PUBLIC PROCUREMENT

TOPIC GUIDE
COMPILED BY THE ANTI-CORRUPTION HELPDESK
Transparency International is a global movement with one vision: a world
in which government, business, civil society and the daily lives of people
are free of corruption. Through more than 100 chapters worldwide and an
international secretariat in Berlin, we are leading the fight against
corruption to turn this vision into reality.

Topic guides are a series of publications developed by the Anti-Corruption

Helpdesk on key corruption and anti-corruption issues. They provide an
overview of the current anti-corruption debate and a list of the most up to date
and relevant studies and resources on a given topic.

www.transparency.org

Authors: Matthias Morgner, Marie Chêne

Reviewer(s): Finn Heinrich, PhD

Date: 28 November 2014

© 2014 Transparency International. All rights reserved.

With support from the European Commission

This document should not be considered as representative of the European Commission or Transparency
International’s official position. Neither the European Commission, Transparency International nor any
person acting on behalf of the Commission is responsible for how the following information is used.
TABLE OF CONTENTS

TABLE OF CONTENTS 1
PUBLIC PROCUREMENT 2
CORRUPTION RISKS IN PUBLIC PROCUREMENT.............................................................................. 2
ANTI-CORRUPTION TOOLS AND APPROACHES ................................................................................ 3
RESOURCES ON PUBLIC PROCUREMENT ......................................................................................... 5
Background studies .............................................................................................................................. 5
Standards, principles and guidelines .................................................................................................... 5
Practical insights: handbooks and toolkits ............................................................................................ 7
Assessment tools and datasets............................................................................................................ 9
Resources from Transparency International’s Anti-Corruption Helpdesk ........................................... 10
Actors and stakeholders ..................................................................................................................... 12
Useful websites .................................................................................................................................. 12

This topic guide provides an overview of major corruption risks and anti-corruption approaches in
public procurement, and a compilation of the most up to date and relevant studies and
resources on the topic.
PUBLIC PROCUREMENT
A large percentage of public money is spent on procurement to buy goods and services for public
projects amounting to an estimated average of US$9.5 trillion every year1. In OECD countries,
public procurement makes up for between 19 and 45 per cent (OECD average 29 per cent) of total
government expenditures2. With such vast amounts of money at stake, public procurement arguably
poses the greatest risk for corruption in PFM. The size, the number and complexity of the
transactions involved, combined with the high level of discretion of procurement officials, provide
many incentives and opportunities for corruption. It is estimated that on average 10 to 25 per cent of
a public contract’s value may be lost to corruption3.

CORRUPTION RISKS IN PUBLIC PROCUREMENT

Corruption in public procurement can affect all stages of the procurement process and take many
forms. Yet, corruption is hard to detect due to the complexity of the procedures involved which often
require a high level of technical expertise at all stages of the process.

Project selection phase

At the project selection phase, needs assessments can be manipulated, inflated or artificially
induced to select projects with higher contract value. Projects can also be identified to serve the
interests of particular bidders or the private interests of procurement officials. In such cases,
collusion and/or political corruption may influence the public procurement.

Bidding process
During the tendering phase, opportunities for corruption are abound. While it is generally assumed
that corruption risks are especially high during the evaluation of bids, the specification phase can be
designed to limit competition and favour particular bidders. Some bidders may be given an unfair
advantage (for example, exclusive access to information) as a result of officials having a private
interest in these companies, or in exchange for a bribe. A government official may demand a bribe or
a kickback in exchange for a contract award, and the bribe payer may inflate the price of the
contract to cover the bribe and preserve his profits. Bidders may also conspire to fix the outcome of
a bid and inflate contract prices which are then shared between companies, sometimes with the
complicity of the procurement official who may be offered a kickback for turning a blind eye to such
practices. Procurement officials or his/her friends and relatives may also have an economic interest
in one of the bidding companies. Other corrupt practices may involve abusing confidentiality, limiting
advertisement and publicity, and manipulating the submission and evaluation of bids.

1 Open contracting: factivists fighting procureaucrats. Spruill, C., 9 December 2013. www.open-
contracting.org/open_contracting_factivists_fighting_procureaucrats
2 Government at a glance. OECD, 2013. http://www.oecd-ilibrary.org/governance/government-at-a-glance-
2013/general-government-procurement-as-share-of-total-general-government-expenditures-2011_gov_glance-2013-
graph99-en
3 Guidebook on anti-corruption in public procurement and the management of public finances. UNODC.

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 Contract implementation
While less attention is often paid to contract implementation, there are many opportunities for abuse
at this stage of the process, including false invoicing, overbilling, underperforming and failure to
meet specification standards, among others. It is typically at this stage of the process that corrupt
payments made in the earlier stages of the process can be recovered by means of performing less
than the contractually agreed services, or by altering the contract through successive re-
negotiations.

ANTI-CORRUPTION TOOLS AND APPROACHES

Public procurement is an entry point of anti-corruption initiatives, and there are a number of practical
tools, international standards and best practices available to curb corruption in procurement. Major
approaches to curb corruption in public procurement include4:

 Strong legislative framework. The legal framework in which procurement takes place is defined
by the national and international legislation binding the country. In recent years, a variety of
regional and international anti-corruption treaties, such as the UNCAC, have set internationally
agreed standards that can be used as a benchmark.

 Transparency. All parties need to be ensured easy access to information throughout the
procurement process, especially with regard to tender opportunities, selection criteria,
evaluation processes, awarding processes and justification of the decision, terms of the
contract and subsequent amendments, implementation of the contract, and the role of
intermediaries, among others.

 The use of technology is instrumental to increase transparency and limit the level of an
individual officer’s discretion in the process. In particular, e-procurement can contribute to
improve market access and competition and mitigate corruption risks by facilitating easier
access to information through online publication, standardising and streamlining processes,
and facilitating control and oversight over the procurement cycle.

 Good management of procurement staff and processes. Procurement officials need to meet
high professional standards of knowledge, skills and integrity. Adequate remunerations, merit-
based recruitment processes and regular training of procurement officials can contribute to
promote high standards of professionalism. Procurement processes should also be managed
professionally, in a way to ensure that public funds are used in procurement according to the
intended purposes. This can be achieved through long-term project and resource planning,
public consultations on major procurement projects, separation of key functions, transparent
and comprehensive book-keeping and sound reporting systems at all stages of the recruitment
process, among others.

 Prevention of misconduct. The integrity of procurement officials can be promoted by raising

ethical standards through the adoption and enforcement of codes of conduct and conflict of
interest regulations.

 Integrity pacts. Bidding companies and procurement officials can commit to abstain from
bribery and to prevent corruption by signing an integrity pact as a tool to establish a level
playing field in a procurement process.

4 The basics of integrity in procurement. Heggstad, K.K., Frøystad, M., Chr. Michelsen Institute, 2011. U4 Issue
2011:10. P.45. http://www.u4.no/publications/the-basics-of-integrity-in-procurement/

PUBLIC PROCUREMENT TOPIC GUIDE 3

 Monitoring of the contracting process. International standards emphasise the importance of
monitoring all stages of the procurement cycle, from the preparation of the tender by public
officials to the implementation of the contract. In addition to internal monitoring by independent
government agencies and external audits, external monitoring by citizens and civil society
groups has proved a powerful tool to help detect and deter corruption. A number of
organisations have developed red flags, checklists and indicators to assess adherence to the
agency’s procurement rules and regulations.

 Accountability and controls. Independent internal control systems and external audits and
oversight are instrumental to ensure that government officials are held accountable for their
decisions throughout the procurement cycle. This includes establishing effective mechanisms
to uncover and investigate corruption, systematic and credible enforcement of the rules and the
use of proportionate and dissuasive sanctions, proportional to the price of the contract.
Sanctions can include exclusion from the procurement process, confiscation of illegal gains,
liability for damage, cancellation of contracts and debarment. Strongest standards require the
systematic blacklisting of companies involved in wrongdoings.

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 RESOURCES ON PUBLIC PROCUREMENT
Background studies
A new role for citizens in public procurement. 2012.
Eduardo Bohorquez and Deniz Devrim (eds.), Citizens & Markets (c/o Transparencia Mexicana)
http://www.tm.org.mx/a-new-role-for-citizens-in-public-procurement-2/
http://corruptionresearchnetwork.org/marketplace/resources/C-M%20SERIES%20-
%20A%20new%20Role%20for%20Citizens%20in%20Public%20Procurement.pdf/

This book explores the transformations that can take place when citizens enter the public
procurement processes. In three chapters, the book focuses on trends of citizens’ participation in
public procurement around the globe. This is supported by case studies from different sectors and
countries, including Brazil, Mexico, Kenya, the Slovak Republic, Timor-Leste and Cameroon.

Standards, principles and guidelines

Principles for enhancing integrity in public procurement of 2008. OECD
http://www.keepeek.com/Digital-Asset-Management/oecd/governance/oecd-principles-for-integrity-
in-public-procurement_9789264056527-en#page1

These principles were approved as a recommendation by the highest body of the OECD, the
Council, in October 2008. OECD recommendations reflect a consensus by member countries on
good practice guidance. The principles are based around the following topics; transparency, good
management, prevention of misconduct, compliance and monitoring, accountability and control.
The principles support the implementation of 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. The 2008 recommendation is currently being revised and a
new OECD Recommendation on Public Procurement has been proposed for 2014. The new
recommendation will aim to provide decision makers with a holistic approach on how to ensure the
strategic function of public procurement systems, improve the procurement process and provide
sources of growth. In this, the OECD takes a holistic view of the public procurement cycle: from
needs assessment, bid evaluation and contract award, as well as contract management and
payment.

Open Contracting global principles.

http://www.open-contracting.org/global_principles

The Open Contracting Partnership has facilitated a global consultation process to create a set of
global principles that can serve as a guide for all of those seeking to advance open contracting
around the world. The principles reflect norms and best practices from around the world related to
disclosure and participation in public contracting. They have been created with the inputs and
feedback of nearly 200 members the open contracting community from government, private sector,
civil society, donor organisations and international financial institutions. These collaborators
contributed inputs from various sector-specific perspectives (such as service delivery, infrastructure,
extractive industries and land).

PUBLIC PROCUREMENT TOPIC GUIDE 5

Directives on public procurement. EU, 2014.
http://ec.europa.eu/internal_market/publicprocurement/rules/current/index_en.htm

Following a two-year consultation process, the 2014 EU procurement directives were adopted by EU
institutions in late 2013 and were published in the Official Journal of the EU on 28 March 2014. They
came into force on 17 April 2014. EU member states now have two years to implement them in
national legislation. Until that date, the current version of the EU procurement directives apply.
Compared to the current version, the new directives introduce, inter alia, a definition of conflict of
interest in public procurement, improves the requirements for publishing post-contract information
and provides for the use of modern technology for e-procurement. It also introduces amended
thresholds for applicability and encourages the use of quality-based evaluation methods. Despite the
comments submitted by civil society organisations, including Transparency International, the
directive will not provide for whistleblower protection.

Agreement on government procurement. World Trade Organisation (WTO). 2014.

http://www.wto.org/english/tratop_e/gproc_e/gp_gpa_e.htm

Another international agreement related to public procurement is the government procurement

agreement (GPA) of the WTO. The GPA is a plurilateral agreement within the framework of the
WTO, which means that not all WTO members are parties to the agreement. Following a review of
the 1994 version, the revised WTO GPA entered into force on 6 April 2014. The text of the
agreement establishes rules requiring that open, fair and transparent conditions of competition be
ensured in government procurement. The agreement establishes general principles and detailed
procedural requirements that the GPA parties are obliged to apply in the covered procurement
activities. Which procurement activities are subject to the agreement depends on various criteria,
including the procuring entities, the goods, services and construction services procured, and the
threshold values above which procurement activities are covered by the agreement. For
procurements meeting these criteria, the GPA is a legally binding requirement.

Model law on public procurement. United Nations Commission on International Trade Law
(UNCITRAL). 2011.
http://www.uncitral.org/uncitral/en/uncitral_texts/procurement_infrastructure/2011Model.html

The Model Law on Public Procurement contains procedures and principles aimed at achieving value
for money and avoiding abuses in the procurement process. The text promotes objectivity, fairness,
participation, competition and integrity towards these goals. Transparency is also a key principle,
allowing visible compliance with the procedures and principles to be confirmed. The Model Law is
aimed at assisting states in formulating a modern procurement law. It is designed to be appropriate
for all states.

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 Practical insights: handbooks and toolkits
Curbing corruption in public procurement: a practical guide. Kühn, S., Sherman, L.B.,
Transparency International, 2014.
http://www.transparency.org/whatwedo/pub/curbing_corruption_in_public_procurement_a_practical_
guide

This guide provides a basic introduction to corruption risks in public procurement. Civil society can
use the enumerated principles and minimum standards to be adopted by governments to ensure full
integrity of the public contracting process to advocate for steps to reduce corruption and waste in
public contracting. The guide also emphasises the important role that civil society organisations can
play in the procurement process as monitors and watchdogs acting against corruption. Further, the
guide identifies some critical issues in procurement processes that are often overlooked, and details
steps that public officials, the private sector and civil society can take, acting separately and
together, to significantly curb corruption in public procurement. This is followed by a detailed
presentation of available tools to reduce corruption in public procurement. Additionally, it provides an
outline of the current status of the international regulatory framework, guidelines and standards that
are applicable to public procurement.

Fraud and corruption awareness handbook: a handbook for civil servants involved in public
procurement. World Bank, 2014.
http://documents.worldbank.org/curated/en/2014/02/19437783/fraud-corruption-awareness-
handbook-handbook-civil-servants-involved-public-procurement

This handbook is intended for government employees involved in public procurement. It provides
some insights into how fraud and corruption schemes work in public investments. The handbook
identifies a range of fraud and corruption indicators, or red flags, and relevant schemes that may
become apparent during the life of an investment, from design to implementation. It is based on the
experience of Poland’s Central Anti-Corruption Bureau and the World Bank’s Integrity Vice
Presidency, and it presents examples referring both to public investments implemented under Polish
public procurement law and international competitive bidding. This handbook aims to provide
support to the managers of procuring entities in conducting public procurement by identifying
frequently occurring irregularities and suggesting methods of preventing them.

Integrity pacts in public procurement: an implementation guide. Transparency International,

2013.
http://www.transparency.org/whatwedo/publication/integrity_pacts_in_public_procurement_an_imple
mentation_guide

This manual is a hands-on practical guide to familiarise government officials in charge of

procurement processes with the integrity pact (IP) and to provide them with tools and ideas for its
application. The IP is a tool developed by Transparency International to help governments,
businesses and civil society to fight corruption in public contracting. It consists of an agreement
between a government or government agency (the authority) and all bidders for a public sector
contract, setting out rights and obligations to the effect that neither side will pay, offer, demand or
accept bribes; nor will bidders collude with competitors to obtain the contract, or bribe
representatives of the authority while carrying it out. An independent monitor who oversees
implementation and ensures all parties uphold their commitments under the pact brings

PUBLIC PROCUREMENT TOPIC GUIDE 7

transparency and invaluable oversight to all stakeholders in a contracting process, from the authority
to the public.

Guidebook on anti-corruption in public procurement and the management of public finances.

Good practices in ensuring compliance with Article 9 of the United Nations Convention
against Corruption. United Nations Office on Drugs and Crime (UNODC), 2013.
http://www.unodc.org/documents/corruption/Publications/2013/Guidebook_on_anti-
corruption_in_public_procurement_and_the_management_of_public_finances.pdf

This guidebook looks at corruption in public procurement from the perspective of Article 9 of the
UNCAC. The book helps policy makers to work towards corruption-free public procurement as part
of a country’s obligations under UNCAC. In the second part, the UNODC guidebook provides a clear
and comprehensive summary of corruption risks and related integrity measures in the various
phases of public procurement and recommends specific preventive measures for each phase. The
guide contains as an annex a Checklist for Meeting Minimum Requirements set out by Article 9 of
UNCAC. This checklist of minimum requirements, clearly relevant for policy makers, can also double
as a due diligence checklist for bidders (and their lawyers) seeking to assess corruption risks related
to public procurement rules. Further, the book provides a model questionnaire which is aimed at
verifying the level to which national legislation incorporates the principles described in the report.

The basics of integrity in procurement. Heggstad, K.K., Frøystad, M. Chr. Michelsen Institute,
2011.
http://www.u4.no/publications/the-basics-of-integrity-in-procurement/

This guide provides tools and guidance to help assess risk levels and support appropriate
safeguards against corruption in procurement using country systems in the context of donor-
financed projects. As procurement is part of almost all projects, programmes and sector work, this
paper is intended not only for procurement officers but for all development practitioners and
government officials affected by procurement processes.

Checklist for enhancing integrity in public procurement. OECD, 2008.

www.oecd.org/gov/41760991.pdf

The checklist is designed to guide policy makers at central government level to instil a culture of
integrity in the entire procurement cycle, from needs assessment to contract management and
payment. The first part of the checklist provides guidance for policy makers – in the form of ten key
recommendations – on developing an adequate policy framework for enhancing integrity in public
procurement; the second part provides guidance on how to implement this framework at each stage,
from needs assessment to contract management. This part could be complemented in the next
months by examples of practical tools used in various countries to support the implementation of the
policy framework. The checklist draws upon policies and practices that have proved effective for
enhancing integrity in public procurement. These reflect various legal and administrative systems.
Elements of good practice were identified not only in OECD countries, but also in Brazil, Chile,
Dubai, India, Pakistan, Romania, Slovenia and South Africa.

8 TRANSPARENCY INTERNATIONAL
 OECD Procurement Toolbox. OECD, 2008.
http://www.oecd.org/governance/procurement/toolbox/

The toolbox is an online resource that captures emerging good practices to enhance corruption
prevention and good management in public procurement in OECD and non-OECD countries. The
tools contained in this website have been compiled from practices which have been successfully
tested in a number of countries. Tools apply to the phases: pre-tendering phase; tendering phase;
post-award phase; and some tools which apply to the entire procurement cycle. These tools help to
ensure transparency, good management, prevention of misconduct, accountability and control.

Assessment tools and datasets

Key performance indicators for public procurement. OECD, forthcoming.
http://www.oecd.org/corruption/ethics/procurement-key-performance-indicators.htm

The OECD’s experience in working with public procurement shows that a sound procurement
system includes: a) procurement rules and procedures that are simple, clear and ensure access to
procurement opportunities; b) effective institutions to conduct procurement procedures and
conclude, manage and monitor public contracts; c) appropriate electronic tools; d) suitable, in
numbers and skills, human resources to plan and carry out procurement processes; and e)
competent contract management. In 2013, the OECD commenced a process to develop a set of
indicators to measure the performance of public procurement systems and their evolution over time.
Four areas for the development of indicators were identified: 1) efficiency of the public procurement
cycle; 2) openness and transparency of the public procurement cycle; 3) professionalism of the
public procurement workforce; and 4) contract performance management.

New ways to measure institutionalised grand corruption in public procurement. Fazekas, M.,
Tóth, I.J., U4, 2014.
http://www.u4.no/publications/new-ways-to-measure-institutionalised-grand-corruption-in-public-
procurement/downloadasset/3631

While there have been many qualitative accounts of high-level corruption in public contracting, it is
only recently that quantitative indicators have become available. By making use of big data
generated by governments on contracts, companies and individuals, this publication outlines a new
approach to develop quantitative indicators which can be used to guide policy intervention and
support control of corruption.

Methodology for assessing procurement systems (MAPS). OECD DAC, 2010.

http://www.oecd.org/development/effectiveness/45181522.pdf

MAPS is a tool which developing countries and donors can use to assess the quality and
effectiveness of procurement systems. Two types of indicators are used for the assessment: base-
line indicators, looking at the legal framework; and compliance/performance indicators, assessing
procurement in practice. As of 2011, MAPS has been applied to more than 60 developing countries
and has proven to be a useful tool to identify weaknesses and to agree on a strategy for reforming
the public procurement systems of a country.

PUBLIC PROCUREMENT TOPIC GUIDE 9

Civil society procurement monitoring (CSPM) tool. Transparency International-USA (TI-USA).
http://monitoring.transparency-usa.org

CSPM is a web-based tool that is meant to support CSOs or individuals who want to monitor public
procurement for red flags for corruption in their respective countries. The tool was designed by TI-
USA in cooperation with CSOs in Indonesia and the Philippines, support from procurement and IT
consultants and funding from the Governance Partnership Facility, administered by the World Bank.
The CSPM tool, and particularly the monitoring assistant, its main component, adopt a forensic
approach to procurement monitoring, by focusing specifically on the red flags of corruption that can
be detected by CSOs, considering the information to which they normally have access.

Resources from Transparency International’s Anti-Corruption Helpdesk

Public procurement law and corruption. Martini, M. Transparency International, 2015.
http://www.transparency.org/files/content/corruptionqas/Public_procurement_law_and_corruption_20
15.pdf

This Helpdesk answer goes into detail about best practice for public procurement laws, and how this
can help to limit corruption in public procurement. Whilst acknowledging that procurement laws
should be designed in accordance with each specific country’s context and legal tradition, the paper
highlights some general issues that should be covered by all procurement regulations. These
include clear and objective rules regarding the procurement methods available and the grounds
under which each method should be used, transparent rules on the bidding process, including time
limits, tender documents and contractor qualifications, and the evaluation criteria of bids and
bidders. Moreover, it finds that procurement laws should include provisions for complaint
mechanisms and the protection of whistleblowers, sanctions for non-compliance, measures to
ensure the integrity of procurement officials, and provide for effective monitoring of awarded
contracts.

Public procurement planning and corruption. Wheatland, B. Transparency International,

2015.
http://www.transparency.org/files/content/corruptionqas/Public_procurement_planning_and_corrupti
on_2015.pdf

This answer provides and overview of the corruption risks that are present in the planning stage of
public procurement, and outlines the ways by which corruption risks can be reduced. The answer
focusses on needs assessments, bidding plans, defining technical specifications of items being
procured, and bidding documentation as these areas are most at risk of corruption. Common
methods to reduce corruption risk include an adequate legal framework, transparency and public
oversight, and adequately trained staff. A directive from the European Union has also recently come
into effect, and EU member states must ensure that their national legislation is in line with these
regulations which include specific regulations to reduce corruption risk.

The role of technology in reducing corruption in public procurement. Luijken, T., Martini, M.,
Transparency International, 2014.
http://www.transparency.org/files/content/corruptionqas/The_role_of_technology_in_reducing_corru
ption_in_public_procurement_2014.pdf

This Helpdesk answer provides examples of good practice/case studies from various regions and
countries on the role technology and e-procurement can play in reducing corruption in public

10 TRANSPARENCY INTERNATIONAL
 procurement. The paper provides country examples of successful introduction of e-procurement in
Albania, Georgia and South Korea. It concludes that e-procurement has the potential to prevent and
reduce the opportunities for corruption at the different stages of public procurement. Nevertheless,
the establishment of e-procurement as a standalone reform is unlikely to bring about positive
transformational results. Countries have to invest in coherent legal frameworks, training and
oversight capacity to ensure that the potential benefits of e-procurement, in terms of reducing
corruption, are exploited to their maximum. (This Helpdesk answer is also available in French and
Spanish.)

Blacklisting in public procurement. Martini, M., Transparency International, 2013.

http://www.transparency.org/files/content/corruptionqas/Blacklisting__in__public__procurement.pdf

Blacklisting, or debarment, typically refers to the procedure that excludes companies and individuals
involved in wrongdoings from participating in tendering projects. A blacklisting register is often
consolidated in one place, and can either be made available to the wider public or only to
contracting authorities. In order to have an efficient and fair system in place, blacklisting should be
based on clear rules and on the principles of fairness and accountability, transparency, good judicial
practice and uniformity. Many countries and international organisations have introduced blacklisting
systems due to corruption, but only a few, such as Bangladesh, Brazil, Pakistan and Uganda, have
established a public and central register or database of all companies and individuals that have
been debarred. Despite the use of blacklists, there is very limited evidence of the impact of such lists
in reducing corruption.

Conflict of interest in public procurement. Martini, M., Transparency International, 2013.

http://www.transparency.org/files/content/corruptionqas/Conflict_of_interest_in__public_procurement
.pdf

This answer provides an overview of how to prevent and avoid conflict of interest in public
procurement. In particular, countries should enact guidelines with a clear definition of conflict of
interest, as well as put forth requirements for officials involved in the procurement process to
disclose information on their private interests and assets, in addition to excusing themselves from
certain decision-making processes and prohibiting them from performing certain functions if the
opportunities for conflict of interest exist. In addition, access to information, stakeholder participation
in key stages of the procurement cycle and clear review mechanisms are essential to transparency
and accountability in public procurement and, therefore, are essential in preventing conflict of
interest and other forms of corruption. Moreover, effective implementation and enforcement of the
law are key to create a deterrent effect and ensure integrity during the process.

Overview of principles for monitoring and challenging public procurement contracts. Agator,
M., Transparency International, 2013.
http://www.transparency.org/files/content/corruptionqas/Overview_of_principles_for_monitoring_and
_challenging_public_procurement_contracts.pdf

The paper provides an overview of the most widely used instruments and principles related to
monitoring public procurement and awarded contracts, including information on sanctions (for
example, administrative sanctions and cancellation of contracts) and means to challenge
procurement processes and concessions. Common elements include the need for internal controls
and external audits, as well as autonomy of oversight units. The strongest instruments also require
the involvement of civil society and the systematic blacklisting of companies involved in
wrongdoings. In addition, international standards require states to implement effective redress

PUBLIC PROCUREMENT TOPIC GUIDE 11

mechanisms to any person having or having had an interest in obtaining a particular public
procurement contract.

The benefits of open contracting. Chêne, M., U4/Transparency International, 2012.

http://www.u4.no/publications/the-benefits-of-open-contracting/downloadasset/2898

This Helpdesk answer provides an overview of the benefits of open contracting and highlights the
evidence base and research gaps in this area. It also provides an overview of open contracting
approaches and lessons learned, with a special focus on extractive industries, infrastructure and
forestry. The paper found that good practice in this area involves mandated or non-mandated
proactive disclosure of contract information in user-friendly formats, from the awarding process to
the monitoring and evaluation of contract implementation, with open access to the public, ideally
through online platforms. However, more consultation with key stakeholders is needed to ensure
maximum levels of transparency

Examples of procurement compliance checklists. Chêne, M., U4/Transparency International,

2010.
http://www.transparency.org/files/content/corruptionqas/236_Examples_of_procurement_compliance
_checklists.pdf

Procurement compliance checklists constitute an important element of corruption risk management

strategies in procurement processes, both in terms of prevention and detection of fraud and
corruption. They can guide procurement staff through the process of transparent and effective
procurement and help detect and report irregularities. Compliance checklists reflect good practice in
procurement processes by providing a set of indicators to assess adherence to the agency’s
procurement rules and regulations. They are often structured around the major phases of the
procurement cycle and typically cover the various risks associated with each phase of the
contracting process, using red flags and “blinking” indicators. The paper also outlines details for
successful implementation of such compliance checklists.

Actors and stakeholders

Open Contracting Partnership
http://www.open-contracting.org

The Open Contracting Partnership brings together a broad range of stakeholders which also
includes civil society. The Open Contracting platform operates a so-called community of practice
which offers a social media-based space where interested stakeholders from civil society,
government, private sector, media, academia and others to share, learn, connect and
collaborate around experiences in open contracting. Apart from the community of practice, the Open
Contracting portal offers access to the global principles (listed in the standards, principles and
guidelines section above), and an Open Contracting data standard. The latter will ensure that
partners across the world can gain access to joined-up data, supported by an ecosystem of tools
and services, rather than facing many silos of disjointed contracting data. Tools for implementing
open contracting standards, as well as research and measurement tools are not yet readily available
for online access and download. It is understood that this is planned to be made available in the
nearer future.

Useful websites

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 OECD: Fighting corruption in the public sector
http://www.oecd.org/corruption/ethics/integrityinpublicprocurement.htm

This portal offers access to OECD work on integrity in public procurement. In addition to the
principles and the checklist (listed in the respective sections) this portal offers access to the Network
of Leading Practitioners on Public Procurement which provides a global view of leading procurement
practice through knowledge sharing on effective approaches to strengthening public procurement
systems and transforming procurement into a strategic function. This is complemented by specific
information for public procurement in the sectors energy, healthcare, and for green procurement.

Transparency International: Curbing corruption in public procurement topic page

http://www.transparency.org/whatwedo/activity/curbing_corruption_in_public_procurement

This portal is the entry point for tools and other publications by Transparency International related to
public procurement. It offers, for instance access to the CSPM, developed by TI-USA. This is a “red-
flag tool” which can be used by independent, civil society monitors (for external monitoring) as well
as by respective compliance officers within the procuring agency (internal monitoring). Also, the
portal provides access to the integrity pacts overview, and, soon, to the Integrity Pacts in Public
Procurement Implementation Guide.

PUBLIC PROCUREMENT TOPIC GUIDE 13

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