Government Procurement Agreement: An Overview
The government procurement agreement (GPA) is a treaty signed by numerous countries that aim to promote and regulate fair competition in government procurement. It is based on the principles of transparency, non-discrimination, and open competition.
The GPA was established in 1994 under the World Trade Organization (WTO) and currently has 20 members, including the United States, the European Union, and Japan. These members have agreed to extend their national treatment to each other`s suppliers, which means that all bidders from the member countries have an equal chance to compete for government contracts.
The GPA applies to the procurement of goods, services, and construction works by government entities at the central, regional, or local level, provided that the procurement process exceeds a certain threshold. The threshold varies from country to country, but it generally ranges from $100,000 to $1.5 million.
The GPA requires its members to use clear and objective criteria when evaluating bids, such as price, quality, and delivery time. It also mandates that suppliers be given sufficient time to prepare their bids and that they have access to all relevant information, including the tender notice, the specifications, and the evaluation criteria.
One of the main benefits of the GPA is that it creates a level playing field for suppliers from the member countries. By ensuring that all bidders are treated fairly and equally, the GPA helps to prevent corruption, favoritism, and other forms of illegal or unfair practices in government procurement.
Moreover, the GPA promotes the use of electronic procurement systems, which can improve the efficiency and transparency of the procurement process. Electronic procurement can reduce the time and costs associated with traditional paper-based procurement, while also providing real-time access to information and reducing the risk of errors or fraud.
In conclusion, the government procurement agreement is a crucial international treaty that promotes fair competition, transparency, and efficiency in government procurement. By ensuring that all bidders have an equal chance to compete and by setting clear and objective criteria for evaluation, the GPA helps to prevent corruption and promote good governance.