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Report unveils problems with e-procurement at a local level

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TIRANA, Aug. 20 – The application of special criteria in e-procurements by contracting authorities creates barriers, prevents equal access and competition among economic operators and in certain cases favors certain operators, a monitoring report has found.

The report monitoring the use of e-procurement at a local level in the southern Albanian municipalities of Berat, Fier, Himara and Saranda also unveiled low competition in e-procurements.

“The announcement of some firms as winners more than 3 times during one financial year is an indicator of a low level of competition. Cases of winners of more than 5 times should be subject to an audit of specialized institutions,” said the monitoring report conducted by Partners Albania non-profit organization.

The report recommends that the legal framework on procedures of requests for explanations/complaints should be improved and barriers noticed by economic operators eliminated.

“The on-line system and its functioning should improve, in particular related to the speed of information/data processing, and access to data and procedures for the public.”

To ensure quality in purchase of goods and provision of services, as well as to avoid cases of abuse with the lowest prices, more attention is needed to be paid by the contracting authorities and the application of bids with abnormally low values should not be accepted, recommends the report.

“The contracting authority, under its possibilities and legal terms, should avoid application of special criteria in a tender procedure, because it has an impact on competition and creates a climate of mistrust among economic operators.”

The Electronic Procurement System (EPS), was implemented for the first time in Albania in 2008, with the support of the U.S. government’s Millennium Challenge Corporation Threshold Programme. The system is based on an internet application and enables the electronic management of public procurement procedures throughout the country. The Electronic Procurement System is managed by the Public Procurement Agency (PPA), and it may be used through the PPA website. Under a government decision, from January 2009, usually all public institutions carry out their procurements only through the EPS, thus, avoiding the use of paper-based procurement procedures.

Electronic procurement is the main form used widely in public sector to increase the effectiveness of funds used by central and local government bodies. By using information technology, procurement is easier, as it is based on faster and simplified procedures. It is less expensive, as it reduces the excessive paper documents and promotes increased competition. The system is more transparent, as it enables an increased information flow, greater accountability, and ensures a more efficient and effective use of taxpayers’ money.

 

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