Procurement Risk:
High
Score:
36/100
Government Policy
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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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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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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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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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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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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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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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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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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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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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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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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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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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
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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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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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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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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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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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
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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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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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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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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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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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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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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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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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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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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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
Q67
31/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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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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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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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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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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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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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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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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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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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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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
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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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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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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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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In the absence of offset contracts no transparency procedures have been adopted [1].
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In the absence of offset contracts no monitoring procedures have been adopted [1].
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In the absence of offset contracts no enforcement of track records exist [1].
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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
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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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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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
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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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
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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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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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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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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