What are the 4 types of procurement in Ghana?

Procurement is the process of acquiring goods, works, or services from external sources. In Ghana, procurement plays a critical role in the delivery of public services, such as infrastructure development, health care, education, and defense. The government of Ghana has established a legal framework for procurement, which outlines the principles and procedures that must be followed to ensure transparency, accountability, fairness, and value for money. This article will discuss the four types of procurement commonly used in Ghana.

Competitive Bidding

Competitive bidding is the most common procurement method used in Ghana. It involves inviting bids from a range of potential suppliers or contractors to provide goods, works, or services. The bids are evaluated based on predetermined criteria, such as price, quality, technical specifications, and delivery time.

The supplier or contractor who meets the requirements and submits the lowest-priced bid is awarded the contract. Competitive bidding ensures that the procurement process is fair, transparent, and competitive, which leads to value for money. It also encourages participation from a range of suppliers, which fosters innovation and efficiency. However, competitive bidding can be time-consuming and resource-intensive, especially for complex projects.

Sole Sourcing

Sole sourcing, also known as single-source procurement, is a procurement method used when there is only one supplier or contractor that can provide the goods, works, or services required. It is typically used when the procurement item is unique, specialized, or proprietary, or when there is an emergency situation that requires immediate action.

Sole sourcing can also be used when the procurement item is of such a specialized nature that only one supplier is capable of providing the required item. Sole sourcing can be faster and more efficient than competitive bidding, as there is no need to evaluate bids from multiple suppliers. However, sole sourcing can raise concerns about transparency, fairness, and value for money, as there is no competition to ensure that the procurement is the best possible price.

Restricted Tendering

Restricted tendering, also known as selective tendering, is a procurement method used when a limited number of potential suppliers or contractors are invited to bid for a contract. The selection is based on predetermined criteria, such as the supplier's or contractor's technical capacity, experience, and financial standing.

The advantage of restricted tendering is that it ensures that only qualified suppliers or contractors are invited to bid, which reduces the risk of awarding the contract to an unqualified or inexperienced supplier or contractor. However, restricted tendering can limit competition and may result in higher prices than would be achieved through competitive bidding.

Direct Contracting

Direct contracting, also known as sole-source contracting, is a procurement method used when there is only one supplier or contractor that can provide the goods, works, or services required, and there is no time or opportunity to use competitive bidding or restricted tendering.

Direct contracting is typically used in emergency situations, such as natural disasters or security threats, where immediate action is required. Direct contracting can also be used for very small purchases or when the procurement item is of low value. However, direct contracting can raise concerns about transparency, fairness, and value for money, as there is no competition to ensure that the procurement is the best possible price.

In conclusion, procurement is a critical process for the delivery of public services in Ghana. The government has established a legal framework for procurement, which outlines the principles and procedures that must be followed to ensure transparency, accountability, fairness, and value for money. The four types of procurement are commonly used in Ghana.