City of Kragujevac Adopted New Internal Acts to Comply with Public Procurement Law

January 13, 2021

With the support of Government Accountability Initiative, the City of Kragujevac adopted new internal acts in order to harmonize internal procedures and organizational processes in its municipal departments with the provisions of the new Public Procurement Law. The Law, whose implementation started on July 1, 2020, has introduced a number of new instruments and tools for conducting public procurement procedures, including a range of new competences of state authorities in this area. All newly-introduced provisions aim to ensure better management of public procurements, savings and optimal use of public funds, combating misuse and better competitiveness. In accordance with the Law and the model provided by GAI, the internal acts regulate in more detail the manner of conducting a public procurement procedure, the procurements not covered by the law, monitoring of the execution of concluded public procurement contracts and responsibility for lawful, professional and timely actions.

City of Kragujevac is conducting centralized public procurements in order to reduce costs of procurement procedures and increase the economy of public procurements. The report on performance audit „Ensuring Competition in the Process of Centralized Public Procurement“, conducted by the State Audit Institution in December 2019, recognizes that the City of Kragujevac in 2017 achieved savings in the amount of 138 million dinars by conducting centralized public procurements. The purpose of the report was to assess the efficiency of conducting centralized public procurement procedures, in terms of ensuring competition, and the report also includes a number of recommendations issued to the City of Kragujevac for more efficient market research and monitoring of execution of public procurement contracts. GAI provided advisory support to the city administration in acting upon SAI recommendations and reporting on their implementation.

Given the complexity of centralized public procurements, GAI also provided a number of recommendations about the functionalities of the IT system which would ensure more efficient management of the public procurement system, better communication between the departments in planning of procurements, as well as production of different reports and analyses.

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