Definition and Characteristics of Procurement Systems

Abstract

Procurement system — frequently referred to as procurement pathor procurement method, too — means thecombination of the following main characteristics:

• responsibility allocation between the parties — which is the most significant attribute of any procurement system

• regulatory position — reflecting the source of funds — which can be private or public

• the contract profile, that indicates the following features of the particular contract:

  • application frequency — e.g. ad hoc or recurrent nature — of the contract

  • the targeted scope of the contract — civil engineering facilities, goods, and services; and

  • the price determination method for each of these category of deliverables; and

• the applied procurement procedure that is chosen on the basis of the following factors:

  • responsibility allocation of the parties

  • contract profile

  • the procuring entity’s source selection priorities; and eventual — e.g. regulatory — constraints.