Presentation by G. Papes, Macedonia (ENG) Eighth SIGMA Regional IPA Conference on Public Procurement, Montenegro, June 2018.

1. © OECD
SIGMA Conference
E-Procurement System in Republic of
Macedonia
E-Government Application with an Impact
PUBLIC PROCUREMENT BUREAU
Bečići 14 June 2018

2. Development of Electronic system for
public procurement (ESPP)
• First national e-procurement system– started up in 2006
as web information system (WIS) for notices and
notifications
• Electronic publication from the beginning of 2008 on a
separate system existed in parallel
• 2009/2010 both systems were integrated in Electronic
system for public procurement (ESPP)
• Public Procurement Bureau – responsible institution
1

3. 2

4. The concept of e-Procurement as e-
Gov service
What is e-Procurement?
• Use of electronic communications and processes by the
government and state institutions when buying goods,
services and works
• Application of e-Procurement – conducting the whole
public procurement procedure by electronic means via
Internet
• More than just “copying” of the traditional procedure,
trying to re-engineere some of the processes and
introduce innovative tools
Used approach in the implementation of e-Procurement in
Macedonia as e-Gov service
• “step-by-step” and national level approach
• centralization strategy - one location for all e-procurement
transactions in Macedonia
3

5. Functionalities of the Electronic system
for public procurement
• Intuitive, web-based system which enables electronic
communication between contracting authorities and
domestic and foreign companies
• Functionalities of the system:
 e-Notices - publication of the Contract notice and tender
documentation and other additional tools for increasing
transparency
 e-Tendering - online submission of tenders/bids
 e-Evaluation – automatic electronic evaluation of bids
 e-Auction – electronic tool for awarding public contracts
 e-Awarding – completing of the procedure and
communicating the results to all of the involved parties by
electronic means
 Publishing of concluded contracts is novelty
4

6. Procedures enabled through the system
According to the current Law on PP
• Open Call procedure
• Restricted procedure
• Simplified procedure
• Electronic auctions – last phase in the open,
restricted (framework agreement) and simplified
procedure
5

7. Two concepts for e-Auctions
lowest price and MEAT
• e-auction when criteria is lowest price – the bidders are
decreasing the initial lowest price – the winner is always
the one with the lowest price
• e-auction when the criteria is MEAT – the bidders are
decreasing their OWN price – the winner is the one with
the highest number of points
• For MEAT concept points for other elements (quality,
technical characteristics etc.) are given before e-Auction
and during the auction rank of bidders is calculated by
formula (including all variables)
• In case of one proposal submission of Final Price is
enabled
6

8. The impact of e-Procurement in
Macedonia (1)
What are the actual benefits?
• Easier access to the public procurement market for
the companies and increasing in transparency
• Gradual increasing in the competition in the
procurement procedures
• Increasing in the efficiency in the public sector
• Cutting administrative and operative costs
• Decreasing of the period required for completing a
procurement procedure
7

9. The impact of e-Procurement in
Macedonia (2)
Benefits for the private companies:
• Increasing of the level of transparency and equal
treatment
• Administrative savings
• wide use of digital signatures
• Over 1.400 government and state institutions and
10.000 private companies are using the system
• Approx. 5.000 daily visits, over 100 daily publications
of tenders and other procurement notifications and
over 170 auctions per day
8

10. Resent novelties to ensure a
transparency and accountability (1)
• “Tender Dossier”– electronic purchase via ESPP of
documents for the purpose of proving personal situation
issued by the Central Registry which will save time, money
and additionally strengthen transparency
• a module for publishing a contract notices from World
Bank, EBRD, and other financial institutions and donors
concerning the procurements that are being implemented
in Macedonia so entire public may be acquainted with the
published procurements by the international institutions
• possibility of reviewing tender documentation for ongoing
procedures by all interested parties directly in the search
engine without the need for registration and system login,
so if they are interested and meet the requirements to
register on the ESPP and submit a bid 9

11. Resent novelties to ensure a
transparency and accountability (2)
• electronic payment (non-cash payment)
• December 2017 a new module upon obligation by the
Government for CA to upload all concluded contracts
• amendments of Tariff book reduces the fee for using the
Electronic System for foreign economic operators from
200 to the amount of 130 Euros thus achieving an equal
treatment of foreign economic operators in compare with
domestic CA when registering the ESPP
• From February 2018, (ESPP) new solution OPEN DATA,
enabling research for specific contracting authorities and
suppliers through various tables, pies, graphs and other
visualizations, as well as with filters for search
10

12. Future reforms with impact to the
system
• Public Finance Management (PFM) Reform Programme
2018 – 2021 adopted by the end of 2017
• public procurement is listed among other priorities to be
reformed
• new legislation in line with 2014 directives and on public
procurement under preparation
• Twinning to Strengthen core functions of PFM is planned
11

13. Data on usage of ESPP for 2017 :
Type of procedure
Number of
contract notices
Simplified competitive procedure (up to EUR 5,000) 7.619
Simplified competitive procedure (exceeding EUR 5,000) 5.315
Open procedure 4.259
Restricted procedure /
Negotiated procedure with prior publication of a contract
notice 8
Qualification system 19
Design contest 7
Total 17.227
12

14. Number of procedures conducted fully
electronically
• In 2015, 16.4% procurement procedures were
conducted by electronic means via (ESPP)
• PPL introduced gradually but mandatory increase for
use of e-procurement, thus in 2017 it was mandatory
for at least 50% out of total number of published
procedures (open, simplified and restricted)
• But in 2017 – 80% procedures were conducted
completely electronically (it was overcome with 29%
percentages out of the total number of published CNs
(17.193)
• To compare, number of procedures in 2016 was 48%
• in 2018 obligation to conduct procedures by electronic
means is 100% 13

15. Future plans
• E- Procurement plan
• E-catalogues and e-Market
• Publishing of concluded contract
• E-appeal
• Implementation of red-flags indicators on
ESPP
• In future some reports from competent
institutions as anti-corruption measures
14

16. Thank you for your Attention!
Gabriela Papesh
https://e-nabavki.gov.mk
15