1)Private Procurement: Done by the private sector Procurement done the private sector which aimed at making profit. This does not rule out the fact that private entities may also seek social benefit; however, it is not their primary business objective
2)Public Procurement: Done by the public entities means acquiring goods, works or services for supporting government operations and to provide public services.
THE DIFFERENCES OF PUBLIC AND PRIVATE
>The aim or objectives of procurement: the aim of public procurement is to serve the public interest while private procurement aims at making profit. Accountability: public procurement officers are accountable to the public while private officers are accountable to the shareholders
> Budgeting: Under public procurement the budget is strictly followed, flexibility is very minimum in public procurement while in private procurement any change may be initiated depending on the owners’ decisions.
>Procedures: in public procurement strictly procuring procedures under the public procurement Act must be followed while in private procurement there are no strictly procedures. Owners of private organization have the right to decide what procedure to follow
> Source of fund: Source of fund in public procurement are the tax payers (the public) while in private organizations source of fund are the shareholders
> Procurement procedures: These are stages used by every organization that purchases goods, works or services. These procedures cover all aspects of the procurement cycle, including the selection of the supplier, contract negotiations, order placement and payment
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