11 Report on monitoring public procurement at the local government level

Low competition on local tenders.

26.06.20188100

Low competition in local tender procedures, whose multiannual average is calculated at 2.6 bids per tender procedure, continues this trend and stands below three bidders, which is considered minimum level of competition. In average, monitored tender procedures were marked by competition of 2.8 bidders, which is the same level observed in the previous period. Additional concern is raised by increased share of tender procedures presented with one bid or no bids, which has risen to high 40% in this monitoring period and is the highest share observed in the last three years.

Poor assessment of procurements’ estimated value often leads to failure of local tender procedures. Some tender procedures are annulled for several times and are successful only after correction of their estimated value. This costs time and money, inefficient procurements and greater insecurity for companies.

The share of annulled public procurements in the monitoring sample has risen to 20%, reaching the highest threshold for the second time in the last five years. In as many as 50% of annulled tender procedures, reasons indicated for their annulment implied no bids received.

Electronic auctions were held in only 58% of monitored tender procedures. They were successfully completed only in public procurements marked by higher competition, whereas downward bidding in the remaining share of tender procedures was formality and often raises concerns about previous arrangements between companies about their actions during e-auctions.

Unlike any period in the past, throughout this monitoring period relevant data for as many as 28% of tender procedures requested through the instrument for free access to public information were secured only after appeals were lodged before the relevant commission for protection of this right.

You can read the report in Macedonian and English language