THE REPUBLIC OF TURKEY 1 ERKAN OZDEMIR Public Procurement Specialist Regulation Department Public Procurement Authority [email protected]Institutional Set Up and The Role Of Central Institutions in Turkey 7 th IPA Regional Public Procurement Conference 9 – 10 September 2014 Vlora, Albania
16
Embed
Turkey Presentation, Erkan Ozdemir, PPA, Institutional set up, 7th Regional Public Procurement Conference, Vlora, 9-10 Sept 2014_English
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
The institutional framework is already well-established in
Turkey. However, legal and institutional improvements
introduced to Turkish public procurement system during
the accession process require further developments in
terms of functionality of the existing framework.
Key institutions involved in public procurement system
are the Ministry of Finance and the Public
Procurement Authority. Besides these institutions,
Turkey has also centralised purchasing system and
institutions.
2
MINISTRY OF FINANCE
3
The Ministry of Finance (MoF), as the competent authority,
has responsibilities and powers to ensure and steer the
implementation of a coherent policy in all areas related to
public procurement and to coordinate all aspects related
to negotiations between Turkey and EU on Chapter 5:
Public Procurement.
The MOF has been assigned the task “to determine the
key policies on public procurement in the context of
general economic policies and strategies, and to ensure
coordination among the related parties in the preparation
of the draft laws in this area” by the Law No. 5917, dated
June 25, 2009.
MINISTRY OF FINANCE
4
As for public procurement, the MoF has the final word
regarding any legal drafts related to public procurement
(including concessions/PPPs) in order to ensure the
coherence of the system and the effective and correct
adoption of public procurement legislation.
In order to facilitate the negotiation process, “Public
Procurement Coordination Unit” was established within
the Ministry of Finance-General Directorate of Budget
and Fiscal Control. Public Procurement Coordination Unit
is currently operating with 11 personel.
5
• Coordinating the accession negotiations between the EU and Turkey on Chapter 5: Public Procurement,
• Carrying out needs assessment on administrative and operational capacity at all levels of public administration (central, regional and local level) in order to improve effectiveness of the public procurement system,
• Updating the National Strategy on Public Procurement taking into account the needs assessment,
• Examining the draft laws for consistency with the existing public procurement legislation in terms of terminology, principles and procedures; and compliance with the acquis,
Functions to be carried out
under the coordination of MoF can
be summarized as follows:
MINISTRY OF FINANCE
PUBLIC PROCUREMENT
AUTHORITY 6
Public Procurement Authority (PPA), which was
established in 2002, is a regulatory and supervisory
body responsible for regulating and monitoring the
public procurement system.
PPA is related to the MoF and has administrative and
financial autonomy in the realization of its functions
which implies that no organ, entity or person can issue
orders or instructions for the purpose of influencing the
decisions of the Authority.
7
PPA consists of:
the Public Procurement Board (PPB) acting as a
decision making body with 9 members,
Presidency,
and service units.
PPB members are appointed by the Council of Ministers upon the proposal of the Ministry of Finance and their term of office is for 4 years and a member can be elected more than once.
The president of the PPA is also the president of the Board.
At present, the Authority has been operating with 333 Personnel including 155 public procurement specialists.
PUBLIC PROCUREMENT
AUTHORITY
8
The main duties and powers of the PPA are:
to prepare, develop and guide the implementation of Public Procurement Law (PPL) and Public Procurement Contracts Law (PPCL)
to review the complaints about the tender process and proceedings conducted by the contracting entities covered by PPL,
to prepare secondary legislation in relation to the implementation of the PPL and PPCL
to provide training on procurement legislation both in public and private sector, to ensure national and international coordination in this field,
PUBLIC PROCUREMENT
AUTHORITY
9
to collect, analyze and publish the data concerning the procurements carried out within the framework of the PPL,
to keep the records of tenderers prohibited from participating in tenders
to regulate the principles and procedures with regard the tender notices and to publish the Public Procurement Bulletin in electronic environment,
to establish and operate the Electronic Public Procurement Platform (that platform became operational on September 1, 2010)
PUBLIC PROCUREMENT
AUTHORITY
CENTRALISED PURCHASING
Centralisation is one of the key procurement
strategies.
Full Centralization
• Procurement is carried out by central purchasing bodies
Full Decentralization
• Each contracting entity carries out its own procurement
Hybrid Models
• Combine both centralized and decentralized purchasing.
• Some procurement activities are carried out by central purchasing bodies/by each contracting entities.
The optimal level of centralization is a challenging issue
10
KEY PLAYERS OF CENTRALIZED
PURCHASING SYSTEM IN TURKEY
State Supply Office
Public Hospitals Unions
Economic Operators
Contracting Authorities
+
Ministries
Public Procurement Authority
Turkish Public Procurement System (TPPS) is a mixture of centralised and decentralised model.
Majority of public
procurement is conducted by the individual contracting authorities (currently more than 28.000).
11
STATE SUPPLY OFFICE
The State Supply Office (SSO), established in 1926, is the
national central purchasing body of Turkey.
The SSO purchases various goods and services (such as
vehicles, tables, chairs, and other office supplies) listed in its
articles of association for other contracting authorities.
The SSO shall procure in accordance with the PPL, whereas
purchases of contracting authorities from the SSO are outside
the scope of PPL.
Hower, it is not compulsory for contracting authorities to
purchase supplies and services from or through SSO.
Statistics indicates that the majority of public procurements is
conducted by the individual contracting authorities in
accordance with the PPL.
12
PUBLIC HOSPITALS UNIONS
Turkish Institution of Public Hospitals was established
by Legislative Decree no 663 dated 11 November
2011.
Public Hospitals Unions (PHU) are established in 52
cities under Turkish Institution of Public Hospitals. PHU
conduct public procurement in health sector for all the
public hospitals in the relevant region.
PHU shall act in accordance with PPL for their
centralized procurement. Framework agreements also
provide an instrument to PHU for their centralized
purchasing.
13
MINISTRIES AND CONTRACTING
AUTHORITIES
Needs of various contracting authorities subordinate to a
Ministry may be procured by the central organisation of
that Ministry.
In addition, contracting authorities may come together to
procure their common needs through framework
agreements or by making protocols in accordance with
the PPL (joint procurement).
14
FURTHER DEVELOPMENTS
Work for improving the administrative capacity is on-
going
In order to ensure an effective implementation of a
coherent and sound public procurement system,
institutional framework will be rendered fully functional
and administrative capacities will be further
strengthened.
Within this framework, taking into account their
institutional set-ups and according to their peculiar needs
for strengthening administrative capacity, organisational
changes will be introduced in the institutional structures