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Bratislava, June 2001

The Office for Public Procurement (hereinafter referred to only as the "Office") has performed this year the Statistical Survey concerning the Applied Methods of Public Procurement in 2000, for the first time in accordance with the new Act No. 263/1999 on Public Procurement and on Modification and Amendment of Certain Acts (hereinafter referred to as the "Act"). In order to provide statistical survey, 5 954 statistical forms have been distributed to the procuring entities, 5 184 of which have been filled in and submitted to the Office. Even though the number of reporting units (procuring entities) is changing due to ongoing process of privatisation, the above - mentioned number of statistical statements, creating the input data for statistical survey, may be considered to be comparable with the volume of the statements submitted in the past years.

Only 920 statistical statements, less than 20% of all the statements returned, have been included in the processing. The rest of those statements has not been included in the processing as 4264 procuring entities have concluded contracts by procedures not requiring the application of the Act.

During the reporting period the procuring entities have employed the methods and procedures of public procurement on concluding 4 145 contracts; 481 thereof have not been completed by the end of the year 2000.

The analysis of the statistical survey results has revealed that the procuring entities have concluded contracts of the total value amounting to SKK 53.5 billion. Comparing this value with the value of the financial resources of SKK 57.6 billion that had been allocated for obtaining of the required procured objects, it is evident that by the application of the Act there have been recorded financial savings of 7,2 %. The volume of the last year´s financial savings is comparable with those obtained in the previous years. The municipalities and the organisations established by themselves have recorded the largest share in the financial savings (8,5%) whereas the health insurance agencies and public institutions have recorded the lowest share in the financial savings ( 1,7 %). Contracts for public works and procurement of goods and services have accounted for 6% of the gross domestic product.

The resulting financial savings on procuring have demonstrated that the lowest savings have been recorded in the procurement of goods (3,5%) and the largest savings in the procurement of works (10,8%).

During the last year there have been concluded 9 times more contracts (108) with the foreign tenderers than in 1999; most of them were the contracts with the tenderers having their seats in the Czech Republic. On concluding contracts with the foreign tenderers, the procuring entities have mainly employed the negotiated procedure without a prior notification, predominantly for procurement of goods. This outcome is resulting from the commercial relations of the Slovak Republic which were established in the previous period.

The statistical evaluation of the applied methods has shown that the negotiated procedure without a prior notification has prevailed among all other methods employed in the process of the public procurement. Even though the statistical statements have not included the reasons for the application of that procedure, as follows from the previous experience, the procuring entities have employed this procedure mostly if:

• they were under time pressure caused by later allocation of the financial resources from the state budget;
• they have discovered the necessity to provide the procurement of the object which could not have been included in the plan;
• the previous method of public procurement has been suspended (about 13% of all the advertised methods of public procurement);
• they conclude contracts with the suppliers who had been their contractual partners in the previous years. This is the case of procuring entities operating first of all in utilities sectors who are concluding contracts either with the foreign partners on the basis of the previous experience or with the domestic producers of the supplies inevitable for their activities;
• they conclude contracts with the exclusive importers of the goods.

As for the application of the further public procurement methods, the open tenders have accounted 45.8% of all the methods, which is 1.4% less in comparison with the application of the negotiated procedure without a prior notification.Concerning the application of the remaining methods, they have been used very rarely.

One of the procuring entities´obligation in accordance with the Article 39, Par. 2 of the Act is to submit to the Office a report on each contract concluded on the basis of the above - the - threshold method of public procurement for the previous calendar year. The outcomes of the reports submitted to the Office have showed that the procuring entities have used the open tenders being above - the - threshold in the most of the procurement cases (79) and the negotiated procedure without a prior notification in 67 procurement cases. Concerning the employment of the remaining methods, they have been used very rarely.

The results of the statistical survey concerning the application of the above - the - threshold methods of public procurement have also demonstrated that the domestic suppliers have been more successful than the foreign tenderers as 142 contracts have been concluded with the domestic suppliers and only 6% of all the contracts have been concluded with the foreign tenderers.

The statistical survey has revealed the lack of the knowledge of the Act on the part of the procuring entities and unsufficient attention given to the filling in the statements. The main problems identified during the data processing have been as follows: the incorrect definition of the procured object, development of the impropre time scheduling of the public procurement procedure, uncomplete statistical statements, the incorrect identification data of the procuring entities, the missing contractual price in the case of the framework contract conclusion, filling in the data for contracts which are not governed by the Act.

The results of the statistical survey have pointed out the following shortcomings occurring also in the previous year and still remaining:

• insufficient experiencies with calculating of the expected value of the procured object; especially that have led in some cases to concluding contract with the higher price of the procured object than the expected one.
• underevaluation of the importance of the planning in the process of public procurement;
• negotiated procedure without a prior notification, which is the only incompetitive method, prevails among all other methods employed in the process of the public procurement;
• decentralized public procurement system provided by the procuring entities has an influence on the quality of the public procurement;
• large number of the tenders suspended (around 13 %);
• large number of contracts not governed by the Act (more than 80 %). It is supposed that the number of those contracts could be eliminated if the amendment of the Act concerning so called "subliminal procurement", at present under preparation, will be adopted.

It is expected that the obligation (stipulated by Article 57 of the Act which shall enter into effect on January 2002) to perform the procurement through the natural persons who have acquired professional qualifications for public procurement pursuant to the Act, will contribute to removing the existing problems concerning the application of the Act and filling in the statistical statements.

By the application of the Act the procuring entities have contributed to the decreasing of the expected expenses of the volume of more than SKK 4 bilion. Moreover, they have contributed to the improvement of the quality of the economical environment mainly by requiring from the procuring entities the fulfilment of their duties against the state, municipalities, insurance agencies and funds.