TIRANA, Nov. 2 – Half of the economic operators using Albania’s Electronic Procurement System (EPS) say they need further training on using EPS, despite the procedure being compulsory since January 2009, according to findings of a survey published by the American Chamber of Commerce in Albania. Only around 28% of respondents said that they had attended a formal training on using EPS during 2009, said the survey conducted with the support of the Millennium Challenge Corporation Albania Threshold Program II (MCCA2), administered by USAID.
“Despite the fact that PPA and MCCA1 have provided ample training on EPS for CAs (Contracting Authorities), training on using the system is still needed, especially for OEC members. The fact that EPS changes continuously is another reason for the need to provide continuous trainings,” says the report.
Some 300 economic operators (Eos) that submitted one or more electronic bids during 2009, located in Albania’s 12 districts were included in the study carried out during the February-March 2010, whose findings and recommendations were presented last weekend to representatives of the business community and public institutions that use the system, and to civil society organizations and international donors.
According to the report, EPS users, businesses and contracting authorities evaluated the system as both effective and user-friendly, particularly in terms of savings in time and money, transparency and secure procedures. Yet internet service, particularly outside Tirana, remains an issue. The report was conducted with the support of the Millennium Challenge Corporation Albania Threshold Program II (MCCA2), administered by USAID.
“U.S. assistance to Albania through both stages of the MCC Threshold Programs has aimed to improve the business and investment climate in the country by establishing a series of e-government systems that streamline burdensome administrative procedures and increase transparency,” said Bruce Kay, the Director of Threshold Programs for the Millennium Challenge Corporation. “And while the reforms have made a substantial impact, in the long-term Albania’s civil society will increasingly play a more prominent role to ensure that services are continuously improved and are sustainable.”
AmCham conducted 300 face-to-face interviews and focus groups with businesses in all 12 districts of Albania, with contracting authorities’ procurement specialists, and with members of bid evaluation commissions. Interviews focused on access to EPS for public officials at the central and local government level and businesses that participate in public tenders, as well as on the system’s fairness, user-friendliness, transparency, and effectiveness.
Under the government decision mandating that starting January 1, 2009, all public institutions should issue procurements only through EPS, thus eliminating the use of paper-based procurement procedures, Albania became the first country in the world to implement a 100% electronic procurement system for all public sector procurements above the threshold of 3,000 Euro.
The achievement was internationally recognized when on June 23rd, 2010, PPA received the 2nd place (behind Germany) in the Public Service Awards Program, among public organizations from fifteen countries recognized for excellence in public service by the United Nations Department of Economic and Social Affairs.
Key findings from the survey of EOs
ՠ34% of respondents began using the EPS in 2008.
ՠLow internet speed in their office was mentioned as a problem by nearly 50% of businesses located outside Tirana, compared to only 27% of Tirana-based businesses.
ՠ90% of the respondents said that it is “very easy” or “easy” to find the tender notice in EPS, while 40% of them said that uploading documents and receiving answers by CAs were “difficult” or “very difficult.”
ՠ82% of interviewed businesses said that the human and financial costs of their participation in a procurement procedure have been reduced compared to the costs incurred while participating in paper-based procurement procedures.
ՠ63% of the respondents rate EPS overall capacity and features as “very good” or “good.”
Benefits:
Contracting Authorities (CAs) representatives said that EPS has increased the procurement procedures effectiveness. There are no more delays and the procedures are completed in a short time. Compared with paper-based procurement procedures, communication between CAs and EOs is flowing much faster. Fair competition in procurement procedures has now been guaranteed to the maximum, as potential bidders are not known ahead of time because participation in a given procedure is anonymous until the bid opening day. EOs have no way of finding, through official channels, information about other potential bidders. At the same time, OEC members feel that the burden of unofficial and undue interventions by potential bidders has been lifted from their shoulders, as nobody has information about the bids that have been submitted before the bid opening day. EPS leaves no room for exceptions or concessions in this respect.
CA’s cost of conducting procurement procedures is significantly lower as compared to the previous paper-based system. With EPS, CAs do not incur costs for postage, and they save on travel costs, while before they would often send specialists to PPA in Tirana to ensure the delivery of procurement-related documents.
Currently, procurement procedures documents and records are for the most part retained only in electronic form. Some CAs have developed their own system for archiving the procurement documents.
Concerns:
– A concern was cited by CAs that they are under tight control by their auditors, and are obliged to print every electronic document to comply with the auditors’ requests. The printing costs unnecessarily increase by several times the procurement procedures costs. However,the procurement law does not require CAs to print all offers documents and archive them in paper format that could later be subject to internal or external audit.
– Conducting procurement procedures through EPS has resulted in award prices that are less than the fund limit for given procurement procedures. Most interviewees saw this as positive, but some of them thought that this has affected for worse the quality of the offered services or goods. In general, increased EOs participation in procurement procedures has led to increase in competition that, in turn, has the effect of saving the funds used for public procurement.
Recommendations:
– PPA should increase the speed of communication with EPS, independently of the internet connection used by CAs and EOs, taking into consideration that most of them have a medium speed ADSL Internet line.
– PPA should take the necessary technical measures to assure that EPS website works all the time, because interruptions obstruct users’ work during and after business hours.
– There is a need for additional training on EPS, because EPS changes continuously while being upgraded. Training with live cases using EPS and with direct interaction with the platform are mostly preferred. Both CAs and EOs emphasized this need.
– EPS should make it possible for the procurement specialist that is creating a new procurement procedure to correct mistakes that he/she makes before the tender notice is published by reversing the error using a “go back” button, or something similar.
– revise and upgrade menu to conduct all procurement procedures through EPS.
