scholarly journals Risk Management in Public Procurement Process

Author(s):  
Ioana Manea ◽  
Ioana Popa

Public procurement represents an important part of the current economy reality. Throughout the procurement process, due to the effect of the interaction among the components of the public procurement system, certain actions with significant negative effects on its optimal operation may occur. Risks may turn into certainty either because of a simple error in the development and administration of the procurement process, or because of a deliberate deviation from the existing legal provisions. Therefore, there is an imperative for the implementation of certain risk-avoiding measures, as well as of measures aiming to reduce their negative effects in case of their occurrence.

2019 ◽  
Vol 25 (2) ◽  
pp. 86-92
Author(s):  
Ioan Gabriel Popa ◽  
Roxana Ispas

Abstract In order to award a public procurement contract for the acquisition of a product, work or service, the contracting authority must follow a succession of stages, which represent a public procurement process. As a stage of the public procurement process, planning represents all the activities carried out in public institutions that determine their main objectives, the manner in which they are achieved, and what resources will be used during the process. Planning the procurement process is crucial. Failure to properly implement it results in errors and problems during the process of awarding and implementing the contract. The general objective of the paper is to identify and solve the problems that arise during the process of planning the public procurement in Romania, by identifying and anticipating some directions leading to the improvement of the entire public procurement system.


Author(s):  
Costel Ceocea ◽  
Raluca Alexandra Ceocea ◽  
Adrian Vatamaniuc ◽  
Vasile Mihălaș

The normative framework applicable to public institutions imposes an approach to public procurement management aimed at awarding public procurement contracts in conditions of economic and social efficiency. Achieving the objectives set at the level of the organization, in accordance with the principles underlying the award of public procurement contracts is conditioned by the adoption and implementation of specific procedures, mainly oriented towards the organization of decision-making processes. In the context of the crisis triggered by the new Coronavirus SARS-CoV-2, contracting authorities were forced to organize public procurement processes, in a matter of urgency, on a procedural background less oriented towards adopting fast and efficient decisions, with negative effects both on the available financial resources and on the process of ensuring the flow of products, services and works corresponding to the rhythm imposed by the urgent needs of public institutions involved in managing the effects of the health crisis. This paper aims at individualize the decision-making process in the field of public procurement in Romania, in order to identify models of good practice, procedures and support working tools for optimizing the public procurement process carried out at the level of contracting authorities in a matter of emergency.


2019 ◽  
Vol 19 (2) ◽  
pp. 149-159
Author(s):  
Wacława Starzyńska

Abstract Research background: Public procurement for innovation has increasingly been the subject of EU policy makers. A lot of changes in the European directives and Polish law have been observed that facilitate the process required for the public procurement of innovation. Purpose: The purpose of the paper is an attempt to study a functioning public procurement system as a sourcing mechanism for innovative products and services in Poland. Research Methodology: Review of the existing legislation concerning public procurement especially the Public Procurement Law in Poland after its amendment of 2016 and analysis of the results of a survey conducted among contracting entities and contractors of public procurement. Results: The empirical study suggests that there is a deficit of knowledge of both contracting entities and contractors, concerning awareness and application of legal provisions facilitating procuring innovative products. The existing scale of innovative solutions’ application by contracting entities is very low, resulting from a lack of needs or due to the business profile, which does not contribute to increasing the demand for innovative products. Novelty: There is a lack of similar investigations in the Polish and European literature. It is worth stressing that public procurement viewed as a special case of innovation which is distinct from the procurement of a regular market. The empirical results are based on a study conducted in 2018 by the Public Procurement Office in Poland.


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.


2020 ◽  
Vol 13 (1) ◽  
pp. 86-94
Author(s):  
I.Yu. Fedorova ◽  

The paper considers innovations in the field of legal regulation of public procurement at the last stage of the reform carried out in the public finance management system. The main attention is paid to filling the gaps in the legislative framework of the contract system in the field of procurement through the introduction of more effective instruments in 2018–2019, measures are considered that can increase the efficiency of the procurement process, and the conclusion is drawn about the effect of procurement on the development of individual sectors of the economy.


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