Checklist for Supporting the Implementation of …

1 Checklist for Supporting the Implementation of the OECD Recommendation of the Council on Public procurement Checklist for Supporting the Implementation of OECD Recommendation of the Council on Public procurement OECD 2016 2/71 Table of Contents Introduction .. 4 1. Transparency .. 6 (A) Adequate and timely degree of transparency .. 7 (B) Free access for all stakeholders to public procurement information .. 8 (C) Visibility of the flow of public funds .. 9 2. Integrity .. 11 (A) High standards of integrity for all stakeholders in the procurement cycle .. 12 (B) Public sector integrity tools tailored to the specific risks of the procurement cycle .. 14 (C) Integrity programmes for the procurement workforce .. 15 (D) Requirements for internal controls, compliance measures and anti-corruption programmes for suppliers .. 16 3. Access .. 18 (A) Coherent and stable institutional, legal and regulatory frameworks.

2 19 (B) Clear and integrated tender documentation, standardised where possible and proportionate to the need .. 21 (C) Competitive tendering and limit the use of exceptions and single-source procurement .. 22 4. Balance .. 24 (A) Evaluation of the use of public procurement as one method of pursuing secondary policy objectives .. 25 (B) Integration of secondary policy objectives in public procurement systems based on an appropriate strategy .. 26 (C) Impact assessment methodology for measuring the effectiveness of procurement in achieving secondary policy objectives .. 29 5. 31 (A) Standard processes when formulating changes to the public procurement system .. 32 (B) Transparent and regular dialogues with suppliers and business associations to present public procurement objectives and to assure a correct understanding of markets .. 32 (C) Opportunities for direct involvement of relevant external stakeholders .. 33 6. Efficiency .. 35 (A) Streamlined public procurement system and institutional frameworks.

3 36 (B) Sound technical processes to satisfy customer needs efficiently .. 37 (C) Tools to improve procurement procedures, reduce duplication and achieve greater value for money .. 39 7. E- procurement .. 42 (A) Recent digital technology developments that allow integrated .. 43 e- procurement solutions covering the public procurement cycle .. 43 (B) State-of-the-art e- procurement tools that are modular, flexible, scalable and secure .. 44 8. Capacity .. 46 (A) High professional standards for knowledge, practical Implementation and integrity .. 47 (B) Attractive, competitive and merit-based career options for procurement officials .. 49 (C) Collaborative approaches with knowledge centres .. 50 9. Evaluation .. 52 Checklist for Supporting the Implementation of OECD Recommendation of the Council on Public procurement OECD 2016 3/71 (A) Periodic and consistent assessment of the results of the procurement process .. 53 (B) Indicators to measure performance, effectiveness and savings of the public procurement system.

4 54 10. Risk Management .. 56 (A) Risk assessment tools to identify and address threats to the proper function of the public procurement system .. 57 (B) Promotion of risk management strategies .. 59 11. Accountability .. 61 (A) Clear lines for oversight of the public procurement cycle .. 62 (B) System of effective and enforceable sanctions .. 63 (C) Handling of complaints in a fair, timely and transparent way .. 64 (D) Coordinated, sufficiently resourced and integrated internal controls, external controls and audits .. 66 12. Integration .. 68 (A) Alignment of procurement processes and information to inform overall public finance management .. 69 (B) Multi-year budgeting and financing to optimise the design and the planning of the public procurement cycle .. 70 (C) Harmonised public procurement principles across the spectrum of public services delivery, as appropriate, including public works, public-private partnerships and concessions .. 71 Checklist for Supporting the Implementation of OECD Recommendation of the Council on Public procurement OECD 2016 4/71 Introduction Public procurement is a crucial pillar of strategic governance and services delivery for governments.

5 Because of the sheer volume of spending it represents, well governed public procurement can and must play a major role in fostering public sector efficiency and establishing citizen s trust. Well-designed public procurement systems also contribute to achieving pressing policy goals such as environmental protection, innovation, job creation and the development of small and medium enterprises. - OECD Recommendation of the Council on Public procurement In 2015, the Council of the OECD adopted a Recommendation on Public procurement (hereafter, the Recommendation), composed of 12 integrated principles (see below), that ensures the strategic and holistic use of public procurement . It is a reference for modernising procurement systems and can be applied across all levels of government and state owned enterprises. It addresses the entire procurement cycle while integrating public procurement with other elements of strategic governance such as budgeting, financial management and additional forms of services delivery.

6 The 12 Principles of the OECD Recommendation Checklist for Supporting the Implementation of OECD Recommendation of the Council on Public procurement OECD 2016 5/71 This 2015 Recommendation builds upon the foundational principles of the 2008 OECD Recommendation on Enhancing Integrity in Public procurement , expanding them to reflect the critical role governance of public procurement must play in achieving efficiency and advancing public policy objectives. By helping governments to better meet their policy objectives, well-governed public procurement contributes directly to greater public trust, enhanced well-being and more prosperous and inclusive societies. The objective of the " Checklist " The Checklist for Supporting the Implementation of the 2015 OECD Recommendation of the Council on Public procurement (hereafter, the Checklist ) has been developed to guide and support public procurement practitioners in reviewing, developing and updating their procurement framework, according to the 12 principles of the Recommendation.

7 The " Checklist " format aims at encouraging self-assessment and providing a starting-point for implementing the Recommendation. The " Checklist " does not provide a compulsory list of elements countries have to comply with, but rather more detailed information and guidance for each of the 12 principles as well as actions that can be taken to improve the strategic and holistic use of public procurement . How this " Checklist " is structured and how to use it The Checklist is structured around the 12 principles of the OECD Recommendation: Each "principle section" is introduced with the original text of the Recommendation as well as a short introduction of the principle. At the beginning of each "principle section", the Checklist specifies the linkages between the presented principle and the other principles of the Recommendation. Specific steps, aligned with the sub-sections of the Recommendation, are proposed for each "principle section".

8 Each specific step is introduced with the original text of the Recommendation and is followed by specific action points set out in " Checklist " format. At the end of each "principle section", the user can access the corresponding sections and information of the Public procurement Toolbox, including other tools, country cases and reviews, as well as relevant OECD and external links. Suggestions and comments on the content and format of the Checklist can be sent to: Checklist for Supporting the Implementation of OECD Recommendation of the Council on Public procurement OECD 2016 6/71 1. Transparency Ensure an adequate degree of transparency of the public procurement system in all stages of the procurement cycle. - OECD Recommendation on Public procurement An adequate and timely degree of transparency has to be provided in the entire procurement cycle in order to promote fair and equitable treatment for potential suppliers and competition.

9 Transparency in the choice of the procurement method and on exceptions to competitive tendering is also key. Transparency can be strengthened by following proposed steps below (steps A to C, aligned with the Recommendation), while also improving other principles which are closely linked to transparency, such as integrity, access, participation, efficiency, e- procurement , accountability and integration (please refer to the box below). If you find that some information is missing or consider additional links or sources, do not hesitate to contact us. Main linkages between transparency and other principles of the Recommendation Transparency can also be strengthened by addressing other closely-linked principles of the Recommendation: Integrity: The public disclosure of information around public procurement processes contributes to identifying and decreasing cases of mismanagement, fraud and corruption.

10 Access: Transparency contributes to fair and equitable treatment for potential suppliers. Participation: Transparency contributes to the provision of public procurement information to potential domestic and foreign suppliers, civil society and the general public. Inclusive processes when formulating changes to the public procurement system, including public consultations, increase transparency of the public procurement system. Direct involvement of relevant external stakeholders in the procurement system increases transparency. Efficiency: Transparency, in the flow of public funds for instance, can help policy makers to organise procurement strategically and improve its efficiency. E- procurement : E- procurement systems strengthen transparency by making information available on public procurement processes. Accountability: Transparency promotes accountability by giving account for public procurement processes and public spending.