1. Aleksander Bakirov Head of Supervision Division e-mail: aleksander.bakirov@rha.gov.ee phone: +372 6201842 fax: +372 6311602

2. “Estonian experience in the field of supervision in Public Procurement”

3. Public Procurement Office Director General Procurement Department Supervision Division (A. Bakirov) Advisory Division Appeal Committee Office Legal Adviser Appeal Committe

4. Pursuant to the Public Procurement Act (PPA), the Public Procurement Office (PPO) carries out state supervision over the conduct of public procurement in Estonia.

5. The activities started 01.04.2001 Total number of employees - 5

6. State supervision includes: I. Inspection of the compliance with the PPA (including at the contracting authority premises) despite the tendering procedure has been terminated or not; II. Making the decision or issuing the precept by the PPO before entry into a procurement contract if the contracting authority has violated the provisions of the PPA in the course of a tendering procedure. State supervision includes: I. Inspection of the compliance with the PPA (including at the contracting authority premises) despite the tendering procedure has been terminated or not; II. Making the decision or issuing the precept by the PPO before entry into a procurement contract if the contracting authority has violated the provisions of the PPA in the course of a tendering procedure.

7. I. The inspection of the public procurement of the Contracting Authority includes: The conformity of the tendering procedure to the provisions of the PPA; Arrangement of the tendering procedure if according to the spending in the book- keeping documents the cost of the procurement was above the value threshold provided by the PPA (avoidance of public procurement).

8. II. Pursuant to the PPA, the PPO shall at any time before entry into a procurement contract (if the violations of clauses 1 – 8 are taking place) either cancel the tendering procedure of a state authority, city or local municipality government or local government authority or issue a precept to a legal person as a contracting authority for cancelling the tendering procedure.

9. . According to the PPA the responsibility for the violation of requirements in execution of public procurements is provided for either physical or legal persons, and the misdemeanours of those articles shall be carried out extra-judicially by the PPO.

10. Pursuant to the Code of Misdemeanour Procedure, the PPO may apply in the procedure of extra- judicial proceedings of misdemeanours three different forms of proceedings with a maximum penalty: For a physical person – 1150 EUR For a legal person – 3200 EUR

11. The most common violations: Purchasing of goods and contracting for services and construction work ignoring the tendering procedure where it was compulsory; Division of public procurement into lots with the aim to escape the established tendering procedure; Contract award notices on simple procedure not filed; Violation of the term for submission of contract award notices; Other violations (the person responsible for the procurement has not been nominated, nonconformity of evaluation criteria to the provisions of the PPA, nonconformity of the procurement contract to the requirements set out in tender documents and tender declared as successful).

12. Supervision in figures - 2006 In 2006 the PPO has inspected the compliance of the procurements to the PPA at 62 contracting authorities and has drawn up 55 control statements In the process of supervision the lawfulness of 581 executed tender procedures at different contracting authorities was checked in the course of which 808 different infringements of the act were ascertained. Altogether 52 misdemeanour procedures were started. In 2006 the PPO made one decision and issued 4 precepts on cancelling the tendering procedures. The total amount of fines – 6500 EUR

13. Thank you for your attention