History of pubilc procurement - Term Paper Example

It is also considered as the main element in the way public funds are utilized, hence enhancing public trust in procurement (Beth & OECD 19). Public procurement has been in existence since 1778 and has led to the implementation of public procurement law, which regulates the purchasing made by public sectors that contract goods, services and work. Public procurement is regulated in most countries to avoid corruption, fraud, and waste; indeed, public tenders are issued by a public authority when the value of procurement exceeds the required threshold.

Today, public procurement is becoming more complex, forcing the public procurement officials to deal with the changing issues based on fairness, transparency, integrity, and equity, which are the principles of public procurement (Beth & OECD 18). The History of Public Procurement According to Thai (13), the first purchasing action was conducted in 1778, with the approval of the continental congress on the appointment of purchasing commissionaires. By the end of that year, the purchasing officers had been placed on a salary, with an aim of avoiding fraud.

The congress thereafter passed a Purchasing Act, which permitted war and treasury departments to make purchases in the name of the United States. The first procurement was made in 1794 for the new United States navy; however, this procurement was accompanied by negative experiences, which led to the implementation of purveyor of Public Supplies Act, a procurement legislation that was the basis for military procurement. Misconducts and fraud cases led to the implementation of Public Contract Act of 1808, which warned members of the congress from using government contracts for personal interest (Thai 13).

In the United States, public procurement organizations vary with the size of the government units; however, it has a complicated procurement structure. The federal procurement operates within a democratic framework, which is under the legislative, judiciary, and executive branches. Nevertheless, the courts are not involved in setting procurement policies and rules; however, they try the legal cases that involve contract disputes. The congress passes the laws that establish procurement policies and procedures; it also allocates specified funds for the procurement purposes within the time required (Thai 19).

Public procurement also encounters several challenges. This function has a great impact on the country’s economy; hence, efficient handling of public procurement has proved to be a challenge. Ensuring that the principles of public procurement are followed to the later is also a challenging task. This includes ensuring that fair competition for the bidders is granted, promoting transparency, and ensuring that the allocated loans are used for the specified purposes only. Thirdly, public procurement is associated with fraud, waste, and corruption, hence a major challenge for a country.

In addition, public procurement practitioners face the challenge of complying with their home government regulations without violating the international trade agreements like the World Trade Organization (WTO). Today, the government has enacted several laws pertaining to public procurement, among them being the Public Act whose aim is to enact laws relating to public contracts. An example is the federal acquisition regulation and agency, which provides uniform procedures for federal agency acquisitions.

The Truth in Negotiation Act of 1962 establishes rules that