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Latvia

open public procurement (LV0036)

Overview

At-a-Glance

Action Plan: Latvia National Action Plan 2017-2019

Action Plan Cycle: 2017

Status: Active

Institutions

Lead Institution: The Procurement Monitoring Bureau, the State Regional Development Agency

Support Institution(s): Ministry of Finance MEASURE THE IMPLEMENTATION OF RELEVANT PARTNERS Society "Latvian Information and Communications Technology Association" Association "Latvian Trade and Industry Chamber" Latvian Free Trade Union

Policy Areas

E-Government, Open Contracting and Procurement, Open Data

IRM Review

IRM Report: Pending IRM Review

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Pending IRM Review

Relevant to OGP Values: Not Relevant

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review

Description

OPENNESS AND EFFECTIVENESS OF PUBLIC PROCUREMENT IN
THE FIELD
DEADLINE:
2017 2nd half - 2019 1st half
WHAT ARE THE STATE AND THE PUBLIC INTEREST ISSUES WHICH HELPS MEETING THIS
COMMITMENT?
Public procurement OECD countries on average 12% of GDP or 29% of the general government (government)
spending. 47 OECD points out: "As public procurement accounts for a significant part of the use of taxpayers'
money, the countries it is expected that they are carried out effectively in accordance with strict standards of
behavior in order to ensure a high quality of service and compliance with public interest." 48
The OECD also points out that an effective public procurement is an important step towards to meet the needs of the population,
so they are gradually becoming one of the pillars of good governance, that can allow to restore confidence in the public
administration. 49
Associations BASE study "Shadow economy Analysis of factors affecting the Latvian construction sector," stressed
the need to raise public procurement tender offer openness and transparency of the examination. 50
BASE study highlights that a significant problem that contributes to the development of the underground economy in the construction
sector, it is the lowest price criterion. The European Commission's "Report on Latvia -
2017 "recognized that the lowest price criterion is one of the disturbances in the area of public procurement, which contribute to the informal
economy, adversely affects the quality and leads to other negative consequences. 51
47 OECD. "Government at a Glance 2015". Paris: OECD Publishing, 2015th
View: http://www.oecd.org/gov/government-at-a-glance-2015-country-factsheets.htm 48 Ibid.
49 of the OECD. "Government at a Glance 2017". Paris: OECD Publishing, 2017th
View: http://www.oecd.org/gov/govataglance.htm
50 BASE. "Shadow economy Analysis of factors affecting the Latvian construction industry." 2016th
View: http://www.latvijasbuvnieki.lv/wp-content/uploads/2016/06/BASE_petijums_web.pdf 51 European Commission. "The report on
Latvia - 2017". 2017th
View: https://ec.europa.eu/info/publications/2017-european-semester-country-reports_en
9th
COMMITMENT
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 42
OECD Recommendation on public procurement 52 OECD Member States on the following requirements:
• to ensure adequate transparency of public procurement in all stages of the process (information on procurement is available
in a timely manner, it has free access to the Web site and a total investment of public funds in procurement is characterized
by transparency);
• promote public procurement process more effective, ensuring efficient investment of public funds and its
compliance with the state and society (recommended to evaluate procurement processes and institutions
to assess the risks of wastage, create client-purchasing system);
• to evaluate the effectiveness of the public procurement system - the system as a whole up to the specific procurement.
OECD recommendation encouraged to develop indicators with which to assess the effectiveness of procurement in
order to promote a more strategic approach to procurement.
The Treasury and Public Policy Center "PROVIDUS" 2017 March 17 discussion participants stressed the importance of
openness in procurement and recommended an extension of the information available on procurement. fifty three
2017 entered into force changes to the public procurement laws and regulations governing, inter alia, towards
greater openness. One of the new Public Procurement Act (entered into force on 1 March 2017) is to ensure
transparency in procurement. In addition to 2017
April 1, entered into force of public service providers Procurement Law and 2017
1 May - Public-Private Partnership Act amendments. Public Procurement Law and the Public Service Provider
Procurement Law requires not only the shopping search and procurement plan of publications, but also a gradual
transition to electronic procurement documentation publishing as well as electronic submission of tenders in one place -
the State Regional Development Agency (hereinafter - the State Regional Development Agency) Electronic
Procurement System (norm will be introduced gradually until 2019, January).
The new regulation will contribute to the gradual elimination of the orientation solely on the lowest price or cost as a criterion.
In addition to price or costs, will be able to use the quality criteria to determine the most economically advantageous tender.
Therefore, the Procurement Monitoring Bureau (hereinafter - PMB) and other relevant authorities, in cooperation with sectoral
organizations to make recommendations of evaluation criteria for various industries.
Defining new criteria may take into account, such as the Cabinet of Ministers of 20 June 2017, the provisions of No. 353
"Requirements for Green Public Procurement and the application procedure," containing advice on using environmental
criteria and the life cycle of the calculation of energy-efficient equipment.
52 OECD. "C (2015) 2 Recommendation of the Council on Public Procurement". 2015th
View: http://www.oecd.org/gov/public-procurement
53 Work material "Open Management Partnership Plan 2017-2019: wishlist Latvian challenges".
View: http://providus.lv/article_files/3299/original/OGPidejuApkopojumsFINAL.pdf?1490952718
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 43
European Commission's "Report on Latvia - 2017" 54 It indicates that one of the problems Latvian is that the
email platform is not mandatory that both would increase transparency, as well as reduce costs.
There are already some information on procurement is publicly available in different Web site. Background on all
purchases, which are subject to legal requirements, found in the PMB's Web site, but the Latvian Open Data portal
www.data.gov.lv - information about the transactions that are made through the e-procurement system,
e-procurement functionality. PMB's Web site at 55 available for purchasing of publication: announcements of the
announced public procurement, as well as notices of award of the contract (ie. including. information on the winners,
the contract price offered, or intended performance of the contract involve subcontractors, small and medium
enterprises in the procurement and other information). PMB's Web site published information about the received
shopping violation appeal submissions, as well as the IUB Application Review Commission decisions, so everyone
has a chance to get information about the purchases allowed by the contracting irregularities and the results of the
examination.
VRAA Electronic Procurement System 56 It is the first e-procurement system in the Baltic States. Since the
amendments to the law in force in 2017, it is published at the national and local government procurement
plans. Electronic Procurement System is also published information about the transactions made
(customer, supplier, the transaction volume of the subject). For each procurement announced details
available in the institution or capital company's Web site (buyer profile) - procurement documentation
(regulations, technical specifications, answers to candidates and tenderers issues, including information on
the amendments to the tender documentation). The buyer profile is published in the procurement report - a
summary report on the conduct of the procurement procedure, which shall include all candidates and
tenderers names, the proposed contract price,
The requirement to publish the contract is mandatory. At the same time information on the concluded public procurement contracts
and procurement contracts are not available in one place, but the authorities and the capital company's Web site. Therefore, the
search is often difficult.
Electronic procurement system already provides for the possibility to build a repository for procurement contracts
which have been made in the system. 2018 at the beginning of this repository will be transformed into a publicly
available register of the contract (to be published only part of it, the purchaser will be marked as confidential
information-free). The initiative "Open Contracting Partnership" developed open procurement data standards 57
54 European Commission. "The report on Latvia - 2017". 2017th
View: https://ec.europa.eu/info/publications/2017-european-semester-country-reports_en 55 View: www.iub.gov.lv 56 View:
www.eis.gov.lv
57 See: http: //standard.open-contracting.org/latest/en
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 44
(Engl. - Contracting Open Data Standard), which can serve as a guide to assess the information and how it can be published in
various stages of the procurement process. In the coming years, the importance of paying attention to the efficiency of public
procurement, increasing the opportunity to examine how effectively been set in procurement. It would be useful to develop a
cross-sectoral indicators that can be used to determine the effectiveness of the specific procurement.
WHAT IS COMMITMENT?
Improve transparency and efficiency in procurement:
• introduce measures and to assess the need for further measures to improve the transparency and
public awareness of public procurement, taking into account the 2017 change in public procurement
legislation;
• promote transparency in the sub-threshold procurement, evaluating possible solutions;
• to assess the need and opportunities for national authorities concluded procurement contracts to publish in one place and
one place to publish the contract amendments. To evaluate the contract publications as its entry into the implementation of
the condition;
• VRAA promote electronic procurement system set up e-procurement and e-tendering wider use.
Provide information on the purchase of open data in the form;
• to examine the possibilities of developing national and local government procurement efficiency criteria and
methodologies, as well as risk analysis tools to be able to carry out certain procurement effectiveness,
efficiency and economic benefit evaluation. Efficiency criteria and methodology as a pilot project to test a
particular sector;
• State authorities in collaboration with industry organizations to develop and promote the recommendations of the
most economically advantageous tender evaluation criteria for various industries purchasing organization in order
to facilitate the orientation for the best price-quality ratio in public procurement, reducing the price criterion
dominant influence;
• to assess the need to develop planning documents and procurement to promote the procurement
regulatory impact assessment on the economy.
HOW TO COMMITMENT will be introduced and the solution to these problems?
The commitment will be implemented by the responsible institutions in the field of public procurement, the implementation of such
measures, which are intended to increase the transparency and public awareness of public procurement and evaluating opportunities for
increasing procurement efficiency, involving the commitment to the execution of business partners, and other industry professionals.
These measures will help to increase the transparency of public procurement and to evaluate opportunities to improve
procurement efficiency.
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 45
HOW TO MEET COMMITMENT OGP VALUES?
OGP commitment to two values - openness and accountability. Commitment will enhance transparency as it
will be possible to visit the procurement convenient manner, thus promoting participation in public
procurement. Measures aimed at public procurement efficiency, promote the institutions responsible for their
decisions and good governance.
ADDITIONAL INFORMATION
Linking with international instruments
Commitment to contribute to the Latvian conformity with the OECD Recommendations on public procurement requirements.
By 2017, the Cabinet of Ministers of April 3, Order No. 166 approved the project "e-procurement and e-auction platform development" 58 conceived
within the framework of such a disclosure-oriented activities:
• Automatic Electronic Procurement System for publishing opened the data available for at least the
following amounts: e-order subsystem concluded within the transaction data (publications available
today - see. https://data.gov.lv/dati/lv/dataset/eis )
procurers register, e-tendering subsystem's procurement data;
• according to the EU directive 2014/24 / EU Article 59 of the European single tender document
(hereinafter - ESPD) integration of electronic procurement system, e-tendering subsystem in order to
ensure compliance with the data exchange standard, as well as unifying the submission of tenders in all
kinds organized by the Latvian procurement;
• E-statement and ESPD mutual integration, providing automatic data entry ESPD to facilitate and
expedite the procurement of preparing a bid.
INTERMEDIATE OBJECTIVES
1. ESPD integration of electronic procurement system for e-tender subsystem
2017 2nd half - 06/30/2019.
2. Electronic Procurement System e-statement and ESPD mutual integration
2017 2nd half - 06/30/2019.
58 European Union funds 2014 2020th annual operational program "Growth and
Employment "2.2.1. the specific objective of the aid" Providing public data for re-use increases and effective public administration and private sector
interaction "2.2.1.1. measure" Centralized public administration ICT platform for the establishment of public administration process optimization and
development "project.
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 46
3. The most economically advantageous tender evaluation criteria recommendation for preparation and publication of
the main shopping areas
2017 2nd half - 07/31/2018.
4. Electronic Procurement System for publishing open data portal
2017 2nd half - 06/30/2018.
5. Informative report on options for ensuring transparency '' subthreshold '' procurement and
electronic procurement system functionality necessary adjustments development
01.01.2018. - 01.01.2019.
RESPONSIBLE PUBLIC AUTHORITIES
The Procurement Monitoring Bureau, the State Regional Development Agency
OTHER MEASURES IN IMPLEMENTATION OF NATIONAL INSTITUTIONS
INVOLVED
Ministry of Finance
MEASURE THE IMPLEMENTATION OF RELEVANT PARTNERS
Society "Latvian Information and Communications Technology Association"
Association "Latvian Trade and Industry Chamber" Latvian Free Trade Union


Latvia's Commitments

  1. public participation in decision-making

    LV0028, 2017, Capacity Building

  2. e-legal-services

    LV0029, 2017, E-Government

  3. Open data

    LV0030, 2017, E-Government

  4. lobbying transparency

    LV0031, 2017, Capacity Building

  5. budget transparency

    LV0032, 2017, E-Government

  6. whistleblower protections

    LV0033, 2017, Capacity Building

  7. ethics in public management

    LV0034, 2017, Capacity Building

  8. zero bureaucracy

    LV0035, 2017, Legislation & Regulation

  9. open public procurement

    LV0036, 2017, E-Government

  10. transparency in state management

    LV0037, 2017, E-Government

  11. beneficial owenrship

    LV0038, 2017, Beneficial Ownership

  12. evidence-based governance

    LV0039, 2017, Capacity Building

  13. Starred commitment Concept note on publishing data

    LV0018, 2015, Open Data

  14. Portal drafting legislature and development of planning documents

    LV0019, 2015, E-Government

  15. Platform unifying Gov. webpages

    LV0020, 2015, E-Government

  16. Starred commitment Transparency of selecting candidates for the boards and councils of public entity enterprises

    LV0021, 2015, Legislation & Regulation

  17. Supervising officials responsible of public resources

    LV0022, 2015, Anti-Corruption Institutions

  18. Sustainable model of financing NGOs

    LV0023, 2015, Civic Space

  19. Starred commitment Online collection of signatures on referenda

    LV0024, 2015, E-Government

  20. Draft law on protecting whistleblowers

    LV0025, 2015, Whistleblower Protections

  21. Assessment of the system of the financing political parties

    LV0026, 2015,

  22. Code of ethics and a Public Administration Employee’s Handbook for public sector

    LV0027, 2015, Capacity Building

  23. IMPROVING THE QUALITY OF THE INVOLVEMENT OF SOCIETY IN DECISION MAKING: NGO fund

    LV0001, 2012, Capacity Building

  24. IMPROVING THE QUALITY OF THE INVOLVEMENT OF SOCIETY IN DECISION MAKING: Strengthen Social Partners

    LV0002, 2012, Public Participation

  25. IMPROVING THE QUALITY OF THE INVOLVEMENT OF SOCIETY IN DECISION MAKING: Trade union law

    LV0003, 2012, Civic Space

  26. IMPROVING THE QUALITY OF THE INVOLVEMENT OF SOCIETY IN DECISION MAKING: NGO co-working

    LV0004, 2012, Civic Space

  27. IMPROVING THE QUALITY OF THE INVOLVEMENT OF SOCIETY IN DECISION MAKING: Public engagement model

    LV0005, 2012, Public Participation

  28. IMPROVING THE QUALITY OF PUBLIC SERVICE PROVISION : Internet Access Points

    LV0006, 2012, E-Government

  29. IMPROVING THE QUALITY OF PUBLIC SERVICE PROVISION : Public Service Assessment

    LV0007, 2012, Public Service Delivery

  30. IMPROVING THE QUALITY OF PUBLIC SERVICE PROVISION : Enhancing e-services

    LV0008, 2012, E-Government

  31. IMPROVING THE QUALITY OF PUBLIC SERVICE PROVISION : Transport e-services

    LV0009, 2012, E-Government

  32. RESTRICTING CORRUPTION : Asset disclosure

    LV0010, 2012, Asset Disclosure

  33. RESTRICTING CORRUPTION : Lobbying law

    LV0011, 2012, Legislation & Regulation

  34. RESTRICTING CORRUPTION : Whistleblower protection

    LV0012, 2012, Whistleblower Protections

  35. RESTRICTING CORRUPTION : Public subsidy control

    LV0013, 2012, Private Sector

  36. RESTRICTING CORRUPTION : State owned enterprises management

    LV0014, 2012, Private Sector

  37. FACILITATING FREEDOM OF INFORMATION AND INTRODUCING AN OPEN DATA SYSTEM : Single platform for Government websites and information

    LV0015, 2012, E-Government

  38. FACILITATING FREEDOM OF INFORMATION AND INTRODUCING AN OPEN DATA SYSTEM : Online broadcasting from the Cabinet and Parliament

    LV0016, 2012, E-Government

  39. FACILITATING FREEDOM OF INFORMATION AND INTRODUCING AN OPEN DATA SYSTEM : Website forpublic participation

    LV0017, 2012, E-Government