What is Public Procurement?

What is Public Procurement?

Procurement selection procedures ” are the procedures undertaken by Contracting Authorities for the selection of winners for public contracts – financed from the state budget – for goods, works and services.

Public funds ” are any monetary value of the State Budget, of the local budget, aid funds or loans given by foreign donors according to an international agreement which require the implementation of the country’s legal procedures. They include public funds and revenues from the state, from local enterprises, commercial companies and other entities, where the state owns the majority of shares or capital, which are designated for use in public procurement. See paulsourcing for sourcing products from China.

Public contracts ” are legal contracts usually concluded through the exchange of written communication, between one or more economic operators and one or more state contracting authorities, whose object is the performance of works, the supply of goods and/or services, in compliance with the law. The main types of public contracts are:

– ” Public contracts for services ” are public contracts that have the purpose of performing services. They can have as object goods and services, but in this case the value of the services in the contract must exceed that of the goods. Contracts for services may also include works secondary to the main object of the contract.

– ” Public supply contracts ” are public contracts, which have the object of purchase, purchase in parts or in installments, rent with or without the possibility of purchasing goods. A public contract, which has as its object the supply of goods and which secondarily also includes the placement and installation, is evaluated as a “public supply contract”, if the value of the goods exceeds the value of the placement or installation.

– ” Contracts for public works ” are public contracts, which have as their object the realization, design and realization of works or work or the realization by any means of a work, which complies with the requirements determined by the contracting authority. These contracts are mainly suitable for infrastructure works.

– ” Consultancy contracts ” are contracts for consultancy services, of an intellectual and advisory nature, excluding other types of services, where the physical aspects of the activity such as works and/or supplies of goods prevail;

Public contracts are concluded between the contracting authority and the contractor.

Contracting authority ” is any institution or entity (constitutional institutions, other central institutions, independent central institutions and local government units), which is subject to the implementation of the law “On Public Procurement” .

Contractor “, ” supplier ” and ” service entrepreneur ” is any natural person, legal entity or public entity or group of such persons and/or bodies, that offer in the market the undertaking of one or several jobs, the supply of goods or services.

“Electronic method” of procurement is the use of electronic devices and computer programs for the processing and storage of data (including digital processing) that are transmitted, given and received through cables, radio, optical means or any other electromagnetic means. The e-procurement platform is a web-based application that supports the automation of contracting authorities’ tendering activities. This system enables safe, efficient and transparent administration of all documents related to the tendering process, eliminating the form of submitting documentation on paper and ensuring a secure flow of data throughout the process.

The types of public procurement procedures are:

a) open procedure;

b) limited procedure;

c) procedure with negotiation, with or without prior announcement of the contract notice;

d) request for proposals;

e) design competition;

f) “consultancy service” procedure.

Sourcing from China

Sourcing from China has become a significant aspect of global trade and supply chains due to the country’s position as a major manufacturing hub. China’s abundant labor force, technological capabilities, and infrastructure have made it an attractive destination for businesses looking to manufacture goods at competitive costs.

One key advantage of sourcing from China is the availability of a vast and skilled workforce. The country’s large population provides a considerable labor pool, allowing companies to benefit from cost-effective manufacturing. Additionally, China’s emphasis on education and skill development has resulted in a workforce that is adept at handling various manufacturing processes.

Furthermore, China has made substantial investments in technology and innovation, becoming a leader in several industries. This technological prowess attracts businesses looking to incorporate advanced processes and materials into their products. Many companies source components, electronics, and other specialized items from China to benefit from the country’s cutting-edge capabilities.

China’s infrastructure development is another factor contributing to its popularity as a sourcing destination. The country has invested heavily in transportation, logistics, and communication networks, facilitating efficient movement of goods within and outside its borders. This well-developed infrastructure reduces lead times and transportation costs for businesses involved in global trade.

Despite these advantages, sourcing from China also comes with challenges. Trade tensions, geopolitical issues, and concerns about intellectual property protection have led some companies to reevaluate their reliance on Chinese suppliers. Additionally, fluctuations in currency exchange rates and the potential for supply chain disruptions, as seen during the COVID-19 pandemic, pose risks to businesses heavily dependent on Chinese sourcing.

What is Public Procurement

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