The criteria for establishing and maintaining an optimal governance model for public procurement

Abstract

The objective of this paper is to analyze methodologies for evaluating public procurement system, as well as, statistical data, in order to determine which elements can be identified as essential for establishing an optimal governance model for public procurement and to provide recommendations how to maintain it. Public procurement system consists of a process that involves policies and procedures which are aimed at acquiring the goods, services and works which are essential for accomplishing goals, responsibilities and critical activities of public entities and institutions, which contribute to the overall normal functioning of country’s economy and well-being of its citizens, at large. On the other hand, public procurement system can be viewed as a tool for assessing if a country is prepared to avoid or to mitigate the negative effects caused by emergency events. This was especially the case during the past two years, since there was a worldwide emergency situation caused by the COVID-19 pandemic since the 2020. Other recent extreme events, such as floods, earthquakes, tsunamis, social events and wars, have challenged the preparedness of public procurement systems to respond and secure essential and vital functions of countries, regions and global world economy. These emergency events have shown that no country in the world is immune to negative effects which manifest as either a lack of necessary, many times, vital goods or services or in the worst case, the loss of human life. Therefore, it is important to question again if the preparedness of public procurement system can contribute to alleviate these extreme situations and if it can contribute to determine what should be considered the optimal governance model for public procurement.