The weakness in the budget quotation system of bidding procedures and the consequent overpricing of products and services

Abstract

This study examines the weaknesses in the budget quotation system of bidding procedures and the consequent overpricing of goods and services. This topic was chosen due to its importance for public entities, considering that a poorly executed quotation can generate significant losses for public administration. The general objective of this article is to analyze the weaknesses in the budget quotation system that lead to overpricing of products and services contracted by the Public Administration; highlighting the vulnerability in the quotation system conducted directly with the company, which can result in overpricing in the estimated value. Furthermore, this study will address existing concepts of bidding, as well as methods for conducting price quotations in the bidding process. In addition, it will also discuss the need and importance of conducting quotations through a price database, given that this is the safest, most economical, and most efficient method when compared to other quotation mechanisms. Finally, it is concluded that the classic budget quotation system (three prices) is permeated with vulnerabilities that can lead to overpricing, as well as the need to use the price database tool in order to minimize this fragility and thus combat overpricing.