А subcontracting role is in increase of efficiency of public purchasing
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Description
There is one area of economic development in the world that needs special attention and it is public procurement. Public procurement takes approximately from 8% to 21% of GDP worldwide. It is a powerful tool for influencing the market both from production and from consumption. The EU public procurement market was estimated at EUR 1931.5 billion in 2017 and it is constantly growing. Developed countries pay sufficient attention to the organization of public procurement, and its main purpose is the control of public funds.
Types of public procurement are identified. The main principles are the efficient use of budget funds, transparency of trading at all stages of procurement, fair competition among participants, maximum saving and efficiency. A legal basis was created on the basis of which a platform for electronic trading was introduced.
Subcontracting services have been proposed in order to make efficient use of budgetary funds and a significant proportion of non-competitive purchases. The products produced at the enterprise - contractors - can be much cheaper and better, and it matters for defence orders.
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References
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