The activity of controlling the activities of acquisition and hiring in a government is referred to as government acquisition management. The major benefit of the government procurement management is ascertaining that no low standards goods and services are provided and no incompetent employee is hired in all the departments of the government. Federal acquisition manages the following solutions and services; technology, motor vehicle, travel and transportation, procurement, goods, and services. Planning a contract, forming a contract and administration of the contract are the major activities of the federal acquisition management. The federal acquisition regulation is done by a body known as federal acquisition regulation. The following are reasons why there are government procurement management in many countries.
The federal procurement management will ensure no incompetent company or person gets a government tender or contract. Before giving a contract or tender, the government acquisition management will ensure the person or the company has met all the minimum set requirements. In order to determine whether a company or individual is competent, the federal procurement management also asks for the registration information, details of the previous contracts and the price the company or the individual expects for the provision of the goods and services. Age is important when issuing a tender to an individual.
Eliminating corruption is another benefit of the government procurement management. Many governments have experienced favor and corruption in the giving of tenders and contracts. In many governments, the procurement managers offer contracts and tenders to their relatives without attaining the right standards. A federal acquisition regulation will ensure the hiring process and issuing of tenders are free from corruption.
The federal acquisition management ensures quality services, machines and equipment are acquired. Before the government receives goods and services, the government acquisition management must ensure they meet the minimum standards. Previously, many government departments used to acquire substandard machines and equipment as well as pocket huge amounts of money meant for the acquisition process. The federal procurement management also ensures tenders and contracts are not given only to a few individuals.
Ensuring good utilization of funds is another importance of the government procurement management. The government procurement management will research on the right amount of money needed in the acquiring of the products and services. The research on prices facilitates the requesting of the exact amount of money from the finance department, needed for the tenders and contracts. The procurement management is, therefore, able to choose the companies which have not exaggerated their prices.
Issuing of penalties is another importance of the federal procurement management. In case a company engages in unlawful practices such as bribery and kickbacks, the acquisition management will ensure the company will never get a government contract.
The above are benefits of the federal procurement management.