Sustainable public procurement in action
У статті розглянуто поняття «державних закупівель», проаналізовано порядок розробки політики державних закупівель, а також механізм їх здійснення та на прикладі економіки Азербайджану. Розроблено пропозиції щодо підвищення ефективності державних закупівель у Азербайджані....
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Інститут проблем ринку та економіко-екологічних досліджень НАН України
2015
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| Назва видання: | Економічні інновації |
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| Цитувати: | Sustainable public procurement in action / Rovshan Badalov // Економічні інновації: Зб. наук. пр. — Одеса: ІПРЕЕД НАН України, 2015. — Вип. 60, т. I. — С. 35-41. — Бібліогр.: 8 назв. — англ. |
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irk-123456789-953652016-02-26T03:02:36Z Sustainable public procurement in action Badalov, Rovshan У статті розглянуто поняття «державних закупівель», проаналізовано порядок розробки політики державних закупівель, а також механізм їх здійснення та на прикладі економіки Азербайджану. Розроблено пропозиції щодо підвищення ефективності державних закупівель у Азербайджані. Over the past half century functions of states / governments increased substantially, in particular in the industrialized countries. Hence sustainable development has become a key milestone against the global challenges which requires: implementation of comprehensive measures to boost the national wealth; promoting life and health conditions; diminishing unequal distribution of income; and eradicating extreme poverty and hunger. 2015 Article Sustainable public procurement in action / Rovshan Badalov // Економічні інновації: Зб. наук. пр. — Одеса: ІПРЕЕД НАН України, 2015. — Вип. 60, т. I. — С. 35-41. — Бібліогр.: 8 назв. — англ. XXXX-0066 http://dspace.nbuv.gov.ua/handle/123456789/95365 205.РБ1.1 en Економічні інновації Інститут проблем ринку та економіко-екологічних досліджень НАН України |
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Digital Library of Periodicals of National Academy of Sciences of Ukraine |
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У статті розглянуто поняття «державних закупівель», проаналізовано порядок розробки політики державних закупівель, а також механізм їх здійснення та на прикладі економіки Азербайджану. Розроблено пропозиції щодо підвищення ефективності державних закупівель у Азербайджані. |
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Badalov, Rovshan |
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Badalov, Rovshan Sustainable public procurement in action Економічні інновації |
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Badalov, Rovshan |
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Badalov, Rovshan |
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Sustainable public procurement in action |
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Sustainable public procurement in action |
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Sustainable public procurement in action |
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Sustainable public procurement in action |
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sustainable public procurement in action |
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Інститут проблем ринку та економіко-екологічних досліджень НАН України |
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2015 |
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http://dspace.nbuv.gov.ua/handle/123456789/95365 |
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Sustainable public procurement in action / Rovshan Badalov // Економічні інновації: Зб. наук. пр. — Одеса: ІПРЕЕД НАН України, 2015. — Вип. 60, т. I. — С. 35-41. — Бібліогр.: 8 назв. — англ. |
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2015 Економічні інновації
Випуск № 60 Книга І
35
УДК 205.РБ1.1
SUSTAINABLE PUBLIC PROCUREMENT IN ACTION
Rovshan Badalov
У статті розглянуто поняття «державних закупівель»,
проаналізовано порядок розробки політики державних закупівель, а
також механізм їх здійснення та на прикладі економіки Азербайджану.
Розроблено пропозиції щодо підвищення ефективності державних
закупівель у Азербайджані.
Formulation of the problem in general terms. Today ―through public
procurement, governments can ―raise the bar‖ for the respecting of labor and
environmental standards by all market operators, thereby improving the
―quality of jobs‖ while facilitating sustainable development.‖
1
In this
publication, the term ―sustainable public procurement‖ is hereafter understood
as ―public procurement as a perfect instrument of sustainable development‖
since the SPP (Sustainable Public Procurement) involves many issues that the
sustainable development has to deal with.
In developing public procurement policy, Governments are concerned
with creating the best value for money considerations such as price, quality,
availability etc. Efficient public procurement policy means that public
institutions have achieved purchasing higher quality goods and services at
lower prices from the best suppliers. European Union experience proves that up
to 10 per cent of public expenditure can be saved by applying open and
transparent procedures into public procurement.
The nature of the public purchasing is determined by the needs of the
population. To perform its functions the government is using the resources,
material goods and non-material services. Purchase of goods, works and
services for delivery to the consumer sector in different markets is the basis
for determining the essence of public procurement.
1
ITC ILO – Master in Public Procurement Management for Sustainable Development
– About the Programme
http://lamp.itcilo.org/masters/proc/index.php?id=114
http://lamp.itcilo.org/masters/proc/index.php?id=114
36 Економічні інновації
Випуск № 60 Книга І
2015
Statement of the problem. Organization and management of
procurement is aimed at obtaining the right materials at the right moment in
time, in the right quantity, right quality, to the right place, from the right
supplier, and of course, for the right cost. Public procurement impacts the
economy in a significant way by generating demand and consumption. Public
procurement, ideally, is an effective and efficient tool of economic management
that is to ensure free and fair competition and to achieve the best value for
money, cost reduction and leadership. Traditionally, one of the main powers of
the government in the economic life of any country is a system of public
purchasing, procurement of works, acquisition of goods and services for
different public needs. Governments which often are the biggest consumers in
the country (public procurement accounts for between 8-30% of the GDP, 13-
17% in OECD (Organization for Economic Cooperation and Development)
countries, 16% in the EU, 14% in the UK (United Kingdom), 10% in
Switzerland, 20% in Japan), by activating its levers of state regulation, can steer
the market in a particular direction. Likewise, if bound by the good practices to
apply, the government can have a positive impact on private purchases. In
addition, the governments can harness its purchasing power to advance
conceptions of sustainable development into public procurement. Therefore it is
regarded as an instrument of economic regulation.
Sustainable procurement is not just a new fashion. Sustainable
procurement is a key indicator of government‘s commitment to sustainable
development. SPP is a policy tool that fosters competition, global integration
and good governance. This way taxpayers‘ money is not spent by procuring
entities having in mind not only how to follow ―six rights‖
2
but at the same time
how to pursue other objectives which are worth to be considered in both
protecting the environment and respecting the fundamental social rights. The
lowest price alone is not a sole and a final indicator for the procuring entities to
gain economy, efficiency and effectiveness. Sustainability here is an important
ingredient of effectiveness. As such, the best value for money can be attained
by promoting social and environmental objectives.
Public procurement is called sustainable if it integrates criteria and
specifications that consider the environmental and social considerations,
namely that seek efficient and optimal use of the limited resources. Actually,
gaining the best value for money at the end of the day is still the major concern.
2
of the right material in the right quantity, of the right quality, at the right time, at the
right price, from the right supplier, to the right place.
2015 Економічні інновації
Випуск № 60 Книга І
37
Environmental considerations are about the environment, climate, ecology,
sustainability, i.e. the green procurement, which opts for the preservation of
natural resources (air, water, soil, energy), respecting the carrying capacity of
ecosystems, biodiversity, reducing the pollution and the ecological footprint, in
other words, thinking about the impacts on the environment that the product or
service has during its life-cycle. Specifically, the most common environmental
considerations are: reduction of greenhouse gas emissions and air pollutants;
use of renewable resources; improved energy and water efficiency; reduced
waste, including toxic and hazardous substances, and support for reuse and
recycling. Social considerations are about the ethical/social aspects, in other
words, thinking about the challenges linked to the effects of the public
procurement on issues such as inequality in the international distribution of the
resources, poverty eradication, life conditions, labor conditions, human rights
(gender and ethnic equity), ageing population in the developed world, mobility
problems due to urbanization and fair trade.
The main material of the research. The initiative on sustainability
reform can have effective outcomes if proper vision and mission are formulated
within a relevant Action Plan in view of renovating the existing procurement
laws and by-laws and setting forth the policy based on the general principles of
SPP. The process of formulating the Action Plan shall be based on the findings
from the current status analysis in the field of sustainability (or from the
surveys of performance in public procurement), examination of the legislation
in force, market readiness analysis stakeholder analysis, problems analysis,
objectives analysis, alternatives analysis and the selection of the final plan of
actions. In particular, the priority sectors of SPP and the product groups shall be
identified and the enforcement thereupon shall be in place by the government
ensuring that all public agencies follow the sustainability criteria to be
developed for the priority groups. The Action Plan shall start with the statement
of government‘s decision explaining that the SPP is the only way of achieving
the efficient, transparent, fair and effective public procurement. Furthermore,
the Action Plan shall trigger the analysis of strengths, weaknesses, opportunities
and risks for the implementation of the sustainable public procurement
throughout the procurement cycle from the tender notice to the notice of award
and the contract management.
The Action Plan on SPP can be developed in 5 stages: identifying the
needs, drawing up the technical specifications, choosing the suppliers, awarding
the contract, and managing the contract.
38 Економічні інновації
Випуск № 60 Книга І
2015
The needs identification stage is the most important point where the
sustainability issues shall be considered. The obligations of the procuring
authorities shall be defined as to substantiate the decision on the need to prefer
more environmentally friendly product or service to the existing products or
services.
Once the decision is taken on what product or service needs to be
purchased, this shall be transferred into the technical specifications.
The technical specifications which encompass the sustainability
considerations shall include the environmental performance criteria, designed-
for-all requirements (including the handicapped people), safety or dimensions,
design and cost methods, quality assurance procedures, testing and test
methods, and inspection and commissioning requirements, which are altogether
form the part of employers‘ requirements.
The technical specifications shall bear on the following:
- equal treatment of all tenderers, so that no competitive advantages for
certain tenderers or barriers to international trade arise;
- the best interest of the procuring authority is ensured;
- generic and competition-driven technical specifications, and no brand
name is indicated;
- the use of sustainably sourced materials specified;
- water consumption minimized;
- transport impacts decreased;
- pollution reduced;
- use of renewable energy;
- use of recycled materials and materials which can easily be recycled
or reused or recycled at the end of their life;
- other relevant features which may be identified by the procuring
authority as appropriate.
The suppliers shall be chosen in respect of fair treatment principle. The
same criteria shall be applied to all potential suppliers. Suppliers may be
rejected if they have been found guilty of a criminal offence, concerning their
professional conduct, or they have been found guilty of a grave professional
misconduct. Environmental issues will be considered in both of the cases.
As far as the large contracts are concerned, the potential suppliers shall
be requested to fill in a pre-qualification questionnaire to demonstrate that they
can take a serious commitment to standards in the field of environment. The
suppliers shall be required to share with the procuring authority the information
related to their environmental technical competence in order to conclude on
2015 Економічні інновації
Випуск № 60 Книга І
39
their historical experience in the implementation of similar contracts and failure
thereof, for example in the construction of submarine waste water outfalls.
Again, it is important that the suppliers are treated fairly and the evidence asked
for in the questionnaire is directly related to the subject matter of the contract.
The contract establishes the framework within which the relationship
between the employer/procuring authority and the contractor/supplier is
administered. The conditions of the contract are used for setting environmental
and/or sustainability targets and measuring the contractor‘s performance against
the technical specifications and, per se, the contract. In order to ensure
sustainability, the employer and the contractor have to work together on
continuous improvement of performance.
The Action Plan shall also stand for leadership, comprehensive spending
review, planning of procurement activities, accountability, raising the
procurement standards, market engagement and innovation, monitoring and
reporting, remedies, measurement tools and techniques, and the capacity
building.
Conclusions. The need for SPP in the Republic of Azerbaijan – It
comes from the widespread and continuously growing demand of including
sustainability criteria in the procurement cycle and technical specifications.
Moreover, the introduction of SPP Action Plan has a number of positive
implications for Azerbaijan. The Action Plan can push the government‘s
priorities toward the diversification of the economy, transfer of innovation and
technologies. The policy concentrated on SPP can give an impetus to green
production and use of environmentally friendly technologies. The repercussions
of the SPP for the Government of Azerbaijan will include economic and social
benefits. The Government thus will create for itself the additional instruments
to achieve numerous targets expressed in terms of saving resources when the
life cycle cost of products are considered; raising the awareness of
environmental issues; energy efficiency; helping establish high environmental
performance standards for goods and services; providing incentives to the
supply of innovative products; and improving the quality of life.
A challenge for the government is to attain the SPP by enforcing the
mandatory quantitative and qualitative shift in the current practice of public
procurement. The targets should be set for short and long terms while the
Action Plan should be developed for 3 years with the breakdown of activities
on an annual basis.
The objectives and priorities of the sustainable public procurement in
Azerbaijan shall take into account the local conditions, but also be stringent to
40 Економічні інновації
Випуск № 60 Книга І
2015
accomplish the expectations. The integration of economic objectives with
environmental and social considerations is the only manner in which the SPP
can be achieved.
A variety of studies, books and experiences of the EU Member States on
sustainable public procurement demonstrate there are many different tools,
activities and policies which play an important role in carrying out and
implementing green and social public procurement. As the international
experience implies, it is not sufficient to have an adequate legislation on SPP in
place in order to guarantee the implementation of SPP. Both commitment and
support to the production and supply of green products are necessary for the
realization of SPP strategies and action plans. However the importance of
commitment reflected on specific papers at the level of central government or
higher level relating to green public procurement (GPP) cannot be exaggerated
in promoting and driving the GPP activities. It shall be emphasized that the
influence of procurement structures has a key role in determining both the
character of the approach to take and the success of such approaches. It shall
also be stressed that implementing the GPP is possible irrespective of whatever
the current system is.
Bibliography
1. Закон Азербайджанской Республики о «Государственных
Закупках», 245-IIQ, 27 декабря 2001.
2. Communication from the Commission to the European Parliament,
the Council, the European Economic and Social Committee and the Committee
of the Regions: ―Public procurement for a better environment‖ {SEC(2008)
2124}{SEC(2008) 2125}{SEC(2008) 2126}, COM (2008) 400 final, 2008.
3. Cathy Berry. The Sustainable Procurement Guide: Procuring
Sustainably Using BS 8903 / Cathy Berry, British Standards Institution, 2011.
4. Christopher H. Bowis. EU Public Procurement Law / Christopher H.
Bowis, Edward Elgar Publishing Limited, 2007.
5. Khi V. Thai (ed.), International Handbook of Public Procurement /
Khi V. Thai (ed.), CRC Press, 2009.
6. Nicola Dimitri, Gustavo Piga, Giancarlo Spagnolo (eds.), Handbook
of Procurement / Nicola Dimitri, Cambridge University Press, 2008.
7. Roberto Caranta and Martin Trybus (eds.), The Law of Green and
Social Procurement in Europe / Roberto Caranta and Martin Trybus (eds.),
DJØF Publishing, 2010.
2015 Економічні інновації
Випуск № 60 Книга І
41
8. Sue Arrowsmith and Peter Kunzlik (eds.), Social and Environmental
Policies in EC Procurement Law: New Directives and New Directions / Sue
Arrowsmith and Peter Kunzlik (eds.) Cambridge University Press, 2009.
Abstract
Rovshan Badalov
Sustainable public procurement in action
Over the past half century functions of states / governments increased
substantially, in particular in the industrialized countries. Hence sustainable
development has become a key milestone against the global challenges which
requires: implementation of comprehensive measures to boost the national
wealth; promoting life and health conditions; diminishing unequal distribution
of income; and eradicating extreme poverty and hunger.
|