Decision of Allowing the Procurement of Used Items Essay

Discussing the pros on the decision of allowing the procurance of apply items in in the unrestricted eye(predicate) sector (PPA 2011)* It is economical This is because of the liquidity crisis and improvements in product quality overcome thereof some governances ar opting for secondhand purchases. The current update in this regard is that, According to BBC News (Feb2009) the Indonesian military is currently negotiating with the US Army to purchase secondhand F-16 fighter jets in a raise to modernize its air power military capability. Mark you Indonesia is the largest economy in Southeast Asia and one of the dynamic emerging markets in the world. The country is too a member of the elite G-20 major economies. Quality control specially technically aircraft never get old as such(prenominal) because they are meet international standards and principles that govern air transport.* It is affordable to procure at low cost of acquisition, in subject field of emergencies circumstanc es to rescue situations curiously those of public interest, the* brass should allow procurement of employ equipment under transcendent circumstances to serve people, that are evaluated on case by case basis procurement in the need The Bank understands that the decision betwixt the outright purchase and lease arrangements depend on the economic dismissal and benefits, however, given the potential risk associated with used equipment, the government should consider leasing as the preferred alternative only in emergency.* It helps and is the way to go if the government is to fulfill its obligations as far as capital intensive investments are concerned. Purchasing secondhand machines suited Tanzania at the moment because many countries were applying the homogeneous strategy on costly machines such as planes, train engines and ships.* Equipment whitethorn be available immediately, that result to shorten procurement process of acquiring used equipment, compared to the timerequired f or the acquisition of new equipment because it involves ordering which took sometimes up to delivery period.Discuss the cons on the decision of allowing the procurement of used items in public sector (PPA 2011)* May lead to procure worthless quality items that do not meet intended purpose that is accomplishment requirements of the goods, and minimum standards for age, residual economic life, and quality of materials. That might result in massive economic losses this is refer to the economic life round of golf of goods procured. Since they forget not be expected to originate from Tanzania, it will be difficult to get authenticated record of the time they had been used and restrict at the time of sale.* Failure of getting loans from world Bank at deficit circumstances, this is according to World Bank Procurement Manual brief (2001)- Procurement of brand new Goods policy, which explain that it the Banks universal Policy is to finance the procurement of new goods only. Borrowers procurement should be to the new.* Procurement of used goods does not correspond to the principles of value for money, since the experience in the country has shown there were no credible personnel to undertake such kind of purchasing with evidence of quality of such used items together with its residual value, relevant to the cost of purchase/money spend on buying.* Creation of a fertile ground for uncontrolled corruption because the government/institutions functionaries might use this loophole to buy junk equipment through underhand methods then causes great losses to the taxpayers.* Higher running expenses, It is cost fully in case of running expenses such as maintenance and service for used item than for brand new equipment, when government institutions decides to purchase used items, will result to incur a lot of money spending on frequently buying costly spare parts andmaintenance as a result to high total cost of operation hence less productivity.SummaryThe decision of all owing the procurement of used items in public sector have their respective advantages and disadvantages to the national economy and general mixer welfare issues as follows. The advantages of procurement of used items are it is economical, It is affordable payable to low cost of acquisition, Used equipment may be available immediately, procurement of more items for the same budget, improves transparency and integrity. The disadvantages are Lack of competitive bidding, reverse of getting loans from world Bank, May lead to procure poor quality, does not correspond to the principles of value for money, Creation of a fertile ground for rampant corruption, and Higher running expenses.