Procurement Risk:
High
Score:
39/100
Government Policy
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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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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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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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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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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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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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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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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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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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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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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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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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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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
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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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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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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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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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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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
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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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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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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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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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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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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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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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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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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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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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
Q67
NEI/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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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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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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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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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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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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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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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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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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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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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
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 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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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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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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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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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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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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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
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
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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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
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. There is no information proving the level of influence of seller nations on the…
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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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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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