Procurement Risk:
High
Score:
40/100
Government Policy
Q57
50/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
View Question
This indicator is not assigned a score in the GDI. Defence budget planning and procurement occur under the Law on Procurement that has been…
Explore
You may not find a direct application of the term “corruption” in the Law on Procurement [1], but it has a very detailed outline…
Explore
Public and open competitions seem to be the main type of procurement within the defence sector. However, closed targeted framework contracts and single source…
Explore
Q58
50/100
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?
View Question
The whole cycle of the procurement process is regulated by the Law on Procurement, that stipulates that the planning, the announcement (whether open or…
Explore
Government Decree N 526-Ն provides a detailed outline of public procurement that should be applied by all state agencies, defence establishments inclusive [1]. The…
Explore
Comprehensive information on procurement made by the MoD is available at www.armeps.am. [1, 2] However, there is a lack of information on implementation of…
Explore
Q59
50/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
View Question
Supervision over the procurement process can be divided into two main directions: internal and external. Internal control mechanism is implemented through the Internal Audit…
Explore
The Audit Chamber is the designated body that scrutinizes procurement made under the state budget (Clause 1 of Article 5 of the Law on…
Explore
The vast majority of defence procurement (except of classified ones) is made via electronic portals. The announcement and requests for bids and price quotations…
Explore
The Law on Procurement in a detailed manner outlines the planning and financial sources for the procurement. Clause 3 of Article 15 outlines the…
Explore
All the regular defence purchases are available through the www.armeps.am portal with detailed descriptions on purchase items and financial information. Military procurement; however, is…
Explore
Defence purchases can be found online through the electronic procurement system. The major purchases, especially related to arms purchase and related items, are not…
Explore
All defence purchases, except those classified as confidential and secret, are publicly accessible through www.armeps.am. Furthermore, the list of the purchases, the contracts concluded…
Explore
Capability Gap and Requirements Definition
Q62
63/100
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?
View Question
Articles 6 and 7 of the Law on Procurement provide details on suppliers’ profile. Clause 3 of the Article 6 outlines the restrictions upon…
Explore
There is evidence that the laws are accurately implemented, otherwise, the Ministry of Finance, as the authorized institutions to follow the whole cycle of…
Explore
Q63
17/100
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?
View Question
The National Security Strategy [1] sets the framework of the national security priorities, both internal and external. It emphasizes the importance of state sustainability,…
Explore
It seems that the government takes a limited approach to public procurement in general, and defence procurement in particular. Scrutiny is not conducted by…
Explore
The MoD submits a plan of purchases at the beginning of each fiscal year, and the plan is incorporated in the yearly budget. As…
Explore
Tender Solicitation, Assessment and Contract Award
Q64
63/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
View Question
The Law on Procurement anticipates four types of procurement procedures: electronic auction, competition, request for price quotation and single source (Article 18) [1]. The…
Explore
The Rule of Procedure of the Parliament allows members of parliament with the right to oversee public finance and procurement through making additional inquiries…
Explore
Q65
19/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
View Question
The Procurement Coordinators are subject to more detailed regulation by the Decree N 526-Ն, that define each of the roles the involved persons have…
Explore
The Armenian Legislation does not provide a separate procedure or regulation on a comprehensive audit trail. Public procurement, defence procurement as an essential part…
Explore
The Law on Procurement sets out general provisions on the transparency of the tender boards [1]. Decree N 526-Ն, defines those designated participants of…
Explore
There is no external, ex-ante mechanism of verification of tender specifications. Some internal or ex-post mechanisms exist only. Internal mechanism includes verification of specification…
Explore
Q66
56/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
View Question
Chapter 2 (Articles 5, 5.1 and 5.2) of the Law on the Protection of Economic Competition defines term “anti-competitive agreement” (հակամրցակցային համաձայնություն) in such…
Explore
Article 6 of the law provides the cases when the bidders are not eligible to participate in the bidding. Thus, those individuals or companies…
Explore
The cases bearing criminal behaviour are passed to the Prosecutor’s Office for investigations (and here the Criminal Code is applied). Otherwise, the individuals/companies that…
Explore
According to a procurement expert, there is no specific training of procurement officials to identify collusion [1].
Explore
Contract Delivery and In-Service Support
Q67
75/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
View Question
Procurement is regulated through the Law on Procurement [1]. Procedure for Organizing Procurement Process is regulated by Decree N526-N. The contractor’s obligations and procedures…
Explore
Contracts signed are publicly available at the Ministry of Finance’s Procurement Contracts dataset. The dataset provides the opportunity to download the signed contracts where…
Explore
According to the website of the Ministry of Defence (MoD), the MoD’s Control Department exercises the monitoring and control of the Procurement Process to…
Explore
Signed contracts define regulation for breaches of the contract (a random contract was studied for this case). In case of any breach, they may…
Explore
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?
View Question
Chapter 6 of the Law on Procurement regulates compliant procedures within procurement cycles. Any person has a right to submit a complaint on the…
Explore
The complaints mechanisms have been made accessible and easy to facilitate the process of complaining. Chapter 6 of the “Law on Procurement” provides all…
Explore
The existing legislation does not provide for any hint that companies do not resort to complaint to avoid further discrimination. For the sake of…
Explore
Cases that do not qualify as illegal are treated through administrative sanctions, such as including the company/firm/individual in a so-called “blacklist”. Once included in…
Explore
Cases of corruption in the Army in 2017 (116) almost doubled as compared to the cases of 2016 (57). Thirty-six criminal cases involving 72…
Explore
Article 12 of the Law on Procurement provides that a written appeal is immediately submitted to law enforcement institutions upon revealing any illegal activity…
Explore
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?
View Question
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
No evidence has been found about the Armenian Government explicitly prohibiting offset contracts. As mentioned above, offset contracts have no definition in the Armenian…
Explore
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
The concept of offset contracts has no definition in the Armenian legislation. It has also never appeared in the media outlets [1].
Explore
Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View Question
The legislation on procurement, including the Law on Procurement and other government decrees, do not specify anything in relation to the use of agents…
Explore
The legislation on procurement, including the Law on Procurement and other government decrees, do not specify anything in relation to the use of agents…
Explore
Financing Package
Q74
0/100
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?
View Question
General defence procurement is regulated through the procurement legislation, in particular, the Law on Procurement, and Decree N526-Ն, and other related documents. Clause 1…
Explore
Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
View Question
This indicator is not assigned a score in the GDI. The issue of the political influence of the arms seller country is very much…
Explore
This indicator is not assigned a score in the GDI. In the case of Armenia, the motives are mostly pragmatic. Choosing a particular country…
Explore
This indicator is not assigned a score in the GDI. Arms procurement in Armenia is implemented based on the development plan of the armed…
Explore