Enhancing Integrity in Public Procurement OECD Recommendation and Toolbox Elodie Beth Administrator Integrity Public Governance and Territorial Development Directorate OECD

2 For a cleaner world economy Mission: Partnering with countries for a cleaner, fairer and stronger world economy Recognising that weak governance, lack of integrity and transparency are at the heart of the crisis Working methods: Formulates standards at the international level as well as practical tools for implementation Offers country-specific reviews (peer reviews)/ “know-how” Provides comparative and evidence-based analysis

Outline of the presentation How the OECD can support public procurement reforms in the Czech Republic: OECD policy instruments and toolbox on public procurement OECD comparative data on public procurement a)Transparency in public procurement b) E-procurement Peer reviews of public procurement system

OECD Principles: A Framework to assess countries efforts in public procurement Principles on Enhancing Integrity in Public Procurement Guidelines for Fighting Bid Rigging in Public Procurement 1.Transparency (e.g. openness of procedures, use of new technologies) 2.Good management (e.g. procurement function) 3.Prevention of misconduct (e.g. specialised training) 4.Accountability and Control (e.g. remedy system, access for civil society to key contracts) Managing risks of waste, fraud and corruption: -Needs assessment, contract management -Exceptions to competitive tendering: Emergency procedures, defence

Elements of good practice and Toolbox Report on Integrity in Public Procurement: Good Practices from A to Z Enhancing Integrity in public Procurement: On-line Toolbox

Element of good practice for Good practice example: Transparency  Policy concern: Preventing risks of corruption and ensuring accountability in the contract management  Practice: Publishing a notice on the amendment and execution of the contract  By whom: The Public Procurement Council in Hungary, an autonomous body reporting to Parliament  Role of private sector actors and civil society to monitor contract

Transparency Guidelines for accelerated public procurement procedures Model format for supplier debriefings Checklist for record keeping Good management Template for market study report Template to solicit supplier information Checklist to enhance integrity in non-competitive tender methods Prevention of misconduct Code of conduct for procurement practitioners Gifts and gratuities checklist Indicators of procurement risk Accountability and control Online public procurement reporting Registration of private interests Etc.

How does the OECD collect data and support evidence based decision making? 8 Survey questionnaires Systems of National Accounts European Commission data on expenditures of state owned utilities Country reviews : Brazil, United States, etc.

Transparency in public procurement (1) Providing an adequate degree of transparency throughout the entire public procurement cycle is critical to minimise the risk of fraud, corruption and mismanagement of public funds, and to level the playing field for businesses. Access to laws, regulations, judicial and /or administrative decisions, standard contract clauses on public procurement as well as actual means and processes by which specific procurement are defined, awarded and managed.

Transparency in public procurement (2) Frequency of publication of public procurement information (2010) Source: OECD Survey on Public Procurement (2010 )

E-procurement (1) The use of ICT’s in public procurement processes : 1.Enhances transparency and efficiency of procurement process 2.Empowers citizens to hold public authorities accountable 3.Decreases administrative burdens and cost Role of on-line portals for procurement

c) E-procurement (2) Online availability of public procurement information Source: OECD Survey on Public Procurement (2010)

Public Procurement Reviews United States example U.S. Government’s Federal Acquisition system : US$ 540 billion per year Office of Management and Budget’s interest in assessment of successes and challenges in ensuring transparency, integrity and good management in public procurement OECD peer review of practice in selected federal agencies and benchmarking against other relevant countries Transparency, accountability and integrity in different stages of procurement cycle Acquisition workforce Best value for taxpayers Competition Review and remedy mechanisms

14 For Further Information Website: Selected publications: Principles for Enhancing Integrity in Public Procurement (2009) Enhancing Integrity in Public Procurement – Joint Learning Study on Yemen, Morocco (2010) Integrity in Public Procurement: Good Practice from A to Z (2007) Contact us: OECD Integrity Unit

Thank you Elodie Beth