Research On Procurement Cost Control Of Government

After government procurement was carried out since 90's in 20 centuries, in view of the overall situation, the purchase cost has been reduced; the benefit of public expenditure has been improved. But, the fact is that the purchase cost is always higher and the effectiveness of funds utilization is lower than usual. The author analyzed the reasons from four aspects under the direction of basic theories, namely main body and object of control, control mode, control procedure, method of control. The theories used are as follows: theory of public expenditure growth, rent-seeking theory, theory of transaction costs, control theory. The author brought forward countermeasures according to what talked about. One point of view is that taxpayers are the most important main body of control. In the choice of control mode, the combination of direct and indirect control, intrinsic and extrinsic control was suggested. As for the control procedure, high performance control-flow analysis, restriction of rights of civil servants by laws, zero-based budget in government procurement, relief system aiming at supplier, are put forward. The improvement of ling means is a little complex. Three aspects should be considered, namely procurement system, manipulations and control techniques. In details, the author maintained that public administration system should be improved, laws relating to procurement should be amended, and management by performance should be carried out. Also, the scale of public expenditure should be controlled, redundant steps should be deleted. About techniques, the author considered that MIS (management information system should be brought into practice broadly. What we should be clear is that cost control is a complex process. These countermeasures must work together rather than a single one. Consequently, the procurement cost can be controlled and the benefit of procurement can be improved.