Factors Explaining Price Decrease and Problems by Execution of Public Procurement Contracts in Russia

2012 ◽  
pp. 65-83
Author(s):  
A. Yakovlev ◽  
O. Demidova ◽  
O. Balaeva

The main goal of the public procurement reform in Russia was to limit corruption. The government prohibited the most part of qualification criteria in the selection process and used open auctions as the main tool of contract placement. However simplification of procurement procedures led to opportunism on the side of suppliers. In this paper using the unique dataset of 2000 contracts executed in 2008-2010 for a large public customer we define the factors explaining the risk of suppliers non-performance. Econometric analysis showed that under current procurement regulation in Russia the risks of suppliers non-performance are higher for large contracts, contracts executed in October-December and contracts placed at open auctions. However contrary to anecdotal evidences, initial price decrease does not influence the performance of contractors.

Author(s):  
Sergey Tsygankov ◽  
Ekaterina Gasanova

This chapter analyzes the reform of public procurement systems in Russia and Ukraine in the context of electronization, as well as a comparative analysis of the effectiveness of such reforms. The goal is to determine the prospects of expanding the scope of e-procurement based on the analysis of the implementation of the reform of public procurement systems effects in Russia and Ukraine. Public procurement is a fundamental component of social and economic policy of any state, by means of this mechanism the government has the ability to create and influence the industry for future changes in production structures, increase efficiency and more rapid transition to an innovative new type of economy. Procurers are dependent on funds that provide their functioning and providing services to the population. Provision of works, goods and services to such customers is carried out by means of public procurement market, which, enhances the efficiency and transparency of spending money through a contractual relationship satisfying the needs of the state. The share of public procurement (including procurement of state-owned companies) is more over 25% of Russia's GDP, while in Ukraine - more than 7%. That's why it is possible to make a comparative analysis of public procurement reform in Russia and the Ukraine, whose legal approach is quite close (Tsygankov & Syropyatov, 2014).


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.


2018 ◽  
Vol 1 (4) ◽  
pp. 436-446
Author(s):  
Ajik Sujoko

AbstractAcceptance of wages and welfare of outsourcing workers in government an interesting thing to be discussed. The first, because wages and welfare in outsourcing are quite relevant issues for labor conditions. Second, through outsourcing, the government is able to accommodate outsourcing workers whose trends increase each year. Third, the government are not in the form of the company but are already used to implementing outsourcing practices. Fourth, the tendency of private participation to improve the performance of the government which is profit oriented. Of the four discussions and cases of outsourcing in some places, the attractive position of outsourcing workers is always in a weak position and an uncertain future, including in government. By reviewing the practice of procurement process of government goods/services, through this article contributes and encourages to government and outsourced employers has the ability and willingness to provide wages and welfare of outsourcing workers. How wages and welfare are enjoyed and accepted by outsourcing workers, through public procurement can be done adequacy of the procurement budget, provider selection process that follows labor regulations and contracting properly with the providerKeywords: Wages, Welfare, Outsourcing Workers, Procurement Of Goods/ServicesAbstrakPenerimaan upah dan kesejaheteraan pekerja outsourcing di pemerintah hal yang menarik untuk didiskusikan. Yang pertama, karena upah dan kesejahteraan dalam outsourcing merupakan masalah yang cukup relevan menggambarkan kondisi tenaga kerja. Kedua, melalui outsourcing pemerintah mampu menampung pekerja outsourcing yang cenderung naik tiap tahun. Ketiga, pemerintah bukan sebuah perusahaan, namun telah biasa menggunakan praktik outsourcing. Keempat, kecenderungan partisipasi swasta untuk meningkatkan kinerja pemerintah yang berorientasi pada keuntungan. Dari empat diskusi dan kasus outsourcing di sebagian tempat, menariknya posisi pekerja outsourcing selalu dalam posisi yang lemah dan masa depan yang tidak pasti, termasuk di pemerintahan. Dengan melihat praktek proses pengadaan barang/jasa pemerintah, melalui artikel ini diharapkan memberikan kontribusi dan dorongan kepada pemerintah dan pengusaha outsourcing memiliki kemampuan dan kemauan untuk menyediakan upah dan kesejahteraan pekerja outsourcing. Bagaimana upah dan kesejahteraan dapat dinikmati dan diterima oleh pekerja outsourcing melalui pengadaan publik, dapat dilakukan dengan menyediakan kecukupan dari anggaran pengadaan, proses pemilihan penyedia yang mengikuti peraturan ketenagakerjaan dan kontrak dengan penyedia secara benar.Kata kunci: Upah, Kesejahteraan, Pekerja Outsourcing, Pengadaan Barang/Jasa


Author(s):  
Z. Grbo

In the article, the author analyses the possibilities of using arbitration procedure to settle disputes arising from the conclusion of a public procurement contract in Bosnia and Herzegovina. The author studies the nature of the public procurement contract and concludes that this contract is of a private legal nature, so the resolution of disputes related to the execution of the contract is possible in arbitration proceedings.


2021 ◽  
Vol 8 (1) ◽  
pp. 102-122
Author(s):  
Jamil Ddamulira Mujuzi

In South Africa, persons or companies convicted of fraud or corruption or companies whose directors have been convicted are debarred from participating in bidding for government tenders. Although it is easy to establish whether or not a natural person has been convicted of an offence, because a certificate can be obtained from the South African Police Service to that effect, it is the opposite with juristic persons. This issue came up in the case of Namasthethu Electrical (Pty) Ltd v City of Cape Town and Another in which the appellant company was awarded a government tender although the company and its former director had been convicted of fraud and corruption. The purpose of this article is to analyse this judgment and show the challenges that the government is faced with when dealing with companies that have been convicted of offences that bid for government tenders. Because South Africa is in the process of enacting public procurement legislation, the Public Procurement Bill was published for comment in early 2020. One of the issues addressed in the Bill relates to debarring bidders who have been convicted of some offences from bidding for government tenders. Based on the facts of this case and legislation from other African countries, the author suggests ways in which the provisions of the Bill could be strengthened to address this issue.


Author(s):  
Carmen Lenuta Trica ◽  
Luminita Ghita

At present, legal provisions and environmental policy regulate the possibilities of using environmental considerations in the development of award criteria, as well as in the performance clauses of procurement contracts. The first part of the chapter analyzes the concept of green procurement and product categories for which green procurement can be used. The second part of the chapter presents the benefits of using green procurement. The third part of the chapter will include assessing the progress and impact of using green procurement. The fourth part of the chapter analyzes the legal framework for public procurement in Romania, as well as the capacity of the market to offer and develop products and services that include minimum environmental requirements and criteria. In the fifth part of the chapter, the authors analyze the possibility of implementing a mechanism for the operation and implementation of the legal provisions in Romania in order to improve the quality of the services and optimize the costs of the public procurement.


2020 ◽  
pp. 0067205X2097347
Author(s):  
Olivia Dixon

While transparent and efficient public sector procurement systems facilitate innumerable opportunities for stakeholders, the scale and scope of the global procurement market has rendered it increasingly vulnerable to corruption. The Organisation for Economic Co-operation and Development estimates that annually US$2 trillion of public funds is lost to corruption, yet governments have failed to respond with robust measures to deter such practice. Through comparing the debarment frameworks and policy goals across five jurisdictions, this article argues that Australia should consider adopting a discretionary debarment regime. By excluding bidders who have engaged in ‘corporate integrity offences’ from procurement contracts, debarment policies offer a potentially important mechanism in the fight against corruption. Debarment would not only protect the government from current threats, but it may also deter potential wrongdoers, encourage contractors to rehabilitate themselves, incapacitate actual offenders and facilitate development of a culture of compliance through the competitive advantage gains enjoyed by law-abiding firms.


2020 ◽  
Vol 24 (4) ◽  
pp. 1039-1062
Author(s):  
Vitaly V. Kikavets

The basis of legal relations in public procurement are private and public interests. The purpose of the study is a substantive assessment of the authors hypothesis that the purpose of legal regulation and financial support of public procurement is to satisfy the public interest expressed in the form of a public need for goods, works, and services. The methodological basis of the study rests on historical and systematic approach, analysis, synthesis and comparative-legal methods. The results of the analysis of normative legal acts regulating public procurement, doctrinal literature and practice showed that public interest denounced in the form of public need is realized through public procurement. Public and private interests can be realized exclusively jointly since these needs cannot objectively be met individually. In general, ensuring public as well as private interests boils down to defining and legally securing the rights and obligations of the customer and their officials, which safeguards them in the process of meeting public needs through public procurement. The study revealed the dependence of the essence of public interest on the political regime, which determines the ratio of public and private interests. Public interest in public procurement is suggested to understand as the value-significant selective position of an official or another person authorized by the government, which is expressed in the form of the public need for the necessary benefit; gaining such benefit involves both legal regulation and financial security. The purpose of legal regulation of public procurement is to satisfy public interest. These concepts should be legally enshrined in Law No. 44-FZ.


2018 ◽  
Vol 4 (2) ◽  
pp. 333-357
Author(s):  
Theodora Pritadianing Saputri

It is internationally accepted that public procurement procedure and public contract shall be organized in accordance with the fair competition principle and fulfil the requirement of transparency. Public procurement regulations are necessary to secure the efficient use of taxpayer resources by the government in purchasing goods, services and works from the market and to ensure fair competition among the public contract should be protected and that therefore it would be necessary to amend existing regulations which prohibit or restrict this right derived from freedom of contract.  In addition, law makers should also put in place restriction with regard to corporate restructuring which main intention is to circumvent requirements of tender documents.


JASSP ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 103-113
Author(s):  
Adam Khafi Ferdinand ◽  
Rinaldy Amrullah

Presidential Regulation Number 12 of 2021 concerning amendment the Presidential Regulation Number 16 of 2018 (Presidential Regulation 12/2021) was the government efforts for micro small-level enterprises (MSEs) and cooperatives to be involved in the public procurement of goods and services. However, it still needs to be anticipated because there are always irregularities that usually occur, namely corruption. This research aims to determine how the amendment of the public procurement regulation in the Presidential Regulation 12/2021 especially for MSEs and cooperatives, and also how to assess the Presidential Regulation 12/2021 can reduce the potential for corruption in the process of public procurement. This research uses a normative method with a comparative approach and a statutory approach. The results of this research indicate the Presidential Regulation 12/2021 are the elimination of medium-level enterprises, the government's obligation to allocate a minimum budget of 40%, and also increase the budget ceiling for MSEs and cooperatives up to IDR 15 billion. E-Procurement for MSEs and cooperatives still has the potential for corruption, but with the new policy in the form of competency certification, and if there is an increase in regulations from the National Procurement Board (LKPP) in terms of provider qualifications, procurement can produce quality and efficient products.  Keywords: Cooperatives, Potential of Corruption, Presidential Regulation 12/2021, Government’s Procurement Goods and Services, Small-Level Enterprises (MSEs)


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