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In the general publicprocurement market (valued at around US$19 billion annually), direct awards have dropped from 81% of the value of all procedures in 2017 to 23.5% New suppliers are entering the market and bidding more actively too. The number of suppliers per buyer increased from 8.0 on average in 2021 to 10.23
Among the reform areas identified was the country’s publicprocurementsystem. The strategy outlined in the NACP aimed to establish a dedicated publicprocurement law and revamp existing procurement practices. However, the real challenge lies in translating these principles into effective practices.
Public sector procurement relies heavily on framework agreements as a streamlined purchasing tool for goods and services. Pre-negotiated terms are provided that reduce the complexity for contracting authorities in procurement whilst allowing suppliers to capture opportunities more efficiently.
I am delighted to present to How to Crack a Nut readers an outline of my recently published book Framework Agreements, Supplier Lists and Other PublicProcurement Tools: Purchasing Uncertain or Indefinite Requirements (Hart Publishing, 2023).
Participating in public contracting represents a massive opportunity for businesses, but one that many fail to seize. According to the World Bank, public contracts account for 15% of global GDP. In OECD member countries, publicprocurement represents 29% of government expenditure.
Challenge: In Ukraine, a lack of machine-readable data about procurement appeals made it difficult for government suppliers to defend their rights and interests. Suppliers (often referred to as economic operators in Ukraine) need to be sure of their appeal because the fee for filing a complaint is only returned if it is successful.
Some of these challenges are made more explicit in our most recent report, “India’s Federal Procurement Data Infrastructure: Observations and Recommendations.” Use unique standardised IDs for organisations—both buyers and suppliers—in addition to their names. detailed product codes and structured addresses).
In 2022, OCP published an impact story about how Indonesia’s authorities have been working with civil society to curb corruption by improving timely oversight of the publicprocurementsystem, which spans over 600 decentralized government agencies. “We want to hold government accountable.
Upgrades to the DNCP’s open data incorporating this MSME classification have allowed third-party services to emerge, like the platform VIGIA, which suppliers can use to monitor tenders in real-time and report any concerns or anti-competitive behavior to authorities. and the total value awarded to MSMEs has remained steady.
As a publicprocurement practitioner you are also a public servant. You manage public funds, are bound by an ethical code of conduct, and are accountable for what you do or fail to do when managing those funds. This can all become very overwhelming if you are not organized.
Dashboards of the BI Prozorro analytics module Challenge: Before the launch of the procurement analytics module, the potential for using procurement data in Ukraine was untapped, and both buyers and suppliers could not analyze, visualize and understand publicprocurement data in ways that would enable effective decision-making.
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