Procurement Risk:

High

Score:

36/100

Government Policy

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Q57 38/100

Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?

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Legal framework Score: NS / 100
This indicator is not assigned a score in the GDI. Defence procurements are conducted following the Law on Public Procurement (LPP) [1] and several…
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Corruption risks Score: 25 / 100
There is no specific legislation covering risks related to defence procurement specifically; however, it is generally covered in the law and guidance for public…
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Effectiveness Score: 50 / 100
Transparency of public procurements has been one of the main issues of concern in Albania, particularly due to the preferred use of the negotiated…
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Q58 75/100

Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?

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Formal procedures Score: 100 / 100
The defence procurement is regulated by the law on public procurement (LPP) [1] and the Decision of Council of Ministers 1403/2008 (DCM 1403/2008) which…
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Transparency Score: 75 / 100
Although the process is regulated in terms of structures and responsibilities performed by them, the outcome of their activity is not made public. The…
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Implementation Score: 50 / 100
The SSAI has identified shortcomings in the implementation such as, incompatibilities between the evaluated budget in the procurement procedure and the actual amount spent…
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Q59 42/100

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

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Independence Score: 50 / 100
The procurement oversight institutions are mechanisms are Public Procurement Agency (PPA) and the Public Procurement Commission (PPC) established under the LPP and the Competition…
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Effectiveness Score: 0 / 100
Except for the SSAI, the PPA, PPC and CA have no jurisdiction over exempted procurements that are conducted under the national defence and security…
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Transparency Score: 75 / 100
The PPA, CPP and CA decisions are published in their websites [1, 2, 3]. Since 2010, the PPA has published the annual procurement plans,…
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Q60 63/100

Are potential defence purchases made public?

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Policies Score: 100 / 100
The long-term plan on the development of the Armed Forces (LTPDAF) provides the priorities for the defence purchases between 2016-2025 for all the services…
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Notice of planned purchases Score: 25 / 100
The MoD website provides some information on completed purchases, but no information is provided on budget. Some of the planned procurements appear in the…
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Q61 50/100

Are actual defence purchases made public?

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Comprehensiveness Score: 50 / 100
The defence purchases conducted through the open procedure (following the Law on Public Procurement (LPP)) are made public in details through the annual procurement…
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Accessible data Score: 50 / 100
Data on defence purchases conducted through the open procedure (following the LPP) is released in Excel format by the PPA. The contracts adopted by…
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Capability Gap and Requirements Definition

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Q62 0/100

What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?

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Formal policies Score: 0 / 100
The Law on Public Procurement (LPP) outlines the general criteria for prohibiting companies to participate in public tenders [1]. The contracting authority can disqualify…
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Consistent implementation Score: NA / 100
This indicator has been marked Not Applicable. This is due to the fact that there are no obligatory provisions for the companies to sign…
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Q63 58/100

Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?

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Procurement requirements Score: 75 / 100
Overall there is an alignment between the military strategies [1], the Long-term Plan on the Development of the Armed Forces [2] and the annual…
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Scrutiny Score: 50 / 100
The State Supreme Audit Institution (SSAI) scrutinizes the alignment of the procurements with strategic documents, multiannual budget programming and the actual procurements and purchases.…
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Purchases Score: 50 / 100
Inconsistencies have been found by the SSAI in the multiannual procurements made by the MoD, such as incompatibilities between procurements, functions, and training, procurement…
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Tender Solicitation, Assessment and Contract Award

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Q64 38/100

Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?

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Open competition Score: 50 / 100
Some defence procurements are conducted through the Law on Public Procurement (LPP). These procurements appear in the Ministry of Defence’s (MoD) annual procurement plans…
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Scrutiny of single/restricted competition procedures Score: 25 / 100
The SSAI can scrutinize all the procurements conducted by the MoD and security institutions. The SSAI does not audit the motives of defence and…
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Q65 NEI/100

Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?

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Conflicts of interest Score: 100 / 100
The Law on the Conflict of Interest provides for the management of conflict of interest for the officials involved in decision making on contracts…
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Audit Trail Score: NEI / 100
There is not enough information to score this indicator. The Ministry of Finance and Economy (MoF) has issued regulations on standard auditing trail applicable…
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Transparency Score: 100 / 100
Tender board legislation, regulations, manuals, training, are publically available and are regularly published on the relevant websites [1, 2, 3, 4, 5, 6, 7].
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Scrutiny Score: NEI / 100
There is not enough information to score this indicator.The MoD has adopted a regulation on auditing defence procurements [1]. However, there is no information…
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Q66 58/100

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

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Legal framework Score: 75 / 100
The Law on Competition provides for the prohibition of agreements or coordination of action among two or more companies that affect prices directly or…
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Sanctions Score: 50 / 100
The Law on Protection of Competition is considered to be “largely aligned” with the Treaty on the Functioning of the European Union and the…
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Enforcement Score: NA / 100
This indicator has been marked Not Applicable. There are no publically known cases of investigations or prosecutions that have been conducted into breaches of…
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Training Score: 50 / 100
The Competition Authority has organized training with procurement officials and judges [1,2]. In 2016, 45 officials were trained, in training activities in the country…
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Contract Delivery and In-Service Support

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Q67 31/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

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Reporting policies & procedures Score: 50 / 100
The Law on Public Procurement (LPP) sets out the obligations of the contracting authorities to ensure that during the procurement process the economic operator/s…
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Transparency Score: 25 / 100
Information on contracts awarded following the LLP procedures is published in the procurement bulletins produced by the PPA [1]. The PPA monitors the execution…
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Monitoring Score: 25 / 100
Implementation of contracts is monitored by the contracting authorities and the APP. The APP produces reports with aggregated figures on contract monitoring and completion.…
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Enforcement Score: 25 / 100
The PPA regularly publishes information on sanctions given. In 2017, seven economic operators were expelled for failure to deliver on the contract [1]. In…
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Q68 83/100

Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?

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Complaints mechanisms Score: 100 / 100
According to the Law on Public Procurement (LLP), companies may file a complaint to the Public Procurement Commission (PPC) within seven days from the…
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Effectiveness and Accessibility Score: 100 / 100
The tariff for filing a complaint to the PPC is 0.5% of the value of the fund (VAT excluded) [1]. The complaints system is…
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Retaliation Score: 50 / 100
There are no surveys conducted with businesses that would allow the public or the relevant institutions to know the businesses’ attitudes vis a vis…
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Q69 50/100

What sanctions are used to punish the corrupt activities of a supplier?

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Sanctions Score: 100 / 100
The Criminal Code allows for the criminal prosecution and punishment of active and passive corruption with sentences of up to 12 years imprisonment for…
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Undue influence Score: 50 / 100
Cases are investigated and prosecuted and sanctions are given, but the number of investigations and prosecutions is small compared to the scale that is…
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Application of sanctions Score: 0 / 100
In 2014, the prosecution investigated ten cases, and 17 defendants were sentenced while in 2015, 13 cases were prosecuted, and six defendants were sentenced…
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Offset Contracts

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Q70 0/100

When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?

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Legal framework Score: 0 / 100
There are no provisions in the Albanian legislation on procurements regarding offset contracts [1]. The State Supreme Audit Institution (SSAI) has no records on…
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Due diligence Score: 0 / 100
There are no provisions in the Albanian legislation on procurements regarding offset contracts [1]. The State Supreme Audit Institution (SSAI) has no records on…
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Q71 0/100

How does the government monitor offset contracts?

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Policies & procedures Score: 0 / 100
No information on offset contracts is made available to the public. None of the institutions contacted or interviewees were able to provide information on…
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Transparency Score: 0 / 100
In the absence of offset contracts no transparency procedures have been adopted [1].
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Monitoring Score: 0 / 100
In the absence of offset contracts no monitoring procedures have been adopted [1].
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Enforcement Score: 0 / 100
In the absence of offset contracts no enforcement of track records exist [1].
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Q72 0/100

What level of competition are offset contracts subject to?

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Score: 0 / 100
No information on offset contracts is made available to the public. None of the institutions contacted or interviewees were able to provide information on…
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Agents / Brokers

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Q73 0/100

How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?

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Policies Score: 0 / 100
Albanian legislation has no provisions on agents and intermediaries in the procurement cycle [1]. The State Supreme Audit Institution (SSAI) has no auditing records…
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Enforcement Score: NA / 100
This indicator has been marked Not Applicable. In the absence of provisions on agents and intermediaries no track records on enforcement can be traced…
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Financing Package

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Q74 25/100

Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?

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Score: 25 / 100
Some details on the financing package of the procurements contracts adopted by the parliament [1] or the Council of Ministers [2] are made public.…
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Seller Influence

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Q75 NS/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

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Prevalence: selling nations Score: NS / 100
This indicator is not assigned a score in the GDI. Media reports have revealed influence by seller nations on major procurements. This was the…
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Justification Score: NS / 100
This indicator is not assigned a score in the GDI. The majority of the military acquisitions derive from the military strategy, the Long-term Armed…
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Prevalence: domestic pressures Score: NS / 100
This indicator is not assigned a score in the GDI. Political influence on awarding contracts has been also reported. In 2015 the opposition accused…
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