SIMILAR ARTICLES

Romania’s budget issue: toxic mix of “American” revenues and “European” spending

Relatively recently joined the functional market economies club, although it has multiple pending development (not just economic) issues, Romania looked around and chose a poisonous… Mai mult

Spectacular GDP growth in Q1: 5%, in the context of rhythm decline in manufacturing to just 1.2%. Dilemmas

Gross Domestic Product for the first quarter of 2019 increased by 5% in real terms compared to the same period of the previous year (5.1%… Mai mult

Equation of public employees in Romania’s expenses compared to EU

Simply put, data recorded over time in the monthly budget implementation published by the Ministry of Finance indicate a share of staff costs in total… Mai mult

Foreign groups of enterprises in Romania and areas where they operate. Hierarchy changes

Germany (16.9%), France (11.7%) and Italy (9.5%) are the countries with the largest share in Romania’s economy by the number of employees in 80,905 groups… Mai mult

Budget implementation in Q1, short and simple: wages and social spending up, general and local investments down, co-financing for projects implemented with European money down

The general consolidated budget recorded, after the first two months of 2019, a deficit of about RON 5.5 billion, equivalent to 0.54% of the GDP… Mai mult

Cronicile

“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

4.2%, from 3%: BNR has increased inflation forecast for 2019

The National Bank increased the inflation forecast for 2019 by 1.2 percentage points, from 3% to 4.2%. Also, the forecast for 2020 goes up by… Mai mult

Emergency procedure at European Court of Justice for Romania’s question: Are MCV recommendations mandatory?

The Court of Justice of the European Union (CJEU) has decided that Bihor Court’s request to be discussed under the emergency procedure, which is a… Mai mult

Government decides to increase external borrowing ceiling by EUR 4bn. It has consumed program resources for two years

The Government's agenda for Wednesday also includes the draft decision to increase the foreign loans ceiling for 2019 and 2020 by EUR 4 billion, up… Mai mult

Preparations for Summit in Sibiu - European Commission’s recommendations for EU's strategic agenda

On Tuesday, the European Commission presented a series of policy recommendations on how Europe can shape its future within an increasingly uncertain and multipolar world.… Mai mult

Meeting between Prime Minister Viorica Dancila and Chinese Prime Minister Li Keqiang: talks on a possible involvement of Chinese companies in PPP projects in Romania

On Friday, Prime Minister Viorica Dancila had a meeting with Chinese Prime Minister Li Keqiang, during which she stated her interest in involving Chinese companies… Mai mult

So-called "Belina Law" was adopted. Opposition will refer CCR: it turns Belina Island into a fiscal paradise

The Chamber of Deputies adopted on Tuesday the bill that provides for a derogating tax regime, such as tax exemptions or reductions, for land and… Mai mult

Deveselu shield is undergoing an upgrade process; the US provides alternative defence capabilities with THAAD systems

Aegis Ashore anti-missile system installed at Deveselu 99 Military Base will go in the next period through a previously planned upgrade process, the MApN announced… Mai mult

How 2019 began: Investments, allocations by 78.5% lower than the same period of 2018. 21% decrease in co-financing for attracting European funds

The consolidated general budget recorded a deficit of 0.5% of GDP in the first two months of 2019 namely RON 5.2 billion, a "performance" only… Mai mult

Romania's GDP exceeded Portugal’s in 2018: which has a population two times lower and a GDP/inhabitant twice as high

Romania's economy exceeded, at current prices in euros, Portugal's economy in 2018, a country with a population and a surface two times smaller as Romania.… Mai mult

Document / Draft to amend "Greed Ordinance"

The Ministry of Public Finance published Tuesday evening, a day and a half before the approval in the Government, the draft OUG that amends the… Mai mult

The two OUGs on judiciary for the three files are ready and submitted to Government

The Justice Ministry has prepared the two OUG drafts for which the coalition has put much pressure on the Justice Minister Tudorel Toader before granting… Mai mult

ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise

Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult

March 15, 15:00, for 15 minutes: Romania really wants highways!

Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest "Romania wants motorways". Of course, the country did not… Mai mult

Facebook has removed 30 pages and PSD propaganda accounts in Romania

Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult

Laura Kovesi, indicted in a second case opened by Magistrates' Investigation Section

Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult