Identify and critically assess the principles which underpin the EU Public Procurement - Essay Example

Download file to see previous pages Framework Procurement can be defined as “the purchase of commodities, goods, works or services by public administrators”.1 A public administrator in the EU Law includes state, government, association governed by public law and similar bodies. Collectively, public procurement accounts for 13.5% of the European Union’s GDP.2 This therefore means that the authorities have a duty to provide a legally acceptable set of guidelines that promotes the European Union’s single market system and also prevents leakages and unfair procurement practices and corruption. However, some challenges in the EU Procurement Laws do not enable the EU Procurement system to achieve its objectives. In the UK, the threshold for the observance of EU Public Procurement Law is ?100,000 for government supplies and ?4 million for works and services.3 These thresholds are really high. This gives room for various forms of manipulation. A public institution that desires to be mischievous is likely to buy goods and services in lower amounts so that they will not be required to follow the EU Procurement Rules. This gives room for easy evasion and manipulation. Reasons for the EU Public Procurement Laws The first reason why the EU Public Procurement Law was enacted was that the European Union has laws that guarantee the freedom of movement, person, capital and services across borders so nations and governments should not have public procurement systems that discriminate against people from other EU nations.4 Also, non-tariff protection exists for all EU businesses in the transfer of their goods and services across the various borders.5 The EU Procurement Law avoids amongst other things, discrimination against efficient companies by ensuring the fair treatment of all potential bidders for a public supply tenders across the EU. The extent to which the procurement law has protected non-national businesses in bids and tender is quite questionable. This is because with higher transportation costs and diversity issues, it is often common for public institutions to choose local suppliers and not external suppliers. In summary, the EU Procurement Laws state that public institutions should honour three things in their operations.6 The are: 1. They must treat a business and person of other EU nationality fairly7 2. No discrimination, there should be equality 3. There should be transparency in bidding and tender selection process. However, with the uneven trends of development in the EU, there are cases when there is the need for positive discrimination to help some national businesses to grow by supplying to public institutions in the country. Adhering strictly to the public procurement framework can only cause some local businesses in smaller nations like Portugal and Latvia to collapse in the face of other richer businesses from more powerful nations like Germany, France and Britain. Overview of Underpinning Principles The main areas and aspects of the EU Public Procurement policy include transparency, publicity, objectivity, accountability, non-discrimination and flexibility/redress. ...Download file to see next pages Read More