Accountable procurement means all procurement actors are responsible for their decisions and actions. Accountable procurement process must be in line with all relevant laws and regulations when identifying procurement needs, evaluating and selecting bids, monitoring and implementing the bidding process. Accountability is directly connected to ethical behavior. Price and quality of goods and services are key factors when selecting bids. But considering impact that procurement may have on society, economy and environment is also crucial for selecting bids and can be defined as an accountable procurement.
Efficient public procurement saves time and money, maximizes benefits, and provides better value-for-money public services. Anyone in charge of public procurement should ensure the right value for money is achieved, and promote methods of tender evaluation considering both the quality and cost of purchase. The potential for real savings from more effective procurement policies and practices is significant. Achieving savings is important as it frees up resources which can be redirected to the provision of goods and services within organizations.
Competitive bidding takes place when two or more bidders, independently from each other, offer their terms of supplying goods and services to the buyer. The buyer then decides which bid to select based on quality and price offered.
Competition is a key to effectiveness and efficiency of public spending. It creates necessary conditions to purchase better quality goods and services at best possible price. Competition is a driver of new initiatives and ideas. Bidders tend to participate if all relevant information is available to bidders, and they know that no one will be discriminated and their bids will be fairly evaluated and assessed.
Procurement that lacks transparency and limits competition is a perfect ground for breeding corruption. Transparency is a key principle for building a modern procurement system. Transparent system provides opportunity for all procurement actors to monitor and evaluate the procurement process. Transparent procurement ensures that all proper rules and guidelines are followed and exposes violations. The result is less discrimination, equal access to procurement opportunity for all suppliers, less fraud and corruption.