IMPACT%20OF%20THE%20%20QUALITY%20OF%20LEGAL%20PROTECTION%20%20ON%20THE%20PUBLIC%20PROCUREMENT%20MARKET

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IMPACT OF THE QUALITY OF LEGAL PROTECTION ON
THE PUBLIC PROCUREMENT MARKET

• Tina ERŽEN, Ph. D.,
• IEDC Bled School of Management, Slovenia
• Conference on "Public Procurement Review
  Remedies SystemsDubrovnik 24-25 May 07

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PP MARKET

• Does it exisit SEPARARTELY
• or is it just a
• part of the COMMON MARKET ?
• policies vs. realities

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QUALITY OF PROTECTION

• TYPES OF PROTECTION of rights of all parties
  AVAILABLE
• CONNECTEDNESS OF THESE TYPES normative,
  practical
• QUALITY OF TYPES
• availability,
• transparency,
• purpose of a type,
• effectiveness of a type,
• cultural embededness,
• institutional support.

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• activity
• COMPETITION
• situation / state of things/ landscape
• most of human activity gt SURVIVAL

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ECONOMIC SURVIVAL

• PRIVATE ENTITIES
• Survival in business ? YES
• Where happening ? MARKET

PUBLIC ENTITIES Do they have to buy ? YES Where
? MARKET Same market ? YES
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THE QUESTION

• CAN BUSINESS LOGIC BE APPLIED TO
• PP TENDERING PROCEDURES?
• WHAT IS Tendering procedure?
• WHAT IS Public interest?
• Is competition (in) Public interest ??

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TENDERING PROCEDURE

• steps to be taken when approaching suppliers
• DIRECTIVES gt general regulation (approach)
• BUT
• BASIC PRINCIPLES OF PP
• MAIN AIM OF REGULATION gt to achieve EFFECTIVENE
  SS OF PRIVATE SECTOR

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TENDERING PROCEDURE

• average BEHAVIOUR OF MARKET PARTICIPANTS
• ! accessibility of demand and supply
• !choice ..... ? drivers ? Economic efficiency
• lower prices
• terms of contract
• customization
• OBLIGATORY ELEMENTS
• OF TENDERING PROCEDURE

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PUBLIC INTEREST

• NO definition in PP regulations
• (interpretation)
• all and everything contributing to
• aims goals of PP regulation
• 3 AREAS efficiency of purchasing
• public purchasing a sound and viable activity
• opening-up of market

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PUBLIC INTEREST vs. BASIC PRINCIPLES

• BASIC PRINCIPLES
• P. of Equal treatment /Non-discrimination
• P. of Transparency
• P. of Proportionality
• P. of Mutual recognition

• ECONOMIC
• EFFECTIVENESS
• access to all by all
• value for money

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COMPETITION AS PUBLIC INTEREST

• effect of BASIC PRINCIPLES
• ....just distribution of business opportunities
• DIR 1992, 1993
• gt focus on first steps of acquisition process
• establishing conditions of supply demand
• PREFERENTINAL
• TREATMENT TRANSPARENCY / NON- DISCRIMINATION

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• DIR 2004
• ...a step forward
• more flexibility in designinig terms of business
• CONTRACTUAL FREEDOM neccessary for efficient
  purchasing
• but
• LIMITS - Private market Competition law
• - Public market ? Competition law
• ? Review authorities through BASIC
  PRINCIPLES

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ANSWER to THE QUESTION

• Can business logic be applied to PP tendering
  procedures?

Not only can, but MUST, within the legal
framework provided ! ETHICS PROFESSIONAL
STANDARDS
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THANK YOU FOR YOUR ATTENTION