What is a key characteristic of a formal procurement process?

A key characteristic of a formal procurement process is that it includes public notifications. This aspect is critical because formal procurement processes often require transparency and fairness, especially when public funds are involved. Public notifications ensure that all potential suppliers are made aware of opportunities to bid, fostering competition and enabling a wider range of solutions to be considered. By publicly announcing procurement needs, organizations adhere to best practices in procurement, reduce the risk of favoritism, and promote accountability in the use of public resources.

In contrast, a formal procurement process is generally not characterized as quick and informal, as it typically involves structured procedures that require time for planning, solicitation, evaluation, and award. Additionally, formal processes usually have strict documentation requirements to maintain a clear audit trail and ensure compliance with regulations. Lastly, the idea that all contracts are awarded without bidding contradicts the essence of formal procurement, which emphasizes competitive bidding as a means to achieve value for money and foster equitable opportunities for suppliers.