5 central public procurement functions identification, combination, separation, conflicts of...
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ENI East Regional Conference Public Procurement Central Public Procurement Functions Identification Combination Separation Conflicts of Interest Checks and Balances Bozzay EnglishTRANSCRIPT
© OECD
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OECD Headquarters, Paris, 24-25 April 2014
Central Public Procurement Functions
Identification, Combination, Separation, Conflicts of Interest, Checks and Balances
Erika Bozzay, SIGMA
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Core Central Procurement Functions
• Policy making and legislation
• Secondary policy and regulations
• International co-ordination
• Monitoring and control
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Supplementary Central Procurement Functions
• Publication and information
• Advisory function and operational support
• Professionalisation and capacity building
• Operational development and co-ordination
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Other Central Procurement Functions
• Review
• Central purchasing
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Reasons for Effective Institutional Structure to Have in Place
sufficient administrative capacity is needed
to ensure the functionality of the public procurement system
a proper institutional framework can
support and coordinate the development, implementation and
monitoring of public procurement legislation, policy and practices
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Considerations to be taken into account
• clear distribution of functions and responsibilities among the central procurement authorities
• functions, responsibilities are established by procurement legislation
• institutions shall have independence and authority to exercise functions and duties effectively
• having sufficient resources (human, financial…)
• avoidance of potential conflicts of roles & interests
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Potential conflicts of roles and interests
Certain functions can be in conflict with each other, e.g.:
• compliance assessment functions (e.g. prior approval to contracting authorities for certain decisions in the procurement process), and review functions (review of complaints)
• advice to contracting authorities, bidders on the application of the legislation, and review of complaints
• advisory functions, and control functions
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Institutional Models
Various models are in place in EU Member States:
1. Centralized
2. Semi-centralised
3. Decentralised
No explicit legal requirement on central procurement organization in EU law
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Centralization or Decentralization?
Different ways to organise the central procurement functions:
• no “one size fits all” solution • national administrative traditions • aims of the national procurement system and level
of development of procurement market are also decisive
• advantages vs. disadvantages e.g. keeping functions separate helps preventing conflicts
of roles and interests
decentralized model – need for proper cooperation 9
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1. CENTRALIZED PROCUREMENT STRUCTURE
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Centralized procurement structure
• high concentration of procurement functions
• all core central functions are performed by one or two central institutions
• Model 1: one dominant procurement institution, normally exercises legislative and policy functions as well.
• Model 1+1:
legislative and/or policy functions are exercised by the ministerial structure
other important procurement functions are carried out by a special procurement body
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Centralised model (1)
• Bulgaria – Public Procurement Agency
• Cyprus – Public Procurement Directorate
• Poland – Public Procurement Office
• Malta – Department of Contracts
• Romania – National Authority for Monitoring and Regulating Public Procurement
• Slovakia – Public Procurement Office
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Centralised model (1+1)
• Latvia: Procurement Monitoring Bureau + Ministry of Finance
• Lithuania: Public Procurement Office + Ministry of Economy
• Hungary: Public Procurement Authority + Ministry of National Development
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Country example - HUNGARY
Centralised model
Ministry of National Development
• drafting primary and secondary legislation
• international coordination function (shared)
Public Procurement Authority
all other functions
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Country example - HUNGARY
Public Procurement Authority (PPA)
established in 1995 (by law)
autonomous administrative body
independent from the government, subordinated only to Parliament
it has a collective governance structure – Public Procurement Council
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Country example - HUNGARY
Public Procurement Council
• operates within the framework of the PPA
• 14 members – includes all three segments of the major actors of procurements (contracting authorities, economic operators, public interest)
• the law defines the organizations that have the right to designate the members of the Council
• the members serve for at least a two-year-term
• members are not employed full-time, not remunerated for their activity from the PPA
• the working body of it is the Secretariat
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Country example - HUNGARY
Functions, duties of PPA: monitors the application of procurement law comments on draft procurement legislation issues guidelines (without legal force) to clarify
recurring problems in applying procurement law operates a help desk function to provide legal
and professional support to purchasers and economic operators on a daily basis
maintains the Public Procurement Database, which is the central register of contract award procedures
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Country example - HUNGARY
edits the Official Journal of the PPA, verifies and publishes the notices related to the contract award procedures
prepares an annual report to the Parliament on the functioning of the national public procurement system (public)
collects and publishes statistical data on public procurement (on an annual and quarterly basis)
administers the official list of certified economic operators and certified procurement consultants
organizes conferences, trainings, professional courses
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Country example - HUNGARY
But:
• PPA does not draft the procurement legislation
• PPA is not a central purchasing body
• PPA does not exercise compliance assessment functions (ex ante control) concerning procurement procedures for EU funded contracts
• Not the PPA, but the Public Procurement Arbitration Board is in charge of remedies
• Trainings are organised mainly by the private sector
• State Audit Office is responsible for auditing of procurement procedures
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Country example - HUNGARY
• staff members are civil servants
• the staff have various educational background (lawyers, economists, accountants, former practitioners…)
• continuous education of the staff
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2. SEMI-CENTRALISED
MODEL
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Semi-centralised model
• tasks are shared between a limited number of institutions (3-4) at various levels within the public administration
• Austria, France, Germany, Ireland, Italy, Luxembourg, Slovenia, Sweden, UK
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Country example: AUSTRIA
• Bundeskanzleramt-Verfassungsdienst (Federal Chancellor’s Office – Constitutional Service - Section for Procurement Law)
Dominant institution
Functions:
• Drafting primary and secondary legislation
• Developing a federal procurement policy
• International coordination function
• Advisory functions
• Monitoring and control functions
• Information functions 23
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Country example: AUSTRIA
• Bundesbeschaffung GmbH (Federal Procurement Ltd.)(public company, answers to
the Ministry of Finance)
• Business development and coordination
• Central purchasing function
• Federal ministry for Economy and Labor • Collecting statistical data
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3. DECENTRALISED
MODEL
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Decentralised model
• division of relevant procurement functions between various institutions (usually more than five) at various levels within the public administration, even bodies in the private sector are also involved
• usually the respective ministries are in charge of regulatory functions, but there is no a dominant procurement institution for other core functions
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Country example: FINLAND
Ministry of Trade and Industry:
drafting primary and secondary legislation
international co-ordination function (shared)
advisory functions (shared)
monitoring and control functions
information functions
professionalisation and capacity strengthen functions
Ministry of Finance (Budget Department)
overall policy functions (developing and issuing procurement policies)
drafting standard contract documents
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Country example: FINLAND
• Ministry of Foreign Affairs International cooperation (e.g. contact point for European
Commission)
• Governmental Board of Procurement planning public procurement development projects
• Hansel Ltd (state-owned company) Business development and coordination
Central purchasing function
• HAUS Ltd., Efeko Ltd. (publicly owned) Professionalisation and capacity-strengthening functions (shared)
• State Audit Office Monitoring, audit functions
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