Compliance In Procurement
The definition of compliance in procurement is the act of adhering to the rules, regulations, guidelines and requirements that are set forth by the governing bodies overseeing procurement processes. In order to be compliant, organizations must ensure that their procurement practices conform to all applicable laws, executive orders, directives, policies and procedures.
Organizations can be found in violation of procurement compliance if they fail to adhere to any of the aforementioned requirements. Violations can result in sanctions, fines and other penalties. In some cases, organizations may even be debarred from participating in future procurements.
To avoid violating procurement compliance requirements, organizations should establish and follow internal controls and procedures that ensure compliance with all applicable laws, regulations and guidelines. They should also perform regular audits of their procurement practices to identify any potential areas of non-compliance.