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We spotted two major opportunities to advance open contracting in the European Union. With your support, we can make a strong case.
Could you add your name to two public letters?
1) The first letter is a request to DG CONNECT to include public procurement data on a list of high-value datasets under the Public Sector Information Directive (2019/1024). This will mandate every Member States to publish open procurement data
2) The second is a request to the Office of the Publication of the EC to publish the EU’s Tenders Electronic Daily (TED) information in the Open Contracting Data Standard format, making it more accessible and useful.
You can either leave your name, organization, country and email on the bottom of one or both letters or simply reply to us letting us know you support the letters and we will add you. We will send these off first thing in the new year and would love to get your response by COB December 23.
Please forward this to whoever you think is interested in transparency around public procurement in the EU.
Why should you do it?
The European Commission set the rules for how more than 250.000 institutions spend around 14% of the EU’s annual GDP through public procurement. There are two key opportunities to get all this spending information into the public domain in an accessible and useful way.
Thousands of stakeholders, including government institutions, businesses (especially SMEs), CSOs and academic organizations would be able to track and analyse procurement across the EU. Better analysis and oversight could then lead to better procurement policies. Even a 1% efficiency gain would result in EUR 2bn in saved funds!
There is powerful new evidence making the case that the impacts could be larger. Here is a study from Yale University in the US that publishing some open data in the EU has resulted in
(1) a 12% increase in the number of bids received per tender;
(2) that public officials are more likely to award government contracts to new vendors; and that
(3) prices for contracts decreased by approximately 8%.
It is also fair to point out that increased competition comes at the expense of lower contract performance, particularly if suppliers are new, procurement projects are complex, and contracts are awarded solely based on price.
Analysis by EU’s Digiwhist (Digital Whistleblower) consortium of academics under an EU Horizon 2020 project showed that publishing more items of information and data around public procurement directly decreases the number of single bid tenders. This matters as single bid tenders are 7-10% more expensive than more competitive ones for similar items. If EU member states published 5 more items of information about contracts across the EU, the Digiwhist team estimated that savings could be between EUR3-5 billion per year.
We make this case in more detail in the letters but I hope you will agree that this is an exciting opportunity for all of us. The DG CONNECT opportunity is especially important as it will make procurement data a high-value dataset across the EU and require all contracts, not just those above the Tenders Electronic Daily threshold be published.
Better procurement data will contribute to the EU’s Single Market agenda and Public Procurement strategies, both of which emphasize data analysis and improved competition as cornerstones of their future progress.
Your voice will be much valued. Please join us in signing the letter!
Thanks, karolis
Karolis Granickas
Senior Program Manager
+37061133887 | @granickas | skype: caroliuz
www.open-contracting.org | follow us @opencontracting
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