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PPT, PN Gorecki, SIGMA, Third ENP East public procurement conference, Tbilisi, 6 November 2019


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PPT, PN Gorecki, SIGMA, Third ENP East public procurement conference, Tbilisi, 6 November 2019

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PPT, PN Gorecki, SIGMA, Third ENP East public procurement conference, Tbilisi, 6 November 2019

  1. 1. © OECD Two Decades of Lessons Learnt of Public Procurement Reform Piotr- Nils Gorecki Senior Adviser SIGMA Tbilisi, 7 November 2019
  2. 2. SIGMA’S Role and Support Main Roles • Acting as a facilitator and adviser to governments in the reform process in all relevant areas; • Supporting in meeting the accession criteria and the opening and closing of Chapter 5 and other negotiations; • Operating with a dual interest perspective; as a trustworthy and competent intermediary between the EU and the partner countries interests; • Regular assessments and reviews of the national PP systems; • Networking activities for exchange of knowledge and experiences within and between partner countries and EU member states; • Publication of SIGMA papers, briefs and guidance documentation; • Close cooperation with international organisations, member states authorities and academia; 1
  3. 3. Main Lessons Learnt 1. Regulatory alignment with “acquis” has over the years become a more complex task for the countries. • The number of directives has increased; • Number of policy areas added (in particular sustainability and other horizontal policies); • Implementation of the “modern instruments” requires a lot of efforts and takes time (centralized purchasing, framework agreements, DPS and e-procurement); 2
  4. 4. Main Lessons Learnt 2. The effective design of the regulatory framework outside the direct scope of the EU Directives equally important. • The vast of majority of contracts falls below the EU thresholds; • Correct setting of national thresholds is a major challenge; • National rules and procedures offering a necessary degree of simplification and flexibility compared to the Directives, where appropriate; 3
  5. 5. Main Lessons Learnt 3. Additional institutional set up adapting to a new regulatory landscape. • Strengthening the role and function of the PPA; • Authorities with responsibility of concessions, centralised purchasing and defence need to be established and strengthened; • Complaints Review and Remedies Bodies need independence and professional development and enhancement; 4. The increasing complexity of the PP system requires stronger mechanisms for policy co-ordination and consultation within the government structure. • Need of establishing forum for coordination and consultation between the various institutions and key stakeholders; • Horizontal Strategies 4
  6. 6. Main Lessons Learnt 5. Efficiency in PP is highly dependent of the functionality and supportiveness of the surrounding legal and institutional environment. • In particular budget law, external audit, administrative law, the judiciary and civil service laws and regulations are important factors and require more attention; 5
  7. 7. Main Lessons Learnt 6. Professionalisation of the procurement function a key priority, but is more than training of staff. • The management and organisation of the procurement function need stronger attention; • Ensure that a sufficient and acceptable level of discretion and decision- making power is allocated to the contracting authorities; • Ensure that the extent of prescriptiveness in the regulatory framework doesn’t affect the operational functions negatively; • Mobilise public and private training institutions in the provision of public procurement capacity building instruments; 6
  8. 8. Main Lessons Learnt 7. Stronger focus on efficiency and “value for money” as guiding policy objectives needed. • Too much risk aversion resulting in insufficient outcome and performance orientation; • Too much “how to do” compared to “what to achieve”; • Need of transferring more power and authority from the centre of government to the operational level; • Lowest price still the pre-dominant evaluation criterion. More quality- based evaluation factors needed; 7
  9. 9. Main Lessons Learnt 8. Improvement of market functionality and public sector attractiveness needs stronger attention. • Declining tender participation rates in some sectors; • Identification and removal of barriers and other disincentives for participation; • Encouraging participation of SMEs an important policy objective; 8
  10. 10. Main Lessons Learnt 9. Enhancing integrity and accountability a key priority. • Irregular practices remain a problem in all countries; • Establish integrity policies and measures for implementation at all levels of the PP system; • Certification and quality assurance of contracting entities one possible route; • Improving the collection and dissemination of procurement data and statistics; • Developing methodologies and indicators for measuring the status and progress of the PP system; 9
  11. 11. Main Lessons Learnt 11. Shift from the reforms driven by external factors (EU-related) to reforms demanded by national actors (social (media) pressure, business-lobbying, etc.) 12. Emergence of a strong professional community of procurement experts/practitioners in all SIGMA partner countries 10
  12. 12. Additional reference points • The importance of regional co-operation (learning from the peers) • The importance of civil society (NGOs) in developing the system and monitoring its implementation • The importance of e-procurement, but its limitations and the risk of overestimating the benefits of e-procurement • PPPs as an often-neglected area • The need to focus more on support to (results-oriented) implementation (e.g.: practical guidelines) instead of legal compliance only • The need to educate other stakeholders (e.g.: auditors, business, etc.) 11
  13. 13. The Way Forward? • Develop a broader and deeper understanding within the governments of the role and importance of public procurement for sustainable economic growth and efficient public service delivery; • Agree within the governments on a roadmap and strategy for public procurement reform beyond legal and institutional alignment with EU accession requirements; • Realising that the PP system continuously is subject to change affecting the agenda for policy and other decisions of high relevance for the functionality of the PP system; • Close cooperation within the international community in order to provide the most effective assistance in the best interest of the countries; • Remember that historical incentives with a firm timeline for accession don’t exist in the same way as earlier. It may have effects on the level of ambition; thus a good portion of understanding and patience is needed. 12
  14. 14. Thank you for your attention! 13