site.btaCorruption, Red Tape, Rigorous Requirements Deter Businesses from Procurement Tendering

Sofia, April 2 (BTA) - Corruption, red tape, rigorous requirements and fuzzy provisions in the Public Procurement Act are the main deterrents to public procurement tendering, according to a March 12-16 poll among members of the Bulgarian Chamber of Commerce and Industry (BCCI).

The poll was prompted by a meeting with World Bank representatives looking into problems in procurement tendering in Bulgaria.

More than 40 per cent of businesses say the winner of a tender is selected in advance. Slightly over 20 per cent of respondents have been awarded procurement contracts. One in five businesses have never tendered for reasons including complicated documents to fill in, guarantees that small and medium-sized companies cannot put up, lack of information, and inability for SMEs to carry out the contract in its entirety.

Businesses have come up with several proposals. More than 62 per cent of respondents suggest that public procurement tenders be announced and conducted online only, with clear criteria; 44 per cent are opposed to subjective criteria, such as payment deferral and specific requirements about a service; 38 per cent want a certain percentage of procurement contracts to be reserved for SMEs; and 30 per cent suggest direct contracting and negotiations with selected companies to be scrapped.

The BCCI poll found that after the new Public Procurement Act became effective in 2016, a mere 13 per cent of interviewed companies noted that procedures became more transparent. In contrast, 56 per cent say nothing has changed and 31 per cent do not know.