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Reforming Public Procurement in Emerging Market ... - KDID Portal

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<strong>Reform<strong>in</strong>g</strong> <strong>Public</strong> <strong>Procurement</strong> -- Syquia<br />

4. Inadequate competition, creat<strong>in</strong>g opportunities for collusion;<br />

5. Lack of transparency; and<br />

6. Inadequate procurement audit and control.<br />

In Vietnam, the decision to develop a new omnibus procurement law was seen as an important step<br />

toward elim<strong>in</strong>at<strong>in</strong>g this legal confusion. x The justification for reform<strong>in</strong>g the legal framework was<br />

similar <strong>in</strong> the Philipp<strong>in</strong>es. xi<br />

4.3 Guidel<strong>in</strong>es for a Good Omnibus <strong>Procurement</strong> Law<br />

An omnibus public procurement law should be enacted by the highest law-mak<strong>in</strong>g body of the State,<br />

such as its National Assembly or Congress, and should be supported by implement<strong>in</strong>g regulations<br />

issued at the appropriate level. Some of the more important elements of an omnibus law are that it:<br />

1. Provides for open, competitive bidd<strong>in</strong>g as the preferred mode of procurement;<br />

2. Requires publication of bid opportunities and awards <strong>in</strong> media that are easily and<br />

nationally accessible;<br />

3. Provides appropriate procedures for special types of procurements and situations,<br />

such as highly specialized or technical projects;<br />

4. Provides for the m<strong>in</strong>imum content of the tender documents, requires that the content<br />

be relevant and sufficient for bidders to be able to respond to the requirement, and<br />

requires the development of standard bidd<strong>in</strong>g documents and a procurement manual;<br />

5. Provides participants with the right to have decisions <strong>in</strong> a procurement process<br />

reviewed, has provisions to respond to a request for review at the procur<strong>in</strong>g entity<br />

level, with adm<strong>in</strong>istrative review by another body <strong>in</strong>dependent from the procur<strong>in</strong>g<br />

entity that has the authority to grant remedies, <strong>in</strong>clud<strong>in</strong>g the right for judicial review;<br />

6. Institutes a regular plann<strong>in</strong>g exercise that starts with the preparation of multiyear<br />

plans for government agencies, from which annual operat<strong>in</strong>g plans are derived,<br />

followed by annual procurement plans and estimation of the associated expenditures,<br />

and culm<strong>in</strong>ates <strong>in</strong> the annual budget formulation;<br />

7. Establishes a normative, regulatory or oversight body at an adequate level <strong>in</strong><br />

government and secures it <strong>in</strong> terms of f<strong>in</strong>anc<strong>in</strong>g, or at least provides functions that are<br />

clearly assigned to various units with<strong>in</strong> the government, without gaps or overlaps;<br />

8. Establishes an <strong>in</strong>tegrated <strong>in</strong>formation system that provides, at a m<strong>in</strong>imum, up-to-date<br />

<strong>in</strong>formation on procurement plans, specific advertisements or notices of procurement<br />

opportunities, publication of contract awards, and rules/regulations on procurement,<br />

and is easily accessible to all <strong>in</strong>terested parties at no or m<strong>in</strong>imum cost – supported by<br />

a requirement for agencies to create sufficient records management systems;<br />

9. Provides for public monitor<strong>in</strong>g of the procurement process and the implementation of<br />

awarded contracts, guarantee<strong>in</strong>g that these contracts are awarded pursuant to the<br />

provisions of the law, and that they are performed strictly accord<strong>in</strong>g to specifications;<br />

10. Requires the development of a tra<strong>in</strong><strong>in</strong>g and capacity build<strong>in</strong>g strategy that provides<br />

substantive permanent tra<strong>in</strong><strong>in</strong>g programs for the needs of the procurement system;<br />

11. Has clearly def<strong>in</strong>ed procedures for contract adm<strong>in</strong>istration responsibilities, <strong>in</strong>clud<strong>in</strong>g<br />

<strong>in</strong>spection and acceptance procedures, quality control procedures, and procedures for<br />

Fiscal Reform and Economic Governance Project 7

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