Public Buyers

Ethical behaviour and integrity in public procurement

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As a buyer, your role extends beyond handling finances and contracts. You are responsible for managing taxpayers' assets, which means recognising that every decision in the procurement process can impact not only your relationship with suppliers but also the everyday citizens who follow local news and participate in public discussions.

Regulations emphasise the importance of equal treatment and predictability. Ethically, these principles are crucial for ensuring fairness, building trust among suppliers, and maintaining public confidence that taxpayers' money is managed responsibly and transparently.

This article aims to explore the various stages of the procurement process from an ethical and integrity perspective.

The Procurement Process: From Start to Finish

Needs Analysis

Identifying needs based on objective criteria is essential to ensure your decisions can withstand scrutiny. Your judgement should be impartial and free from external influence. This approach safeguards your position and ensures integrity.

There may be temptations to exaggerate needs to secure a larger budget or opt for more extravagant solutions. Conversely, there could be pressure to downsize requirements to fit budget constraints. Both actions could be viewed as unethical under scrutiny.

Be vigilant about potential conflicts of interest. If a supplier is a friend or family member, this could bias your judgement. It is crucial to disclose such relationships both internally and externally. Even if you believe there is no conflict, the appearance of bias can damage your credibility, making it advisable to recuse yourself from the process if necessary.

Once needs are defined, clearly articulate why these needs were identified, how they align with the organisation's goals, and how they serve the interests of all parties. Clear communication ensures that everyone understands the process and perceives it as fair.

Preparation of Tender Documents

Clear and precise tender documents are vital for a fair, efficient procurement process. As a buyer, you must ensure that all parties understand the required documentation and the criteria for evaluating tenders.

If a supplier has prior knowledge of the procurement process, it could give them an unfair advantage, leading to perceptions of unequal treatment and potentially undermining your integrity as a contracting authority.

Ambiguities in tender documents can lead to varied interpretations, creating room for subjective evaluations that might favour one supplier over another. Clear and unambiguous tender documents reduce the risk of complaints and ensure suppliers feel treated fairly.

At Mercell, we frequently receive feedback from suppliers who value clear descriptions of needs, requirements, and evaluation criteria. Transparent communication strengthens relationships with suppliers and enhances public trust in the process. Ambiguities can undermine this trust, making integrity a core priority.

The Tender Phase

The tender phase, from the announcement of the competition to the tender submission deadline, is critical for both buyers and suppliers. During this time, ethics and integrity play a significant role.

After the tender announcement, suppliers may raise questions about the documents. A high volume of queries can indicate unclear or ambiguous tender documents. While you can clarify, there is a limit to how much can be altered post-announcement.

Having a contingency plan is advisable. If the situation calls for it, cancelling the competition early can help maintain trust, even if admitting to mistakes feels uncomfortable.

Ensure there is a single communication channel for all questions affecting tender submissions. Our recommendation is to use the communication module in KGV and ensure all questions are documented in writing. This approach ensures no supplier gains an undue advantage.

Changes During the Competition

Any amendments to tender documents after the announcement must be clearly communicated to all potential suppliers to guarantee equal treatment and predictability.

Confidentiality

Maintaining confidentiality is critical. Do not disclose which suppliers have asked specific questions, as this might reveal strategic information and deter suppliers from participating.

Avoiding Conflicts of Interest

Always be transparent about personal relationships with suppliers or any factors that might affect your objectivity. Even if you believe you can remain impartial, external perceptions might differ, potentially compromising your integrity.

Evaluating Tenders

After the submission deadline, the evaluation phase begins, which can be both challenging and crucial. Adhering to specific guidelines during this phase is essential for maintaining integrity.

Strict Objectivity

Stick to the established evaluation criteria and apply them consistently across all submissions. Avoid favouritism or allowing personal biases to influence your decisions.

Transparency in Evaluation

After announcing the winning bid, clearly explain how each tender was evaluated. This transparency builds confidence in the fairness and accuracy of the process.

Documenting the Decision-Making Process

Thorough documentation of each evaluation step is crucial. This record will help explain decision-making processes and defend against complaints or inquiries. Proper documentation upholds regulatory standards and protects your integrity.

Summary

Regulations mandate predictability and equal treatment, essential for safeguarding all parties' interests in the procurement process. Balancing procurement requirements with the public's expectation that taxpayers' money is managed ethically and responsibly is key. This article aims to help buyers maintain these perspectives and ensure a fair, transparent, and ethically sound procurement process.

 

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