Procurement Perspectives: Outsourcing may be contingent on market conditions

A key concern when outsourcing is used is whether market conditions permit a municipality to secure an adequate number of bids to form a suitable range of competitive suppliers.

By outsourcing, this important public policy concern is frustrating. Even if there is no true monopoly, if there are only a few suppliers who are able to bid for the work, there is a significant risk that a non-competitive price will be obtained. Three problems are likely to be encountered in such cases. First, there is the problem in properly administering the means test to ensure the subsidy is provided only to those people that qualify.

Third, contracts for this form of service provision will often provide for fee increases based on some arbitrary formula with little regard to the suppliers actual cost experience.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Labour market gains 41K jobs in Canada, supports Bank of Canada holding rates for longerStatistics Canada said February's increase in the labour market was driven by a rise in full-time work.
Sumber: YahooFinanceCA - 🏆 47. / 63 Baca lebih lajut »

ArriveCan fallout should be catalyst for change to Indigenous procurement program, business group saysCanadian Council for Aboriginal Business president Tabatha Bull says any list of companies approved for the program should be thoroughly reviewed
Sumber: globebusiness - 🏆 31. / 66 Baca lebih lajut »

Federal procurement department punishes companies that worked on ArriveCan appThe pandemic-era ArriveCan app has faced heavy scrutiny, with the Auditor-General recently finding its development was a major failure of management
Sumber: globepolitics - 🏆 12. / 78 Baca lebih lajut »