- 10 Marks
PSAF – May 2017 – L2 – Q2b – Public procurement
This question discusses the extent to which procurement entities can choose their procurement methods and evaluates the appropriateness of single sourcing in public procurement.
Question
The Procurement Unit of a government department has drawn up a procurement plan for the current financial year and has submitted it to the entity tender committee. A review of the plan revealed that single sourcing method of procurement is recommended for most of the procurement packages. This raises serious concern from the Entity Tender Committee members, however, the head of procurement entity and the chairman of the entity committee hold a different view. He states that every procurement entity has the liberty to use any method of procurement it deems fit and so the decision to use single sourcing in most of the procurements of the department cannot be challenged by the Entity Tender Committee.
According to the head of procurement entity, the entity tender committee has a limited role in public procurement and therefore the committee should work within its restricted powers and responsibilities. The role of the committee is to approve the selection of suppliers or contractors.
Required:
i) To what extent do you agree with the assertion of the head of procurement that “every procurement entity has the liberty to use any method of procurement it deems fit” in light of the public procurement law. (6 marks)
ii) Explain TWO conditions under which single sourcing may not be an appropriate method of procurement. (4 marks)
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