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Public Procurement Policy Paper PDF
Public Procurement Policy Paper PDF
Public Procurement Policy Paper PDF
PUBLİC PROCUREMENT
Statistics On Procurement Globally, states spend 20% of their budgets on public
As a result of public procurement, which amounts to 9.5 trillion US dollars.
procurement procedures was However, 25% of these public funds are lost as a result of
created a single register of corruption. Latent corruption hinders use of public funds for the
contracts by the State needs of the public and the state, distorts competition, causes
Procurement Agency and an artificial increase in the prices of goods and services,
posted on the website of the reduces their quality and endangers human lives. Azerbaijan’s
Agency. State Procurment public procurement is organized by the State Procurement
Agency posted on the Agency and respective departments of the state bodies. The
contract 10812 points of sale National Strategy on Increasing Transparency and Combating
Information for the year 2014. Corruption envisages development of appropriate regulatory
During 2014 worth of documents, as well as expansion of the use of the internet to
620825221.40 AZN ensure fair competition in public procurement. Besides, the
procurement was carried out. recent decline in state revenues due to a slump in global oil
prices urges the government to optimize its expenditures.
Ensuring transparent and accountable public procurement is a
prerequisite for saving public funds. In this regard,
“Transparency Azerbaijan” urges the state agencies to adopt
“three-party integrity tender pact” for transparency of the
bidding process and to introduce e-tendering for state bodies.
STATE PROCUREMENT CONCEPT
Public procurement refers to the acquisition by a Monitoring of the National
government department or any government-owned Action Plan
institution of goods or services, ranging from bed sheets for Azerbaijan government
hospitals and textbooks for schools to financial and legal committed to improve public
services, as well as the commissioning of large-scale procurement and to increase
construction works, such as roads, bridges and airports. The transparency within the 2012-
ultimate goal of public procurement is to satisfy the public 2015 National Action Plan against
interest. A good procurement process is one that obtains Corruption and up to now carried
goods, works or services in the correct quantity of the out 45% of this obligation. Among
appropriate quality, at the required time, from the best the commitments are fully
supplier, with the optimum terms and under appropriate implemented can be saved as an
contractual obligations. Good procurement should meet example the creation of a single
public needs, secure value for money for the people and be electronic register of sale and
fair to bidders. The tender process should organize to spent purchase agreements, also
public funds for its intended purpose considering the need of preparation of procurement plans
public and government, also should create a fair competitive for the next year and placing on
environment for the claimant to contractors. The tender the State Procurement Acency’s
process has the following four processes: website. However organization of
electronic tender, a flexible
mechanism to look at the
plaintiffs' complaints, to inform
law enforcement agencies about
corruption, effective control
mechanism for the
implementation of procurement
contracts and etc. are among the
commitments have not been
fulfilled yet.
Policy Brief 3
In the selection of the procurement methods “the The Cabinet Of Ministers
independence” of public institutions is too visible. The Law Proposals
on Public Procurement defines open bidding as a general
method of public procurement. Although the exceptions to Agency prepared a package of
open bidding are regulated by the Law on Public proposals to the “Public
Procurement, the law does not effectively ensure that their Procurement Law", November
number is kept to a minimum. The law does not indicate in a 12, 2012, was submitted to the
straightforward language that the use of other procurement Cabinet of Ministers in order to
methods, which include two-stage tenders, tenders with increase the effectiveness of
limited participation, closed tenders, and single source anti-corruption measures and
procurement, must be “the exception rather than the rule”. to increase transparency and
Thus, the law leaves the contracting agencies considerable competitive bidding process.
discretion in selecting a method of procurement. The proposed changes
The failure of representation of external experts in the include:
membership of tender commissions Publishing on the official
website of the
Under the law on public procurement the temporary working procurement planning and
group established by the tender procurement agency procurement plans
purchases on behalf of the organization. According to the The determination of the
law the commission should be independent and decisions application of the
should be fully independent in accordance with the law. In principles of e-
its current form, the Commission is comprised of the experts procurement
and officials of a procuring agency (with the head of the Tenders to provide an
Commission being a senior official from that agency). environment which
However, the Law gives the prerogative to involve excludes the application
independent experts in the Commission’s work to the of non-discrimination;
administration of a procuring agency. Thus, Article 27.2 To announcement of the
states that the agency brings in a specialist for assessment possible price
of the price of goods to be purchased in “important cases”. Simplification of
Obviously, an agency’s staff may not always measure up to procedures for bidders
such important undertakings as needs assessment, offering documents;
selection of investment and its quantity. Therefore, one of Proposals that do not
the shortcomings of the Law is that it does not clearly require the exclusion of
mandate the participation of external specialists. performance comparison;
Additionally, the Commissions do not actively engage the The costs of participation
representatives from civil society in the procurement in tenders announced
process. tender, tender documents
The lack of information on public procurement reproduction, distribution
and translation costs
The Law also expressly rules out the disclosure of limited to cases where
information pertaining to study, assessment and comparison there is a need;
of tender proposals, offers and quotations, except for their Restriction of access to
summary. This limitation creates barriers for civil society and the methods of
other stakeholders to research on how efficiently public competition are reflected.
agencies perform procurements. Including disinterested
Policy Brief 5
A set of sanctions for any violation by a bidder of its
statements or undertakings, including:
- Denial or loss of contract
- Liability for damages to the principal and the
competing bidders
- Debarment of the violator by the principal for an
appropriate period of time
2. E-procurement
Policy Brief 7
In line with the new Law on Public Participation,117
involve the representatives of civil society into
consultations and monitoring of the procurement
process.
LITTERATURE
Policy Brief 9