Things to understand procurement agency
A procurement agency is an independent entity constituted by the government to procure and sell goods, services, and facilities. Agencies are sometimes referred to as public limited companies and, most of the time, public-service departments with the sole objective of procuring goods, services, or facilities at the lowest cost possible for the government. They have been established to have complete control over all aspects of supply chain management, including suppliers, vendors, tenders, contract documents, and prices. They’re also there to monitor spending and ensure that only necessary expenditures are made on procurement.
As a result of this rigorous setup, procurement agencies may seem like daunting entities that can easily be viewed with skepticism. However, they also function as a source of knowledge for businesses wanting to work with the government.
The primary purpose of the Sourcing Agents in Asia is to procure goods, services, or facilities. They assist the government in establishing a competitive bidding process that supports the value of money; hence can also be referred to as value for money. With no procurement agencies in place, every single purchase made by the government would be given only a low priority since it doesn’t contribute to its overall financial obligations.
In addition, a procurement agency helps the government achieve various other objectives, such as enabling the government to remain competitive. Providing goods and services at competitive prices is one of the core functions a procurement agency should possess. Excellent and fair pricing is what helps in maintaining the confidence of suppliers and vendors and also in respecting their investment.
A procurement agency also protects the interests of bidders by implementing due process procedures before awarding a contract. This prevents instances where bribes are offered, or bid rigging takes place, leading to reduced integrity within the bidding process being carried out by government agencies.
Having a procurement agency helps the government get work done. It ensures that the government gets the best deals, works within budget, and develops long-term and enduring relationships with bidders. A procurement agency also helps in providing transparency to the bidding process and increases competition among participants in the market, thus resulting in increased efficiency levels. It also gives preference to more prominent bidders as they will have better chances of being awarded tenders due to the competitive prices offered on tenders by vying smaller vendors.