Public Procurament during the Covid-19 Pandemic

The covid-19 pandemic has affected the whole world, Europe and the Member States of the European Union were not excluded. From one minute to the next, public procurers were forced to secure supplies of the goods needed at the time, especially medical supplies. The procedures under Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC were lengthy. Public officials were trying to find solutions to speed up the procurement procedure and thus ensure faster delivery of the needed goods. The European Commission has provided guidance to contracting authorities on how to proceed during this difficult time in the form of Guidelines on the use of the framework for public procurement in the emergency situation related to the covid-19 crisis. This article describes the practices of contracting authorities during the covid-19 pandemic. The article seeks to describe the procurement processes during the pandemic and outline the differences in the procurement process during the pandemic compared to the pre-pandemic situation. At the same time, the article briefly looks at a comparison of the measures adopted in selected EU Member States. © 2023, Academy of Sciences of the Czech Republic, Institute of State and Law. All rights reserved.

How to Increase the Efficiency of Social Enterprises in Russia During the COVID-19 Pandemic?

The paper considers the examples of economic activities of social enterprises during the COVID-19 pandemic. It is shown that often social enterprises are more effective than common enterprises in their responses to the processes caused by the COVID-19 pandemic. A model of interaction between different actors enhancing the efficiency of social enterprises in Russia by means of providing the continuous source of cashfrow is provided. At the macro-level of this model it's necessary to mention such institutions as the Ministry of Finance, because it is engaged in planning and controlling the process of public procurement activities, The Public Relations Committee, as it provides subsidies to nonprofit organizations and social enterprises based on the competition rules and the Public Chamber, as it is engaged in distributing the Presidential Grants to nonprofit organizations and social enterprises. The institutions that provide financial help to social enterprises in the range of 1 to 50 million rubles belong to the meso-level institutions in this model. They consist of the Moscow regional division of the All-Russian Popular Front, the charitable foundation KAF, the fund "Our Future” and the company Unilever. At the micro-level of this model there are two institutions: Impact Hub Moscow and Awesome Foundation. A contact should be set between these organizations to exchange the experience in the area of supporting social entrepreneurs and attracting the micro-grants of Awesome Foundation as the supplementary sources of support for the winners of the competition held by Impact Hub Moscow. This system should be balanced by setting direct contacts between each institution at the respective level so that it could enable these institutions to act effectively at each level of that model. First, we should conclude that these institutions should not act as isolated units. They should be implemented into the system of different actors supporting social enterprises, along with such potential investors as private sector companies and microfinance institutions. Second, these actors should interact in such manner that enables a cooperation between them. Conclusions refer to how these institutions should be arranged to make a system of interconnected units supporting social enterprises at three levels. © 2022, Academic Conferences and Publishing International Limited. All right reserved.

A Mixed-Method Approach to Determine the Successful Factors Affecting the Criticality Level of Intermediate and Final Products on National Basis: A Case Study from Saudi Arabia

COVID-19, Brexit, war, and some other similar cases will leave/have left us with a lesson that has had an impact on the supply chains of almost all product types. Countries have now recognized that some products cannot be sustained in a situation of uncertainty. This research covers the gap in understanding and identifying the successful factors affecting the criticality level of supply required of intermediate and final products (IFP) at the national level. It investigates the relationship between two factors: the casual factor supply risk (independent factor);and the impacted (dependent factors) political, economic, sociocultural, and technological (PEST) factors in terms of identifying critical products using the principle of Resource Dependency Theory (RDT). A literature review was conducted, followed by a mixed-method approach. Semi-structured interviews with 23 Saudi experts were carried out initially;then, a questionnaire was shared with 152 Saudi experts in different sectors. The qualitative study identified 30 key measurement variables for both factors, in which 19 variables were confirmed using the factor analysis (FA) technique. © 2023 by the authors.

Understanding public procurement within the health sector: a priority in a post-COVID-19 world.

Every year, over 250,000 public authorities in the European Union (EU) spend about 14% of GDP on the purchase of services, works and supplies. Many are in the health sector, a sector in which public authorities are the main buyers in many countries. When these purchases exceed threshold values, EU public procurement rules apply. Public procurement is increasingly being promoted as a tool for improving efficiency and contributing to better health outcomes, and as a policy lever for achieving other government goals, such as innovation, the development of small and medium-sized enterprises, sustainable green growth and social objectives like public health and greater inclusiveness. In this paper, we describe the challenges that arise within health care systems with public procurement and identify potential solutions to them. We examined the tendering of pharmaceuticals, health technology, and e-health. In each case we identify a series of challenges relating to the complexity of the procurement process, imbalances in power on either side of transactions and the role of procurement in promoting broader public policy objectives. Finally, we recommend several actions that could stimulate better procurement, and suggest a few areas where further EU cooperation can be pursued.

Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis

This paper evaluates ways in which labour issues in global value chains for medical gloves have been affected by, and addressed through, the COVID-19 pandemic. It focuses on production in Malaysia and supply to the United Kingdom's National Health Service and draws on a large-scale survey with workers and interviews with UK government officials, suppliers and buyers. Adopting a Global Value Chain (GVC) framework, the paper shows how forced labour endemic in the sector was exacerbated during the pandemic in the context of increased demand for gloves. Attempts at remediation are shown to operate through both a reconfigured value chain in which power shifted dramatically to the manufacturers and a context where public procurement became higher in profile than ever before. It is argued that the purchasing power of governments must be leveraged in ways that more meaningfully address labour issues, and that this must be part of value chain resilience. © 2022 The Authors. Global Networks published by John Wiley & Sons Ltd.

The impact of the Black Economic Empowerment concept in the South African public procurement systems on black construction professionals

South Africa's government in 2003 introduced Black Economic Empowerment (BEE) legislation aimed to uplift the blacks into mainstream economic activities. This study assessed the impact of the BEE policy on black construction professionals since its introduction. Due to COVID-19 restrictions and the participants' dispersed location, the telephone interview method was adopted to solicit information from 21 black construction professionals. The findings indicate that the BEE policy in the public procurement system, has improved black construction professionals' economic status, developed their skills, and increased access to public contracts, indicating an immense benefit from the BEE policy. However, issues such as nepotism, corruption, and exploitation by policy implementers with political acquaintances in the public procurement system prevent the policy from fully achieving its objectives. South Africa's government must institute measures to ensure all the hindrances adversely affecting the policy's successful implementation are eradicated for the intended policy objectives to be realised. Copyright © 2023 Inderscience Enterprises Ltd.

Corruption in healthcare: a view from the pandemic.

Corruption in healthcare has become transnational and intersectoral in nature; leading countries around the world have become vulnerable and insufficiently prepared to address health crises. The article deals with topical issues of corruption in healthcare during the Covid-19 pandemic in public and private sectors. By comparing different ratings, we concluded that there is a correlation between the level of corruption and the average annual income of the respective state, the observance of human rights and democratic standards in the context of their response to the Covid-19 pandemic.

Public Procurement Contract for Goods and Services Following the Presidential Decree Number 12 of 2020 on the Stipulation of the Coronavirus Disease (Covid-19) Pandemic as a National Disaster

The Covid-19 Pandemic affects many sectors. Therefore, the Indonesian Government passed the Presidential Regulation Number 12 of 2020 to manage the Pandemic. Unfortunately, this regulation has evoked various interpretations on the disaster contingency as a foundation to apply force majeure condition. The Government’s policies of budget refocusing and reallocation to manage the Covid-19 Pandemic have brought significant effects on goods and services procurement contracts. This condition may lead the Government into default, and it is force majeure. Therefore, the Government is discharged from any liabilities. Consequently, it may injure contractors of procurement. This study aims to investigate the actuality of such procurement contracts following the Presidential Regulation. This study is a normative law research. Based on the Presidential Regulation, the force majeure condition is likely to be applied on procurement contracts. However, the condition does not immediately nullify or terminate the contracts. They remain legally valid and binding. In case of a condition permanently prevents debtor to fulfill obligations, contract can be terminated. In case of a condition temporarily prevents the contract’s implementation, the best solution to encourage conducive business climate is renegotiation that is legalized by contract addendum. © 2020, Padjadjaran University. All rights reserved.

EU Public Procurement Policy During Covid-19: A Turning Point for Legitimate EU Governance?

Public procurement is a policy area located between two contradictory tendencies. On the one hand, the European Commission strives for greater competition to widen procurement markets. On the other hand, the boosting of competition encounters resistance among the member states. This article investigates how these colliding tendencies played out during the initial stages of the Covid-19 crisis and, more specifically, how changes in the field of procurement affected legitimate governance in the EU. Based on institutionalist and EU governance theories, the study contributes to the literature with three principal findings. First, it demonstrates that the pandemic enabled exogenously driven changes in the field of public procurement with new policies and guidelines, while the EU’s overall aims in this field were upheld. Second, the study demonstrates that the Commission was the main driver of change and that it enhanced the harmonisation of procurement rules and supranational integration despite the crisis. Third, while these changes strengthened the role of supranational actors, the study demonstrates that the changes introduced allow member states increased flexibility when it comes to the implementation. In practice, however, this flexibility has the potential to undermine the EU’s initial aims, thereby jeopardising the EU’s legitimacy.

Public Procurement of Innovative and Technological Solutions in the EU

Smart cities should identify and procure the best technical solutions for their communities and companies while at the same time demonstrating the local economic benefits of public procurement. Whenever possible, the procurement process should increase innovation in sustainability. Public procurement of innovative solutions can contribute to the economic recovery of the EU, especially after the crisis caused by COVID-19 with the help of better and more technologically accessible public investments. It is a means of stimulating the transformation of European economies into digital economies. This paper seeks to explain the use and advantages of public procurement of innovative solutions. The contracting authority acts as the first customer (launch customer) of innovative goods or services that are not yet widely available commercially and are technologically acceptable. Instead of buying a finished product, service or process, the contracting authority acts as the first user and buys a product, service or process that is new to the market and has significant new features in terms of innovation and technological achievements. Therefore, this paper will try to identify how various stakeholders can use innovative and technology-aware public procurement systems procedures and contribute to the accelerated development of digitalization mandated by the European Commission. © 2022 Croatian Society MIPRO.

Interpreting Contractual Rights to COVID-19 Remedies: An Analysis of Cases

The construction industry has been adversely impacted by the COVID-19 pandemic including significant delays on projects and outbreaks of COVID-19 on site. UK legal cases interpreting contractual rights to COVID-19 remedies are analyzed in this paper. The analysis of UK legal cases regarding potential contractual rights to COVID-19 remedies including change in law, force majeure, and frustration has revealed the barriers to recovery of losses. Instead, construction companies could consider focusing on more commonly used contract provisions, for example, extensions of time and prolongation claims or compensation events. The UK Supreme Court has ruled on the possibility of payment from business interruption insurance. Even the UK government has failed to comply with public procurement law under pressure of the COVID-19 pandemic. The High Court in London has ruled that landlords are entitled to recover rent and service charges owed to them by tenants whose businesses were mandated to close by coronavirus restrictions. © 2022 American Society of Civil Engineers.

STRENGTHS AND WEAKNESSES IN EMERGENCY PUBLIC PROCUREMENT CAUSED BY THE COVID-19 HEALTH CRISIS. A COMPARATIVE STUDY BETWEEN SPAIN AND MEXICO

Emergency public procurement during the COVID-19 health crisis has been a resourceful instrument to provide an immediate response to public needs by the public administrations. The States have developed different emergency legislation and measures to resolve a crisis, as both the Spanish and Mexican cases demonstrate. The implementation of an emergency public contract shows some risks such as weakness in the legal bases and emergency reasoning, a disproportionate use or a deficiency in the administrative control that can affect the legal principles related to procurement. This article demonstrates the existence of different meanings of the concept, nature, and requirements of emergency public procurement. Based on anticipatory governance, Public Administrations must be prepared to use strategic public procurement to contribute to strengthening the Rule of Law within times a context of crisis.

THE ECONOMIC REBALANCING OF CATERING SERVICES CONCESSIÓN CONTRACT AFTER AD HOC SUSPENSION IN TIME OF COVID-19

Public procurement has not been an exception to the economic crisis resulting from Covid-19. The instability derived from the state of alarm is particularly serious in the case of catering services linked to the public sector. In order to mitigate the damage caused to service concessions, art. 34.4 of Royal Decree-Law 8/2020, 17th March, introduced an exceptional regime so as to restore the economic equilibrium of contracts from which more doubts than certainties have arisen. The aim of this work is to provide the legal operator with a series of answers that will enable him to duly channel the effective exercise of the service concessionaire's right to compensation. And this, in a productive sector as affected as the catering sector, or even doubly affected, as is the case of university cafeterias and canteens. © 2022, Iustel. All rights reserved.

PPPs as instruments of public procurement in Botswana post-2007

In 2007, the world economy experienced a global financial crisis (GFC), therefore, leading to chronic fiscal strictures. Resultantly, public-private partnerships (PPPs) have become a dominant form of public procurement. The PPPs case is more deserved in mono-cultural economies which disproportionately suffered the effects of the GFC. The case for PPPs is more merited in the face of revenue challenges due to COVID-19. Since 2009, Botswana uses PPPs to finance public projects. This essay, based on the case study method, discusses the PPPs project in Botswana. It concluded that while the prevailing narrative is that PPPs are vital and the PPPs regime is taking root, there are challenges. Key challenges are disenabling legal-institutional framework and poor project implementation. Moving forward, and given a reduced fiscal envelope post-2007, the projected plateauing of diamonds revenues in 2030 and revenue strictures due to COVID-19 as diamonds face falling demand, PPPs are the default position. Copyright © 2022 Inderscience Enterprises Ltd.

Public procurement – price-taker or market-shaper?

Purpose>This paper examines the role of government procurement as a social policy mechanism within a multilateral open trading system. Government regulations globally are being transformed to foster more responsible business conduct in multinational enterprises (MNEs). Yet, concern that sustainability may present a discriminatory barrier to trade has stalled the progress of sustainable public procurement (SPP) at the international level, raising questions regarding the role and scope of the World Trade Organisation’s (WTO) Government Procurement Agreement (GPA) to align taxpayer-funded contracts with the United Nations (UN) Sustainable Development Goals.Design/methodology/approach>With a focus on social sustainability, this paper reviews the grey and academic literature to assess the changing landscape of public procurement policy and supply chain legislation in high-income countries.Findings>Frontrunner nations are adopting a mandatory approach to sustainable public procurement and due diligence legislation is elevating supply chain risk from reputational damage to legal liability. While technological innovation and the clean, green production of manufactured goods dominates the sustainable public procurement literature, the social aspects of sustainability poverty, inequality and human rights remain underrepresented.Research limitations/implications>The scope of this paper is limited to the examination of government procurement covered by the WTO-GPA (2012). Smaller value contracts, under the WTO-GPA thresholds and the category of defence are beyond the scope of the paper.Social implications>The paper focusses on the underserved topic of social sustainability in business-to-government (B2G) – business to government – supply chains arguing that for responsible business conduct to become a competitive advantage, it must be more meaningfully rewarded on the demand-side of all taxpayer-funded contracts in organisation for economic co-operation and development countries. The paper introduces the idea of priceless procurement as a mechanism to build system capacity in the evaluation of non-financial sustainability objectives.Originality/value>To build the capacity to stimulate competition based on social and environmental policy objectives, the paper introduces the concept of priceless procurement in B2G contracts.

Public procurement during the pandemic: experience of India and China

Purpose: The paper examines the public procurement experiences of India and China during the Covid-19 pandemic and locates them in a framework it proposes. The paper aims to enrich the knowledge of how public procurement could be strategically used in emergencies. Design/methodology/approach: For the two countries, the paper sieved through government orders and notifications promulgated during and for the pandemic, examined the prevailing laws and statutes that were invoked and comprehensively scanned online news portals to gather evidence. In addition, the author also engaged with select, relevant people in the sector who offered useful information about ground-level scenario. Findings: It is found that as compared to China, in India (a) despite the presence of significant flexibilities, (b) there was a little divergence from standard procurement practices, perhaps explained by (c) weaker governance capacity and legitimacy, (c) more allocative (rather than structural) goals of procurement and (d) higher levels of centralization. Research limitations/implications: The findings of this paper are based entirely on secondary evidence limited to health care as a category of spend. This paper looks at two large countries and not their internal variations in procurement quality. The framework can also be enriched further by drawing additional categories to make the theoretical framework more promising. Practical implications: The underlying design and motivation of public procurement policies in India need significant changes to make procurement policies responsive to disasters. Also, one can learn decentralization during emergency from the otherwise centralized politics in China. Originality/value: To the best of the author’s knowledge, this paper is the first attempt to compare pandemic procurement-related policies of the two large countries across the Himalayan border. It also attempts to develop a scale/framework on which emergency procurement in countries can be assessed. © 2020, Emerald Publishing Limited.