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Concerns were raised over suspicious tendering practices such as short bidding periods, overly rigid specifications, and potential collusion. Civic engagement, freedom of the press, efficient and safe whistleblowing channels, and effective investigative authorities are all crucial components.
The island’s procurement agency faced more than 250 open complaints and allegations of collusion and low competition in the procurement process. One of the most recent examples is an indicator that analyzes providers with connections among them (to identify collusion which is widespread in the country according to Pimentel).
He examined the tension between efficiency and integrity in arbitrationbalancing the need for expedient proceedings with the obligation to address serious criminal allegations, which may warrant suspension. In cases of clear collusion, criminal justice will no longer hesitate to intervene in an arbitral process.
Regulation and defense of competition through e-invoices that can facilitate the identification of abuses of market power by monopolists with economic income, or price collusion by oligopolists that improve efficiency and equity in the market.
This extensive set of rules ensures purchases are conducted fairly, efficiently, and in accordance with the law to best serve public interests. For instance, FAR includes a provision at 52.203-2, Certificate of Independent Price Determination, which ensures independent bids and prevents collusive pricing in government contracting.
Public procurement is itself an area of public sector activity susceptible to digitalisation. There is emerging evidence of experimentation in procurement digitalisation, which is shedding light on regulatory risks and challenges.
Of all the expected benefits or functionalities, the most important ones are those attributed to public buyers and, in particular, the possibility of developing ‘category management’ insights (eg potential savings or benchmarking), systems of red flags in relation to corruption and collusion risks, and the automation of some tasks.
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