SIMILAR ARTICLES

BNR – Risk map: Credit default risk got right to “high” level top position

The deterioration of investors’ confidence in emerging economies and the default risk of loans to companies and population are the biggest risks to financial stability… Mai mult

A (new) paradox: Public debt decreases as a share of GDP – cost increases with interest to what we borrow. Remarks

Although medium- and long-term foreign debt (DETML) has declined steadily over the last four years related to GDP, the amount paid for this debt has… Mai mult

Current account deficit – 15% higher after first four months of 2018

The current account of the balance of payments registered a deficit of EUR 2,053 million in the first four months of this year, about 15%… Mai mult

We and Juncker Plan: Bulgaria – 3rd position, Romania – 23rd position. How other neighbours are doing

The value and economic impact of the Romanian projects to attract resources from the so-called “Juncker Plan” of European investments are much lower, compared to… Mai mult

Sovereign Fund has been voted: Mechanism to remove “states’ pearls” from public control

The voting machine of the Chamber of Deputies (decision chamber) approved on Wednesday – 174 votes for, 98 against and 3 abstentions – the Law… 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

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

World Bank: Romania's economy could grow by 5.1% in 2018

Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult

Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network

The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult

Energy productivity: Romania goes up within Central European group

Romania reached 56% of the EU's average energy productivity in 2016, compared to only 43% in the year of the accession, according to data released… Mai mult

Document / Public procurement - Changes made by OUG: how to calculate guarantees, values over which contract must be publicly announced, how to change contract without resuming procedures

Under the promise of reducing bureaucracy and increasing efficiency in the public procurement procedure, the Government approved on Thursday an emergency ordinance that brings essential… Mai mult

AmCham: Romania should have a national investment plan. Four major areas with competitive potential

The consistency of the measures needed to encourage public and private investment, as well as proposals for the development of the four major areas considered… Mai mult

"We are pulling ourselves out of maps!": Business community’s solutions for infrastructure development

In the medium and long term, companies in Romania lose business because of disarticulated infrastructure; the country overall loses new investment, the state budget loses… Mai mult

New Romania’s Agent at the EU Court of Justice: 32 years old, failed exams, a person supported by Olguta Vasilescu

The government agent at the EU Court of Justice, Razvan Horatiu Radu, was replaced by the Government by a decision of Prime Minister Viorica Dancila… Mai mult

European Commission urges Government to "fully and immediately" reimburse car taxes

The European Commission asks Romania to urgently align the system of taxes collected on the car registration to the European one. The request is announced… Mai mult

CCR President in a visit to Russia, despite that Ministry of Foreign Affairs has recommended not to make this visit

CCR President Valer Dorneanu is in Russia today, where he attends the Sankt Petersburg International Legal Forum, despite that MAE has recommended not to make… Mai mult

List of black payments / Corruption in health sectors: Bribes - 25% of contract value, higher than in other fields

Romania is the European country with the lowest spending in the health sector. However, DNA statistics show that the bribe in this field is higher… Mai mult