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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.
Open contracting approach: Supported by OCP’s Lift Impact accelerator program from 2021, Ekiti State’s publicprocurement agency created better opportunities for small businesses and particularly women-led businesses, to participate in public contracts.
But when it comes to publicprocurement, they represent less than 5% of vendors participating in the system in the last 3 years, according to official data. Perhaps unsurprisingly, we learned that entrepreneurs perceived publicprocurement as closed off to them, both because of legal but also illegal barriers.
Since launching their platform in 2020, Diegues and Blanco have built a set of digital tools and data analytics services that have bridged the gap between more than 250 private sector users and publicprocurement buyers in six countries across Latin America. According to the World Bank, public contracts account for 15% of global GDP.
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.
They leveraged Paraguay’s high quality, publicly accessible open contracting data to measure the existing participation of these smaller businesses and to understand their challenges in working with government buyers. Fewer than 300 MSMEs participate in a procurement market worth almost US$3 billion annually.
It has debarred more than 60 suppliers for violations, and reduced unresolved complaints and canceled tenders. The measures seem to have increased trust in the reforms: more than 20,000 new suppliers have registered, competition is growing across open procurement processes, and supplier diversity is up 27%.
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.
We looked for others who had performed a similar matching, in order to compare and validate our matches, and found the matching performed by ProZorro , the central publicprocurementsystem of Ukraine, which was consistent with ours. A summary of the 3-level structure we used for green criteria related to furniture.
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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