Procurement Risk:
Moderate
Score:
54/100
Government Policy
Q57
25/100
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. Israel has legislation that covers defence and national security purchases but it is vague…
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There is no special regulation that covers corruption risks during the procurement process, however the procurement process is very strict and effective, so that…
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Procurement is required to be conducted in accordance with the Mandatory Tender Law, however, broad exemptions exist for national security purposes that enable acqusitions…
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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 procurement cycle is only partially laid out in the Mandatory Tender Regulations (Contracts of the Defence System). The regulations outline the tendering process…
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Some policies and processes relating to procurement are disclosed to the public (1) (2) (3). The process for procurement is outlined and explained for…
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There is some evidence that implementation is followed in practice (1) (2) (3). For instance, non-classified Ministry of Defence tenders are advertised on the…
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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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Overall in Israel, the system is independent because there are many inspectors and bureaucracy. There is a body of laws that regulated procurement process…
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Though procurement oversight mechanism in the Israel Defence Forces (IDF) are active and detailed, (1) (2) (3) there are some loopholes that limit their…
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While decisions of tender committees are made public, including decisions to exempt procurements from tenders, this is not the case in relation to classified…
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A former general in the Israel Defence Forces (IDF) explained that several defence purchases can not be made public for security reasons (1). However…
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As mentioned in 61A, several purchases are classified and as a result the data from these purchases is not available. On the other hand,…
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Capability Gap and Requirements Definition
Q62
NEI/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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Standards for companies to operate in the defence sector are set by the MoD and inclue quality assurance standards. (1). There are several committees…
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This indicator is marked ‘Not Enough Information’ as there is not enough substantial evidence to score this indicator. Evidence of consistent enforcement of anti-corruption…
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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 are in part derived from the general national defence strategy, however, the security situation in Israel can change from one day to…
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Major procurement transactions or purchase of strategic systems may be subject to the approval of the senior MOD management, as well as of the…
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The Ministry of Defence and Armed Forces generally base purchases on clearly identified and quantified requirements that are mostly publicly available (1) (2). However,…
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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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While public tenders are the default, some defence contracts are exempt under the 1993 Tenders Regulations (1). Most (50%+) defence procurements are conducted as…
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All single source and restricted competition procedure contracts must be justified and subject to external scrutiny (such as parliament or the external audit office),…
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Q65
69/100
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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Ministry of Defence tenders are regulated by the Tender Law and its provisions in relation to conflicts of interest. Officials with a role in…
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There is a comprehensive audit trail of which officials were involved in selecting suppliers and designing tender specification (1) (2). There is external verification…
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The tender boards regulations and codes of conduct are public available and transparent (1) (2) (3). The Ministry of Defence provides a lot of…
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Tender specifications undergo an examination by the oversight unit within the administration of procurement, and in certain cases by the legal department. As to…
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Q66
88/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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There are laws are in place that prohibit collusion within the defence sector, where collusion is defined as between an official and a bidder…
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There is legislation and implementing guidelines empowering procurement officials to exclude companies and senior company officials where there is a conviction or reasonable evidence…
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Collusion between bidders and anti-competitive practices are investigated by the investigation department of the Competition Authority. The investigation department has many authorities including the…
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According to an interviewee, procurement officials are trained to identify collusion patterns and report potential malpractice (1). The Committees for the approval and suspension…
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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?
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Formal policies and procedures exist that outline how to monitor, assess and report upon a supplier’s service and or delivery obligations. They include resolution…
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Most of the tenders are mostly published online (1) (2) (3) (4) (5). Contract modifications post award are made in accordance with article16 of…
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According to the laws and regulations, officials regularly produce contract monitoring and completion reports (2) (3) (4). These include supplier and subcontractors performance appraisals,…
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This indicator is marked ‘Not Enough Information’ as there is not enough evidence to score accurately. It is unclear if breaches of contract are…
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Q68
100/100
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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There are formal mechanisms in place to allow companies to complain about perceived malpractice in procurement (1) (2). Any supplier can file a complaint…
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The complaints mechanisms available to companies seem to be efficient and reasonably priced, and are also regularly used (1) (2). According to an interview,…
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Companies usually believe that they will not be discriminated against in future procurements.There is no evidence of retaliation (1) (2) (3).
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There is clear legislation and implementing guidelines empowering procurement officials to exclude companies and senior company officials where there is a conviction or credible…
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There are formal procedures such as the exclusion from competition (1). Cases are investigated or prosecuted through formal processes, but undue political influence is…
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An offence can regularly result in a range of sanctions, including prosecution, exclusion from current and future competitions, or other sanctions, including heavy fines…
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Offset Contracts
Q70
75/100
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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Mandatory Industrial Cooperation’ is a requirement for international tenders valued at $5million or greater. Foreign suppliers that win government tenders are required to engage…
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The government imposes anti-corruption due diligence on contractors and third parties during offset contract negotiations (1) (2) (3).
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There are formal policies and procedures that outline the reporting and delivery obligations for offset contracts. This includes procedures for reporting on completed work,…
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The government makes public some details of offset contracts and programmes. The Industrial Cooperation Authority at the Ministry of Economy and Industry is responsible…
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Suppliers are required to submit annual reports regarding the fulfillment of their undertakings for industrial cooperation to the ICA (1). The progress report includes…
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Following approval of the Foreign Supplier’s Implementation Plan, the ICA will conduct regular monitoring of performance of his obligations.If the contract is not adequately…
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There is evidence that offset contracts are conducted as open competition. However, it seems that single source contracts are sometimes conducted without clear justification…
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Agents / Brokers
Q73
50/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing 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?
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Details of the financing package are not publicly available. There may be no information on whether a financing package exists at all (1). Only…
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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. Some acquisitions are granted as a result of political influence by seller nations, but…
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This indicator is not assigned a score in the GDI. The government sometimes justifies purchases by referring to military need (1). No further information…
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This indicator is not assigned a score in the GDI. Some acquisitions are granted as a result of domestic political pressures, but this is…
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