on the Outcomes of Statistical Survey Concerning the Applied Methods of Public Procurement in 1999

1. Introduction

Since the Act on Public Procurement entered into effect this statistical survey has been performed for the 5th times by the Institute for training and services in Bratislava which is the organisation co-financed by the Ministry of Construction and Regional Development of the Slovak Republic.

Since the beginning of the execution of statistical survey there has revealed the main problem – database of reporting units – procuring entities. There has been no source able to provide an independent list of the procuring entities and annual modifications and updating of the database of the procuring entities pursuant to Article 2 paragraph 2 of the Act of the National Council of the Slovak Republic No. 263/1993 Coll. of Laws on Public Procurement of Supplies, Services and Public Works (Act on Public Procurement) defining procuring entities.

The problem of the list of procuring entities pursuant to Article 2 paragraph 2 of the Act of the National Council of the Slovak Republic No. 263/1993 Coll. of Laws on Public Procurement of Supplies, Services and Public Works has been solved by the Act of the National Council No. 263/1999 Coll. of Laws on Public Procurement and on Modification and Amendment of Certain Acts.

2. Processing of Outcomes

The acquisition and the following processing of the statement on public procurement methods applied in 1999 were performed in the two stages. In the first stage, the form “ The Annual Statement of Public Procurement Methods Applied VO ( MVVP SR) 1-01 “ were distributed with an enclosed explanatory letter of guidance to the reporting units. 5939 forms were distributed in total, of which:

Municipalities, cities and the organizations established by them	4877	82,1%
Organizations financed and co-financed by the State budget (including legal entities established by law as public institutions)	1062	17,9%
Total	5939	100%

The reporting units satisfied their obligation, which was to return the filled in statistical forms, at 88,9 % in total, of which :

1. municipalities, cities and the organizations established by them fulfilled their obligations at 88,2 % ,

2. organizations financed and co-financed by the State budget at 92,4 %.

For analytical purposes of the selected data, number of reporting units may be considered satisfactory representative.

One of the statistical survey goals was to illustrate savings (or, as the case may be, losses) of funds through processes leading to the conclusion of a contract for a procurement object by methods stipulated by the Act on Public Procurement. The statistical survey results revealed that the total financial savings compared to the anticipated costs were 6,83 %. The outcomes were processed in the two groups, separately for:

• municipalities, cities and the organizations established by them,

• organizations financed and co-financed by the State budget.

The municipalities, cities and the organizations established by them recorded total savings in contractual prices compared to their anticipated financial costs of the procurement object of 5,88 %.

Anticipated costs SKK 9 273 313 000

Contract prices SKK 8 728 455 000

Difference SKK 544 858 000 i.e. 5,88 %

Depending on the procurement object and the selected method of procurement, the total financial savings in percentage ranged from 1,18 % to 13,00%, as shown in the table:

In total, 7 787 cases of public procurement were completed, including 3620 cases of direct set-up. Substantial difference in comparison with previous year is caused by processing and extraction of the contracts not exceeding the value of SKK 50 000 .

The percentage structure of the various procurement methods was the following:

The above facts follow, that the procuring entities ( the municipalities, cities and the organizations established by them, in this case ) select their contract partners primarily by direct set-up and price offer, for reason that they predominantly procure supplies of common nature and simple services.

4. Organizations financed and co-financed by the State budget and legal entities established by law as public institutions

Organizations financed and co-financed by the State budget and legal entities established by law as public institutions recorded total savings in contractual prices compared to their anticipated financial costs of the procurement object of 7,42 %.

Anticipated costs SKK 15 397 112 000

Contract price SKK 14 255 880 000

Difference SKK 1 141 232 000 i.e. 7,42 %

Depending on the procurement object and the selected method of procurement, the total financial savings in percentage ranged from 0,53% to 23,47 %, as shown in the table:

In total, 19 083 cases of public procurement were completed with 13 611 cases of direct set-up procurement.

The percentage structure of the various procurement methods was the following :

The above facts suggest, that the procuring entities (organisations financed and co-financed by the State budget and legal entities established by law as public institutions, in this case) select their contract partners primarily by direct set up and price offer in more than 80% of cases, for reason that they predominantly procure supplies of common nature and simple services.

5. Certain Outcomes of Statistical Evaluation

Total number of Procurement Cases

The overall outcomes of the statistical survey have demonstrated that in 1999 procuring entities would perform 26 870 public procurement cases in total, of which 17 231 were direct set-up (DSU) procurement cases and the rest ( 9639 cases) applied to the remaining methods.

Assessment of Foreign Tenderers

The total price and number of contracts concluded with foreign tenderers is brought in the attached annex . The overview reveals, that the successful tenderers were from 8 countries, there were 12 contracts concluded in the total value of SKK 98106000 while almost 41 % of the volume was obtained by France and 30,9 % by Israel.

The following procuring entities concluded contracts with the foreign tenderers : the Ministry of Transport, Post and Telecomunications of the Slovak Republic, the Slovak Television and Press Agency of the Slovak Republic .

All data obtained from the statistical survey on the applied methods of public procurement will be collected in electronic format in the Office for Public Procurement and on a web side of the Office for Public Procurement .

Generalisation of outcomes obtained by statistical survey on public procurement methods applied is a groundwork for the basic materials of the Office for Public Procurement, in compliance with Act No. 263/1999 Coll. on Public Procurement and on Modification and Amendments of Certain Acts. These data will be used at the negotiations with the representatives of the European Commission, the European Free Trade Association and Organization for Economic Co-operation and Development. At present the database and the list of procuring entities is being prepared.

 

Procuring Entities and Value of Contracts Executed with Successful Foreign Tenderers by Sectors