THE QUIET REVOLUTION OF ISRAEL’S PUBLIC PROCUREMENT LAW

Abstract

This article gives a legal-historical outlook on the development of the Israeli procurement law, the main achievements and challenges, and the “quiet revolution” it is going through. This article analyses the respective roles of the three branches: the legislature, the executive, and the judiciary from an institutional vantage point, in designing the public procurement legal framework. This, while considering the greater socio-political and economic context. Israel’s public procurement regime is undergoing significant changes. The most recent changes involve a greater degree of professionalism by different governmental units; e-procurement; e-tendering; and a pilot of e-guarantees. Furthermore, the government is promoting public-private partnerships (PPPs) by engaging in more sophisticated long-term procurement models. Moreover, the decision of the Supreme Court of Israel in Bibi Roads Earthmoving & Development Ltd v Israel Railways Ltd is an important milestone representing a formalistic approach in contract law interpretation of government procurement contracts. This decision had a profound impact on the procurement cycle as a whole. A proposal for a revision of the Mandatory Tenders Regulations, aimed at increasing competition and diversity of suppliers by giving the government/executive more discretion in the procurement process, is now on the table. Within this context, the judicial overhaul promoted by the 37th government and its ramifications on public procurement law is briefly discussed.