Discussing the Pros and Cons on the Decision of Allowing the Procurement of Used Items in Public Sector

Topics: Procurement, Economics, Purchasing Pages: 3 (723 words) Published: January 11, 2013
Discussing the pros on the decision of allowing the procurement of used items in public sector (PPA 2011):

* It is economical; This is because of the liquidity crisis and improvements in product quality control hence some governments are opting for secondhand purchases. The current update in this regard is that, According to BBC News (Feb’2009) the Indonesian military is currently negotiating with the US Army to purchase secondhand F-16 fighter jets in a bid 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 also a member of the elite G-20 major economies. Quality control especially technically aircraft never get old as such because they are meet international standards and principles that govern air transport.

* It is affordable to procure at low cost of acquisition, in case of emergencies circumstances to rescue situations especially those of public interest, the

* government should allow procurement of used equipment under exceptional circumstances to serve people, that are evaluated on case by case basis procurement in the need The Bank understands that the decision between the outright purchase and lease arrangements depend on the economic loss 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 same strategy on costly machines such as planes, train engines and ships.

* Equipment may be available immediately, that result to shorten procurement process of acquiring used equipment, compared to the time required for the acquisition of new equipment because it...
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