Tender advertisement cost: Significant saving through the use of information and communication technologies (ICT)

Abstract

One of the significant sources of Govt. revenue is the collection through taxes. The major proportion of these taxes is incurred on Govt. consumption expenditures that are mainly in form of public procurement. The information of public procurements is spread out in form of tenders through print and electronic media. The best strategy is to device a tradeoff between spending on public procurement advertisement and quality of information to suppliers. This will not only to enhance cost effectiveness but also an alternative to achieve economies of scale as well. But reality is different, efficient and economical public procurement is a burning issue in underdeveloped countries. This could be settled through effective strategies and use of information and communication technologies. In Pakistan, Public Procurement Rules (PPRA) 2004 are followed and adopted by Federal owned Govt. entities. In these rules certain financial limits are assigned for selection of the medium of advertisement for tenders. Section 12(2) of Public Procurement Rules of Pakistan 2004 relates to advertisement of tenders which states that: “All procurement opportunities over two million rupees should be advertised on the Authority's website as well as in other print media or newspapers having wide circulation. The advertisement in the newspapers shall principally appear in at least two national dailies, one in English and the other in Urdu” First, it is analyze whether the current tender advertisement structure is cost effective compare to SAARC countries Secondly, the tender notices are published for vendors/suppers/contractors information about tender requirements; whether the vendors search newspaper or PRRA website or other electronic medium for getting information about tenders.