An Investigation of Global Procurement Creating an International Procurement Body

By

[Name of the Subject]

ACKNOWLEDGEMENT

Many thanks to my family, friends, colleagues and my instructor as without their support and guidance, this project would not have been completed.

DECLARATION

I declare that this project shows my own work developed by a through analysis of the secondary research and primary research study. Moreover, this study has not been published before.

ABSTRACT

International contracts are typically subject to both international and domestic rules which govern procurement. The rules and regulations are both internal to the purchasing government, such as national procurement guidelines that govern procedural requirements, and external to the institution such as the World Trade Organization Agreement on Government Procurement. In such cases, the decision as to what the appropriate forum for governing a contract can be a function of legislative requirement or greater bargaining power. Parties are often forced to settle upon the laws of the country granting the contract. This may introduce an inherent bias in the contract favoring the granting country and prejudice the private party. This represents an added risk that must be borne by the private party. The goal is to investigate whether there are indulging principles governing all contracting activities. There will be an investigation which involves business regulations and practices relating to global procurement. Research will provide business professionals with the information necessary to draft fair and efficient contracts. The theory of creating an international institution/tribunal for contract oversight could establish transparent and effective regulatory business practices.

Table of Contents

ACKNOWLEDGEMENT2

DECLARATION3

ABSTRACT4

Table of Contents5

CHAPTER 1: INTRODUCTION9

Background9

International Procurement Regulations12

Importance of Procurement Reforms13

Transparency14

Transparency in World Trade Organization (WTO)/ World Bank and UN15

Enforceability17

Ethical Standards17

Defining Procurement Process19

Tools and Techniques25

Performing the procurement process27

Activities27

Weaknesses in Procurement Process35

Improving Procurement Process39

The maturity of ERP implementation.43

Description Of Research Problem44

Research Objectives46

Research Question47

Methodology And Research Plan48

Research Benefits48

CHAPTER 2: LITERATURE REVIEW50

Procurement51

International Procurement61

Benefits of International Procurement63

Risks Associated With International Procurement65

Ethics in Public Procurement67

Commitments of control bodies:68

Joint commitments:69

Definition Of A Public Contract77

Competitive bidding - the main rule77

Competitive tendering principles78

Contractors in Procurement Process81

Notice84

Terms Of Reference85

Evidence Of The Conditions86

Preparation Of Offer87

Deposit88

Objectives of Public Procurement94

Transparency in Government Procurement98

Procurement Guidelines in United States and Australia103

Scope and Coverage104

Compliance105

Valuation105

National Treatment and Non-Discrimination106

Procurement Methods107

Non- Disclosure of Information107

Publication of Procurement Information107

Time Limits107

Regulations for Procurement Process107

WTO and Rules for Procurement109

European Union and Rules for Procurement113

Grounds for and objectives of the proposal114

Background116

ICC and Rules for Procurement118

United Nations Rule for Procurement120

UNIFICATION OF PRIVATE LAW121

UNCITRAL123

Partnering for Development: Government- Private Sector125

CHAPTER 3: RESEARCH METHODOLOGY127

CHAPTER 3: RESEARCH METHODOLOGY127

Methodology And Procedure127

Methodology And Procedure128

Qualitative Research Methods132

Quantitative Research Methods - Economic137

Surveys138

Research Ethics143

Research Limitation144

CHAPTER 4: DATA ANALYSIS146

CHAPTER 5: CONCLUSION AND RECOMMENDATION156

References159

CHAPTER 1: INTRODUCTION

Background

The purpose of this dissertation is to introduce a research proposal that will provide a cursory analysis of the need of an international procurement body which would provide oversight to the acquisition process. History has shown that the evolution of our global economy may permeate a demand for this topic of study (Schooner, 2001). There will be a discussion of public institutions, such as national governments entering into contracts with private suppliers. In addition, there will be dialogue of the different types of ...