Poor quality products through state procurement
Economics, Daily news | ankakh | November 15, 2012 13:13
‘Currently almost all tenders organized by the state procurement system recognize as a winner the participant that submitted the minimum pricing proposal and as a result low-quality goods are purchased’ said Karen Vardanyan, Director of the Union of Information Technology Enterprises, during the press conference today.
According to him low price goods are bad products as a rule. ‘In this case why do we make a state procurement if we have to collect all the ‘trash’ from the whole world and bring it to Armenia? We propose to evaluate quality in the first place, then only the price issue. Or introduce the quota of assessing quality: 70% quality. 30% price’ mentioned K. Vardanyan.
According to him the next issue in the sector is the appealing system. ‘Even the best organized procurement process can lead to mistakes and in that case a problem comes up: how to appeal the errors. In order to appeal one should go to the body that announced the tender, i.e. the Ministry of Finance’. According to K. Vardanyan appealing process is the most important point and it is nonsense to appeal to the body that announces the purchases.
‘There is no need to establish a new body. These functions should be put on the State Commission for Protection of Economic Competition so that there is a competition between these two structures and appeals reach the target’ mentioned Director of UITE.
According to him the most painful point that contains corruption risks is the competitions cancellation point. ‘Serious grounds must be provided in order to cancel the tender and expenses of participating companies must be compensated’.
UITE founding director mentioned that the package of proposals has been submitted to the Government and relevant instructions have been sent to the RA Ministry of Finance. ‘We are looking forward to the implementation of recommendations’ said K. Vardanyan adding that main points of the proposals can be implemented within six months.
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