3.
Procurement administration
In some countries, the purchasing function is centralized in a central procurement
unit. In principle, a central purchasing unit has the advantage of allowing the government
to obtain lower prices by grouping its purchases. However, the results may be
disappointing because of problems such as slow and bureaucratic response to
customers, excessive inventories, losses, pilferage, and slow response to market and
technological changes.
It seems preferable to make line ministries fully responsible for their purchases
and establish a Central Public Procurement Office to supervise and assist in the
procurement activities of agencies. Under such arrangements, the Central Public
Procurement Office is responsible for developing rules and regulations, creating a
government-wide information and publication system, ensuring that government
purchasing entities employ trained personnel, developing a training system, and
maintaining general supervision of procurement systems.
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