transacted with other considerations in mind, besides the economy. These considerations include: accountability, non-discrimination among potential suppliers, and respect for international obligation.
Unlike private procurement, public procurement is a business process within a political system, and has therefore significant considerations of...