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Publicprocurement is like the heartbeat of public spending in most of Africa – by some estimates, it accounts for 17% of the GDP of African Countries. Largely anchored on the UNCITRAL model law on publicprocurement , several countries abolished the centralized and inefficient tender boards.
The team developed a three-pronged strategy: talk to MSMEs and build their capacity to bid on contracts; simplify the bidding process for smaller businesses; and use innovative technology to better measure and manage opportunities for small business vendors. The share of unique MSMEs bidders increased from 7.2%
The average number of bidders per lot rose from 3.16 Failed competitive tenderswhich previously offered a loophole for buyers to resort to direct awardshave dropped from 52% of the value of public tenders in 2018 to around 3% in 2022 to 2024. The failed tenders were then awarded using the single-source procurement method.
To better understand the challenges small businesses face when bidding for public tenders, and complementary to its Lift impact accelerator project, the Open Contracting Partnership engaged in conversations with entrepreneurs, public officials, and civil society actors with a stake in improving the publicprocurementsystem.
And it may take several years before we develop a system for being more efficient and effective in our work. Over the years, I’ve come to the conclusion that to quickly achieve proficiency in publicprocurementmanagement, there are seven things you need to do.
Importantly, the top three layers are centralised and the European Commission has responsibility (and funding) for developing them, while the bottom data layer is decentralised, with each Member State retaining responsibility for digitalising its publicprocurementsystems and connecting its data sources to the PPDS.
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