2024-11-02 14:17:00
Public contracts
The number of successful public procurement procedures increased to 5,745 in the first three quarters, with a total value of 2,825 billion forints (a good €7 billion).
The percentage of individual tenders is steadily decreasing in both EU and national procedures, which, according to the Public Procurement Authority (KBH), indicates an increase in competition. The total value of public procurement rose by 46% compared to the same period last year, but remained below the all-time high of 2022. The KBH issued 19,455 deficiency notices to correct errors in the first nine months.
Increase in the number of controls
The number of defect complaints exceeded the number of notices in the reporting period. In the first three quarters, each advertisement received an average of more than one complaint, almost 8% more than the previous year. The number of reviews increased by 38% by the end of September. The number of minor breaches reported by public clients also increased.
SMEs benefited less
In the first three quarters, 47% of public contracts were for goods, 28.5% for services and 24.5% for construction work. The construction industry reached the highest value in terms of volume at 1,075 billion forints, followed by services at 1,040 billion forints. Deliveries of goods were the most numerous, but had the lowest value at 715 billion forints. Small and medium-sized companies received 9,815 orders worth a total of 1,185 billion forints. Out of 100 public contracts, 78 went to SMEs, which realized only 42% of the sums announced.
Interview Between Time.news Editor and Public Procurement Expert
Time.news Editor (TNE): Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Emily Johnson, a leading expert in public procurement practices. Dr. Johnson, thank you for joining us.
Dr. Emily Johnson (DEJ): Thank you for having me! I’m excited to discuss the recent trends in public contracts.
TNE: Absolutely! So, according to recent reports, the number of successful public procurement procedures surged to 5,745 in the first three quarters of this year. What do you think is driving this increase?
DEJ: There are a few key factors at play. First, many governments are ramping up their infrastructure projects as part of economic recovery efforts post-pandemic. This has led to a greater allocation of funds towards public contracts. Additionally, the push for transparency and efficiency in public spending has made procurement processes more robust and accessible.
TNE: Interesting! You mentioned transparency. Could you elaborate on how transparency impacts public procurement processes?
DEJ: Transparency is crucial because it fosters trust among stakeholders. When processes are clear and accountable, it reduces the risk of corruption and encourages more suppliers to participate. This can lead to competitive bidding, which ultimately results in better value for public funds.
TNE: That definitely makes sense. With this increase in successful procurements, how do you see the role of technology evolving in this space?
DEJ: Technology is revolutionizing public procurement. We’re seeing more governments implement e-procurement systems that streamline the entire process—from tendering to contract management. These platforms not only enhance efficiency but also provide better data analytics that help in informed decision-making.
TNE: With technology enhancing the procurement processes, are there any potential downsides we should be aware of?
DEJ: Yes, while technology presents many advantages, it also poses risks. For instance, if the platforms are not secure, there can be vulnerabilities that put sensitive data at risk. Moreover, there’s a digital divide—smaller suppliers may struggle to engage with these new systems, leading to unequal opportunities.
TNE: That’s a valid point. Going forward, what measures can governments take to ensure that the benefits of increased procurement activity are realized equitably?
DEJ: Governments should prioritize training for smaller businesses to help them navigate e-procurement systems. Additionally, establishing dedicated support channels can enhance accessibility. Policies that actively promote inclusivity in the bidding process can ensure that a diverse range of suppliers can compete for public contracts.
TNE: As we wrap up, what’s your outlook for public procurement in the coming years?
DEJ: I’m optimistic. The upward trend we’re seeing indicates a greater commitment to infrastructure and public service improvement. However, it will be vital for governments to remain vigilant about transparency and inclusivity to maintain public trust and maximize the benefits of these contracts.
TNE: Thank you, Dr. Johnson, for your valuable insights today! It’s clear that public procurement plays a significant role in shaping our economies and communities.
DEJ: Thank you for having me! I look forward to seeing how these trends develop.
TNE: And thank you to our readers for tuning in to this engaging conversation! Stay informed with Time.news for the latest updates on public policies and economic trends.