The document discusses the principles of public administration relating to public procurement, emphasizing their development through collaboration between the OECD and EU for countries aspiring for EU membership. It outlines the key requirements for effective public procurement management and the importance of adhering to established regulations to improve governance and tackle issues like fraud and corruption. Additionally, it stresses the need for comprehensive public financial management and highlights the potential economic benefits linked to public procurement processes.

1. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
SIGMA Regional Conference on
Public Procurement
Strengthening Public Procurement
SIGMA’s Principles of Public Administration and their
application to public procurement
Beirut, 2 June 2015
Karen Hill
Head of SIGMA
Daniel Ivarsson
Senior Adviser, SIGMA

2. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Aim and focus of Principles
• SIGMA has worked with EU accession
countries for over 20 years, including many
countries which are now EU member
states with valuable reform experience.
• The Principles of Public Administration
recently developed by SIGMA comprise
key requirements and criteria in line with
European values.

3. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Aim and focus of Principles
• Derived from EU acquis, international
standards and requirements, and good
practice in EU/OECD countries, the Principles
enable benchmarking of performance and
provide a guide for countries in their reform
processes.
• Designed particularly for countries that seek
EU accession and receive EU assistance
through the Instrument for Pre-accession
Assistance (IPA).
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4. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Overall framework
• Strategic framework for public administration
reform
• Policy development and co-ordination
• Public service and human resource management
• Accountability
• Service delivery
• Public financial management
(including public procurement)

5. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Overall framework
• 19 key requirements outline general
characteristics of good public administration
• 48 Principles grouped under key requirements
focus on:
 Implementation
 Evidence based monitoring
 Performance of the system in practice
• Sub-principles then define more precisely which
components need to be in place
• Analytical framework describes how application
of the Principles can be followed and measured

6. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Implementation of reforms
• The Principles of Public Administration are
for you to use - the level of a country’s
commitment determines the success of its
public administration reforms
• Final destination is good public
administration that achieves Government’s
objectives and delivers for citizens but
priorities for your country will vary over
time, depending on previous reform record
and specific challenges

7. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Key issues for public
administration reform
Public financial management — this includes
a more comprehensive approach to
improving the overall budgetary process and
the management of public finances, including
public procurement.
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8. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Why public procurement matters I
Public procurement is what allows public entities
to function well and to deliver good services:
Get the right thing for meeting the right needs,
at the right price and conditions
Get value for money by creating competition,
encouraging wide participation
Take advantage of using best available sources
for goods, works and services
Orderly public procurement improves
governance and helps combat fraud and
corruption

9. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Why public procurement matters II
Important for business development:
 Public procurement often 1/6 of GDP
 Big potential market for local firms
 Access to foreign public procurement markets
improves export opportunities
 Warehousing, distribution, maintenance etc. gives
local business opportunities also with foreign
inputs
 Opportunity to acquire know-how, build
partnerships, enter international value chains

10. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principles for Public Procurement
• Provide a guide for countries in their reform
processes: What should a well-functioning
public procurement system look like?
• Framework:
 3 key requirements for the general
characteristics of a well-functioning public
procurement system
 5 Principles (Principles 10 – 14) grouped under
the key requirements
 Sub-principles under the principles 9

11. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Compatibility with other frameworks
• EU Directives:
• Public Sector Directive 2014/24/EU
• Utilities Sector Directive 2014/25/EU
• Concessions Directive 2014/23/EU
• Remedies Directives 89/665, 92/13, 2007/66
• Defence and Security Directive 2009/81
• EU Commission communications, CJEU case law
• Government Procurement Agreement / WTO
• UNCITRAL model law
• Multilateral development bank rules

12. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
What good procurement requires?
Key requirements in SIGMA’s Principles:
1. Public procurement is regulated by duly enforced policies and
procedures that reflect the principles of the Treaty on the
functioning of the European Union and the European Union
acquis, and are supported by suitably competent and
adequately resourced institutions.
2. In case of alleged breaches of procurement rules, aggrieved
parties have access to justice through an independent,
transparent, effective and efficient remedies system.
3. Contracting authorities are adequately staffed and resourced
and carry out their work in accordance with applicable
regulations and recognised good practice, interacting with an
open and competitive supply market.
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13. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principles of public procurement (1)
Principle 10: Public procurement regulations (including
public-private partnerships and concessions) are aligned with
the acquis, include additional areas not covered by the
acquis, are harmonised with corresponding regulations in
other fields, and are duly enforced.
Principle 11: There is central institutional and administrative
capacity to develop, implement and monitor procurement
policy effectively and efficiently.
Principle 12: The remedies system is aligned with the acquis
standards of independence, probity and transparency and
provides for rapid and competent handling of complaints and
sanctions.
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14. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principles of public procurement (2)
Principle 13: Public procurement operations comply with
basic principles of equal treatment, non-discrimination,
proportionality and transparency, while ensuring the most
efficient use of public funds and making best use of modern
procurement techniques and methods.
Principle 14: Contracting authorities and entities have the
appropriate capacities and practical guidelines and tools to
ensure professional management of the full procurement
cycle.
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15. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Example: Principle 11
There is central institutional and administrative
capacity to develop, implement and monitor
procurement policy effectively and efficiently.
• 10 sub-principles
• Good public procurement practice requires a
sound policy making framework, and institutional
structures and arrangements that will ensure the
regulatory system functions effectively.
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16. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principle 11 – sub-principles
1. There is a clear political and legal mandate for an entity
with a policy making function to initiate, outline, implement
and monitor public procurement reform in all sectors (unless
allocated differently, e.g. in the case of public-private
partnerships and concessions) and all aspects (e.g. capacity
building, modernisation of procedures, green procurement
and integrity) and within the whole public administration.
2. There are clear and comprehensive policies for the orderly,
longer-term development of the public procurement system,
which may take the form of a national strategy and action
plan, whether specific to public procurement or covering
public financial management at large.
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17. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principle 11 – sub-principles
3. Dedicated capacity is available and well-used for
implementing and revising the strategy for
developing public procurement (including public-
private partnerships and concessions).
4. A designated entity with the mandate and the
capacity to communicate with the European Union
institutions and co-ordinate European Union-related
public procurement matters (including public-private
partnerships and concessions) is in place and
working.
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18. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principle 11 – sub-principles
5. The legislation defines the distribution among the
central procurement and public-private
partnership/concession institutions of their respective
functions and responsibilities, which typically would
include:
• long-term policy framework;
• primary legislation;
• secondary policies and regulation;
• international co-ordination;
• oversight and monitoring;
• advisory and operational support;
• publication and information;
• professionalisation and capacity building;
• operational development and co-ordination. 17

19. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principle 11 – sub-principles
6. Potential conflicts of roles and interests are avoided,
addressed in applicable legislation and built into the
organisational design of the institutional structure.
7. The public procurement institutions have the
necessary authority and resources to exercise their
functions and duties effectively and efficiently, and do so.
8. A well-functioning central electronic portal is in place
for the publication of tender and contract notices, as well
as other important information and guidance.
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20. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Principle 11 – sub-principles
9. Advice and guidance to contracting authorities
and entities and economic operators on applying the
procurement legislation is available on demand and
is practical and useful.
10. An oversight and monitoring system for public
procurement is in place, providing ready access to
data on public procurement operations and,
thereby, on implementing all applicable principles,
policies and regulations.
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21. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Are the Principles followed?
• Good procurement requires reforms
• Effective procurement reforms call for
evidence based decision making
• Understanding what’s happening helps
define objectives and set priorities
• The Principles provide a standard for
evaluating the situation, setting objectives,
measuring progress
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22. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Thank you for your attention!
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