scholarly journals Risks in the Drug Procurement System: Current Issues

2021 ◽  
Vol 9 (SPE3) ◽  
Author(s):  
Natalia Alekseevna PRODANOVA ◽  
Usman Salmanovich ZHAUBATYROV ◽  
Elena Ivanovna ZATSARINNAYA ◽  
Vitaly V. GONCHAROV ◽  
Nadezda Sergeevna ELIZAROVA ◽  
...  

The public procurement segment is one of the components of the pharmaceutical market in Russia. Procurement of medicines and medical devices is the top sector of public procurement, both in terms of their number and the amount of contracts concluded. The procedure for concluding state contracts itself is spelled out in sufficient detail in the regulatory documents, but, despite this, risks may arise when concluding a state contract both for a potential applicant for a state order and for a state customer. The purpose of the study is to determine the possible risks when concluding a state contract of a healthcare institution for medicines and medical devices and ways to reduce them.

2018 ◽  
Vol 6 (10) ◽  
pp. 62-73
Author(s):  
O. V. Altsyvanovych ◽  
Y. Y. Tsymbalenko

The international and European experience of avoiding corruption risks in public procurement has been investigated. An analysis of the functioning of the public procurement system in various countries led to the conclusion that the authorized authorities use various mechanisms to ensure the effectiveness of its organization. This applies, in particular, to the requirements for competitive bidding, disclosure of information by their participants, establishing the responsibility of officials for compliance with the procedures and rules established by law, etc.Along with the regulatory documents governing the procurement procedure in foreign countries directly, the important role is played by declarations and standards relating to the direct regulation of the procedures and principles of public finance FC.The main approaches used in international practice to avoid corruption risks in the implementation of public procurement are identified, namely: psychological methods, technical methods, regulation of processes, repressive means.It was concluded that, limited to individual branches of influence or the methods indicated above, only a short-term effect can be obtained, because after a certain period of time, the structure and mechanism for releasing illegal income will change, moving into industries not covered by instruments of control and opposition. As a result, the total corruption losses will return to their previous size or even exceed them. Consequently, it is possible to get tangible results of indicators of reducing corruption only by applying an integrated approach, that is, a balanced use of all methods of counteraction at each stage of the public procurement process.


2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.


Author(s):  
Yernur Mukhtar ◽  
Yuri Toluev

The relevance of this research topic lies in the fact that public procurement requires in-depth consideration and comprehensive analysis, including the scientific and methodological level of analysis. The use of special legal documents in public procurement and the specific procedure for the execution of these documents is not a factor in the full understanding of this direction, including the economic assessment of the entire process. An economic and statistical approach using system analysis is required, which was used by the authors of the scientific article as the proposed research methodology. One of the main parts of the progressive process of commodity exchange in the economies of the analyzed countries is the mechanism for building public procurement. Currently, the problem of material and technical support of public needs in developed countries is solved as a result of logistics processes in the system of public procurement through the acquisition and supply of goods, works, and services, tangible and intangible resources. The article submits a review of foreign experience in building a public procurement system with special features characteristic of this region of the world, presented as an object of research. Country aspects in the object under study and allowed the authors to formulate the relevant main results and conclusions concerning various parties in the public procurement system, which determined the further strategy to improve the procurement system of the government and international integration union. Key words: public procurement (PP), regulation of the public procurement system, government orders, entrepreneurship, international regional institutions, regulation of the public procurement system, procurement, USA, European Union (EU), Poland, Germany, World Bank.


Author(s):  
Ahmed Alofi ◽  
Yasir Alhammadi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan

Saudi Arabia has had many issues in delivering mega construction projects, such as delays, high costs, and low customer satisfaction. Some studies show that around 70% of public projects in Saudi Arabia are delayed. One factor that might be causing these performance issues is the traditional low bid contracting system in Saudi Arabia, or the Saudi procurement system. In Saudi Arabia, owners select contractors based only upon the lowest price. This paper researched ways to modify the current Saudi procurement system and show quick and simple modifications that can be done to improve the low performance. This research proposes that by adding the clarification phase from the Performance Information Procurement System (PIPS) to the Saudi traditional procurement process could greatly improve construction performance. The clarification phase requires the selected contractor to submit a project scope, detailed and milestone schedule, potential risks that they do not control, and performance measurement before a contract is awarded. The PIPS system is one of the most successful systems around the world, which shows success rate of 98% in six different countries with risk and cost reduction up to 30%. The clarification phase has been identified as the most important step in the PIPS to ensuring a successful project. This paper conducted a survey among construction professionals in Saudi Arabia, including 157 engineers, 33 consultants 9 owners, 5 vendors, 13 academics, and 28 architects, in order to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. The survey confirmed that professionals in the Saudi construction industry believe that the procurement system should be changed and that the inclusion of the clarification phase to the procurement system is a way to improve the procurement system.


2019 ◽  
Vol 110 ◽  
pp. 02090 ◽  
Author(s):  
Elena Karanina ◽  
Ksenia Kartavyh

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.


2013 ◽  
Vol 13 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Mastura Jaafar ◽  
Nurhidayah Mohd Radzi

Since the declaration of Malaysian independence, the public sector has significantly contributed to the country’s development. In the 1990s, a new procurement system was developed due to CIBD various changes in the construction industry. Since that period, the poor quality of public sector projects has started to attract public attention. This paper describes a study that was conducted to identify the dominant public procurement systems in place, the problems associated with these systems, and the satisfaction level of the industry players in the Malaysian construction industry. The results were drawn from 84 survey responses and interviews with industry players. The public sector is using a traditional system inherited from the British, with an intention to adopt new procurement systems. Aside from the disputes that are present in most systems, the public sector seems to encounter particular problems in relation to capabilities, time, and cost of the major procurement systems used. Traditional work culture and the industry environment influence public sector practice, which accounts for the modifications of each procurement system used. Thus, the full advantages of using an alternative procurement system may not be realised in public sector organizations. This produces an average level of satisfaction gained from the procurement system adopted. As a developing country, Malaysia needs to exert significant efforts to improve the public procurement system. 


2017 ◽  
Vol 17 (3) ◽  
pp. 281-341
Author(s):  
Emmanuel Botlhale

Public procurement accounts for a big proportion of public budget outlays, hence, it is important that there be demonstrated Value for Money (VfM) in public purchases. To ensure VfM in public procurement, Botswana introduced a modern public procurement system in early 2001. The system is yet to be subjected to VfM analysis. Using document analysis, this paper explores two main research questions: (i) what are key public procurement challenges in Botswana?; and (ii) how can public procurement in Botswana be improved? It is concluded that the public procurement system in Botswana is not constructed on a VfM basis. It is consequently suggested that there is a need for public procurement reforms and the adoption of various private sector continuous improvement tools such as Lean, Kaizen and Six Sigma.


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