OECD Principles for Integrity in Public Procurement

In addition to the Principles, this exhaustive publication includes a Checklist for implementing the framework throughout the entire public procurement cycle. It also gives a comprehensive map of risks that can help auditors prevent as well as detect fraud and corruption. Finally, it features a useful case study on Morocco, where a pilot application of the Principles was carried out.





The OECD Principles for Integrity in Public Procurement are a ground-breaking instrument that promotes good governance in the entire procurement cycle, from needs assessment to contract management. Based on acknowledged good practices in OECD and non-member countries, they represent a significant step forward. They provide guidance for the implementation of international legal instruments developed within the framework of the OECD, as well as other organisations such as the United Nations, the World Trade Organisation and the European Union.

Table of Contents
Executive Summary
Part I. PRINCIPLES FOR ENHANCING INTEGRITY IN PUBLIC PROCUREMENT
Introduction
Chapter 1. Transparency
Principle 1. Provide an adequate degree of transparency in the entire
procurement cycle in order to promote fair and equitable treatment for potential suppliers
Principle 2. Maximise transparency in competitive tendering and take precautionary measures to enhance integrity, in particular for exceptions to competitive tendering
Chapter 2. Good Management
Principle 3. Ensure that public funds are used in public procurement according to the purposes intended
Principle 4. Ensure that procurement officials meet high professional standards of knowledge, skills and integrity
Chapter 3. Prevention of Misconduct, Compliance and Monitoring
Principle 5. Put mechanisms in place to prevent risks to integrity in public procurement
Principle 6. Encourage close co-operation between government and the private sector to maintain high standards of integrity, particularly in contract management
Principle 7. Provide specific mechanisms to monitor public procurement as well as to detect misconduct and apply sanctions accordingly
Chapter 4. Accountability and Control
Principle 8. Establish a clear chain of responsibility together with effective control mechanisms
Principle 9. Handle complaints from potential suppliers in a fair and timely manner
Principle 10. Empower civil society organisations, media and the wider public to scrutinise public procurement

Part II. IMPLEMENTING THE PRINCIPLES
Chapter 1. Enhancing Integrity at Each Stage of the Procurement Cycle: A Checklist
1. Pre-tendering phase
Risks to integrity in pre-tendering
Precautionary measures in pre-tendering
Stage 1. Needs assessment
Stage 2. Planning and budgeting
Stage 3. Definition of requirements
Stage 4. Choice of procedures
2. Tendering phase
Risks to integrity in tendering
Precautionary measures in tendering
Stage 5. Invitation to tender
Stage 6. Evaluation
Stage 7. Award.
3. Post-tendering phase
Risks to integrity after the award
Precautionary measures in post-tendering
Stage 8. Contract management
Stage 9. Order and payment
Chapter 2. Risk Mapping: Understanding Risks of Fraud and Corruption in the Public Procurement Cycle
1. Risks in the needs assessment
Minor studies
Studies above the national threshold
2. Risks in the planning
Estimating project costs
Immediate misappropriation during document preparation
Arranging for misappropriation in the future
3. Risks in relation to the selection method
Abuses involving buying groups
Abuses of open calls for tender
Restricted calls for tender
The negotiated procedure
Procedures to avoid issuing a call for tender
4. Risks during the management of the contract
Delivery of supplies
Supply of services
Carrying out the work
Chapter 3. A Pilot Application of the Principles in Morocco
Introduction
1. Overview of the 2007 Decree on public procurement
The 2007 Decree on public procurement
Actors in the reform and supporting texts
2. Strengths and weaknesses of the public procurement system
The 2007 public procurement regulations: A detailed framework for public procurement
More transparency in the procurement cycle
Electronic procedures: Creation of a national public procurement portal
Introduction of anti-corruption measures in the 2007 Decree
First step towards the introduction of an appeals mechanism
3. Policy recommendations: How to improve the system
Professionalise public procurement
Strengthen the independence of the Public Procurement Review Board120
Pursue the initiative to reinforce accountability and control
Ensure harmonised interpretation and implementation of the 2007 Decree
Introduce specific measures to fight corruption in procurement
Annex A. OECD Recommendation on Enhancing Integrity in Public Procurement
Annex B. The Multi-disciplinary Approach of the OECD on Procurement
Annex C. The Consultation on the Principles and Checklist with Stakeholders
Glossary


Available in French - Principes de l'OCDE pour renforcer l'intégrité dans les marchés publics :