Government procurement or public procurement is the
procurement
Procurement is the method of discovering and agreeing to terms and purchasing goods, Service (economics), services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agenc ...
of
goods
In economics, goods are items that satisfy human wants
and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not tran ...
,
services
Service may refer to:
Activities
* Administrative service, a required part of the workload of university faculty
* Civil service, the body of employees of a government
* Community service, volunteer service for the benefit of a community or a p ...
and works on behalf of a public authority, such as a
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
agency. Amounting to 12 percent of global
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
in 2018, government procurement accounts for a substantial part of the global economy.
To prevent
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
,
waste
Waste (or wastes) are unwanted or unusable materials. Waste is any substance discarded after primary use, or is worthless, defective and of no use. A by-product, by contrast is a joint product of relatively minor economic value. A waste prod ...
,
corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
, or local
protectionism
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. ...
, the laws of most countries regulate government procurement to some extent. Laws usually require the procuring authority to issue public
tenders if the value of the procurement exceeds a certain threshold. Government procurement is also the subject of the
Agreement on Government Procurement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, b ...
(GPA), a
plurilateral A plurilateral agreement is a multi-national legal or trade agreement between countries. In the jargon of global economics, it is an agreement between more than two countries, but not a great many, which would be multilateral agreement.
Use of the ...
international treaty under the auspices of the
WTO
The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation
in the United Nations System, governments use the organization to establish, revise, and e ...
.
Overview
Need for government procurement
Government procurement is necessary because governments cannot produce all the inputs for the goods they provide themselves. Governments usually provide
public goods, e.g. national defense or public infrastructure. Public goods are non-rival and non-excludable, which means that one individual's consumption does not diminish the quantity or quality of the commodity available to others, and individuals cannot be prevented from freely consuming the commodity, or
"free-riding". Consequently, private markets cannot provide public goods. Instead the government provides those goods and finances them by raising taxes from all citizens.
In addition to public goods, governments often also provide
merit good The economics concept of a merit good, originated by Richard Musgrave (1957, 1959), is a commodity which is judged that an individual or society should have on the basis of some concept of benefit, rather than ability and willingness to pay. The te ...
s, such as education or health care. Merit goods are
private good
A private good is defined in economics as "an item that yields positive benefits to people" that is excludable, i.e. its owners can exercise private property rights, preventing those who have not paid for it from using the good or consuming its ...
s which are rival and excludable and are therefore provided by private markets. Nevertheless, governments also provide merit goods because of reasons of
equity
Equity may refer to:
Finance, accounting and ownership
* Equity (finance), ownership of assets that have liabilities attached to them
** Stock, equity based on original contributions of cash or other value to a business
** Home equity, the dif ...
and fairness and because they have
positive externalities
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
for society as a whole.
In order to provide public and merit goods, the government has to buy input factors from private companies, e.g. police cars, school buildings, uniforms etc. This process is called government or public procurement.
Problems
Government procurement involves a high risk of
corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
because of the great size of financial turnover and the complexity of many procurement processes in which businesses interact very closely with politicians and civil servants. Often the personal interests of the public officials are not the same as the interests of the public. The vulnerability of public buyers to private subversion has led every country to restrict the discretion of procuring entities in what they buy and pay. But while the regulation of the private sector empowers public officials and enables them to extract bribes in exchange for regulatory relief, the regulation of government constrains public officials. Public procurement regulations reduce the discretion of buyers, typically with the intent of reducing corruption.
Scope
Government procurement regulations normally cover all
public works
Public works are a broad category of infrastructure projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community. They include public buildings ( municipal buildings, sc ...
, services and supply contracts entered into by a public authority. However, there may be exceptions. These most notably cover
military acquisition
Military acquisition or defense acquisition is the "bureaucratic management and procurement process", dealing with a nation's investments in the technologies, programs, and product support necessary to achieve its national security strategy and ...
s, which account for large parts of government expenditures. The GPA and EU procurement law allow of exceptions where public tendering would violate a country's essential security interests. Additionally, certain politically or economically sensitive sectors, such as public health, energy supply or public transport, may also be treated differently.
Strategic purchasing in public procurement
One of the consequences of the
financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
was an attempt to reduce public spending in order to control
public debt
A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
. This trend has affected government procurement for its significant share in public spending.
Therefore, various purchasing strategies have been implemented to increase quality and to decrease cost of government procurement. These strategies include
public e-procurement, centralized purchasing or
framework agreement
In the context of negotiations, a framework agreement is an agreement between two parties that recognizes that the parties have not come to a final agreement on all matters relevant to the relationship between them, but have come to agreement on e ...
s.
Public e-procurement
Public e-procurement stands for replacing various phases of public procurement with electronic means. Purpose of using e-tools is reducing administrative costs by automation. E-procurement can also mitigate some
barriers to entry
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have ...
for smaller suppliers, consequent increase of competition can reduce price of procurement.
Public procurement and innovation
The large buying power of the public sector has led to the consideration of using public procurement as a stimulus to foster
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity ...
. The activities of public procurement and innovation intersect in three specific areas: public procurement for innovation, public procurement of innovation, and innovative public procurement. First, multiple studies have established that public procurement for innovation is a viable and efficient tool to stimulate innovation as a demand - side tool in the innovation policy mix. Second, public procurement may also be used to innovate the public sector itself (public procurement of innovation), through the inclusion of "innovativeness" as a procurement goal (often as a secondary criterium). Third, novel procurement approaches (such as
eProcurement or
Public-Private Partnerships) may be introduced to innovate public procurement processes and entities.
Centralized purchasing in public procurement
Centralized purchasing means awarding procurement contracts on behalf of one or more procuring entities. This method has been used to gain various benefits emerging from demand aggregation. Centralized procurement can be done by ordinary contracting authorities or established central purchasing body. Centralized procurement is regulated by local legislation. For instance, directives 2004/17/EC and 2004/18/EC are dealing with this issue in the EU. Commonly mentioned benefits of procurement centralization are as follows:
*Final unit price decrease – Higher procurement value coming from demand aggregation can increase buyers bargaining power and decrease final price. Moreover, higher value can attract more companies to bid in the tender, increased competition might lead to better price as well.
*Transaction costs reduction – Key objective of centralized procurement is preventing duplication of some procedures. Contracting units can reduce their transaction costs in cooperating with other entities. This aspect is often considered as most relevant argument for procurement centralization.
*Increasing transparency – Under many jurisdictions, there are certain thresholds in value which oblige procurers to publish tender details and information on contracts awarded and expenditure incurred. Therefore, higher procured value can contribute to higher transparency among public tenders.
*Knowledge sharing – Cooperation in purchasing can also result in sharing best procurement practices. Some central procurement bodies also perform research activities.
However, other centralization aspects are often criticized. Discussed drawbacks are often connected to the decentralization theorem stated by American economist
Wallace E. Oates in 1972. The theorem claims that a decentralized system is more efficient, because of the
information asymmetry
In contract theory and economics, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other.
Information asymmetry creates an imbalance of power in transactions, which ca ...
between local and central government.
[POČAROVSKÁ, A. (2018) The Aspects of Collaborative Procurement: Centralization, Scope and Different Market Structures. Master thesis. Prague: Charles University in Prague, Faculty of Social Sciences, Institute of Economic Studies. Supervisor, 2017. 74 pages. PhDr. Mgr. Jana Guitiérrez Chvalkovská]
Procurement centralization might also negatively impact supply side. Higher procured values might require higher capacity of supplying company and it might create
barrier to entry
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have ...
for small or medium companies. Consequently, it might lead to monopolizing public procurement market.
Critics also mention that only some goods can be purchased centrally. Goods that are heterogeneous or they have many characteristics are not suitable for this strategy.
Framework agreements
Framework agreement
In the context of negotiations, a framework agreement is an agreement between two parties that recognizes that the parties have not come to a final agreement on all matters relevant to the relationship between them, but have come to agreement on e ...
is another method for aggregation of demand. It is a type of two-stage bid tendering procedure, that establishes incomplete contracts awards with one or more suppliers for given period of time.
The discussed advantage is an administrative costs reduction again as tender procedure don't have to be duplicated for agreed period of time.
On the other hand, the term "Winner's curse" is associated with framework agreement as there is a price uncertainty in time.
All of these three procurement strategies are not mutually exclusive. So, framework agreements can be processed centrally through e-procurement.
Regulation by jurisdiction
Albania
Albania
Albania ( ; sq, Shqipëri or ), or , also or . officially the Republic of Albania ( sq, Republika e Shqipërisë), is a country in Southeastern Europe. It is located on the Adriatic and Ionian Seas within the Mediterranean Sea and shares ...
's Public Procurement Agency (''Agjencia e Prokurimit Publik'') is a central body with legal and public personality reporting to the
Prime Minister
A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...
, and financed by the State Budget. Its activity is based on:
*Law No. 9643/2006 "On public procurement", as amended
*Law No. 125/2013 "On concessions and public private partnership", as amended, which repealed the previous law "On concessions" (Law No. 9663, dated 18 December 2006), and
*Law No. 9874/2008 "On public
auction
An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition ex ...
", as amended.
The main duties and competencies of the Public Procurement Agency are:
*preparation of project-proposals for public procurement regulations, public auctions and those in the field of concessions/public private partnerships, preparation of Standard Tender Documents and issuing the necessary instructions in order to assist the contracting authorities undertaking these procedures;
*verification of the implementation of public procurement, concessions and public auction procedures after the phase of contract signature and in case of infringements of the legal and sublegal provisions, penalizes with fines or proposes administrative measures;
*monitoring the progress of the public procurement system, and the implementation of measures and activities in order to achieve and maintain a completely transparent and efficient system of concessions/public private partnerships;
*preparation and publication of the Public Notices Bulletin;
*exclusion of economic operators from participation in public procurement, concessions or public auctions for a period of 1 to 3 years;
*promotion and organisation of training for central and local government officials involved in public procurement activities.
The Public Procurement Commission (PPC in English, KPP in Albanian) is a quasi-judicial state body with responsibility for providing legal protection in relation to public procurement.
The US
Department of Commerce reports that businesses "occasionally complain about problems in the technical and financial criteria of contracts, resulting in biased and distorted competition" and that "improper implementation of
lbania'spublic procurement procedures" has also been noted as a problem.
Albania has
observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with regard to the
Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
and is negotiating accession.
[World Trade Organization]
Parties, observers and accessions
accessed 9 May 2019
Algeria
Presidential Decree No. 10-236 of 7 October 2010, supplemented and amended by Presidential Decree No. 12-23 of 18 January 2012, regulates public procurement in
Algeria
)
, image_map = Algeria (centered orthographic projection).svg
, map_caption =
, image_map2 =
, capital = Algiers
, coordinates =
, largest_city = capital
, relig ...
.
American Samoa
The Office of Procurement, based in
Tafuna
Tafuna ( sm, Tāfuna) is a village on the east coast of Tutuila Island, American Samoa. It is home to Pago Pago International Airport (Tafuna Airport). It is one mile south of Nu'uuli, American Samoa. The Ottoville district is a part of Tafuna. Ne ...
, is the central authority on procurement for the
American Samoa
American Samoa ( sm, Amerika Sāmoa, ; also ' or ') is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the island country of Samoa. Its location is centered on . It is east of the International ...
Government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
(ASG), being responsible for the procurement of all construction, goods, and services including the management, control, warehousing, and sale of stores/inventory commodities contained in its warehouse.
Angola
Public procurement in
Angola
, national_anthem = " Angola Avante"()
, image_map =
, map_caption =
, capital = Luanda
, religion =
, religion_year = 2020
, religion_ref =
, coordina ...
is governed by Law No. 20/10 of 7 September 2010, the Public Procurement Law, and Law No. 2/2011 on
Public-Private Partnerships in Angola. The Public Procurement Law repealed Law No. 7/96 of 16 February 1996 and Decree No. 40/05 of 8 June 2005. Public expenditure, the provision of services, the leasing and acquisition of goods, and public works contracts regulated through the Public Procurement Law.
Argentina
Argentina has
observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with respect to the
Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
.
Australia
The
Australian government
The Australian Government, also known as the Commonwealth Government, is the national government of Australia, a federal parliamentary constitutional monarchy. Like other Westminster-style systems of government, the Australian Government i ...
's procurement activity is governed by the Commonwealth Procurement Rules and overseen by the
Department of Finance. The rules were revised on 1 January 2018.
States and territories also have their own procurement policies and legislation.
Bahrain
The Tender Board of the
Kingdom of Bahrain
Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and an ad ...
, based in
Manama
Manama ( ar, المنامة ', Bahrani Arabic, Bahrani pronunciation: ) is the capital and largest city of Bahrain, with an approximate population of 200,000 people as of 2020. Long an important trading center in the Persian Gulf, Manama is h ...
, regulates procurement and undertakes procurement activity for the kingdom's public bodies. The Board was established in 2003 under the directives of His Majesty
King Hamad bin Isa Al Khalifa
Hamad bin Isa bin Salman Al Khalifa ( ar, حمد بن عيسى بن سلمان آل خليفة '; 28 January 1950) is King of Bahrain since 14 February 2002, after ruling as Emir of Bahrain from 6 March 1999.
He is the son of Isa bin Salman ...
.
Bahrain has
observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with respect to the
Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
.
Bangladesh
The
Swiss Challenge system is utilised in
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
to procure infrastructure development through
public-private partnerships.
Belize
Belize
Belize (; bzj, Bileez) is a Caribbean and Central American country on the northeastern coast of Central America. It is bordered by Mexico to the north, the Caribbean Sea to the east, and Guatemala to the west and south. It also shares a wate ...
is a member of
CARICOM. Government procurement is subject to the Contractor-General Act, No. 6 of 1993, which received the
Governor-General
Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
's assent on 5 January 1994. The Act provided for the establishment of the Office of the Contractor-General.
[Rose Law Caribbean (2015)]
Belize
accessed 10 December 2018 The Contractor-General is an independent, non-political appointment made by the Governor-General acting on the recommendations of both Houses of the
National Assembly
In politics, a national assembly is either a unicameral legislature, the lower house of a bicameral legislature, or both houses of a bicameral legislature together. In the English language it generally means "an assembly composed of the rep ...
.
Brazil
Government procurement in
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
is regulated by a number of different laws with different procedures depending on the importance and the value of the procurement. The most important law about government procurement which contains basic rules of public procurements and administrative contracts was the Law nº 8.666, 21 June 1993, which contained rules for public tenders and for restricted tenders. This law was succeeded by the la
Lei 14.133/21 1st , April, 2021. There are different rules regulating procurement of public services, as Law nº 8.987, 13 February 1995 (Concession and Permission of Public Services); Law nº 12.462, 4 August 2011 (Differentiated Procurement – RDC in Portuguese) and Law nº 10.520, 17 July 2002, which deals with a reverse auction. In the internet field (e-procurement) there are executive orders (Decretos) which regulate public procurement, such as Decree nº 5.450, 31 May 2005 and Decree nº 7.982, 23 January 2013: the latter regulates procedures for specific situations of sharing acquisitions of goods or under portioned delivering.
Canada
Public procurement in Canada is regulated on various governmental levels (federal, provincial, municipal). Most federal procurement is organized by the
Public Services and Procurement Canada
Public Services and Procurement Canada (PSPC; french: Services publics et Approvisionnement Canada)''Public Services and Procurement Canada'' is the applied title under the Federal Identity Program; the legal title is Department of Public Works ...
(PSPC) agency and is governed by their Code of Conduct of Procurement in combination with principles laid out in the
Federal Accountability Act and in the
Financial Administration Act
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fin ...
. Public procurement is guided by the principles of fairness, transparency, openness, and non-discrimination and complies with all international agreements that Canada is a member of (
WTO
The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation
in the United Nations System, governments use the organization to establish, revise, and e ...
Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
PA NAFTA,
CETA
The Comprehensive Economic and Trade Agreement (CETA) is a free-trade agreement between Canada and the European Union and its member states. It has been provisionally applied, thus removing 98% of the preexisting tariffs between the two parts.
...
, and various bilateral FTAs). Foreign suppliers from member nations to these agreements can bid on Canadian government procurements and are treated the same as domestic suppliers.
The principal statutory provisions regulating government procurement are:
*Department of Public Works and Government Services Act (1996)
*Financial Administration Act (1985) and the Government Contracts Regulations
*
Defence Production Act 1985 (consolidated version published 2011)
*
Federal Accountability Act, 2006
In general, bids must be solicited by the procuring department unless estimated expenditure does not exceed $25,000, or $100,000 "where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work". For contracts above $25,000, tenders are published on the transparent Government Electronic Tendering Service (GETS). A non-competitive procurement process is only used in certain special circumstances. One such area of exception are security-related procurements. In that case the Defence Production Act applies, which allows using a special process and favouring domestic suppliers in acquiring defence supplies and conducting defence.
China
During the period from 1949 to 1978,
Chinese
Chinese can refer to:
* Something related to China
* Chinese people, people of Chinese nationality, citizenship, and/or ethnicity
**''Zhonghua minzu'', the supra-ethnic concept of the Chinese nation
** List of ethnic groups in China, people of ...
public bodies acquired the goods and services they required in accordance with administratively directed transactions, whereas since the
economic reforms of 1978, "central planning has started to give way to market forces". Researchers Ping Wang and Xinglin Zhang suggest that for comparative law purposes, it only makes sense to speak of "government procurement" or "public procurement" after the implementation of the 1978 reforms.
The "Government Procurement Law of the People's Republic of China", adopted at the 28th Meeting of the Standing Committee of the
Ninth National People's Congress on 29 June 2002, is the primary legislation in China.
[The Government Procurement Law of the People's Republic of China (Order of the President No.68)]
29 June 2002, accessed 16 May 2019 The "Implementing Regulations of the Government Procurement Law", which supplement and clarify the Law, came into effect on 1 March 2015. Regulations on military procurement are formulated separately by the
Central Military Commission (Article 86).
The finance departments within each
section of government are responsible for the supervision of departmental public procurement (Article 13).
China has observer status with regard to the Government Procurement Agreement and is negotiating accession.
East Timor
The Ministry of Finance in
East Timor
East Timor (), also known as Timor-Leste (), officially the Democratic Republic of Timor-Leste, is an island country in Southeast Asia. It comprises the eastern half of the island of Timor, the exclave of Oecusse on the island's north-weste ...
or Timor-Leste is responsible for the oversight of government procurement. The Government uses the Timor-Leste eProcurement Portal for purchasing.
Eritrea
The
Government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
of the
State of Eritrea received financing in 2020 from the
African Development Bank
The African Development Bank Group (AfDB) or (BAD) is a multilateral development finance institution headquartered in Abidjan, Ivory Coast, since September 2014. The AfDB is a financial provider to African governments and private companies ...
to support a "Public Financial Management and Statistics Capacity Building Project". The government has stated that it intends to use part of this funding to appoint a consultant to draft a Public Procurement Law and related documents.
Ethiopia
Government procurement in
Ethiopia
Ethiopia, , om, Itiyoophiyaa, so, Itoobiya, ti, ኢትዮጵያ, Ítiyop'iya, aa, Itiyoppiya officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the ...
is governed by the Ethiopian Federal Government Procurement and Property Administration Proclamation No.649/2009,
[Ethiopian Federal Government Procurement and Property Administration Proclamation]
9 September 2009, accessed 6 November 2011 which replaced the proclamation on Procedures of Public Procurement and Establishing its Supervisory Agency, Proclamation No. 430/2005. The Public Procurement
and Property Administration Agency advises the federal government on "all public procurement and property administration policies, principles and implementation" and provides "technical assistance to the regional governments and city administrations".
European Union
Government procurement in the European Union accounts for more than EUR 2.2 trillion, or 14% of the EU GDP. It has been regulated and harmonized by
community law
A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, town ...
since the 1970s in order to guarantee transparency and non-discrimination of EU companies in government procurement in all member states. EU laws apply only to tenders that exceed certain thresholds in value. These thresholds vary depending on the area the contract is for and if the procurement is done by a central government or by other public authorities (e.g. municipal government). National laws are applied for tenders below these threshold values.
Relevant EU Directives regarding government procurement currently in force ar
Directive 2009/81Directive 2014/24 an
Directive 2014/25
There are five different procedures for public procurement:
*Open procedure: any company is allowed to submit a tender
*Restricted procedure: only companies that have been preselected are allowed to submit a tender
*Negotiated procedure: there are direct negotiations with at least three companies
*Competitive dialogue: if it is not possible to define technical specifications at the beginning, a competitive dialogue with at least three companies is started after which tenders can be submitted. This procedure is applied for complex procurements.
*Electronic auctions: companies that pass a pre-evaluation process can bid in electronic auctions for public contracts
The E
Directive 2014/24foresees two award criteria, namely the lowest price criterion or economically most advantageous offer criterion. In terms of contractual forms, the relationship between contracting authority and economic operator can be regulated by a public supply contract, framework agreement or dynamic purchasing system.
The European Commission is working on further improving efficiency and transparency in government procurement in the EU with its current public procurement strategy.
Austria
Government procurement in
Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
is regulated by the Federal Procurement Act 2017.
Belgium
Belgian
Belgian may refer to:
* Something of, or related to, Belgium
* Belgians, people from Belgium or of Belgian descent
* Languages of Belgium, languages spoken in Belgium, such as Dutch, French, and German
*Ancient Belgian language, an extinct languag ...
legislation on public procurement is set out in the Act of 17 June 2016 implementing the 2014 EU procurement directives. The Laws of 17 June 2016 on public procurement and on concession contracts, and the Law of 16 February 2017 on remedies, failed to meet the EU's transposition deadline (18 April 2016).
Royal Decree
A decree is a legal proclamation, usually issued by a head of state (such as the president of a republic or a monarch), according to certain procedures (usually established in a constitution). It has the force of law. The particular term used for ...
s issued on 18 April 2017 for general public procurement, 18 June 2017 for procurement in the water, energy, transport and postal services sectors, 22 June 2017 containing new rules on the performance of public works contracts and concession contracts for public works and 25 June 2017, for the award and performance of concession contracts, have augmented the earlier laws.
[Van Bael and Bellis]
New Belgian Regulatory Framework Governing Public Procurement – Overview of Main Novelties
accessed 29 October 2018
Article 51 of the Royal Decree of 18 April 2017 includes a "revolving door mechanism", which targets the situation where a person previously working for a contracting authority is now being employed by an economic operator involved in a public procurement procedure established by that contracting authority. In this type of situation the person would be presumed to have a
conflict of interest
A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...
for a two-year period following the termination of his/her employment with the contracting authority.
Bulgaria
Government procurement in Bulgaria is a critical area in corruption risk. Public procurement contracts have been awarded to a handful of companies amid widespread irregularities, procedure violations and tailor-made selection or award criteria. The Bulgarian public procurement portal reported in September 2016 that since the beginning of 2016, "a total of 15,105 contracts were signed on the basis of public procurement orders". At the beginning of 2015, the
Bulgarian government
The Council of Ministers ( bg, Министерски съвет, ''Ministerski savet'') is the main authority of the executive power in the Republic of Bulgaria. It consists of the Prime Minister of Bulgaria and all the specialized ministers ...
announced a 130-kilometer extension to the barbed wire
border fence along its border with
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
in order to completely secure the land border. Prime Minister
Boyko Borisov described the extension as "absolutely necessary" in order to prevent persons from
illegally entering the European Union member state. The
Bulgarian Parliament
The National Assembly ( bg, Народно събрание, Narodno sabranie) is the unicameral parliament and legislative body of the Republic of Bulgaria.
The National Assembly was established in 1879 with the Tarnovo Constitution.
Ordi ...
authorised amendments to procurement legislation to allow continued construction of the fence without launching a public procurement procedure "because of the need to safeguard national security".
Croatia
The first public procurement law in
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
based on the EU Procurement Directives was enacted in 2001, but a revised legal structure for public procurement was put in place with the Public Procurement Act of 2012,
[European Commission]
Public procurement – Study on administrative capacity in the EU: Croatia Country Profile
/ref> and this was superseded by the Public Procurement Act of 2016, effective 1 January 2017. Public-private partnerships (PPPs) are governed by the Act on Public-Private Partnerships. Two key Croatian institutions are the Public Procurement Office and the Public Procurement Supervisory Commission, established in 2001, now (since 2013) the State Commission for Supervision of Public Procurement (DKOM). The State Commission is an independent quasi-judicial body with nine members appointed by the Croatian Parliament
The Croatian Parliament ( hr, Hrvatski sabor) or the Sabor is the unicameral legislature of the Republic of Croatia. Under the terms of the Croatian Constitution, the Sabor represents the people and is vested with legislative power. The Sab ...
for a five-year term and accountable to the Croatian Parliament for its work. The High Administrative Court of the Republic of Croatia has jurisdiction over the State Commission in relation to disputes concerning procedure, but there is no right of appeal against Commission decisions.
Under Croatian law, procurement procedures must be carried out by authorised representatives of the contracting authority, of whom at least one must hold a valid procurement certificate.
Cyprus
The Public Procurement Directorate of the Treasury of the Republic of Cyprus
Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is ge ...
is responsible for procurement policy.
Czech Republic
Government procurement in the Czech Republic
The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...
is regulated by Act No. 134/2016 Coll., on Public Contracts, signed by the President of the Republic on 22 April 2016.
In May 2015, Prime Minister Andrej Babiš was accused of alleged financial irregularities, and accusations from members of the public and from the opposition that he had promoted his own companies relation to government procurement opportunities triggered a vote of no confidence
A motion of no confidence, also variously called a vote of no confidence, no-confidence motion, motion of confidence, or vote of confidence, is a statement or vote about whether a person in a position of responsibility like in government or mana ...
against Bohuslav Sobotka
Bohuslav Sobotka (; born 23 October 1971) is a Czech politician and lawyer who served as the Prime Minister of the Czech Republic from January 2014 to December 2017 and Leader of the Czech Social Democratic Party (ČSSD) from 2010 until his resig ...
's government, called by the opposition parties ODS, TOP 09
TOP 09 (name derived from cs, Tradice Odpovědnost Prosperita, lit=Tradition Responsibility Prosperity) is a liberal-conservative political party in the Czech Republic, led by Markéta Pekarová Adamová. TOP 09 holds 14 seats in the Chamber ...
, and Dawn
Dawn is the time that marks the beginning of twilight before sunrise. It is recognized by the appearance of indirect sunlight being scattered in Earth's atmosphere, when the centre of the Sun's disc has reached 18° below the observer's hori ...
. The motion was defeated by 47–105.
Denmark
Economic operator
An economic operator is a business or other organisation which supplies goods, works or services within the context of market operations. The term is used in public procurement to cover suppliers, contractors and service providers.
The term is def ...
s who are dissatisfied with the conduct of public procurement activity in Denmark
)
, song = ( en, "King Christian stood by the lofty mast")
, song_type = National and royal anthem
, image_map = EU-Denmark.svg
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Danish Realm, Kingdom of Denmark
...
may complain to the Klagenævnet for Udbud (Public Procurement Complaints Board).
Estonia
The Estonia
Estonia, formally the Republic of Estonia, is a country by the Baltic Sea in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the sea across from Sweden, to the south by Latvia, a ...
n Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
is responsible for public procurement policy, drafting the law, providing supervision and consultancy, and maintains a central Public Procurement Register. The current legislation is the Public Procurement Act of 2017, which came into effect on 1 September 2017, and which operates in conjunction with the Public Information Act of 2000, which regulates the publication of "information concerning public procurements which are being organised or have been organised by the state or local governments". Disputes are handled by the Public Procurements Appeal Committee.
Defence procurement for the Defence Forces, Ministry of Defence, Defence League, Defence Resources Agency and Estonian War Museum is organised by the Estonian Centre for Defence Investment, whose purpose is "to carry out procurement activities through ... professional-quality procurement and to use dedicated funds sparingly and prudently". The Centre for Defence Investment was established by the decree of the Minister of Defence on 9 November 2015 and became operational on 1 January 2017.
Finland
In Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
the following legislation applies to government procurement:
*Act on Public Contracts and Concession Contracts (Act no. 1397 of 2016, effective 1 January 2017)
*Act on Public Contracts by Contracting Authorities in the Water, Energy, Transport and Postal Services Sectors (Act no. 1398 of 2016, also known as the 'Act on public contracts in special sectors')
*Act on Public Contracts in the Fields of Defence and Security.[The Law Reviews]
The Government Procurement Review, Issue 4 – Finland
accessed 11 July 2018
A Government Decree on Public Contracts was also in force until 2017.
The Ministry of Employment and the Economy
The Ministry of Economic Affairs and Employment (TEM, fi, työ- ja elinkeinoministeriö, ) is one of the ministries of the Finnish Government. The ministry implements industry, labor, and local development policies.
There are two ministerial p ...
is responsible for the preparation of legislation concerning public procurement. The Finnish Competition and Consumer Authority (FCCA) oversees public procurement: section 139 of the Act on Public Procurement and Concession Contracts mandates the FCCA to supervise compliance with public contracts legislation and to provide 'administrative guidance' or if necessary to issue a caution to a non-compliant public authority. The Market Court operates as a specialist court handling public procurement cases. The Market Court's rulings in public procurement cases can be appealed to the Supreme Administrative Court of Finland
The Supreme Administrative Court of Finland (, ) is the highest court in the Finnish administrative court system, parallel to the Supreme Court of Finland. Its jurisdiction covers the legality of the decisions of government officials, and its ...
.
The Act on Electronic Auctions and Dynamic Purchasing Systems of 17 June 2011, which entered into force on 1 October 2011, introduced new procurement procedures, whereby documents relating to procurement would be sent and received exclusively online. This legislation included the use of eAuction
An online auction (also electronic auction, e-auction, virtual auction, or eAuction) is an auction held over the internet and accessed by internet connected devices. Similar to in-person auctions, online auctions come in a variety of types, with d ...
s. Electronic procurement is now covered within the 2016 Act on Public Contracts.
Transposition of the 2014 EU public procurement directive into Finnish law was delayed after the deadline (18 April 2016) with the consequence that some aspects of the directive were directly applicable from April 2016 until the new Finnish legislation was in place from 1 January 2017.
Hansel Ltd. is a state-owned central purchasing body established by the ''Act on a Limited Liability Company Called Hansel Oy'', which operates framework agreements and supports central government departments in Finland with public procurement tasks.
France
In France, the Department of Legal Affairs (DAJ) of the Ministry for the Economy and Finance ( French: ''Ministère de l'Économie et des Finances'') is responsible for establishing regulations regarding public procurement (''la commande publique''). All currently relevant EU directives have been implemented into national law.
The ''Union des Groupements d'Achat Public'' (UGAP), based in Champs-sur-Marne
Champs-sur-Marne () is a commune in the eastern suburbs of Paris, France. It is located from the center of Paris, in the Seine-et-Marne Departments of France in the Île-de-France region.
The commune of Champs-sur-Marne is part of the Val Maubu ...
east of Paris, operates as the only general public procurement agency in France.
Article III of Decree
A decree is a legal proclamation, usually issued by a head of state (such as the president of a republic or a monarch), according to certain procedures (usually established in a constitution). It has the force of law. The particular term used for ...
2016-247 of 3 March 2016 provides that the ''Direction des Achats de l’Etat'' (DAE: State Purchasing Directorate) has "exclusive competence in matters regarding the strategy for professionalisation of public procurement".
Germany
In Germany, the Federal Ministry for Economic Affairs and Energy
The Federal Ministry for Economic Affairs and Climate Action (german: Bundesministerium für Wirtschaft und Klimaschutz, ), abbreviated BMWK (was BMWi), is a cabinet-level ministry of the Federal Republic of Germany. It was previously known as ...
(German
German(s) may refer to:
* Germany (of or related to)
** Germania (historical use)
* Germans, citizens of Germany, people of German ancestry, or native speakers of the German language
** For citizens of Germany, see also German nationality law
**Ge ...
: ''Bundesministerium für Wirtschaft und Energie'', abbreviated BMWi) is responsible for defining laws and principles regarding public procurement. In 2016 Germany transposed the new EU Directives of 2014 into domestic law. Thereby, processes and contracts in public procurement have become easier and more flexible. The Act against Restraints of Competition – Part IV (German: '' Gesetz gegen Wettbewerbsbeschränkungen'', abbreviated GWB) and the Ordinance on the Award of Public Contracts (German: V''erordnung über die Vergabe öffentlicher Aufträge'', abbreviated VgV) regulate procurement above EU thresholds. Detailed procedures are specified in further regulations, e.g. the Procurement Regulation for Public Works (German abbreviation: VOB), the Procurement Regulation for Public Supplies and Services (VOL
Vol or Vols may refer to:
* Vol (command), a computer operating system command
* Vol (heraldry), a heraldic charge
* Volatility (finance)
* Volume (disambiguation)
* Volunteer (Irish republican)
* Nashville Vols, an American minor league baseball t ...
), and the Procurement Regulation for Professional Services ( VOF). For many contracts electronic procurement is made possible via a
online platform
For public procurement below the EU thresholds there are different regulations. At the federal level national budgetary law applies while the 16 federal German states and some municipalities have their own public procurement laws and regulations. This decentralized system reflects the political decentralization in Germany. However, sub-national level procurement regulations often take national regulations as examples and also ensure competition, non-discrimination, and transparency.
Gibraltar
Government procurement in Gibraltar
)
, anthem = " God Save the King"
, song = " Gibraltar Anthem"
, image_map = Gibraltar location in Europe.svg
, map_alt = Location of Gibraltar in Europe
, map_caption = United Kingdom shown in pale green
, mapsize =
, image_map2 = Gib ...
is managed by the Procurement Office, an independent office of Her Majesty's Government of Gibraltar
His Majesty's Government of Gibraltar is the democratically elected government of the British Overseas Territory of Gibraltar. The head of state is King Charles III who is represented by the Governor. Elections in Gibraltar are held every four ...
which reports directly to the Financial Secretary. In 2012 the European Commission raised a concern regarding the United Kingdom's incomplete transposition of the Defence and Security Public Contracts Regulations 2011 into law.
Greece
Law 4412/2016 on public procurement and Law 4413/2016 on concessions are the main instruments of Greek
Greek may refer to:
Greece
Anything of, from, or related to Greece, a country in Southern Europe:
*Greeks, an ethnic group.
*Greek language, a branch of the Indo-European language family.
**Proto-Greek language, the assumed last common ancestor ...
legislation governing public procurement. These two laws of 2016, along with earlier reforms introduced under Law 4281/2014 on public procurement law, have radically simplified the previously complex legal regime, repealing numerous previous laws. The European Commission's profile for Greece
Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders with ...
in its study of administrative capacity in the EU had described the public procurement system in the country as "singularly complex, ... being dispersed among as many as 400 laws, regulations, and presidential decrees".[Public procurement – Study on administrative capacity in the EU: Greece Country Profile]
/ref> Public contract notices are published in the Central Electronic Registry for Public Procurement (KIMDIS).
The Public Procurement Monitoring Unit (PPMU), established in 1997, part of the Centre of International and European Economic Law in Thessaloniki
Thessaloniki (; el, Θεσσαλονίκη, , also known as Thessalonica (), Saloniki, or Salonica (), is the second-largest city in Greece, with over one million inhabitants in its Thessaloniki metropolitan area, metropolitan area, and the capi ...
, provides Greek contracting authorities with "specialised and prompt legal advisory support on awarding public works and technical services contracts falling within the scope of EU Law on Public Procurement".
Hungary
The Hungarian Public Procurement Authority was established by Act XL of 1995 and the current Public Procurement Act (Act CXLIII of 2015) entered into force on 1 November 2015, implementing the 2014 EU procurement directives.[Act CXLIII of 2015 on Public Procurement]
accessed 13 August 2018 The objectives of the 2015 legislation are:
*to secure transparency and public control of the effective use of public funds;
*to establish conditions of fair competition in public procurement;
*to enhance the access of local small and medium-sized enterprises to procurement procedures; and
*to promote environmental protection and the social considerations of the State.
Concession award procedures are also covered within the same legislation, and the fundamental principles set out in Act V of 2013 on the Civil Code
A civil code is a codification of private law relating to property, family, and obligations.
A jurisdiction that has a civil code generally also has a code of civil procedure. In some jurisdictions with a civil code, a number of the core ar ...
, the "ultimate instrument relating to the operation of civil persons and economic organizations", also apply to public procurement.
Ireland
Government procurement in Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
is governed by the European Communities (Award of Public Authorities' Contracts) Regulations 2006 and the European Communities (Public Authorities' Contracts) (Review Procedures) Regulations 2010. , the with special responsibility for Public Procurement is Ossian Smyth
Ossian Smyth is an Irish Green Party politician who has served as a Minister of State since July 2020. He has been a Teachta Dála (TD) for the Dún Laoghaire constituency since 2020.
Smyth holds a Bachelor of Arts in Computer Science from Trin ...
.
Italy
Public procurement in Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
is primarily regulated by the Public Contracts Code ('' Codice dei contratti pubblici''), established under the legislative decree of 12 April 2006, which is administered by the Ministry of Infrastructure and Transport (Italian
Italian(s) may refer to:
* Anything of, from, or related to the people of Italy over the centuries
** Italians, an ethnic group or simply a citizen of the Italian Republic or Italian Kingdom
** Italian language, a Romance language
*** Regional Ita ...
: Ministero delle infrastrutture e dei trasporti). The code was reformed in 2016 to implement the new EU directives of 2014 into domestic Italian law. In addition to the code, guidelines from the National Anti-Corruption Authority (Italian: ''Autorità Nazionale AntiCorruzione'', abbreviated ANAC) and decrees from various ministries also apply to public procurement. Most public procurement on a national level is administered by the state-owned company Consip S.p.A. Larger regions have their own agencies for public purchasing.
The ''Autorità per la vigilanza sui lavori pubblici'' (1994-2006) and ''Autorità per la vigilanza sui contratti pubblici di lavori, servizi e forniture'' (AVCP) (2006-2014) acted as supervisory authorities overseeing public works procurement, and later covering public procurement more generally. In 2014 this function was transferred to ANAC.
The five regions with special autonomy (Friuli-Venezia Giulia
(man), it, Friulana (woman), it, Giuliano (man), it, Giuliana (woman)
, population_note =
, population_blank1_title =
, population_blank1 =
, demographics_type1 =
, demographics1_footnotes =
, demographics1_t ...
, Sardinia
Sardinia ( ; it, Sardegna, label=Italian, Corsican and Tabarchino ; sc, Sardigna , sdc, Sardhigna; french: Sardaigne; sdn, Saldigna; ca, Sardenya, label=Algherese and Catalan) is the second-largest island in the Mediterranean Sea, after ...
, Sicily
(man) it, Siciliana (woman)
, population_note =
, population_blank1_title =
, population_blank1 =
, demographics_type1 = Ethnicity
, demographics1_footnotes =
, demographi ...
, Trentino-Alto Adige and Valle d'Aosta
, Valdostan or Valdotainian it, Valdostano (man) it, Valdostana (woman)french: Valdôtain (man)french: Valdôtaine (woman)
, population_note =
, population_blank1_title = Official languages
, population_blank1 = Italian French
, ...
) can also establish regional legislation regarding public procurement.
In case C-3/88, ''Commission v Italian Republic'', the European Court of Justice
The European Court of Justice (ECJ, french: Cour de Justice européenne), formally just the Court of Justice, is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European Un ...
ruled that arrangements made by the Italian government to restrict contracts for the provision of services to develop data processing systems for Italian public authorities to companies "in which all or a majority of the shares eredirectly or indirectly in public or State ownership", and to include the supply of computing equipment within the services contract, the government had failed to comply with its obligations under Council Directive 77/62/EEC of 21 December 1976 coordinating procedures for the award of public supply contracts, and failed to comply with the principles of freedom of establishment and freedom to provide services in the EEC Treaty.
Latvia
Government procurement in Latvia
Latvia ( or ; lv, Latvija ; ltg, Latveja; liv, Leţmō), officially the Republic of Latvia ( lv, Latvijas Republika, links=no, ltg, Latvejas Republika, links=no, liv, Leţmō Vabāmō, links=no), is a country in the Baltic region of ...
is regulated by the Public Procurement Law, effective 1 March 2017, and the Law on the Procurement of Public Service Providers, which came into effect on 1 April 2017. These laws transpose the EU procurement directives; one additional legal provision is that for supplier selection purposes, real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
tax debts are checked where tenderers are registered or permanently resident in Latvia. Public procurement opportunities are advertised on the Latvian ''Elektronisko Iepirkumu Sistēma'' (EIS) website.
The Procurement Monitoring Office within the Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
oversees public procurement. A deposit for filing a review application with the Procurement Monitoring Office must be paid, calculated as 0.5% of the estimated contract value, but no more than €15,000 for construction work contracts or €840 for supply and public service contracts.
Lithuania
Public procurement in the Republic of Lithuania
A republic () is a "state in which power rests with the people or their representatives; specifically a state without a monarchy" and also a "government, or system of government, of such a state." Previously, especially in the 17th and 18th c ...
is overseen by the Public Procurement Office ( lt, Viešųjų pirkimų tarnyba ), based in Vilnius
Vilnius ( , ; see also other names) is the capital and largest city of Lithuania, with a population of 592,389 (according to the state register) or 625,107 (according to the municipality of Vilnius). The population of Vilnius's functional urb ...
, under its Director, Diana Vilytė.
Luxembourg
In Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
, the main policy body for public procurement is the Public Procurement Directorate within the Public Works Department of the
Ministry of Sustainable Development and Infrastructure The Ministry of Sustainable Development and Infrastructure (french: Ministère du Développement durable et des Infrastructures) (german: Ministerium für nachhaltige Entwicklung und Infrastruktur) is a ministry of the Government of Luxembourg. Its ...
(MDDI). This department is responsible for the regulatory framework, drafting relevant
legislation and monitoring its implementation, and also for representing the Luxemburgish authorities in the field of public procurement. A Tender Commission with members drawn from contracting authorities, chambers of commerce and small business sectors undertakes a consultative role in relation to public procurement.
The EU 2014 Directives on public procurement and utilities procurement were implemented by the Law of 8 April 2018 on public procurement, which was published in the Luxembourg official Gazette ('' Mémorial: Journal officiel du Grand-Duché de Luxembourg'') on 16 April 2018 and entered into force on 20 April 2018. Procurement in the defence and security sector is covered by the Law of 26 December 2012.
Malta
The EU Directive on public procurement is transposed
In linear algebra, the transpose of a matrix is an operator which flips a matrix over its diagonal;
that is, it switches the row and column indices of the matrix by producing another matrix, often denoted by (among other notations).
The tr ...
into Maltese law by the Public Procurement Regulations, S.L.174.04, 28 October 2016. These regulations also create the Office of the Director of Contracts (Regulation 10), who is responsible generally for the regulation and administration of public procurement procedures in Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
, a General Contracts Committee, whose members are appointed by the Prime Minister
A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...
(Regulation 64), a Departmental Contracts Committee for each contracting authority, and in each Ministry a Ministerial Procurement Unit (Regulation 79). Under regulation 80 a Public Contracts Review Board is established. The Commercial Sanctions Tribunal (Regulation 95) is appointed to hear and determine issues relating to the black listing of persons unsuitable for the award of a public contract or to act as a sub-contractor to a public sector contractor.
Netherlands
The main legislative provisions governing public procurement in the Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
are:
*the Public Procurement Act 2012 as amended on 1 July 2016;
*the Public Procurement Decree;
*the Works Procurement Regulations 2016;
*the Procurement Regulations for the Utilities Sectors 2013;
*the Proportionality Guide, 2016;
*the Defence and Security Procurement Act 2013.
Sector-specific procurement regulations are also included in the Passenger Transport Act 2000. The Ministry of Economic Affairs is responsible for procurement policy.
''TenderNed'' is the Dutch government's online tendering system, which all Dutch contracting authorities are obliged to use to publish their national and European tenders.
Poland
Portugal
Public procurement in Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
is governed by the ''Código dos Contratos Públicos'' or Public Contracts Code (PCC), which has been implemented through the following ''Decretos-Leis'' ( decree-laws) and other legislation:
*Decree-Law 18/2008 (29 January 2008)
*Decree-Law 59/2008 (11 September 2008)
*Decree-Law 223/2009 (11 September 2009)
*Decree-Law 278/2009 (20 October 2009)
*Decree-Law 3/2010 (27 April 2010)
*Decree-Law 131/2010 (14 December 2010)
*Law 64-B/2011 (30 December 2012)
*Decree-Law 149/2012 (12 July 2012)
*Decree-Law 214-G/2015 (2 October 2015)
*Decree-Law 111-B/2017 (31 August 2017)[International Comparative Legal Guide]
Public Procurement 2018: Portugal
published 26 January 2018, accessed 7 January 2019
Decree-Law No. 104/2011 (6 October 2011) applies to defence contracts.
The Administrative Procedural Code, established under decree-law 4/2015 (7 January 2015) also provides for general procedures on administrative matters and the Procedural Code of the Administrative Courts established by Law no. 15/2002 (22 February 2002), amended by Decree-Law 214-G/2015, stipulates procedures for litigation regarding public contracts and procurement practices.
Slovakia
Public procurement in Slovakia
Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the s ...
is subject to the Law on Public Contracts, which came into effect in September 2015. Contract opportunities are advertised in the ''Slovak Official Journal for Procurement Notices'' and a public register of final beneficiaries of companies that win public sector contracts is maintained. The Public Procurement Regulatory Authority ( sk, l’Úrad pre verejné obstarávanie) oversees procurement operations.
Slovenia
Public procurement in Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
is overseen by the Public Procurement Directorate within the Ministry of Public Administration. The Slovenian Public Procurement Act, the ZJN-3, came into force on 1 April 2016, and covers both public sector and utilities procurement, implementing Directives 2014/24/EU and 2014/25/EU in one piece of legislation.
Spain
Spanish
Spanish might refer to:
* Items from or related to Spain:
**Spaniards are a nation and ethnic group indigenous to Spain
**Spanish language, spoken in Spain and many Latin American countries
**Spanish cuisine
Other places
* Spanish, Ontario, Can ...
Law 30/2007 on public sector contracts (known as the "LCSP") was substantially amended by a new Law 2/2011 on Sustainable Economy ("LES") following an infringement procedure undertaken by the European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
, which found that the LCSP "gave contracting authorities a wide, almost unlimited, power to modify essential terms of public contracts after award, in a manner which was not in line with the principles of equal treatment between bidders, non-discrimination and transparency set out in EU public procurement rules".
Sweden
The Swedish Competition Authority is responsible for oversight of government procurement in Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
, having taken over this role from the Board for Public Procurement ( sv, Nämnden för offentlig upphandling) when it was dissolved in 2007.
Fiji
The Fiji
Fiji ( , ,; fj, Viti, ; Fiji Hindi: फ़िजी, ''Fijī''), officially the Republic of Fiji, is an island country in Melanesia, part of Oceania in the South Pacific Ocean. It lies about north-northeast of New Zealand. Fiji consists ...
Procurement Office was established under Section 4 of the Fiji Procurement Regulations 2010 and commenced operations on 1 August 2010. The establishment of the Office and the new Fiji Procurement Regulations were a direct result of the re-organisation of the Government Supplies Department by the Fijian government. The main functions of the Fiji Procurement Office are to regulate and administer the procurement of goods, service and works for the government. The Government Tender Board is "constituted with authority to approve all procurement of goods, services and works valued at FJ$50,001 and more". Refe
www.fpo.gov.fj
for more information
Ghana
Public procurement in Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
is undertaken and overseen by the Public Procurement Authority of Ghana. The Public Procurement Board is the central body for policy formulation on procurement. The existing Public Procurement Act 2003 (Act 663) was amended by the Public Procurement (Amendment) Act 2016 (Act 914), which came into effect on 1 July 2016.
The Minister of State in Charge of Public Procurement is Sarah Adwoa Safo
Sarah Adwoa Safo (born 28 December 1981) is a Ghanaian lawyer and politician. She is the New Patriotic Party Member of Parliament (2013–2020) for the Dome Kwabenya Constituency of the Greater Accra Region of Ghana. She was the Minister for G ...
. She has taken a lead role in the fight against corruption in Ghana
Political corruption in Ghana has been common since independence. Since 2006, Ghana's score and ranking on the Transparency International Corruption Perceptions Index has improved slightly, ranked higher than Italy and Brazil. However, there is a ...
, identifying corruption as "a high-risk activity in the country".
Guernsey
Public procurement opportunities in Guernsey
Guernsey (; Guernésiais: ''Guernési''; french: Guernesey) is an island in the English Channel off the coast of Normandy that is part of the Bailiwick of Guernsey, a British Crown Dependency.
It is the second largest of the Channel Islands ...
are advertised on the Channel Islands Procurement Portal, which was launched in April 2008 and is shared with Jersey
Jersey ( , ; nrf, Jèrri, label=Jèrriais ), officially the Bailiwick of Jersey (french: Bailliage de Jersey, links=no; Jèrriais: ), is an island country and self-governing Crown Dependencies, Crown Dependency near the coast of north-west F ...
.[Channel Islands Procurement Portal]
accessed 30 January 2018
Guyana
Public procurement in Guyana
Guyana ( or ), officially the Cooperative Republic of Guyana, is a country on the northern mainland of South America. Guyana is an indigenous word which means "Land of Many Waters". The capital city is Georgetown. Guyana is bordered by the ...
is overseen by the Public Procurement Commission, appointed under the Public Procurement Commission Act 2003. Due to lengthy delay in identifying and agreeing commission members, the commission was not appointed until 2016. The PPC is based in the Queenstown area of Georgetown. The National Procurement and Tender Administration of Guyana (NPTA), established under section 16(1) of the Procurement Act 2003, undertakes administrative processes for high value governmental tenders.
Haiti
In 2005, the Haitian government formed the National Commission for Public Procurement (french: La Commission Nationale des Marchés Publics, CNMP), based in Port-au-Prince
Port-au-Prince ( , ; ht, Pòtoprens ) is the capital and most populous city of Haiti. The city's population was estimated at 987,311 in 2015 with the metropolitan area estimated at a population of 2,618,894. The metropolitan area is define ...
, whose tasks are to ensure that competitive bidding takes place for public contracts and to promulgate effective procurement controls in government administration. The commission was established by the Decree of 3 December 2004. The CNMP publishes lists of awarded public contracts. According to the website GlobalSecurity.org
GlobalSecurity.org is an American nonpartisan, independent, nonprofit organization that serves as a think tank, and research and consultancy group. Focus
The site is focused on national and international security issues; military analysis, syste ...
, "despite the CNMP's efforts, major public procurement contracts, notably those involving the state electric company EDH, are routinely awarded in a non-competitive fashion", providing significant opportunities for corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
.
Honduras
Government procurement in Honduras
Honduras, officially the Republic of Honduras, is a country in Central America. The republic of Honduras is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Oce ...
is overseen by the National Office of Contracting and Procurement of the State of Honduras (''Oficina Normativa de Contratación y Adquisiciones del Estado'', ONCAE), based in Tegucigalpa
Tegucigalpa (, , ), formally Tegucigalpa, Municipality of the Central District ( es, Tegucigalpa, Municipio del Distrito Central or ''Tegucigalpa, M.D.C.''), and colloquially referred to as ''Tegus'' or ''Teguz'', is the capital and largest city ...
.
Honduras has five laws directing public contracting:
*Ley de Contratación del Estado (revised December 2016)
*Ley de Compras Efficientes y Transparentes a través de Medios Electrónicos, ''Decreto No. 36-2013'', 1 July 2014
*Reglamento de la Ley de Compras Efficientes y Transparentes a través de Medios Electrónicos, whose purpose is to "develop" the law in decree 36-2013
*Reglamento Ley de Contratación del Estado (revised December 2015)
*Reforma al Reglamento de la Ley de Contratación del Estado.
Iceland
Act No. 84/2007 on Public Procurement (2007) has three objectives:
*to ensure the equal treatment of companies during public procurement
*to encourage efficiency in public operations through active competition and
*to promote innovation and development in the public procurement of goods, labour and services. The law applies to "the Icelandic State
Icelandic refers to anything of, from, or related to Iceland and may refer to:
*Icelandic people
*Icelandic language
*Icelandic alphabet
* Icelandic cuisine
See also
* Icelander (disambiguation)
* Icelandic Airlines, a predecessor of Icelandai ...
, local authorities
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
, their institutions and other public entities" and to "associations formed by one or more of such authorities". An independent Public Procurement Complaints Commission has power to investigate complaints and may declare a contract "ineffective" if its award was not compliant with the legislation.
India
The government procurement related disciplines in India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
are governed by Public Procurement Order & General Financial Rule. Public Procurement Orders & General Financial Rule are primarily been taken care by Public Procurement Section of Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry (India)
The Ministry of Commerce and Industry administers two departments, the Department of Commerce and the Department for Promotion of Industry & Internal Trade. The head of the Ministry is a Minister of Cabinet rank.
Minister of Commerce and Indus ...
and Department of Expenditure, Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
respectively.
In 2017 Public Procurement Order & General Financial Rule was amended by government of India in 2017 to include the preference to Make In India
Make in India is an initiative by the Government of India to create and encourage companies to develop, manufacture and assemble products made in India and incentivize dedicated investments into manufacturing. The policy approach was to crea ...
.
Indonesia
Indonesia has observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with respect to the Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
. The UK's Serious Fraud Office and other regulatory bodies undertook an enquiry into bribery
Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...
payments intended to secure contracts with the government of Indonesia
The term Government of Indonesia ( id, Pemerintah Indonesia) can have a number of different meanings. At its widest, it can refer collectively to the three traditional branches of government – the executive branch, legislative branch and ju ...
for the supply of tetraethyl lead
Tetraethyllead (commonly styled tetraethyl lead), abbreviated TEL, is an organolead compound with the formula Pb( C2H5)4. It is a fuel additive, first being mixed with gasoline beginning in the 1920s as a patented octane rating booster that al ...
, leading to the conviction of four company executives in 2014. The convictions also related to offences concerning Iraq
Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
.
Isle of Man
The Isle of Man
)
, anthem = "O Land of Our Birth"
, image = Isle of Man by Sentinel-2.jpg
, image_map = Europe-Isle_of_Man.svg
, mapsize =
, map_alt = Location of the Isle of Man in Europe
, map_caption = Location of the Isle of Man (green)
in Europe ...
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
spends over £200 million each year on goods, works and services per year, promoting competition in procurement under the ''Council of Ministers' Procurement Policy for Government'', published in 2017.
Israel
In Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
, the Mandatory Tenders Law of 12 March 1992, 5752–1992 (as amended), governs government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
procurement procedures. Oversight of the legislation lies with the Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
in conjunction with the Knesset
The Knesset ( he, הַכְּנֶסֶת ; "gathering" or "assembly") is the unicameral legislature of Israel. As the supreme state body, the Knesset is sovereign and thus has complete control of the entirety of the Israeli government (with ...
Constitution, Law and Justice Committee. The government may, with the approval of the Knesset Foreign Affairs and Defense Committee
The Foreign Affairs and Defense Committee ( he, ועדת חוץ וביטחון) is a permanent Knesset committee which oversees key Foreign and Defense issues of the State of Israel, including the drafting of legislation, supervision over relat ...
, direct that a state or a government corporation may not enter into a contract with a particular foreign country or with a particular foreign supplier for reasons of foreign policy
A State (polity), state's foreign policy or external policy (as opposed to internal or domestic policy) is its objectives and activities in relation to its interactions with other states, unions, and other political entities, whether bilaterall ...
.
Jamaica
The Government of Jamaica
Politics in Jamaica takes place in the framework of a representative parliamentary democratic constitutional monarchy. The 1962 Constitution of Jamaica established a parliamentary system whose political and legal traditions closely fol ...
Procurement Guidelines apply to government procurement in Jamaica
Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of His ...
, and the Public Sector Procurement Policy of November 2010 reflects "the government's ... strategy to further reform the public procurement system that is aligned to international best practices and promote fair competition for government contracts".[Ministry of Finance and the Public Service]
Public Sector Procurement Policy, November 2010
accessed 23 August 2018
Until 1996, Jamaica operated a centralised procurement system coordinated by the Central Supply Division of the Ministry of Finance, and procurement activity was regulated by the Financial Administration (Supplies) Regulations 1963 supplemented by directives from the Ministry of Finance. The Ministry of Finance and the Public Service is now responsible for oversight of procurement policy. A Procurement Policy Implementation Unit was established within the Ministry of Finance in September 1999.
The Office of the Contractor-General (OCG), based in Kingston, was established in 1983 under the Contractor General Act of that year. The Contractor General is appointed by the Governor General
Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
. In December 2008, three members of the procurement committee of the Jamaica Urban Transit Company
The Jamaica Urban Transit Company (JUTC) is the government owned public transport service operating within the Kingston Metropolitan Transport Region (KMTR), Spanish Town and Portmore.
The company is headquartered in Spanish Town with its prima ...
resigned following reports of procurement breaches identified by the Contractor-General, Greg Christie.
The National Contracts Commission (NCC) was established in October 1999. Members of the NCC are also appointed by the Governor-General.
Jersey
The States of Jersey's procurement opportunities are advertised on the Channel Islands Procurement Portal, which was launched in April 2008 and is shared with Guernsey
Guernsey (; Guernésiais: ''Guernési''; french: Guernesey) is an island in the English Channel off the coast of Normandy that is part of the Bailiwick of Guernsey, a British Crown Dependency.
It is the second largest of the Channel Islands ...
.[
]
Kenya
Public procurement in Kenya
)
, national_anthem = "Ee Mungu Nguvu Yetu"()
, image_map =
, map_caption =
, image_map2 =
, capital = Nairobi
, coordinates =
, largest_city = Nairobi
, ...
is governed by the Public Procurement and Asset Disposal Act 2015.
Kosovo
The Republic of Kosovo
Kosovo ( sq, Kosova or ; sr-Cyrl, Косово ), officially the Republic of Kosovo ( sq, Republika e Kosovës, links=no; sr, Република Косово, Republika Kosovo, links=no), is a partially recognised state in Southeast Euro ...
's Public Procurement Regulatory Commission, based in Pristina
Pristina, ; sr, / (, ) is the capital and largest city of Kosovo. The city's municipal boundaries in Pristina District form the largest urban center in Kosovo. After Tirana, Pristina has the second largest population of ethnic Albanians and ...
, is responsible for "the overall development, operation and supervision of the public procurement system in Kosova", subject to regulations imposed by Public Procurement Law of Kosovo No.04/L-042 of 2011. Law No.04/L-042 was approved by the Assembly of Kosovo
The Assembly of the Republic of Kosovo ( sq, Kuvendi i Republikës së Kosovës; sr, Скупштина Републике Косово, Skupština Republike Kosovo) is the unicameral legislature of the Republic of Kosovo that is directly electe ...
on 29 August 2011, promulgated by the President of the Republic of Kosovo with decree No.DL-032-2011 on 31 August 2011, and published in the official Gazette of the Republic of Kosovo No.18 on 18 September 2011. The amended Public Procurement Law (2017) gives preference to local bidders when the quality and price are comparable to that of foreign bidders.[U.S. Department of Commerce]
Kosovo - Selling to the Government
''Privacy Shield Framework'', accessed 9 July 2022
Kosovo is not a WTO member and is therefore not a signatory to the Government Procurement Agreement.
The Kosovo Specialist Chambers and Specialist Prosecutor's Office
The Kosovo Specialist Chambers and Specialist Prosecutor's Office (KSC & SPO) is a court of Kosovo, located in The Hague (Netherlands), hosting four ''Specialist Chambers'' and the ''Specialist Prosecutors Office'', which may perform their activi ...
issues public calls for tender on its own website.
Kyrgyz Republic
Public sector procurement in the Kyrgyz Republic
Kyrgyzstan,, pronounced or the Kyrgyz Republic, is a landlocked country in Central Asia. Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the south, and the People's Republic of China to the east ...
is regulated by the Law "On Public Procurements" dated 3 April 2015, No. 72; the republic refers to the principles of publicity, openness, legality, and impartiality as critical in relation to suppliers (contractors).
Laos
Public procurement in the Lao People's Democratic Republic
Laos (, ''Lāo'' )), officially the Lao People's Democratic Republic ( Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ, French: République démocratique populaire lao), is a socialist ...
is governed by the Prime Minister
A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...
's Decree on Procurement of Goods, Works, Maintenance and Services No. 03/PM, dated 9 January 2004, and the Implementing Rules and Regulations on Government Procurement of Goods, Works, Maintenance and Services No. 063/PM, dated 12 March 2004.[United Nations]
E-Governmental Procurement in Lao PDR
accessed 23 September 2018 Amendments were made to some of the articles of the Implementing Rules and the Decree by Update 0861/MOF of 5 May 2009. Procurement activities are overseen by the Procurement Monitoring Office (PrMO) within the Ministry of Finance.
Liberia
Government procurement in Liberia
Liberia (), officially the Republic of Liberia, is a country on the West African coast. It is bordered by Sierra Leone to Liberia–Sierra Leone border, its northwest, Guinea to its north, Ivory Coast to its east, and the Atlantic Ocean ...
is governed by the Public Procurement Act. The Public Procurement and Concessions Commission (PPCC) was established in 2005 to "regulate all forms of Public Procurement and Concessions and provide for institutional structures for public procurement and concessions".[Public Procurement and Concessions Commission]
Frequently Asked Questions about PPCC
accessed 29 April 2018 The PPCC operates an online Vendors' Register.
Procurement is decentralised, but the Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
is required "to take part in the negotiations and signing of contracts over US$250,000" and such contracts must "be attested to by the Ministry of Justice".
Liechtenstein
Liechtenstein
Liechtenstein (), officially the Principality of Liechtenstein (german: link=no, Fürstentum Liechtenstein), is a German-speaking microstate located in the Alps between Austria and Switzerland. Liechtenstein is a semi-constitutional monarchy ...
is a member of the European Economic Area
The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Ass ...
(EEA) and subject to Annex XVI (Procurement) to the EEA Agreement. The Annex provides that its references to ILO Conventions
The list of International Labour Organization Conventions contains 190 codifications of world wide labour standards. International Labour Organization (ILO) Conventions are developed through tripartite negotiations between member state represe ...
do not apply to Liechtenstein, but equivalent standards on labour conditions are to be applied.
Maldives
Government procurement in the Maldives
Maldives (, ; dv, ދިވެހިރާއްޖެ, translit=Dhivehi Raajje, ), officially the Republic of Maldives ( dv, ދިވެހިރާއްޖޭގެ ޖުމްހޫރިއްޔާ, translit=Dhivehi Raajjeyge Jumhooriyyaa, label=none, ), is an archipelag ...
is subject to the Public Finance Law (Law No. 3/2006) and chapter 10 of the Public Finance Regulation. The approval of the National Tender Board is required before contracts in excess of MVR 2.5m can be awarded.
Mali
Public procurement in Mali
Mali (; ), officially the Republic of Mali,, , ff, 𞤈𞤫𞤲𞥆𞤣𞤢𞥄𞤲𞤣𞤭 𞤃𞤢𞥄𞤤𞤭, Renndaandi Maali, italics=no, ar, جمهورية مالي, Jumhūriyyāt Mālī is a landlocked country in West Africa. Mali ...
is overseen by the Autorité de Régulation des Marchés Publics et des Délégations de Service Public, based in Bamako
Bamako ( bm, ߓߡߊ߬ߞߐ߬ ''Bàmakɔ̌'', ff, 𞤄𞤢𞤥𞤢𞤳𞤮 ''Bamako'') is the Capital city, capital and largest city of Mali, with a 2009 population of 1,810,366 and an estimated 2022 population of 2.81 million. It is located on t ...
.
Mexico
Public procurement is included in Article 134 of the Mexican Constitution
The Constitution of Mexico, formally the Political Constitution of the United Mexican States ( es, Constitución Política de los Estados Unidos Mexicanos), is the current constitution of Mexico. It was drafted in Santiago de Querétaro, in th ...
. Article 134 is implemented by the Law of Public Sector Acquisitions, Leasing and Services ("Acquisition Law") and the Law of Public Works and Related Services ("Public Work Law"). At a local level, each of the 31 states and the Federal District
A federal district is a type of administrative division of a federation, usually under the direct control of a federal government and organized sometimes with a single municipal body. Federal districts often include capital districts, and they e ...
has different public procurement laws.
Moldova
The Republic of Moldova
A republic () is a " state in which power rests with the people or their representatives; specifically a state without a monarchy" and also a "government, or system of government, of such a state." Previously, especially in the 17th and 18th ...
ratified the Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
on 14 June 2016.
Montenegro
Montenegro joined the Agreement on Government Procurement in 2015 after approval was granted on 29 October 2014.[WTO]
Montenegro and New Zealand to join the WTO’s Agreement on Government Procurement
published 29 October 2014, accessed 26 September 2022 Exclusions apply in respect of
*procurement of agricultural products for agricultural support programmes and human food aid
In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another.
...
programmes
*procurement of broadcasting
Broadcasting is the distribution (business), distribution of sound, audio or video content to a dispersed audience via any electronic medium (communication), mass communications medium, but typically one using the electromagnetic spectrum (radio ...
material by broadcasters, and contracts for broadcasting time, and
*some aspects of procurement connected with the provision of drinking water
Drinking water is water that is used in drink or food preparation; potable water is water that is safe to be used as drinking water. The amount of drinking water required to maintain good health varies, and depends on physical activity level, a ...
, energy, transport and the postal sector.
Morocco
Morocco
Morocco (),, ) officially the Kingdom of Morocco, is the westernmost country in the Maghreb region of North Africa. It overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria to ...
's National Commission for Public Procurement (CNCP) was established "to oversee public procurement, control public spending and guarantee the principles of transparency and parity in the development and execution of contracts between competitors", with a role also in handling complaints regarding procurement actions.
Mozambique
Decree no. 5/2016, ''Public Procurement Regulations'' governs public procurement in Mozambique
Mozambique (), officially the Republic of Mozambique ( pt, Moçambique or , ; ny, Mozambiki; sw, Msumbiji; ts, Muzambhiki), is a country located in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi ...
.
New Zealand
The New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
Government Procurement Branch of the Ministry of Business, Innovation and Employment
The Ministry of Business, Innovation and Employment (MBIE; mi, Hīkina Whakatutuki) is the public service department of New Zealand charged with "delivering policy, services, advice and regulation" which contribute to New Zealand's economic p ...
is responsible for the Government Procurement Rules, Government Rules of Sourcing[Government Rules of Sourcing]
accessed 20 April 2018 and Principles of Government Procurement. The aim of the Government Rules of Sourcing is to "support good practice for procurement planning, approaching the supplier community and contracting". The 66 rules were initially introduced in 2013. The principles apply to all governmental procurement activity but the rules only apply to projects or purchases exceeding $100,000 or construction projects valued over $10 million.
Purchasers of certain common goods or services are required to use "All-of-Government contracts" (AoG) established by the Government Procurement Branch, overseen by the Procurement Functional Leader and managed by appointed procurement Centres of Expertise. Where a public agency wishes to opt out of the use of an AoG contract it must obtain the approval of approval the Procurement Functional Leader: if the agency and the Procurement Functional Leader fail to agree on an opt-out, the State Services Commissioner will decide.
New Zealand joined the Agreement on Government Procurement in 2015 after approval was granted on 29 October 2014.
The second International Civil Service Effectiveness Index, published in April 2019 by the Blavatnik School of Government
The Blavatnik School of Government is a school of public policy founded in 2010 at the University of Oxford in England. The School was founded following a £75 million donation from a business magnate Leonard Blavatnik, supported by £26 million ...
at the University of Oxford
, mottoeng = The Lord is my light
, established =
, endowment = £6.1 billion (including colleges) (2019)
, budget = £2.145 billion (2019–20)
, chancellor ...
, ranked New Zealand as the top country for Government Procurement Effectiveness. The procurement indicator was a new addition to this index, not present in the previous 2017 index. The indicator covered both procurement systems and procurement practices. The report authors identified that New Zealand's excellence lay in "the extent of e-procurement functions within its overall procurement system; the role of its central purchasing body; and the extent to which policies are in place to enable small and medium-sized enterprises (SME) to take part in central government procurement".
Nigeria
Nigeria is a federal
Federal or foederal (archaic) may refer to:
Politics
General
*Federal monarchy, a federation of monarchies
*Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
republic
A republic () is a "state in which power rests with the people or their representatives; specifically a state without a monarchy" and also a "government, or system of government, of such a state." Previously, especially in the 17th and 18th c ...
comprising 36 states and the Federal Capital Territory
A territory is an area of land, sea, or space, particularly belonging or connected to a country, person, or animal.
In international politics, a territory is usually either the total area from which a state may extract power resources or a ...
. See Rivers State Bureau on Public Procurement
The Rivers State Bureau on Public Procurement (RSBOPP) is a regulatory agency within the Government of Rivers State in Nigeria, which regulates, monitors and oversees public procurement, ensuring that its conduct in the state follows laid down rule ...
as an example of a regulatory body in one of the states.
Pakistan
Government procurement in Pakistan
Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
is overseen by the Public Procurement Regulatory Authority The Public Procurement Regulatory Authority is an autonomous body endowed with the responsibility of prescribing regulations and procedures for public procurements by Federal Government owned public sector organizations with a view to improve gove ...
(PPRA), an autonomous body based in Islamabad
Islamabad (; ur, , ) is the capital city of Pakistan. It is the country's ninth-most populous city, with a population of over 1.2 million people, and is federally administered by the Pakistani government as part of the Islamabad Capital T ...
which was established by the Public Procurement Regulatory Authority Ordinance of May 2002. The PPRA is responsible for issuing regulations and procedures for public procurement undertaken by federal level public sector organisations. Its brief is to improve the governance, management, transparency, accountability and quality of Pakistan's public procurement. The PPRA also monitors other public sector agencies' procurement activity. The PPRA Board consists of six ministerial appointments from central government departments, three private members and the Authority's managing director.
Pakistan has observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with respect to the Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
.
Peru
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
vian public procurement law was formerly set out in the Government Procurement Act (approved by Legislative Decree No. 1017) and the Regulation of the Government Procurement Act (approved by Supreme Decree No. 184-2008-EF), which were replaced by a new Government Procurement Act (Law N° 30225) in 2014. Peruvian President
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
Pedro Pablo Kuczynski
Pedro is a masculine given name. Pedro is the Spanish, Portuguese, and Galician name for ''Peter''. Its French equivalent is Pierre while its English and Germanic form is Peter.
The counterpart patronymic surname of the name Pedro, meaning ...
resigned on 21 March 2018 following allegations that public works contracts had been corruptly awarded to Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
ian conglomerate Odebrecht
Odebrecht S.A. (), officially known as Novonor, is a Brazilian conglomerate, headquartered in Salvador, Bahia, Brazil, consisting of diversified businesses in the fields of engineering, construction, chemicals and petrochemicals. The company w ...
.
Philippines
Public sector procurement in the Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
is required to follow the Government Procurement Reform Act
The Government Procurement Reform Act of 2003, officially designated as Republic Act No. 9184, is a Philippine law that prescribes the necessary rules to address the lack of transparency and competition in government procurement, eliminate collu ...
of 2003.
The Philippines government requested observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations (IGO) to non-member parties and ...
with respect to the Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
on 6 May 2019 and its request was accepted by the WTO Committee on Government Procurement on 26 June 2019, the Philippines confirming that "its government was ... taking steps to create a transparent, open and fair procurement system, founded on a sound legal framework, which includes initiatives to open procurement to foreign suppliers".
Russia
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
n Federal Law N44-ФЗ of 5 April 2013 requires all federal, regional and municipal government customers to publish all information about government tenders, auctions and other purchase procedures on special public government websites.
Rwanda
In Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
, the public procurement process is managed on a daily basis by an autonomous organ, the Rwanda Public Procurement Authority (RPPA), which operates under the Ministry of Finance and Economic Planning (MINECOFIN). Public procurement is regulated by the Law N°12/2007 of 27 March 2007 on public procurement which was modified and complemented by the Law N°05/2013 of 13 February 2013. The law is implemented by a Ministerial Order N°001/14/10/TC of 19 February 2014 establishing Regulations on Public Procurement, Standard Bidding Documents and Standard Contracts.
Rwanda has a decentralized public procurement system whereby procuring entities (central government organs, local government entities, government projects, commissions, public institutions, parastatals, agencies or any other government entity charged by the Chief Budget Manager to manage public funds) have the power to conduct directly their public procurement process. The main mission of RPPA is (1) to process the establishment and improvement of public procurement legal framework, (2) provide public procurement legal advisory services, (3) conduct audit and monitoring of public procurement activities carried out by procuring entities (tender award and contract management) and (4) build the capacity of public officials involved in public procurement activities.
The public procurement system in Rwanda is governed by 6 fundamental principles namely (1) transparency, (2) competition,(3) economy, (4) efficiency, (5) fairness and (6) accountability. In the national system, bidders have the right to appeal against public procurement procedures they may think were not conducted appropriately. In that connection, the legal framework provides for the Independent Review Panels at National Level (National Independent Review Panel) and at District Level (Independent Review Panel at District Level). The Independent Review Panels are composed of members from the Private Sector, Civil Society and the Public Sector, and the members from the Public Sector cannot form the majority of members of the Panel. The Independent Review Panel at National Level is under the supervision of the Minister of Finance and Economic Planning whereas the Independent Review Panel at District Level is under the supervision of the District Council.
In order to make the procurement sector a profession in Rwanda, there is an Association of Procurement Professionals which was established by the Law N°011/2016 of 2 May 2016.
Rwanda introduced an e-procurement system in 2016. For more information about Rwanda's e-procurement system please visi
www.umucyo.gov.rw
for more information about public procurement in Rwanda in general, please visi
www.rppa.gov.rw
Serbia
The current Serbia
Serbia (, ; Serbian language, Serbian: , , ), officially the Republic of Serbia (Serbian language, Serbian: , , ), is a landlocked country in Southeast Europe, Southeastern and Central Europe, situated at the crossroads of the Pannonian Bas ...
n Law on Public Procurement came into effect on 1 April 2013, replacing the previous legislation enacted in 2008. A particular concern for Serbia's legislators
A legislator (also known as a deputy or lawmaker) is a person who writes and passes laws, especially someone who is a member of a legislature. Legislators are often elected by the people of the state. Legislatures may be supra-national (for e ...
was dealing with corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
in government procurement: the Law requires Serbia's Public Procurement Office, which oversees procurement, to draft a plan for combating corruption in public procurement procedures, and contracting authorities with an estimated annual value of public procurement in excess of one billion dinar
The dinar () is the principal currency unit in several countries near the Mediterranean Sea, and its historical use is even more widespread.
The modern dinar's historical antecedents are the gold dinar and the silver dirham, the main coin of ...
s (8.9m Euros) to adopt an internal plan for preventing corruption. The Public Procurement Office is based in Belgrade
Belgrade ( , ;, ; Names of European cities in different languages: B, names in other languages) is the Capital city, capital and List of cities in Serbia, largest city in Serbia. It is located at the confluence of the Sava and Danube rivers a ...
. The role of the Republic Commission for the Protection of Rights in Public Procurement Procedures, established in 2002, is to protect the rights of bidders during procurement exercises.
The Regulation on Mandatory Elements of Tender Documents in Public Procurement Procedures and Way to Prove Fulfilment of Requirements prescribes a model contract as a mandatory element of every set of tender documents, except when a negotiated procedure is being conducted or where a loan is being procured as a financial service.
In 2016, the EU funded a programme of support for "further improvement of Public Procurement system in Serbia", as part of the EU's pre-accession assistance programme. There is no current target date for Serbia to join the EU.
Singapore
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
's Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
is responsible for the Government Procurement policy framework, which governs how government agencies undertake their procurement.[Ministry of Finance]
Government Procurement
accessed 16 April 2018
In 2014, the Public Accounts Committee of the Parliament of Singapore
The Parliament of Singapore is the unicameral legislature of the Republic of Singapore, which governs the country alongside the president of Singapore. Largely based upon the Westminster system, the Parliament is made up of Members of Parliam ...
criticised the state of government procurement in Singapore, identifying a number of irregularities in procurement procedures including:
*weak rationales invoked when waiving competitive processes;
*allowing some bidders to amend their tenders after tenders had closed;
*not disclosing evaluation criteria to bidders within tender documentation;
*improper procedures for tender evaluation;
*lax oversight and monitoring of outsourced projects.
GeBIZ
GeBIZ is a Government−to−business (G2B) Public eProcurement centre where suppliers can conduct electronic commerce with the Singapore Government. All of the public sector's invitations for quotations and tenders (except for security−sensiti ...
is a Government-to-business
Electronic governance or e-governance is the application of information technology for delivering government services, exchange of information, communication transactions, integration of various stand-alone systems between government to cit ...
(G2B) Public eProcurement
The term Public eProcurement (" electronic procurement" in the public sector) refers, in Singapore, Ukraine, Europe and Canada, to the use of electronic means in conducting a public procurement procedure for the purchase of goods, works or ser ...
business centre where suppliers can conduct electronic commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
with the Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
an Government. All of the public sector's invitations for quotations and tenders (except for security-sensitive contracts) are posted on GeBIZ. Suppliers can search for government procurement opportunities, retrieve relevant procurement documentations and submit their bids online.
South Africa
Section 217 of the Constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of Legal entity, entity and commonly determine how that entity is to be governed.
When ...
of the Republic of South Africa, 1996 (Act 108 of 1996) provides the basis for government procurement:
:''(1) When an organ of state in the national, provincial or local sphere of Government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost effective.''
:''(2) Subsection (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for – ''
::''(a) categories of preference in the allocation of contracts; and ''
::''(b) the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination. ''
:''(3) National legislation must prescribe a framework within which the policy referred to in subsection (2) must be implemented.''
In Subsection (3), the previous words "may be implemented" were amended to "must be implemented" by section 6 of the Constitution Seventh Amendment Act of 2001
The Seventh Amendment of the Constitution of South Africa made various changes involving the financial management of national and provincial government. Most of its provisions came into force on 26 April 2002, and the remainder on 1 December 200 ...
.
The Public Finance Management Act 1999 also refers to the duty of the Accounting Officer of a department to have and to maintain an appropriate procurement and supply system which is "fair, equitable, transparent, competitive and cost effective".[KwaZulu Natal Provincial Treasury]
Guideline for Bid Committee Members: Practice Note Number: SCM-03 of 2006
22 February 2006, accessed 4 December 2017
To help prevent corruption, a Central Tender Board was established in 2014.
Suriname
Government procurement in Suriname
Suriname (; srn, Sranankondre or ), officially the Republic of Suriname ( nl, Republiek Suriname , srn, Ripolik fu Sranan), is a country on the northeastern Atlantic coast of South America. It is bordered by the Atlantic Ocean to the north ...
takes place on the basis of open tenders. Participants in a tendering procedure must hold a valid business license and must be registered with the Suriname Chamber of Commerce and Industry (KKF). Suriname is not a signatory to the WTO Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
.
Tajikistan
Tajikistan
Tajikistan (, ; tg, Тоҷикистон, Tojikiston; russian: Таджикистан, Tadzhikistan), officially the Republic of Tajikistan ( tg, Ҷумҳурии Тоҷикистон, Jumhurii Tojikiston), is a landlocked country in Centr ...
is not a signatory to the WTO Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
, but the US Department of State
The United States Department of State (DOS), or State Department, is an executive department of the U.S. federal government responsible for the country's foreign policy and relations. Equivalent to the ministry of foreign affairs of other ...
has noted that the country has made a commitment to initiate accession to the agreement as part of its WTO accession protocol.
Ukraine
The Ministry of Economic Development and Trade (Ukraine)
The Ministry for Development of Economy and Trade ( uk, Міністерство економрозвитку і торгівлі України) is the main authority in the system of central government of Ukraine responsible for formation and re ...
is an executive authority in charge of coordination of procurement of goods, works and services for public funds. The Law "On public procurement" is one of the core legislative bases of the procurement regulations. It made electronic public procurement procedures and use of e-procurement system Prozorro
Prozorro (Ukrainian: Прозоро – transparent, clear) is a public electronic procurement system where state and municipal customers announce tenders to purchase goods, works and services, and business representatives compete for the oppo ...
mandatory for all procuring entities after August 2016.
Ukraine joined the Government Procurement Agreement
The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) which regulates the procurement of goods and services by the public authorities of the parties to the agreement, ba ...
in March 2016.
United Arab Emirates
Federal government procurement within the United Arab Emirates
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
is governed by ''Cabinet Resolution No. 32 of 2014 on Federal Government Procurement Regulation and Storehouse Management in Federal Government'', which applies to all supply, works and services purchasing undertaken by the federal government and the federal ministries and governmental agencies (except the Ministry of Defence), and also to independent federal entities such as the General Authority for Civil Aviation, Emirates Real Estate Corporation, FEWA, ESCA, Insurance Authority, Emirates Post Group Holding, National Transport Authority, Telecommunications Regulatory Authority, UAE University
United Arab Emirates University (UAEU; ar, جامعة الإمارات العربية المتحدة) is a public research university located in Al Ain, United Arab Emirates. It is the oldest university in the United Arab Emirates. It was esta ...
and Zayed University
Zayed University (ZU; ar, جامعة زايد) is a public university based in the United Arab Emirates. It was established in 1998. It is one of the three government-sponsored higher education institutions in the United Arab Emirates. It ...
.[Lysenko, V.]
New federal procurement and warehouse regulation
Hadef and Partners, published 26 November 2014, accessed 2 July 2018 UAE Federal Decree No. 12 of the Deputy Supreme Commander of the Armed Forces (1986) applies to armed forces procurement.
Conditional preferential treatment is afforded under Resolution 32 to corporate suppliers whose capital does not exceed AED 10 million and in which the UAE national shareholding
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
is not less than 51%, and to facilities which are financed by SMEs-supporting funds and governed by federal or local law.
United Kingdom
At around £290 billion every year, public sector procurement accounts for around a third of all public expenditure in the UK. EU-based laws continue to apply to government procurement, where procurement is governed by the Public Contracts Regulations 2015, Part 3 of the Small Business, Enterprise and Employment Act 2015
The Small Business, Enterprise and Employment Act 2015, also referred to as SBEE, received Royal Assent in March 2015. Its contents include regulatory reform (part 2), public sector procurement (part 3) and company director disqualification issue ...
, and (in Scotland
Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to the ...
) the Public Contracts (Scotland) Regulations of 2015 and 2016.
United States
Government procurement by public authorities in the United States accounts for about US$7 trillion annually; the central purchasing agency is the General Services Administration
The General Services Administration (GSA) is an independent agency of the United States government established in 1949 to help manage and support the basic functioning of federal agencies. GSA supplies products and communications for U.S. gover ...
(GSA). Federal procurement is governed by the Federal Acquisition Regulation
The Federal Acquisition Regulation (FAR) is the principal set of rules regarding Government procurement in the United States,. and is codified at Chapter 1 of Title 48 of the Code of Federal Regulations, . It covers many of the contracts issued b ...
. FedBizOpps and USASpending.gov are websites where federal contracts are shown. Public announcements of awards has several exemptions, including contracts less than $3.5 million. Historically, the procurement data has been criticized for deficiencies leading to a number of reforms.[Halchin LE. (2013)]
Transforming Government Acquisition Systems: Overview and Selected Issues
Congressional Research Service. In 2013, eight legacy databases were merged into a single system called " System for Award Management" (SAM), where companies interested in doing business with the federal government may register their interest.
Contracts are not posted online, although two agencies have explored the possibility.[
In January 2014, the ]Office of Inspector General
In the United States, Office of Inspector General (OIG) is a generic term for the oversight division of a federal or state agency aimed at preventing inefficient or unlawful operations within their parent agency. Such offices are attached to ma ...
at NASA
The National Aeronautics and Space Administration (NASA ) is an independent agency of the US federal government responsible for the civil space program, aeronautics research, and space research.
NASA was established in 1958, succeeding t ...
released a report criticizing the agency's lack of strategic sourcing. Because IT departments were spending autonomously, NASA spent $25.7 million on similar purchases.
The National Institute of Governmental Purchasing and the Federal Acquisition Institute
Federal or foederal (archaic) may refer to:
Politics
General
*Federal monarchy, a federation of monarchies
*Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
are active in procurement certification and training. A specialized program in procurement law in the United States is located at The George Washington University Law School
The George Washington University Law School (GW Law) is the law school of George Washington University, in Washington, D.C. Established in 1865, GW Law is the oldest top law school in the national capital. GW Law offers the largest range of cour ...
.
Vatican City
Purchasing is overseen by the Secretariat for the Economy
The Secretariat for the Economy ( it, Segreteria per l'economia) is a dicastery of the Roman Curia with authority over all economic activities of the Holy See and the Vatican City State.
Description
Pope Francis established the secretariat in ...
, which is responsible for setting purchasing policies and procedures, while responsibility for expenditure is devolved to individual dicasteries
A dicastery (from gr, δικαστήριον, dikastērion, law-court, from δικαστής, 'judge, juror') is the name of some departments of the Roman Curia.
''Pastor bonus''
''Pastor bonus'' (1988), includes this definition:
''Praed ...
and administrations.
Zambia
Public procurement in Zambia
Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most cent ...
is governed by the Public Procurement Act No. 12 of 2008 and the Public Procurement Regulations of 2011. Prior to 2008, public procurement was governed by the Zambia National Tender Board Act, Act No. 30 of 1982. The CEO of the
Zambia National Tender Board is appointed by the President
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
.
Zimbabwe
The Government of Zimbabwe established a public procurement law in 1999.
The 2013-2018 Zim-ASSET Strategy (Zimbabwe Agenda for Sustainable Socio-Economic Transformation) referred to plans to "overhaul the State Procurement Board" with "immediate effect" (2013). The Zim-ASSET Strategy aimed to achieve "sustainable development and social equity anchored on indigenization, empowerment and employment creation" for the benefit of "indigenous Zimbabweans and not foreign investors", objectives which have been linked with those of ZANU
The Zimbabwe African National Union (ZANU) was a militant organisation that fought against white minority rule in Rhodesia, formed as a split from the Zimbabwe African People's Union (ZAPU). ZANU split in 1975 into wings loyal to Robert Mugab ...
'
Mgagao Declaration
of 1976.
The Public Procurement and Disposal of Public Assets Act, 2017 repealed the Procurement Act of 1999 and abolished the State Procurement Board.[ Zimbabwe Legal Information Institute]
Public Procurement and Disposal of Public Assets Act (Chapter 22:23)
/ref> On 9 January 2018, President Emmerson Mnangagwa
Emmerson Dambudzo Mnangagwa (, American English, US: (); born 15 September 1942) is a Zimbabwean politician who has served as President of Zimbabwe since 24 November 2017. A member of ZANU–PF and a longtime ally of former President Robert Muga ...
appointed an eight-member Procurement Regulatory Authority of Zimbabwe which replaced the Board. The legislation incorporates a "domestic preference" section empowering procuring entities to "give preference to bids from Zimbabwean or local suppliers and manufacturers", and provides for a Special Procurement Oversight Committee to be established to oversee "certain especially sensitive or especially valuable contracts".
Nyasha Chizu, CEO of the Procurement Regulatory Authority of Zimbabwe, played a key role as technical advisor on public procurement reform.[Pindula]
Nyasha Chizu
accessed 20 December 2020
See also
*Government spending
Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual o ...
* Best value procurement
*Contract awarding
*Forward Commitment Procurement
*Open Contracting Data Standard
*Public eProcurement
The term Public eProcurement (" electronic procurement" in the public sector) refers, in Singapore, Ukraine, Europe and Canada, to the use of electronic means in conducting a public procurement procedure for the purchase of goods, works or ser ...
*Standstill period
*Public–private partnership
References
{{Reflist
Further reading
* Decio Coviello & Stefano Gagliarducci (2017). Tenure in Office and Public Procurement. American Economic Journal: Economic Policy 9, no. 3: 59–105.
* Decio Coviello & Andrea Guglielmo & Giancarlo Spagnolo (2018). The Effect of Discretion on Procurement Performance. Management Science 64, no. 2: 715–38.
* Francesco Decarolis (2014). Awarding Price, Contract Performance, and Bids Screening: Evidence from Procurement Auctions. American Economic Journal: Applied Economics 6, no. 1: 108–32.
* Francesco Decarolis & Giuliana Palumbo (2015). Renegotiation of Public Contracts: An Empirical Analysis. Economics Letters 132, no. C: 77–81.
* Francesco Decarolis & Leonardo M. Giuffrida & Elisabetta Iossa & Vincenzo Mollisi & and Giancarlo Spagnolo (2019). Bureaucratic Competence and Procurement Outcomes. NBER Working Paper No. 24201. Cambridge, MA: National Bureau of Economic Research.
* Oliver Hart & John Moore (1988). Incomplete Contracts and Renegotiation. Econometrica 56, no. 4: 755–85.
* Oliver Hart & Andrei Shleifer & Robert W. Vishny (1997). The Proper Scope of Government: Theory and an Application to Prisons. Quarterly Journal of Economics 112, no. 4: 1127–61.
*Bosio, E. and Djankov, S.
How Large is Public Procurement?
''World Bank Blogs'', published 5 February 2022
Government procurement,
Public economics
Economies by country