|Date published:||17 Sep 2018|
In private sectors institutions are interested in like engaging in procurement that involves the purchasing of analogous goods and services for the matter (Tadelis, 2012). Theses can include the goods and commodities that are standardized, all which are produced in masses and are purchased typically either at price in a list or using competitive tendering such as the auction (Ho et al, 2010). Procurement in private sectors include custom goods like the new buildings, legal services of the custom software that are regulated to make sure that they meet the specific of the producer and most the unique requirements (Jefferies, 2006). Private sectors are believed make use of the widespread arrangement of procurement in purchasing and more reliably they make use of the contracts of cost plus contracts that are negotiated with a single supplier who is potential in terms of ubiquitous. Procuring for large systems that belong to the IT is however a major challenge since it takes a lot of time and risks as well as expensive (Delmon, 2009). For this reason, in private sectors, procurement strategy is critical.
In private companies, under procurement there is purchasing and doing acquisitions for what is needed for the private sector. Acquisition is a form of contracting or a process which is acquired to formalize the business relationships in between two different parties. Federal agencies like EPA use this process in formalizing their businesses with the private sectors are in conjunction with that is both profit and nonprofit, the government institutions as well as the educational institutions (Patel & Trivedi, 2017).