Value for money of the tendering procedure across ministries

Abstract

Purpose: The aim of this dissertation is to describe how the public tendering procedure in Malta is carried out, and to analyse whether the process is achieving value for money for government. Design: A qualitative approach was adopted for this study. Twenty-five semi-structured interviews were conducted: twelve with Directors or other public officials from Ministries; nine public officials who have acted as members of evaluation committees; one with a Director at the Department of Contracts; and with three auditors, one from NAO and two from IAID. Findings: The study shows that both Ministries and the Department of Contracts implement policies and procedures for the tendering procedure to be economically, efficiently and effectively carried out. Attaining value for money is the ultimate aim of government when procuring. With regards to the reform undertaken by the European Commission through new directives on procurement, it appears that procurement officers are in favour of such changes as they are expecting these to lead to more leeway and flexibility in the process. Procurement officers would prefer some flexibility, especially for projects which are urgent and require immediate actions. Particular attention is given by public officials when planning timeframes which allow for competition during the tendering process. Conclusion: This study concludes that the government needs to strengthen its procurement set-up with more personnel and formulate formal strategies which help to attain value for money. The new EU Directives are also expected to impact positively the local public procurement functions. Value: The study focuses on the tendering procedure and how public officials ensure that they make the best use of the available resources. It is hoped that by highlighting possible areas for improvement in the field, the public will benefit in the end by getting more value from the money for the taxes that they pay.