Low price doesn’t mean we should buy low-quality products, PM on procurement

During the May 2 Cabinet meeting the Government of Armenia discussed the issue of changing state procurement regulations.

Minister of Finance Atom Janjughazyan said they plan to make the procurement system more flexible, and that specificities are defined for defense sector procurements. The inclusion of SMEs are also taken into account, he said.

Janjughazyan noted that the current law on procurement that sets the terms for the process is sometimes misinterpreted that the government must buy the cheapest products even if it’s of low-quality. The Minister of Finance said there are no restrictions in reality and that the government can choose more expensive products by comparing the prices with the quality.

Prime Minister Nikol Pashinyan highlighted the minister’s remarks, noting: “Turns out low-quality product has been bought by state procurement and a question arises as to why it was done? Turns out it was the lowest bidder. Seems like if someone was to propose for free they would win. Low price doesn’t mean buying low quality products that are useless. Low price means necessary quality but maximally cheap”, he said.

Pashinyan added that perhaps special procurement trainings would be appropriate in governmental agencies in order to eliminate the stereotype.