scholarly journals The Impact of the COVID-19 Pandemic on Changes in Competitiveness in the Public Procurement System

2021 ◽  
Vol 4 (32) ◽  
pp. 189-201
Author(s):  
Jarosław Szymański

The aim of the article/hypothesis: The impact of the pandemic on the European and global economy is unquestionable. The question is how the epidemiological situation has affected the European public procurement system. The study was limited to assessing the changes in the structure of the procedures used to award public contracts and the possible effects of a lack of dynamics in this respect. The aim of the work is to observe the effects of changes in the structure of tendering procedures and to identify other phenomena in the public procurement system, caused by the pandemic. Methodology: Taking into account the diversity of national solutions in the field of public procurement, resulting both from the legal systems and national practice, an analysis of awarded public contracts was carried out, with particular emphasis on the domestic market. The research was conducted in the direction of determining the changes in preferences of selecting non-competitive procedures, new possibilities of awarding contracts and the analysis of changes in the preferences of the non-competitive procedure on the European Union market. The tools used for the analysis included basic statistical measures and the non-parametric Mann-Whitney test. Results of the research: As a result of the analysis, it was found that there was a statistically significant increase in the share of the non-competitive procedure on the European market. The observation of individual national markets shows that in some Member States there has been a decrease or a very limited increase in the non-competitive mode. This may result from ad hoc legal changes and means that an unknown number of contracts of unknown value was awarded outside the control of the monitoring of the public procurement system.

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Ostoja Travar ◽  
Dragana Ribić

The public procurement system isnowadays a special discipline, and this paper explores the possibility of researching it. The main reason for researching the mentioned system is the need to apply the public procurement system by the public and private sectors. The public procurement system integrates economic and financial disciplines defined in microeconomic, macroeconomic and managerial skills and disciplines. It is very important to gain knowledge about the public procurement system for the purpose of efficient management of public finances, as well as for the sustainability and development of corporations, and for the country to attract foreign investments. Public procurement in the European Union, Bosnia and Herzegovina and neighbouring countries represents a significant market. Surely, it can be ascertained that studying public procurement will contribute to the development of legal, economic, institutional and operational foundation for the purpose of more efficient functioning of the public procurement system in Bosnia and Herzegovina, in line with the EU standards. A segment of the overall research refers to the education and training, which will ensure a sustainable programme of training of personnel working in the public procurement system, in line with the new legislative framework. Thereby, they will, indirectly, contribute to the strengthening of the public procurement system for the purpose of Bosnia and Herzegovina’s approximation to European integration and integration into global economy.


2016 ◽  
Vol 1 (2) ◽  
pp. 72
Author(s):  
Emalita Dobra

A proper estimation of the value of the public contracts is of major importance of the contracting authority. First, value of contracts govers the regime of rules under which the proceedings will be conducted. Second the decision of the contracting authority concerning the application of specific procurement procedure depends whether the value of contract is below or above specific threshold. For multi year contracts or contracts with renewal option, the contracting Authority must provide clauses for the revision of prices in accordance with published official inflation. In case of goods the contracts through renting or leasing of these, the estimated value of the public contract shall be based on the monthly rent or fee multiplied by the number of months the contract will last. The contracting Authority is responsible for comparing the above mentioned elements with a cost analyses of the goods, services or works. European Union rules provided in Article 9 of the directive 2004/18/EC of the European Parliament and of the council of 31 March 2004 on the coordination of procedures for the award of public works, supply and services and in contain also more detailed rules concerning methods of estimation of contract value which should be applied in specific case. The priciple of the transparency of public procurement requires that all potential contractors have the same chances to compete for contracts being offeres by public administration. (; public contracts, procurement, goods, proceedings contracting Authority, etc. )


2021 ◽  
Vol 2 (517) ◽  
pp. 35-40
Author(s):  
O. I. Laiko ◽  

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.


Author(s):  
Irina Holtsova ◽  
Yana Tsimbalenko

2020 has become a global societal challenge for the whole world. The global pandemic, caused by COVID 19 has become threatening to the well-being of society and its sustainable development in virtually all spheres of human activity. The sphere of public procurement is not an exception not only in Ukraine, but also in European countries. The new conditions of social reality set such conditions for the implementation of public procurement, for which the world was not ready, but they required the necessary and urgent transformations. The article examines the experience of Ukraine and the European Union in the formation of public procurement and its operation under COVID 19 and strict quarantine restrictions. The Ukrainian economy was largely unprepared for the new social realities, but it was the sphere of public procurement, the development of which occured in the last 5 years, that surprised with its functional and regulatory security. The author draws attention to the peculiarities of the implementation of the system of electronic public procurement, their gradual formation and transformation. The analysis and qualitative differences of the new system of public procurement, which allowed to ensure the necessary transparency and publicity of the state order in the medical sphere, are given. A comparison of the Ukrainian system of functioning of public procurement and European transformations in this sphere is given. Because the experience of European countries in the difficult transition phase of the society of the pandemic era is very important for the countries of the post-Soviet space, as the countries of the European Union are in many respects the example to follow for such countries. The author cites the key features of the transformation and improvement of the public procurement system in accordance with the critical conditions of society


Author(s):  
Tolga Demirbas ◽  
Erdal Eroglu ◽  
Özhan Çetinkaya

In almost every country, public procurements are the primary issue which citizens are the most sensitive to in terms of how public money is spent. Electronic procurement systems in the public sector have been adopted as a solution in order to respond to the sensitivity of citizens because of the benefits promised. In the early 2000s, Turkey both made the public procurement legislation approximate to the European Union standards and began to develop an e-procurement system within the scope of e-transformation Turkey project. As a result of the works carried out under the leadership of the Public Procurement Authority, which is an independent administrative authority, the e-procurement system started to be used in some stages of the procurement process. Four public hospitals were determined as pilot administrations in order to improve the implementation and it was aimed to make the implementation common in all sectors according to the experiences gained in this field. The objective of this chapter is to reveal benefits gained and barriers faced during the development process of the e-procurement by focusing on the above mentioned pilot implementation field. In order to attain this objective, the method of case study was adopted in this research, and guiding experiences were tried to be gained for the e-procurement implementations in the future.


Author(s):  
Nataliya Synyutka ◽  
Oksana Kurylo ◽  
Mariya Bondarchuk

<p><strong>Theoretical background</strong>: There is an ongoing global acceleration of automation and digitalisation in financial processes, which points to significant changes in public spending policies. After an analysis of several scientific studies, fundamental approaches have been elaborated to understand public consumption and the system of state purchases. The basic hypothesis for this research was to study the possible impact of the electronic procurement market ProZorro on state purchases in Ukraine. Possible directions are: increasing competitiveness, optimising state expenditures and saving the budget funds of public services based on innovative digital technology.</p><p><strong>Purpose of the article</strong>: The main goal is to investigate the impact of the electronic public procurement system ProZorro on corruption and bureaucracy in the public sector of Ukraine. The study object is an analysis of the volume and structure of the public procurement market, the number of procedures and participants in a bidding process, and the savings amounts in ProZorro’s public purchases during the study period in Ukraine.</p><p><strong>Research methods</strong>: The following methods were used during the research of the Ukrainian electronic procurement system: dialectical method; analysis and synthesis method – for a comparison of certain types of public procurement; subthreshold and suprathreshold statistical methods – for analysing the dynamics of indicators of the domestic system of public procurement during the period under research for a comparison of the indicators of public consumption of certain ministries and departments, different regions and territorial entities; structural and logical analysis – for generalising the theoretical and methodological principles of building a public consumption system in Ukraine. The main source of data was the data and analytical base of the ProZorro electronic public procurement system.</p><p><strong>Main findings</strong>: Effects of the innovative digital paradigm on the transparency and efficiency of public procurement are determined. Considerable attention is paid to the implementation of the electronic public procurement system ProZorro in Ukraine. The expediency is substantiated for its implementation in the national practice of budget expenditures, and the principles and procedures of implementation are analysed. The practice and dynamics of the public procurement market in Ukraine are summarised. The conclusions of the advantages of electronic system are provided, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption and the effect of reducing the savings of budget funds. Potential risks, threats and disadvantages of the ProZorro system in Ukraine are highlighted. Among them are: a high proportion of non-competitive procedures; possible latent conflict regarding the participants’ interests; unreasonable time spent on individual procedures; the justification of the procurement procedure to one participant due to a dubious “urgent need”; unreasonable application of the procurement procedure to one participant due to the falsification of conditions or the division of the procurement subject; the existence of discriminatory requirements in the documentation of competitive bidding; and a lack of efficiency in the complaints handling mechanism.</p>


Management ◽  
2020 ◽  
Vol 30 (2) ◽  
pp. 75-85
Author(s):  
Lyubov V. Murovana

Introduction. One of the main directions of Ukraine in international cooperation is the Euro integration process. The main purpose of which is the implementation of national legislation to European standards, with further adaptation and modification in accordance with international rules and regulations.Scientific research hypothesis. Any integration processes are quite complex and time-consuming, but they are necessary to improve the performance of the field in which they take place. Ukraine's European integration is aimed at ensuring the development of the spheres of political, legal, economic and social life of the country, including public procurement system in Ukraine.The purpose of the study is to analyze the impact of integration processes on the current regulatory framework of the public procurement system in Ukraine.Research methods. General and special methods, such as systematic analysis and generalization, were used to determine the state of disclosure of the research problem. The method of comparisons, analogies and systematization was used for the analysis of regulatory documents regulating the sphere of public procurement.Results. On the basis of the author's study of the current state of legal support of the public procurement system in the context of European integration of Ukraine, a gradual distribution of the evolution of national legislation in the field of public procurement to international standards was presented, with its further reformation into the field of public procurement. The basic functions of the institutional structure of the public procurement system are considered and the valid legal acts of the procurement process are summarized.Conclusions. The analysis of the process of reforming the system of "public procurement" in the field of "public procurement" is characterized by a rethinking of the spending units of public funds with the need to approximate national legislation to international standards. For this purpose, a number of normative legal acts have been adopted by the state authorities aimed at accelerating the process of European integration of Ukraine, but some of them require further research and adjustments in order to adapt to national legislation.


2013 ◽  
Vol 15 ◽  
pp. 283-356 ◽  
Author(s):  
Peter Kunzlik

AbstractThis chapter briefly describes how neoliberalism achieved its current position as the dominating (if contested) ideology of the developed world and explains core neoliberal values and policy prescriptions, as well as the effect that they have had on public procurement. It explores the ideological importance of public procurement regulation from the neoliberal perspective and the features that neoliberal principles might suggest should be built into any international regime of public procurement regulation. It then describes the regulation of public procurement by the EU, which it argues maps closely onto the predicted neoliberal construct. It explains that, although the EU regime operates by extensively curtailing the purchasing discretion of public bodies in the Member States, neoliberal arguments have been advanced, and are currently being advanced, to curtail that discretion further. It analyses the extent to which such arguments have failed before the Court of Justice of the European Union to date and then explains the far-reaching additional arguments that are currently being advanced to neoliberalise the EU public procurement regime. These argue for the application of ‘competition’ (the ‘efficiency’ concept of competition) and the pursuit of ‘value for money’ as dominating norms for the system. This chapter then explains how the adoption of such norms would curtail the ability of public purchasers to pursue horizontal policies (the use of public procurement to achieve collateral policy goals such as environmental or social policy goals). It argues, however, that the suggested efficiency/value for money norms are not legally justified. This is because the concept of ‘competition’ to which EU public procurement regulation refers is not the neoliberal ‘efficiency’ concept, but a concept based upon economic freedom that is concerned with competitive equality and the structure of competition in public contracts markets. It is also because the present author accepts the argument that has been advanced by Sue Arrowsmith that, although the pursuit of ‘value for money’ is the central goal of the domestic regulation of public procurement, the legal bases on which EU public procurement legislation is founded do not permit it to mandate the pursuit of ‘value for money’ as a matter of European obligation. The chapter argues, in any event, that in the public procurement context, ‘value for money’ is a complex, multi-faceted and value-driven concept that does not equate to neoliberal notions of ‘efficiency’. Finally, it identifies an internal tension between two aspects of the neoliberal prescription in the public procurement context, the desire to constrain public purchaser discretion so as to preclude, in particular, the pursuit of horizontal policies on the one hand, and the preference to use ‘market-based’ instruments of policy rather than regulation on the other. It explains how a further neoliberal preoccupation, the constant need to improve international ‘competitiveness’, has provoked the EU to adopt (as part of its core economic strategy) the pursuit of horizontal policies in public procurement, both on a voluntary basis and as mandated by EU sectoral legislation. It concludes that by so doing, the EU has rejected a central tenet of neoliberal ideology as regards public procurement (hostility to the so-called ‘instrumental’ use of public procurement to implement horizontal policies) and that its direction of travel means that the neoliberal argument that public procurement must be regulated predominantly to achieve ‘efficiency’ has implicitly been discarded.


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