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Latvia

Transparency in Public Procurement and Contracts (LV0040)

Overview

At-a-Glance

Action Plan: Latvia Action Plan 2019-2021

Action Plan Cycle: 2019

Status: Active

Institutions

Lead Institution: Procurement Monitoring Bureau (PMB)(authority responsible for the commitment as a whole)Central Finance and Contracts Agency (CFLA) (responsibleauthority on the Integrity Pactaccess to EU financial instrumentsfunded projects)

Support Institution(s): State and municipal institutions Ministry of Finance, CFLA, VARAM (SRDA), specificthe municipalities in which the procurement will be monitoredIntegrity Pact (to be selected at launch)fulfillment of the undertaking), VK (public law contract)accessibility issues) Representatives of the society Society for Transparency - Delna, othersmembers of the public, media

Policy Areas

Access to Information, Anti-Corruption, Audits and Controls, Capacity Building, E-Government, Legislation & Regulation, Legislative, Open Contracting and Public Procurement, Open Data, Public Procurement, Social Accountability Measures & Feedback Loops, Subnational

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: Pending IRM Review

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review

Description

What are the major national and societal challenges that this commitment will address?
There is mistrust in the public about the fairness and usefulness of public procurement results. This disbelief is exacerbated by cases of purchasers acting for selfish purposes on goods,services paid too high for construction work, the quality obtained does not match the price. To multiplypublic confidence in the effective management of State and local authorities by the budget and the European Union Financial means should seek new and effective methods of monitoring procurement, including through promotionpublic participation in procurement monitoring.The Integrity Pact is an increasing use of public procurement surveillance and corruption in Europetool for prevention. It is also supported and promoted by the European Commission. Under its leadership, the Integrity Pact was introduced in 11 EU Member States as a monitoring tool for EU-funded projectssupport. There is a convenient and comprehensive identification of potential risks for certain procurersboth procurement supervisors are needed to build risk analysisa sample of purchases to be audited, as well as members of the public, to strengthen civilian oversight over theprocurement process and public demand for state and municipal institutions to improve their ownperformance in public procurement. At present, the collection of various risk factors must be done manually gathering information from various sources. By digitizing procurement risk assessment,using the Procurement Information published on the Procurement Monitoring Bureau websitenotices and decisions of the Review Panel, interested parties would be giventhe ability to analyze information and select customers to focus on purchasing behaviorincreased attention.Although all procurement contracts and their amendments are published in the Electronic Procurement Systemwww.eis.gov.lv in the profile created for each purchase (contract texts are appended to .pdf or .docxformat), but no structured and easy-to-read information about the contract is availableexecution from the moment of its completion to full execution. It limits the oversight body, non-governmental opportunities for organizations and the public to find out about actual public spendingprocurement contracts, compare contract prices and planned and actual contract deadlines, identify risks of unjustified expenditure.There are contract registers in several Member States of the European Union where information oncontracts, their modification and actual performance, and information is also available in the opendata by publishing it on national open data portals.Information on public-law contracts providing for the provision of public or local funding can not be found for delegated or delegated management tasksin one place. In accordance with the Public Administration Structure Law, information on delegation agreements and Contribution agreements should be published on the website of the delegating authority.This makes it difficult for the public to easily and easily get to know what administrations are in one place tasks delegated to individuals; and on public funding provided for in the terms of delegationaward. The implementation of this commitment will be used in 2018 by the national regulatory authorities results of the internal audit of the Delegation of Public Administration Tasks by the Audit Bodies.

What is the commitment?
The following measures will be taken to promote greater transparency in public procurement and contracts:
1. Structured publication of descriptive data on the performance of procurement contractsUsing information from announcements posted on the Procurement Monitoring Bureau websitethe results of procurement and procurement procedures and changes during the term of the contract and the contracting authorityto enter data on contract modifications and their execution, to create a database on public procurement contracts(Procurement Contracts Register), which would compile information on each contract entered into, reflectingthe initial contract price (the amount at which the contract was concluded as a result of the procurement) and the initial(c) the term of performance, changes in the contract as a result of the changes (change in contract price and term) andthe justification for the amendment, the contract price actually paid on completion of the contract, andthe actual duration of the contract and the reasons for termination if the contract is terminated. Contractregister data to be published and visualized on the Procurement Monitoring Bureau website and open dataformat in Latvian Open Data Portal.The contract register will include the information available from the PMB websiteprocurement notices. Information on contracts for which no publication is requirednotices will not be obtained in this manner. Therefore, as far as possible, in line with what has been said in the working groupthe proposal should explore solutions and benefits and, if necessary, make proposals forproviding publicity for contracts not covered by the law as their contract price does not reachthresholds for the application of the law. Initially, which contracts are covered and from whomamounts should be eligible.When creating such a database, it is essential to protect the restricted information contained in itpublic procurement, providing for exceptions to the general procedure for such public procurementis not included in the database.
2. Digital procurement risk assessment toolDigital procurement risk assessment tool published by the Procurement Monitoring Bureauinformation from your procurement announcements will select information such as a discontinued purchase at one gothe number of lots, the number of amendments made to the procurement documentation, and the number of purchases made by only onesupplier, the frequency with which non - competitive procedures have been used, orthe same supplier is regularly won by the same supplier, etc. etc. Digital Procurement Riskthe evaluation tool will also collect information on the number of procurement notices published by the contracting authority,which are linked to one of the characteristics of the procurement risk (the so - called red risk flags)red flags ). Once a certain level of risk has been reached, procurement authorities will be able toto establish that the procurements carried out by the contracting authority require special attention.
3. Monitoring of public procurement through the Integrity PactAnalyze the possibilities of adapting the Integrity Pact to Latvia's conditions and promoting public participationprocurement, including procurement of European Union fund projects, would be randomly selectedan appropriate Integrity Pact - an independent public benefit organization procurespublic oversight from the moment the procurement documentation is drafted until the procurement contract is completefor execution. As a result, greater transparency in the conduct of public procurement as well as correct procurement is expecteddeveloping documentation, ensuring a level playing field and complying with the lawperformance of the contract resulting from the procurement.When analyzing the possibilities of adapting the Integrity Pact to Latvia's conditions, an evaluation is made of which procurementthresholds and what kind of procurement the Integrity Pact could cover.The Commitment provides for information activities in municipalities on the Integrity Pact and its implementationopportunities and methods for non-governmental organizations with experience with the Integrity Pactimplementing seminars for municipal staff involved in public procurementand monitoring, as well as members of the public, active citizens, journalists, etc.interested. The citizens of the local government would gain knowledge on how to carry out their municipal activitiespublic procurement monitoring, as well as information on your rights to exercise such monitoring.This would facilitate procurement monitoring as well as public participation.The Integrity Pact is a form of public oversight of public procurement. That's itshall take the form of an agreement between the procuring entity, the public body and, ifif necessary, other parties such as bidders and winners.The Pact of Integrity is not a task for public authorities to monitor public procurement -delegation. The oversight functions of the Procurement Monitoring Bureau to oversee this procurementare not delegated and remain unchanged.
4. Research and promote public law contracts (delegation agreements, partnership agreementsand other contracts)The Commitment measure seeks to investigate the availability of information on public law during the reporting periodcontracts, and to develop and make specific recommendations for the transparency of information. How will the commitment help to address the issues identified?The contract register will be developed as a convenient tool for publishing, monitoring and monitoring contract performance informationcost analysis, for example, by providing information on which sectors, departments or agencies;In regions, contract prices tend to increase over the course of the contract, which suppliers usually dodoes not execute contracts for the prices offered in the procurement. Whereas the register of contracts is also intended to include:links to procurement documents and published procurement contract, it will also allow you to analyze how the procurementthe conditions imposed affect the cost and whether there is no post-contract termschange in favor of the contractor. The introduction of a register of contracts will require amendmentspublic procurement legislation, as well as providing easy entry of informationa contract register, which could then be published in an open data format and visualized in a digital formatProcurement Risk Assessment Tool for analysis. Based on the risk assessment, institutions such as PMB, CFLA, State Audit Office and Competitionthe Board will be able to carry out an in - depth assessment of the purchases made by the relevant contracting authorities, analyzing withrelevant procurement information from the respective customer, which will be provided in one place digitalprocurement risk assessment tool. Keeping in mind that the digital procurement risk assessment tool will be freeavailable on the Procurement Monitoring Bureau's website, anyone can analyze the information it collectsa representative of the company, providing convenient and fast information on the customer in question on an annual basispurchases made. The information will be available in a user-friendly way. Yesif necessary, the data will be downloadable in spreadsheet format.In circumstances where the company is actively involved in the monitoring of public procurement and the state or local governmentThe Authority shall provide supervisors with open access to information, the public shall be made aware ofthe usefulness and fairness of public procurement and whether public funds have been dealt witheffective. Citizens can be assured that public procurement is legal, so it isincreased confidence in public administration, in turn, in finding violations of public office or allegedcandidates, it is possible to report immediately to the competent authorities and to suspend or prevent themwaste of public funds.Delegation and participation agreements and other contracts also provide for public fundingperforming delegated administrative tasks and carrying out other activities. The commitment would resultIdentify the public's access to information on:the contracts referred to, the tasks entrusted to individuals and the funding granted; andrecommendations on the necessary measures to ensure transparency, including:the need for legislative changes.

Why is this commitment consistent with OGP values?The commitment shall comply with the following OGP values:
• publicity , as the Register of Contracts will provide the public with information on the contract of interest(Amendments, Execution) freely available on the Procurement Monitoring Bureau website and analyzedin the form of open data. A digital procurement risk assessment tool will provide the public with the opportunityview information about the interested purchaser in a visually friendly way, all in one placein one tool, plus downloading of selected information. Integrity Pactuse will promote openness in public procurement by making it directly accessible to the publicmonitoring the entire procurement procedure. Possible problems withTransparency of Delegation and Collaboration Agreements and Proposals for Informationimproving accessibility;
• Participation , as the contract register and digital procurement risk assessment tool will help the stateaccess to tax data for institutions, private companies and the general publicpayers' money and be better informed about the actual public procurementresults. Access to information will enable the public to become involved in procurement monitoring andto hold the management of a municipality or institution responsible for unsatisfactory procurementorganizational practices and concrete actions to improve the situation. Openness and direct public involvement in the monitoring of public procurement are expected to contributepublic officials' responsibility for the correct and lawful implementation of public procurement and public fundsusage.

Additional information
Available commitment ornecessary financing:
The establishment of a database on public contracts will be carried outprovided from the budget of the Procurement Monitoring Bureau; orattracting funding from European infrastructureconnecting tool.In order to avoid funding the implementation of the Integrity Pact,contracting or candidate / potential procurement winnermeans,necessaryattractindependentsponsor.The Society for Transparency - Delna has submitted a project whichcan provide funding for seminars in five municipalities.If the project is not approved, funds will have to be sought elsewhere.

Relationship with other documents
The commitment is in line with European Commission documentscalls on Member States to draw up a treatyregisters and other controls on the execution of procurement contractstools and to ensure greater transparency in procurement.The commitment is in line with “GovernmentsactionplanDeclarations on the Cabinet chaired by Arturs Krišjānis Kariņšfor the implementation of the proposed activities'“Improvement of public procurement procedures by increasingtheir effectiveness and reducing the risk of corruption ”(that you have detailed and up-to-date information in one placeon concluded and concluded procurement contractsfor amendments)

Other information
Changes are needed in the areas of public procurementlegislation which would oblige the subscriber to entercontract register data on contract modifications and actualcontract performance (contract price and term), as well as contractjustification for termination


Commitments

  1. Transparency in Public Procurement and Contracts

    LV0040, 2019, Access to Information

  2. Open Data

    LV0041, 2019, Access to Information

  3. Transparency in Lobbying

    LV0042, 2019, Capacity Building

  4. Open Municipal Government

    LV0043, 2019, E-Government

  5. Public Engagement in Policymaking

    LV0044, 2019, Capacity Building

  6. Anti-corruption Measures

    LV0045, 2019, Anti-Corruption

  7. Public Participation in Decision-Making

    LV0028, 2017, Access to Information

  8. e-Legal Services

    LV0029, 2017, Access to Information

  9. Open Data

    LV0030, 2017, Access to Information

  10. Lobbying Transparency

    LV0031, 2017, Capacity Building

  11. Budget Transparency

    LV0032, 2017, E-Government

  12. Whistleblower Protections

    LV0033, 2017, Anti-Corruption

  13. Ethics in Public Management

    LV0034, 2017, Capacity Building

  14. Zero Bureaucracy

    LV0035, 2017, Legislation & Regulation

  15. Open Public Procurement

    LV0036, 2017, Access to Information

  16. Transparency in State Management

    LV0037, 2017, Access to Information

  17. Beneficial Ownership

    LV0038, 2017, Anti-Corruption

  18. Evidence-Based Governance

    LV0039, 2017, Capacity Building

  19. Starred commitment Concept Note on Publishing Data

    LV0018, 2015, Access to Information

  20. Portal Drafting Legislature and Development of Planning Documents

    LV0019, 2015, E-Government

  21. Platform Unifying Gov. Webpages

    LV0020, 2015, E-Government

  22. Starred commitment Transparency of Selecting Candidates for the Boards and Councils of Public Entity Enterprises

    LV0021, 2015, Legislation & Regulation

  23. Supervising Officials Responsible of Public Resources

    LV0022, 2015, Anti-Corruption

  24. Sustainable Model of Financing NGOs

    LV0023, 2015, Civic Space

  25. Starred commitment Online Collection of Signatures on Referenda

    LV0024, 2015, E-Government

  26. Draft Law on Protecting Whistleblowers

    LV0025, 2015, Anti-Corruption

  27. Assessment of the System of the Financing Political Parties

    LV0026, 2015, Political Integrity

  28. Code of Ethics and a Public Administration Employee’S Handbook for Public Sector

    LV0027, 2015, Capacity Building

  29. NGO Fund

    LV0001, 2012, Capacity Building

  30. Strengthen Social Partners

    LV0002, 2012, Public Participation

  31. Trade Union Law

    LV0003, 2012, Civic Space

  32. NGO Co-Working

    LV0004, 2012, Civic Space

  33. Public Engagement Model

    LV0005, 2012, Open Regulations

  34. Internet Access Points

    LV0006, 2012, E-Government

  35. Public Service Assessment

    LV0007, 2012, Public Service Delivery

  36. Enhancing e-services

    LV0008, 2012, E-Government

  37. Transport e-services

    LV0009, 2012, E-Government

  38. Asset Disclosure

    LV0010, 2012, Anti-Corruption

  39. Lobbying Law

    LV0011, 2012, Legislation & Regulation

  40. Whistleblower Protection

    LV0012, 2012, Anti-Corruption

  41. Public Subsidy Control

    LV0013, 2012, Private Sector

  42. State Owned Enterprises Management

    LV0014, 2012, Private Sector

  43. Single Platform for Government Websites and Information

    LV0015, 2012, E-Government

  44. Online Broadcasting From the Cabinet and Parliament

    LV0016, 2012, E-Government

  45. Website For Public Participation

    LV0017, 2012, E-Government

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