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OECD Recommendation

Support integration of public procurement into overall public finance management, budgeting and services delivery processes. 

 

  • Rationalise public procurement spending by combining procurement processes with public finance management.
  • Encourage multi-year budgeting and financing to optimise the design and planning of the public procurement cycle.
  • Harmonise public procurement principles across the spectrum of public services delivery, as appropriate, including public works, public-private partnerships and concessions. 

Risks to public procurement related to integration include:

  • Procurement plans not always include a detailed and realistic description of financial and human resources requirements and are not always properly reflected in the government’s budgets;  
  • Budgets and procurement plans are often still prepared on an annual basis, instead of an multi-annual basis, which hinders the alignment with medium-term strategic priorities of the governments and reduces the flexibility in purchasing decisions;
  • The planning, implementation and monitoring of arrangements with between governments and private-sector partners, such as public-private partnerships (PPPs), are challenging for many governments, in terms of transparency and integrity and
  • The e-procurement systems are not always sufficiently integrated with other e-government systems, including financial management information systems (FMIS). 

Country Cases

 Harmonised public procurement principles across the spectrum of public service delivery, as appropriate, including public works, public-private partnerships and concessions  

Other institutions’ work on integration