Procurement’s Estimated Value – a Hot Potato for the Contracting Authorities

SKOPJE, March 16, 2015 – Today, the Centre for Civil Communications published the results from its regular monitoring of public procurements implemented by local authorities for the period April – September 2014. Key findings include:

Long-awaited and, for the companies, highly-desired novelty in public procurements defined as mandatory publication of the procurement’s estimated value, seems to be a hot potato for the contracting authorities which, most of them, do not know how to handle. Notably, there are numerous examples of tender procedures that have raised certain problems in terms of their implementation, with reasons thereof stemming from the procurement’s estimated value.
Series of changes made to the legislation on public procurements, at least in the first months of their application, have not resulted in increased competition in tender procedures on local level. In the monitoring sample, the average competition accounted for 2.7 bidders per procedure, while 38% of monitored tender procedures included one or no bid.
After a two-year period in which the share of annulled tender procedures has been stabilized at around 15%, annulment of tender procedures on local level is again on the rise and accounts for 20%. Contrary to practices observed in the past when the main ground indicated for tender annulment was absence of bids, nowadays the main reason implies unfavourable prices.
Average duration of public procurement procedures from the monitoring sample, from announcement of procurement notice to contract signing, accounts for 33 days and implies small improvement compared to the previous period.
In some public procurement procedures, the subject is specified in such great details that it literally refers to specific product, although such practices are prohibited and limited by the Law, and have been continuously indicated to as poor practices that favour certain bidding companies.

This Report is available here. For more information, please contact the Centre for Civil Communications on tel. (02) 3213-513 or by e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

USAID Civil Society Project is implemented by the Foundation Open Society – Macedonia (FOSM) in partnership with the Centre for Civil Communications, the Youth Educational Forum, Reactor – Research in Action, and Forum – Centre for Strategic Research and Documentation.

NOTE TO THE EDITORS:

The American people, through USAID, have invested over $500 million in Macedonia since 1993. USAID works with the people of Macedonia to create jobs, strengthen democratic institutions and practices, enhance integrated education, and prepare students for the workforce. These initiatives improve the quality of life and support Macedonia’s transition to a stable and prosperous democracy. USAID provides economic and humanitarian assistance in more than 100 countries. For more information please visit USAID Macedonia Website and USAID Macedonia Facebookpage.