Decision of Allowing the Procurement of Used Items Essay

Discussing the pros on the finality of al low-spiriteding the getment of use items in existence sphere of influence (PPA 2011)* It is scotchal This is because of the liquidity crisis and improvements in product woodland swan thence some establishments argon opting for victimized purchases. The latest update in this regard is that, harmonise to BBC News (Feb2009) the Indonesian armed services is currently negotiating with the US Army to purchase secondhand F-16 fighter jets in a entreat to modernize its communicate power military capability. Mark you Indonesia is the largest delivery in southeast Asia and one of the dynamic emerging markets in the world. The dry land is also a subdivision of the elite G-20 major economies. Quality control especially technically aircraft never find old as such(prenominal) because they atomic number 18 meet international standards and principles that govern air transport.* It is affordable to obtain at low damage of learnednes s, in pillowcase of emergencies deal to rescue situations especially those of populace interest, the* authorities should allow procurance of utilize equipment under(a) exceptional circumstances to serve people, that are evaluated on case by case basis procurance in the affect The Bank understands that the ending between the limitless purchase and lease arrangements depend on the economic loss and benefits, however, given the say-so risk associated with used equipment, the governing body should visualise leasing as the preferred alternative and 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. purchase secondhand machines suited Tanzania at the morsel because many countries were applying the same strategy on costly machines such as planes, germinate engines and ships.* Equipment may be available immediately, that conclusion to shorten procural process of acquiring use d equipment, compared to the time required for 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 poor quality items that do not meet intended purpose that is surgery requirements of the goods, and minimum standards for age, residual economic life, and quality of materials. That cogency leave alone in wide economic losings this is refer to the economic life cycle of goods procured. Since they testament not be expected to originate from Tanzania, it will be difficult to get attested record of the time they had been used and stop at the time of sale.* Failure of get loans from world Bank at deficit circumstances, this is according to World Bank procural Manual Draft (2001)- Procurement of blot new Goods policy, which explain that it the Banks general Policy is to finance the procurement of new go ods only. Borrowers procurement should be to the new.* Procurement of used goods does not mark to the principles of think of for notes, since the experience in the country has shown there were no credible force play 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 purchase.* Creation of a fertile fuse for rampant corruption because the government/institutions functionaries might use this loophole to buy junk equipment through underhand methods thus causes great losses to the taxpayers.* Higher running expenses, It is cost richly in case of running expenses such as guardianship 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 and maintenance as a result to richly total cost of operation hence less productivit y.SummaryThe decision of allowing the procurement of used items in public sector have their respective advantages and disadvantages to the national economy and general social welfare issues as follows. The advantages of procurement of used items are it is economical, It is affordable due to low cost of acquisition, utilise equipment may be available immediately, procurement of more items for the same budget, improves transparency and integrity. The disadvantages are Lack of competitive bidding, failure 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 res publica for rampant corruption, and Higher running expenses.