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Enhancing Integrity in Public Procurement: Supplier Complaints and Recourse Mechanisms

Explore the importance of recourse mechanisms for supplier complaints in public procurement, discussing issues, structure, and benefits of effective mechanisms. Learn about the role in preventing corruption, fostering trust, and increasing competition. Presented at a workshop by the Government of Morocco and OECD in 2008. Contact robert.anderson@wto.org for more information.

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Enhancing Integrity in Public Procurement: Supplier Complaints and Recourse Mechanisms

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  1. Recourse mechanisms for supplier complaintsIntroduction and points for discussion Government of Morocco/OECD Workshop on Enhancing Integrity in Public Procurement Robert D. Anderson WTO Secretariat Rabat, 4 April 2008

  2. Preliminaries • Complementarity of international organizations’ work on government procurement (WTO, OECD, UNCITRAL, etc.) • Common underlying values and concerns with differentiated mandates – but much room for cooperation • Relevance of WTO Agreement on Government Procurement (GPA) to countries in this region • Pending GPA accessions of Jordan, Oman, Saudi Arabia • Revised GPA text: more “development-friendly” • For more info: www.wto.org • Go first to “trade topics”, then “government procurement”

  3. Role of recourse mechanisms • Note: also called “domestic review procedures”, “bid challenges”, etc. • Purpose: to provide fast, effective remedies for irregularities in the tendering process relating to acts of procuring entities • Important venue for addressing legitimate concerns of dis-satisfied bidders (fosters trust) • Ideally, harnesses energies of dis-satisfied bidders to serve public interests and goals (fairness and integrity of procurement system) • Therefore, complement to public audit and related supervisory functions

  4. Issues concerning the structure of recourse mechanisms • Importance of independence, impartiality, procedural fairness • Important to credibility of process • Also helps re: avoiding/shutting down spurious/opportunistic complaints • Can be achieved in different ways (courts, administrative agencies, etc.) • Timeliness is essential • Window to challenge should be not too short, nor too long • Challenges possible at pre-award and post-award phases • Practicality of remedies (may include interim measures, corrective action and compensation)

  5. Summary/Benefits of effective recourse mechanisms • Domestic review & public audit functions are complementary/mutually supportive • Increase transparency and integrity of procurement system. Prevent corruption • Increase private sector’s trust in procurement system, thereby often increasing competition • Reliance on supplier’s interest/initiative can serve public goals in a cost-efficient manner (but requires proper system design) • But note: recourse mechanisms can’t solve all problems (e.g. supplier collusion issues). We still need effective public oversight/audit bodies.

  6. Thank you robert.anderson@wto.org

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