What level of competition are offset contracts subject to?
Algeria score: 0/100
Single source offset contracts are rarely (if ever) justified.
There is little open competition in offset contracts, with most contracts being single-sourced.
Offset contracts are generally conducted as open competition, but circumstances are not always clearly defined. Single source contracts are often conducted without clear justification.
Offset contracts are conducted as open competition, except in clearly defined circumstances. However, single source contracts are sometimes conducted without clear justification.
Offset contracts are conducted as open competition, except in clearly defined circumstances. All single source contracts are justified and subject to external scrutiny (such as parliament or the external audit office), who have the power to reject the purchase.
As has been answered in previous questions, no information specific to offset contracts could be found. Art. 9 of the 2006 Anti-Corruption Law states that public procurement procedures have to be based on transparency, fair competition and objective criteria (1). However, as has been noted in the country’s last assessment (2), the lack of evidence suggests that there is likely no competition. Tenders published on the website of the Ministry of Defence also did not include any offset contracts (3). Algeria signed a Memorandum of Understanding with an Italian company to build a factory to build helicopters in Algeria in 2016. No justification or explanations from the Algerian government could be found in newspaper articles (4), (5).
1) Law No. 06-01 (February 20, 2006), “Relative à la prevention et à la lutte contre la corruption”. Accessed October 15, 2018.
2) “Algeria”, Country Assessment of the Government Defence Anti-Corruption Index 2015. Accessed March 22, 2019. http://government.defenceindex.org/generate-report.php?country_id=6251.
3) “Invitation to Tender”, mdn.dz. Accessed November 23, 2018. https://www.mdn.dz/site_principal/accueil_an.php#undefined.
4)” L’Algérie signe avec l’Italie pour une usine de fabrication d’hélicoptères,” leparisien.fr, August 11, 2016. Accessed November 23, 2018. http://www.leparisien.fr/international/l-algerie-signe-avec-l-italie-pour-une-usine-de-fabrication-d-helicopteres-11-08-2016-6033603.php.
5) “Une usine algéro-italienne de fabrication d’hélicoptères sera créée à Sétif“, lematindz.net, August 12, 2018. Accessed November 23, 2018. http://www.lematindz.net/news/21509-une-usine-algero-italienne-de-fabrication-dhelicopteres-sera-creee-a-setif.html.
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