• Title/Summary/Keyword: Government procurement

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Preventing Procurement Fraud in E-purchasing for Indonesian Local Governments

  • ZAHRA, Femilia;ABDULLAH, Muhammad Ikbal;KAHAR, Abdul;DIN, Muhammad;NURFALAH, Nurfalah
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.505-511
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    • 2021
  • This study aims to investigate the effects of e-purchasing on increasing transparency, expanding market access, and the efficiency of the government procurement process. This study also investigates how transparency of the procurement process, improved market access and the efficiency of the procurement process in e-purchasing will decrease the level of fraudulent government procurement in Indonesia. The questionnaires were distributed to the Procurement Service Units (ULP) of Local Governments through email. There are currently 542 ULPs in Indonesia based on the data of the Government Procurement Policy Institute (LKPP). However, only 520 ULPs had their email addresses traced, 120 ULP returned the questionnaires and the response rate is lower than it was expected. The data research was analyzed by a structural equation model (SEM) by using WarpPLS 7.0. The results reveal that the e-purchasing effect on the transparency, the expansion of market access, and the efficiency of the government procurement process. The other findings show the negative effect between efficiency in government procurement and fraud in government procurement. The findings of this study suggest that efficiency in the process of government procurement will minimize fraud in government procurement. However, transparency in government procurement and the expansion of market access was not sufficient to minimize fraud in government procurement.

A Study on the Implementation of E-trade in International Procurement Market (국제조달시장의 전자무역 구현에 관한 연구)

  • Lee, Sang-Jin;Chung, Ja-Son
    • International Commerce and Information Review
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    • v.6 no.3
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    • pp.137-157
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    • 2004
  • It is very necessary to find how to develop international government procurement by analyzing functions and roles of information providing circumstance and existing total international government procurement information system. In addition, it would require to draw up a way of improving current international government procurement information system based on the problems of existing system. In this study, we analyze the current status of Korean international government procurement information system and give an idea of mutual cooperating with DGMARKET, a good example of international government procurement information system. As a practical method, cooperating with DGMARKET by building each countries' gateway will be very helpful in cost saving and providing information. It will also complement the limitation of Korean system's one way service. But supplying only international government procurement information is insufficient in realization of e-trade in international goverment procurement market. To settle these problems, treating international government procurement as a same field of trade and giving political support and incentive to company which hopes to participate international goverment procurement are absolutely needed.

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IMPLEMENTATION OF GOVERNMENT E-PROCUREMENT: A COMPARATIVE STUDY OF THAILAND AND INDONESIAN PRACTICES

  • Budi Hasiholan;Shin-ei TAKANO
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.827-834
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    • 2009
  • In respond to the demand of an open, fair, transparent, and efficient environment for procurement, many governments have incorporated the use of internet in their procurement systems with online procurement (e-procurement). Given the different policies and laws which have to be complied with, the practice of government e-procurement system varies from one country to another. Thus, experiences in running e-procurement will vary as well. The achievements and obstacles of one country's experience will be a constructive reference for other countries in establishing e-procurement system. In this regard, government e-procurement system practices in two Southeast Asia countries i.e., Thailand and Indonesia particularly in public works are consecutively presented and finally compared in this paper. The government of Thailand has applied Online Auctions (e-Auctions) as the national procurement practice since 2005 and performed the e-Auctions in two types: Reverse Auction and Sealed Bid Auction. Contrary to the common practice of e-procurement, the Thai government, with some rationales, runs the bid documents obtaining manually as well as qualification and technical documents submission and holding the e-Auctions at bidding office. Whereas Indonesian government runs Online Sealed Bid Bidding (e-Procurement) and most of the bidding stages are performed electronically except bid evaluation for both technical and financial. The advantages and drawbacks of these two e-procurement practices are discussed as well as improvements that have to be made for successful of e-procurement.

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A Study on the Regulations of U.S. Government Procurement (미국(美國)의 정부구매(政府購買) 관련법규(關聯法規)에 관한 고찰(考察))

  • Yoon, Choong-Won;Ha, Hyun-Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.19
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    • pp.7-31
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    • 2003
  • The governments of almost countries have the rules and procedures that the purchasing entities have to follow, in order to ensure that the best value for money spent is obtained in procuring goods and services. However, there are often some of important problems in their rules relating to government procurement. Namely, almost countries have a variety of discriminatory regulations for foreign suppliers in the government procurement laws with the object of national security, economic welfare, and protection of domestic market from international competition. For this reason, several advanced countries had reached the Plurilateral Agreement on Government Procurement during Tokyo Round(1973-1979) and Uruguay Round(1986-1994). However, the provisions of two agreements do not apply to all products made by the government but only to those made by purchasing entities specified by each member country in its list in the Appendix. Accordingly, the size of goods and services purchased from foreign suppliers were comparatively not large. As we know well, the United States have spent a large amount of money from federal and state government budget. But the portion of procurement from foreign suppliers is still small, compared with the portion of procurement from domestic suppliers. The main reason are that U.S. has applied for long time the so-called Buy American Act to government procurement positively and maintained many kinds of other domestic regulations which have discriminatory provisions for foreign goods and foreign suppliers. On the recognition of these points, this thesis deals with the Buy American Act and other U.S. domestic laws, regional and bilateral, and plurilateral agreements including WTO Agreement on Government Procurement. As a result, the author found that there are several concerns and problems in the U.S. regulations relating to government procurement. It include the provisions on priority procurement of U.S.-produced products, local contents requirements, set-aside procurement from small business, and exclusion of preferential procurement from the developing countries.

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A Study on the Possibility of E-Government Procurement in China

  • Lee, Seoung-Taek
    • Journal of Korea Trade
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    • v.23 no.6
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    • pp.52-65
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    • 2019
  • Purpose - This paper aims to study what is impacting the development of e-Government Procurement in China, the current strategies of developing Chinese Governmental e-Procurement, and to present some measures by which Korea's exporting industry could enter the Chinese procurement market. Design/methodology - This study is to provide a systematic literatures review on what is impacting the development of e-Government Procurement in China. Hence, based on western research, Chinese literiatures are used for this study. Findings - To penetrate the e-procurement of the Chinese government, the acquisition of government procurement certification is necessary. Secondly, the qualification of "Made in China" is one way to join the market. And finally for Korean companies to enter the procurement, it is necessary to provide products to the public institutions such as universities, hospitals and social organizations and to the state-owned enterprises. Originality/value - This paper aims to study what is impacting the development of the e-Government Procurement in China, the current strategies of developing Chinese Governmental e-Procurements, and to present some measures by which Korea's exporting industry could enter the Chinese procurement market. These originalities can be expected to give understanding of Chinese e-govenment procurement and insight for strategy for both Korean enterprise and relavant academic circles.

A Study on Export Promotion Strategy to Foreign Government Procurement Markets for Korean Firms (한국기업의 해외정부조달분야 수출증대방안에 관한 연구)

  • Choi, Jang-Woo
    • International Commerce and Information Review
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    • v.12 no.2
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    • pp.439-466
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    • 2010
  • Recently, the world government procurement market has been greatly opened thanks to the WTO Government Procurement Agreement and FTA etc..In spite of that, many companies trying to export their products into overseas procurement market have been still facing many kinds of invisible barriers and practices for restricting the market access. With the survey results, this study aims to suggest strategic and political implications for the exporting companies in the procurement area for preparing the marketing strategy and introducing the export assistance regime and developing the negotiation position in the concerned FTA. This study has showed some kinds of important implications for the export promotion in the area. Firstly, the companies have to try to increase their products competitiveness, to strength efforts for bids information gathering, to use special program for the foreign companies in some countries. Secondly, the Korean Government also has to try to establish a realistic system for gathering many information about the foreign government procurement market, to assist the companies's export marketing, to introduce the global standards for adapting international technical specifications, and to conclude the FTA agreement with the concerned developing countries in the procurement area etc..

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Expansion of the Government Procurement Agreement: Time to Concentrate on Depth as well as Width

  • Yang, Junsok
    • East Asian Economic Review
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    • v.16 no.4
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    • pp.363-394
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    • 2012
  • WTO Government Procurement Agreement (GPA) was designed to liberalize and expand trade in government procurement. Revised GPA was implemented in 1996 and the latest revision was completed (but not yet implemented) in 2012, but as a plurilateral agreement. Since the end of the UR, there has been attempts by various WTO members to liberalize trade in the government procurement market - through an expansion of Parties who are signatories to GPA, and through a negotiated agreement on transparency in government procurement. The attempt to expand the Parties who are signatories to the GPA - attempt to increase the width of the coverage of the agreement - has been somewhat successful, but I argue that the goal should be to further liberate the government procurement markets of the current Party members - to reduce thresholds and other barriers which limit market access even to other GPA members, in other words, to increase the depth of coverage. Taking cue from Korea's FTA, I propose a two-level liberalization of the government procurement market under the GPA: A "light" level which would be the same as the current level of liberalization; and a "deep" level with lower thresholds and less exemptions. I argue that, as seen in Korea, with FTAs, many GPA Parties already have multiple levels of liberalization (i.e, spaghetti-bowl effect of FTAs), but by limiting the levels of liberalization to two, we can seek the best of deep liberalization but reduce the spaghetti-bowl effect.

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A Study on the Sustainable Governance of the Government Procurement Policies under the WTO System (국제무역환경 변화에 따른 정부조달무역정책의 거버넌스 연구)

  • Lee, Eui-Young
    • International Commerce and Information Review
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    • v.8 no.1
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    • pp.399-414
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    • 2006
  • Since the inauguration of WTO system has made borderless competition across the countries, many government should try to find out the harmonious policy paradigm for the check and balance between the globalization and localization. The government procurement market has been considered as one of this kinds of difficult tasks for the local small and medium companies. Many governments should lift the paradigm of the government procurement market toward the conditionally open competitive market. The paper is aimed to find out the sustainable governance of the government procurement policies to protect the local companies. Based on the many international cases, including the Chille-Korea FTA, the paper concludes the sustainable governance of the policies should be focused on the equitability and transparency.

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Government Procurement in the TPP: Differences with GPA, and Implications for Korea's Future Market Opening Negotiations (TPP 정부조달분야: GPA와의 차이 및 향후 한국의 정부조달 시장개방 협상에 대한 함의)

  • Yang, Jun-Sok
    • Korea Trade Review
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    • v.42 no.4
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    • pp.185-215
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    • 2017
  • While the future of Trans-Pacific Partnership Agreement is uncertain, TPP did succeed in convincing certain developing countries, which had been reluctant to open its government procurement market in the past, to open their markets. In this paper, we compare the government procurement chapter of TPP with WTO Government Procurement Agreement to see what factors may have convinced these countries to open their government procurement markets. The key factors seem to be an initially very high levels of threshold, coupled with an extended transition period (up to 20 years) to lower the threshold to figures comparable to other countries; and reduction of legal and regulatory burdens dealing with some transparency and procedural requirements. Korea should use these strategies in their future FTA negotiations to try to open foreign government procurement markets. If Korea wants to accede to TPP, it should have very few problems since Korea has similar threshold levels as current TPP members, and legal and regulatory requirements are more strict under GPA, of which Korea is a member.

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Endemic Corruption in Supply Chain and Procurement in the Local Sphere of Government in South Africa

  • Odeku, Kola O.
    • Journal of Distribution Science
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    • v.16 no.9
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    • pp.43-52
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    • 2018
  • Purpose - This article accentuates that there is pervasive corruption in the supply chain and procurement of goods and services in the South African public sector, particularly in the local sphere of government. Consequently, the poor and the indigents who are supposed to receive quality services are affected. Therefore, the article emphasizes the need to strengthen compliance in the supply chain and procurement processes in order to combat corruption. Research design, data, and methodology - This article extensively utilized qualitative literature review approach to address and solve the problem of endemic corruption in the supply chain and procurement being perpetrated by local government officials. Results - The synthesis shows that by strengthening compliance of supply chain and procurement strategies, measures and frameworks, the likelihood of corruption will be drastically reduced if not totally eradicated. It demonstrates that the poor and the indigents who are supposed to receive quality services are being denied due to corruption. It also shows that failure to comply should result to enforcement of punitive sanctions against perpetrators. Conclusions - This study indicates that effective and efficient implementation of supply chain and procurement strategies, measures and frameworks are panacea for curbing corruption in South Africa public sector especially at the local sphere of government.