This update of the 1995 CPARis basedon the September 1999 PPA and the findings of the Bank CPARmission to Slovakia in November 1999. The 1999 PublicProcurement Act (PPA) is an improvement upon the previousPPAs in some respects, including the creation of an OPP,more detailed and clear procurement procedures,accreditation of procurement professionals, introduction ofthe Public Procurement Bulletin and expanded bid protestresolution procedures.However, it is the Bank's viewthat, although the procurement methods in the 1999 PPAcomply with EU Directives, some of these methods lacktransparency and may not result in efficient and competitiveprocurement. The PPA provides for four procurement methods:open tendering, restricted tendering, negotiated tenderingwith prior notification; and negotiated tendering withoutprior notification.While open tendering includestransparent procedures which will lead to competitive andeconomic procurement, the PPA does not include appropriatecriteria for the use of restricted tendering, such as theavailability of a limited number of suppliers, response tonatural disasters, etc.Similarly, the negotiatedprocurement with prior notification method lackstransparency and gives excessive discretion to thecontracting authority. In order to improve the transparencyof the negotiated procurement with prior notificationmethod, it is recommended that the conditions for its useshould be brought more into line with those contained in theEuropean Union Supplies Directive and that, where suchconditions of use are not met, Open or Restricted Tenderingshould be employed. The Bank also recommends strongly, as itdid in the past, the inclusion in the PPA of separateprovisions relating to procurement of consultants'services in future amendments to the PPA. Otherrecommendations include improving procurement planning byproviding information about budgetary allocations early inthe budgetary cycle; establishing contracting authorities ofa permanent procurement committee responsible for decisionmaking and for providing oversight; introducing a formalcode of ethics for government employees to improve theiraccountability in procurement; continuous training of thestaff of contracting authorities in procurement; updating ofthe procurement guidelines and standard bidding documents;collecting and disseminating best procurement practices tocontracting authorities; maintaining dialogue with theprivate sector to keep suppliers, contractors andconsultants informed of the requirements of the PPA and ofimprovements in the procurement system.
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