Modernising the Maltese public procurement

Abstract

The aim of this study is to observe the evolution from where the Maltese Public Procurement started before the accession of Malta in the European Union, the changes made so far, and other suggestions made to improve the current operational methods. The study looks at the major project undertaken by the Department of Contracts and to the shift from manual procedure with all tenders being published in hard copy, to the eventually removal of hard copy and only soft copies being sold, to the online portal being created in 2009 and at last the whole tendering process going on line. How eProcurement has improved efficiency, increased transparency and also facilitated the procurement procedure both for the public and private sector. The study looks at the implementation of one of the Government's policies to introduce Green Public Procurement and also whether the Department of Contracts should be involved from the initial stages of the contract until the contract is fully implemented and operational or only from an administrative point of view until the contract is signed. The EU has a centralised Exclusion Database for blacklisted economic operators for EU funded tenders. Should Malta also have a similar database which prohibits bidders from participating in locally funded tenders? Should Bank Guarantees still be used to protect the Government or are they hindering SME's in bidding of tenders? The study discuss the 2 types of award criteria namely the cheapest versus Most Economically Advantageous Tender (MEAT) and whether the prohibition on MEAT should be removed. The study concludes by introducing the way forward for Public Procurement in Malta in line with what is being discussed with other European Union member states in the EU Commission meetings and what will be the future direction.