The Benefits and Barriers of Electronic Public Procurement System

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.

2018 ◽  
Vol 2 (2) ◽  
pp. 39-48
Author(s):  
Azem Duraku

Abstract Treaty of Rome of 1957 and following treaties on amending the Treaty of Rome contain a number of basic principles on which the EU is founded. Among these principles, the most important ones related to the public procurement are: prevention of discrimination based on nationality, free movement of goods; right and freedom of establishment of a business; the right to provide services. Spending of public money in Kosovo pursuant to the Law on Procurement is found on the following principles: economization and efficiency; equal treatment and non-discrimination; transparency; value for money. The average of open procedure application in EU countries is 73% based on notices, whereas in Kosovo is 82.80% based on notices. In the end of 2014, Kosovo commenced the development of electronic procurement platform. This project takes place within the Public Sector Modernization Project. The importance of the electronic procurement is stated in the statement of European Commission: “Modernization and opening of procurement markets across borders - including through the electronic procurement expansion - are crucial for the competition in Europe and creating new opportunities for businesses in EU”. A good procurement system in Kosovo will have an impact on elimination of negative phenomena (corruption and bad management) in the management of public expenditures from spending agencies, as well as an impact on increase of budget saving.


2018 ◽  
Vol 16 (2) ◽  
pp. 353-363 ◽  
Author(s):  
Bohdan Dmytryshyn ◽  
Ruslana Zhovnovach ◽  
Oleksandr Levchenko ◽  
Yurii Malakhovskyi ◽  
Viktoriya Gonchar

The issue of reforming the institute of state (public) procurement is one of the key directions of the modernization of the administrative sector of our state. Increasing the efficiency of this institute should be recognized as one of the conditions for ensuring stable economic growth. In this regard, issues relating to the assessment of the efficiency of the use of public funds are of particular interest. The indicators of the efficiency of the activity of the public procurement sector in Ukraine in the context of the introduction of the “ProZorro” electronic procurement system are calculated and analyzed. The existing works of the individual scientists in the direction of developing indicators of the efficiency that can be used to evaluate the results of the operation of the procurement logistics system in the public sector in Ukraine are generalized. As a result, approaches have been identified that can be used to determine the effectiveness of the participation of customers, private sector representatives and the system of electronic public procurement in general. On the basis of retrospective data of past years and the first half of the current year, a number of estimates of absolute and relative savings, as well as indicators of the effectiveness of the open bidding in the public sector of Ukraine have been identified. The dynamics of these indicators before and after the introduction of the “ProZorro” electronic procurement system was analyzed. The analysis shows that the first results of the functioning of the “ProZorro” system demonstrate the existence of negative trend of competition and reduction in the amount of savings in public funds. Ensuring high efficiency and competitiveness, integrity and transparency of the procurement process are the main tasks of the Ukrainian government in the field of public procurement. The authors argue that the introduction of the “ProZorro” system can help to solve them successfully, and the application of the analytics module enables to calculate the savings from the use of this system.


Author(s):  
Nataliya ZDYRKO

The independent legislative agency of Ukraine according to the international standards ISSAI in private carrying out of the state audit (including the published purchases) is made. It is established that international practice has identified three components of public audit: performance audit, financial audit and compliance audit. The necessity of standardization of the state audit of public procurements through legislative fixing of audit of conformity is proved. The main objects of compliance audit are proposed: the activities of the customer (participant), public resources and the activities of responsible government agencies. Recommended main directions and procedures for compliance audit for each object and by stages of the life cycle of procurement items. Features of the audit of compliance of redistribution by the customer of various receipts for public procurement are considered. Features of audit procedures for different types of public procurement are identified. The recommended procedure and algorithm for auditing the correctness of determining the subject of procurement from the customer. The main mistakes and violations of the participants, which take place during the audit of compliance with public procurement, have been identified. The peculiarities of compliance audit at the stage of public procurement planning, pre-contractual and contractual relations in the electronic procurement system, as well as at the stage of use of procurement items are highlighted. It was emphasized that the responsible body should regulate issues related to the functioning of the electronic information system, platforms and web portal in the field of public procurement. The key elements of the Public Procurement Compliance Audit Standard (purpose, objectives, subject, objects, subjects, stages, methods, principles) are proposed.


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.


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


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. )


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>


2019 ◽  
Vol 1 (2) ◽  
pp. 59-73
Author(s):  
Maria Antonietta Coppola ◽  
Gustavo Piga

The importance of public procurement for achieving value for money in public purchases – thus obtaining important savings in the use of taxpayers’ money and effectiveness in meeting citizen’s demand for public goods of a given quality – is widely recognised, as made clear by the Directive 2014/24 of the European Union and the international legal framework for public procurement at large. But how can these goals be met? Professionalization is a necessary condition and thus represents a key part of the final answer. But what kind of professionalization is really needed? In what environment? With which results? These questions are rarely answered with real life examples. Taking advantage of a questionnaire-based cohort of individuals that have gone through a process of professionalization in an international environment, this paper expands on its challenges and on the importance of professionalization of the persons working in public procurement-related activities as key to an efficient use of public money.


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