Background documents

 

OECD Principles for Enhancing Integrity in Public Procurement

   


The OECD Principles reflect a global view of policies and practices that have proved effective for enhancing integrity throughout the procurement cycle. The Principles are anchored in four pillars: transparency, good management, prevention of misconduct and accountability and control.


These principles provide governments with guidance in order to achieve value for money, increase transparency and prevent corruption in public procurement. They represent a consensus that efforts to enhance good governance are essential throughout the entire procurement cycle, from needs assessment to tender evaluation and post-award contract management.


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Why Integrity in Public Procurement is Important?

   


Public procurement is a key policy instrument. It accounts for 16% of GDP in OECD member countries. It is a versatile mechanism that can also be used to pursue additional policy aims such as environment, innovation or social goals.


However, public procurement is the government activity most vulnerable to waste, fraud and corruption due to its complexity, the size of the financial flows it generates and the close interaction between the public and the private sectors.


Integrity in procurement has received particular attention in the current crisis: billions of dollars in stimulus funds and accelerated procurement procedures raise additional risks. A strong and clean recovery needs to proactively promote a level playing field and fair competition in contracting by public sector organisations.


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Building Blocks of Public Procurement

   


A number of structural issues are considered as supporting of good management and integrity in public procurement.

These include:a legislative framework; a well–developed and credible administrative infrastructure;  a professional group of public procurement practitioners to manage the procurement process; a review and remedy system capable of a providing rapid response to a supplier/bidder’s complaint and an independent external audit with sufficient capacity to detect irregularities.


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Related Documents

 

Procurement Toolbox