Since it involves the acquisition of goods and services, by necessity, it depends on external sources. For those who supply public entities with goods and services, understanding the procurement process is not just beneficial but essential for their success. Here a few important reasons why:
Access to Opportunities
Public procurement represents more than 15% of the global GDP. Governments are among the largest buyers of goods and services. Government contracts can provide a steady and significant source of revenue. Understanding the procurement process allows suppliers to tap into this vast market. By being aware of upcoming tenders and the requirements for participation, suppliers can position themselves to win lucrative deals.
Compliance and Legal Requirements
Public procurement is governed by strict regulations and standards to ensure transparency, fairness, and accountability. It impacts issues of risk management, intellectual property rights, dispute resolution and a myriad of other legal considerations. Suppliers must understand these legal frameworks to avoid disqualification and potential legal issues. Knowledge of compliance requirements, such as certifications and documentation, is crucial to successfully navigate government contracts.
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