Government price evaluation
Having a multitude of bids is one of the ways of checking government price evaluation. However, some products lack enough competition and consequently lack a sufficient number of bidders. In such situations, it becomes difficult for the government to hold such few bidders accountable in case of problems. This essay evaluates the steps that government can take to promote competition and hold bidders responsible for their actions whenever issues arise.
The first step is to advertise tender. The government should encourage competition by advertising all state tenders, and such awards must be in line with merit and not any other ulterior considerations. It becomes easy to hold bidders accountable for any arising problems since the process is transparent and lacks any form of collusion.
The government should publish all contracts and prices paid. Arguably, publishing contract and the paid prices promote transparency since it accords the other competitors and stakeholders the opportunity to cross-check the merit behind government awards of tenders. It promotes an environment where people can audit the process of tender awards and, consequently, promote competition by inspiring other investors’ confidence in the tender award process.
The government should also foster a competitive business environment. Accordingly, the government should eliminate all forms of collusion between relevant parties in tender awards to promote transparency and inspire confidence in bidders. The strategy is suitable in redressing low competition bids since it eliminates fear and suspicion about the integrity of the award process.
In conclusion, this essay argues that the government can promote competition and hold bidders accountable by advertising tenders, publishing contracts, and the prices awarded alongside fostering a competitive business environment. The above steps are useful in inspiring bidder confidence in awarding tenders and, consequently, improving the number of people making bids for the said tenders.