Procurement Risk:

High

Score:

39/100

Government Policy

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Q57 63/100

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. The Public Procurement Law of Bosnia and Herzegovina (PPL) regulates public procurement rules and…
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Corruption risks Score: 75 / 100
Article 13 of the Rulebook on Procedure on Awarding Contracts in the field of Defence and Security is directly related to the disqualification based…
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Effectiveness Score: 50 / 100
Defence purchases are procured in line with legislation. Yearly audits of the MoD are conducted and the audit reports for the years 2016 [1],…
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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?

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Formal procedures Score: 50 / 100
The disclosure of public procurement is prescribed by the Public Procurement Law of Bosnia and Herzegovina (PPL), except for the procurement of armaments, military…
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Transparency Score: 50 / 100
All documentation related to procurements listed on the MoD website is in a disaggregated form on the main sub-page “Public procurements and tenders” where…
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Implementation Score: NEI / 100
There is not enough available evidence on the implementation of policies and procedures. As such, we are not able to provide a score for…
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Q59 67/100

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

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Independence Score: 100 / 100
The Policy on Internal Control System defines the operations internal control system within the Ministry of Defence (MoD) and the armed forces and sets…
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Effectiveness Score: 50 / 100
The internal control is carried out in three ways: as preventive control, exposing control and as corrective control, all in such a way that…
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Transparency Score: 50 / 100
Audit reports of the institutions in Bosnia and Herzegovina are publicly available. Annual reports of the PPA are publicly available, but they do not…
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Q60 50/100

Are potential defence purchases made public?

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Policies Score: 75 / 100
Through Defence Review and Development and Modernization Project of the Armed Forces of Bosnia and Herzegovina (AFBiH), a document containing a ten-year plan for…
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Notice of planned purchases Score: 25 / 100
The government publishes the plans for defence purchases in detail for one year [1]. Before launching procurement procedures, the MoD publishes the public procurement…
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Q61 63/100

Are actual defence purchases made public?

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Comprehensiveness Score: 75 / 100
Actual defence purchases are made publicly available [1, 2]. Generally, these documents are not published, but using the Freedom of Information Access Act the…
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Accessible data Score: 50 / 100
Public procurement plans are publicly available on the MoD website. All tenders are published on the official MoD website [1]. On the MoD’s webpage,…
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Capability Gap and Requirements Definition

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Q62 38/100

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: 25 / 100
The Public Procurement Law of Bosnia and Herzegovina (PPL) excludes from bidding companies which have been convicted of corruption and provides for disqualification based…
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Consistent implementation Score: 50 / 100
Bidding companies are not required to have an ethics program to be able to bid for work [1, 2, 3]. As noted in 62A,…
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Q63 33/100

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: 0 / 100
The Defence Review along with the Plan of Development and modernization of the Armed Forces of Bosnia-Herzegovina 2017-2027 are the relevant documents for the…
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Scrutiny Score: 50 / 100
There is a scrutiny mechanism in the Auditing Office, an independent institution[1]. The main objective of the Audit Office is to conduct independent audits…
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Purchases Score: 50 / 100
The MoD’s budget has been limited for years to around 285.5 million BAM (146 million EUR) with a variation from of +/-2% in the…
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Tender Solicitation, Assessment and Contract Award

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Q64 75/100

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: 75 / 100
Most of the public procurement in the Ministry of Defence (MoD), according to the Public Procurement Plan [1], is conducted through open competition [2].…
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Scrutiny of single/restricted competition procedures Score: 75 / 100
All public procurement procedures in MoD can be subject to internal and external control. There is evidence that the selection of the procurement procedure…
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Q65 50/100

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: 25 / 100
Conduct and procedures governing the tender committee are regulated by the Public Procurement Law (PPL) and the Rulebook on Financial and Materiel Operations of…
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Audit Trail Score: 50 / 100
Board members are required to confirm the absence of conflicts of interest in writing, but there are no other requirements or procedures. Written records…
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Transparency Score: 100 / 100
The Council of Ministers (CoM) adopted the Rulebook on Forming and the Work of the Public Procurement Committee. This rulebook is publicly available and…
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Scrutiny Score: 25 / 100
There is no clearly defined external verification of specifications of the tender. Potential bidders may file a complaint that the specification favours one producer…
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Q66 0/100

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: 0 / 100
The Public Procurement Law of Bosnia and Herzegovina (PPL) does not specifically prohibit collusion [1]. However, the issue is regulated by the 2011 Competition…
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Sanctions Score: NA / 100
There is no legislation which applies to the defence sector with regards to collusion, consequently this indicator is marked Not Applicable. The Competition Law…
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Enforcement Score: NA / 100
There is no legislation which applies to the defence sector with regards to collusion, consequently this indicator is marked Not Applicable. There is no…
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Training Score: 0 / 100
The official training provided does not cover the topic of collusion [1]. According to the government reviewer, the MoD in cooperation with its partners…
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Contract Delivery and In-Service Support

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Q67 NEI/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: 25 / 100
There is a formal procedure that partially regulates the contract monitoring in the Ministry of Defence (MoD), it is based on the activation of…
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Transparency Score: 50 / 100
The MoD publishes contract modifications on their website [1, 2]. Tender documents and any amendments thereto were published on the Public Procurement Portal, as…
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Monitoring Score: NEI / 100
According to the MoD’s audit report from 2017, during 2017 the MoD requested by the bidders to the performance of the contract is guaranteed…
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Enforcement Score: NEI / 100
No reports on monitoring of contract execution by the MoD are available. There is no possility to ensure that existing mechanisms are enforced. As…
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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
The Public Procurement Law states dissatisfied bidders who suspect irregularities or malpractice in the bidding process may appeal to the body responsible for making…
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Effectiveness and Accessibility Score: 50 / 100
The fees for bidders have been raised significantly in the new PPL adopted in 2014, which did not lead to a general decrease in…
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Retaliation Score: 100 / 100
The PPL does not contain specific provisions protecting companies which had filed appeals from discrimination in future procurement, although Article 3 does enshrine a…
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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 Public Procurement Law of Bosnia and Herzegovina (PPL) orders contractors and suppliers that have been convicted of corruption may not bid for the…
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Undue influence Score: 0 / 100
In general high-level corruption is not prosecuted (you can see it is mentioned in EU reports on Bosnia and Herzegovina).
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Application of sanctions Score: NEI / 100
There have been cases of supply of goods of poor quality, where, according to the contract, there were no obligations that the contractor had…
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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 is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. According to the…
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Due diligence Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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Q71 0/100

How does the government monitor offset contracts?

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Policies & procedures Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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Transparency Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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Monitoring Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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Enforcement Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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Q72 0/100

What level of competition are offset contracts subject to?

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Score: 0 / 100
There is no legislation regarding offset contracts. The Ministry of Defence (MoD) does not negotiate offset contracts [1, 2, 3, 4]. “The PPL defines…
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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
The use of agents by companies is not regulated by the Public Procurement Law [1, 2].
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Enforcement Score: NA / 100
Relevant regulations do not stipulate agents in the procurement procedure [1, 2]. Given that there are no restrictions on agents or intermediaries, this indicator…
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Financing Package

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Q74 NEI/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: NEI / 100
There is not enough information to score this indicator. According to a letter from the Ministry of Defence (MoD) written to Transparency International BiH,…
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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. There is no information proving the level of influence of seller nations on the…
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Justification Score: NS / 100
This indicator is not assigned a score in the GDI. One of the largest procurements, which is still ongoing, is the purchase of helicopters…
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Prevalence: domestic pressures Score: NS / 100
This indicator is not assigned a score in the GDI. There are some indications, as reported on in a prominent online web page named…
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