SIMILAR ARTICLES

Sudden and spectacular deficit growth: budget implementation on H1

  At the end of the first half of the year, the general consolidated budget registered a deficit of about RON 15 billion, an amount… Mai mult

World Bank – A scary report that no longer scares anyone: Latest assessment of Romanian emigration

Between three and five million Romanians work and live abroad. The 2017 UN estimate, rated as optimistic by the World Bank’s Report on Diagnosis of… Mai mult

In only one quarter: Incomes increased five times faster than GDP. For public sector employees, even faster

Data released by the INS for the first quarter of 2018 show that households’ living standards increased considerably compared to the same quarter of the… Mai mult

It is the Administrative Code’s turn: little responsibility for local elected officials, higher power for asset disposing, privileges

The Chamber of Deputies votes the amendments to Romania’s Administrative Code on Monday, amendments that strengthen the political control over local administrations. It is expected… Mai mult

Purchasing power declined for second consecutive month: situation by fields of activity

The average gross wage announced by the INS for May 2018 was 4,512 lei, 0.4% lower than in the previous month. Net nominal average wage… Mai mult

“Captivity effect”: Competition Council’s recommendations for institutions not to become dependent on providers who win tenders in IT and health sectors

de Victor Bratu , 23.5.2018

Authorities are often dependent on a single vendor or distributor, mainly in the acquisition of software developed on demand and medical devices, is the conclusion of a study by the Competition Council on the captivity effect in public procurement.

Captivity is a market phenomenon generated by technical and legal restrictions.

The study highlights the main problems faced by contracting authorities regarding the captivity effect and proposes solutions to reduce the risk for contracting authorities to become dependent on a supplier beyond the timeframe specified in the initial awarded contract.

In IT field

The captivity of contracting authorities has been identified particularly in the case of public procurement for the development of customized software products.

Cause – contracting authorities’ omission to include the ownership of the applications in the contract, namely the source code.

The Competition Council recommends in this field that in the tender specifications to be specified the requirements on licensing and other legal aspects such as:

  • unlimited licensing of applications acquired based on licenses
  • the transfer of intellectual property of all deliverables resulted from the implementation process to the respective institution.

The Council recommends that provisions on project deliverables and knowledge transfer to be established when drafting the specifications for the software acquisition.

Provisions that should ensure the continuity of the solution and allow the contracting authority to make changes:

  • transfer of the source code (for customized solutions) with the possibility of making changes independently of the supplier
  • transfer of all deliverables produced within the project in an editable form
  • data ownership and/or the possibility to automatically extract them without the need for the provider to intervene (data export)
  • including a plan for transferring the technical knowledge at the end of the contractual relationship with a supplier

*

  • Public procurement by the types of IT goods and products
  • IT maintenance services
  • Licenses acquisition
  • IT services (processing, archiving and databases)
  • Consulting services for IT project management
  • Hardware
  • Software development

*

In addition to the functional software solution, the beneficiary will ensure that other related deliverables such as the project technical documentation, the source code, technical documentation, administration and operating documentation, test plans, etc. are also provided”, recommends the Council.

If the product brands are used in drafting the awarding documentation, there will be a restriction in the competition to the suppliers offering that mark or a monopoly situation will be created which will have an impact on the acquisition prices.

Brand use is permitted only as an exceptional situation when a sufficient description is not possible by other means provided by law.

The main suppliers of IT products/services that between 2011 – 2016 recorded the highest revenues from contracts signed with public authorities, found the Competition Council:

In the field of medical equipment and devices

Captivity is most often manifested by the fact that a contracting authority finds itself forced to purchase spare parts and consumables for an equipment only from the provider of that equipment, as all the others are incompatible.

In this case, drafting technical specifications is very difficult, both for public procurement specialists and doctors/nurses.

The specifications must contain technical details specific to the area of use of the equipment to allow/make possible the access of several companies to the procedure, says the Competition Council.

The Council recommends for medical units to carefully analyse the technical characteristics of the product they hold, the performance of the good to be purchased, post-warranty maintenance costs, and the cost of spare parts when drafting the specifications.

Mergeți în homepage ›

Publicat la data de 23.5.2018

Lăsați un comentariu


NEWS

Ministry of Finance is drafting a new fiscal framework valid as of January 1, 2019

The Ministry of Public Finance makes a "comparative analysis" of the Tax Code and the Tax Procedure Code with a view to applying a new… Mai mult

Eurostat: Romania and evolution of employee number in public sector in an European context

Romania, Hungary and Slovenia are the member states that recorded the largest increase in the share of public sector employees in the total number of… Mai mult

Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

"We are working on a tax amnesty mechanism": announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult

AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult

Transport infrastructure in Romania needs EUR 70 billion - double as compared to existing resources

The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult

Refusal to work annuls entitlement to social assistance - bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Subsidy of RON 900/month for employing a graduate based on contracts of indefinite duration

The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult

C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's

Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult

High impact provisions: Senate has adopted PSD-ALDE amendments to the Code of Criminal Procedure

Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult

RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years

Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult