Procurement Risk:
Low
Score:
74/100
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?
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This indicator is not assigned a score in the GDI. Latvia has clear and comprehensive legislation that covers all defence and national security purchases…
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The general and defence and security related procurement legislation does not mention coruption risks explicitly, though measures included in the legislation clearly aim to…
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There is a clear order for vetting the application of the legislation by the internal auditing units of the defence and security sector, as…
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Q58
92/100
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 entire defence procurement cycle, from the assessment of needs, to the contract implementation and sign-off, and the asset disposal, is fully formalised. The…
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In general, the whole defence procurement cycle is transparent. The procurement cycle is disclosed according to both the ‘Public Procurement Law’ and the ‘Defence…
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There are detailed policies and procedures for each step of the implementation process of the procurement cycle defined by the Public procurement law [1]…
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Q59
83/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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External procurement oversight mechanisms – the State Audit Office, Procurement Monitoring Bureau and Competition Council and the processes they run – are independent and…
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Procurement oversight mechanisms/institutions mentioned in the previous sub-indicator are active in summoning witnesses and documents, demanding explanations, and issuing recommendations and conclusions that have…
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There is comprehensive evidence of activity of the overseeing state instiutions, in particular of the State Audit Office. Reports of the external audits, including…
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The Government has adopted the long term National Defence Forces Development Plan for 2016-2028. The plan is published publicly in general terms without specification…
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A list of expected procurements and expected centralised procurements is published for the upcoming year, [1] whereas longer-term purchases are only generally identified, e.g.…
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Defence purchases are made public with almost no exceptions – major ones are usually announced by the Ministry of Defence to the media (previously…
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Information about the major defence purchases usually is announced by the Ministry of Defence to the media either in press releases or interviews, while…
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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?
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There are formal policies and procedures explaining which companies could be discriminated against and on what grounds, covered by two main laws used in…
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Consistent implementation of the two main laws: the Public procurement law and the Defence and security procurement law – is ensured by monitoring how…
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Q63
75/100
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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Most of the procurement requirements are clearly derived from the State Defence Concept [1] and no major procurements non-consistent with the needs defined in…
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Scrutiny is occasionally conducted by the Parliament and the State Audit Office [1] [2] to verify if procurements are made in line with the…
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The Ministry of Defence and Armed Forces systematically bases all purchases on clearly identified and quantified requirements revealed in the National defence concept and…
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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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There are no detailed, openly available, comparable statistics on the allocation of defence procurements; the publicly available information confirms that most are conducted through…
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All procurements are subject to external scrutiny by the State Audit Office which has the power to request any information related to the procedures…
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Q65
67/100
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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Officials involved in designing tender specifications and taking decisions are subject to regulations designed to prevent conflicts of interest, including restrictions on professional activity…
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There is not enough information regarding audit trails specifically that can be found to provide a score for this indicator. Decisions of the tender…
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Tender board regulations and codes of conduct are explicitly defined in the legislation, including the minimum number of members, procedures of establishment and operation,…
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There is no publicly available information on external verification. According to the government reviewer, all technical specifications are available for comments to industry during…
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Q66
75/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Legislation is in place prohibiting collusion between the representatives of the defence sector and bidders, and between bidders themselves (Public Procurements Law, Defence and…
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There is clear legislation and freedom of action (and duty) for the procurement commissions to exclude bidders from the competition in case the bidder…
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The Competition Council has demonstrated activity and independence on various occasions, punishing collusion between bidders. It has also warned the defence sector of the…
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The Competition Council offers training for procurement specialists on collusion patterns and potential malpractices. [1] [2]
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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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The MOD has introduced formal policies and procedures of monitoring, assessment and reporting upon a supplier’s service and or delivery obligations. Assigned civil servants…
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All contracts, including modifications, are publicy availabe in the public database of the Procurement Monitoring Bureau. [1] The information at the disposition of the…
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There is not enough evidence to score this indicator. There is no public information available relating to the monitoring of contractors and their obligations
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There is not enough evidence to score this indicator. No details could be found regarding the frequency of enforcement with regards to breaches of…
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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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Decisions of the tender boards (procurement commissions) can be challenged in the Procurement Monitoring Bureau and in court. [1] [2] The list of the…
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The complaints mechanisms available to bidders are clearly defined, accessible [1] [2] and reasonably priced (e.g. in case of public procurements falling under the…
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The legislation does not allow for discrimination of complainants in future procurements. [1] [2] The active use of the complaint mechanisms suggests that companies…
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The Latvian Criminal Code criminalises active and passive bribery and abuse of influence, prescribing sanctions of imprisonment of up to five years (or up…
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The cases are solved according to the Latvian Criminal Law. [1] The judicial system is a politically independent state system. [2] At the same…
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There is not enough evidence to score this indicator. The amercement is ordered by the court or, in the cases provided for by the…
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Offset Contracts
Q70
100/100
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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This indicator is marked Not Applicable as there is no evidence that offset contracts are concluded in the defence sector of Latvia. Offset contracts…
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This indicator is marked Not Applicable as there is no evidence that offset contracts are concluded in the defence sector of Latvia. Offset contracts…
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This indicator is marked Not Applicable as there is no evidence that offset contracts are concluded in the defence sector of Latvia. Offset contracts…
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This indicator is marked Not Applicable as there is no evidence that offset contracts are concluded in the defence sector of Latvia. Offset contracts…
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This indicator is marked Not Applicable as there is no evidence that offset contracts are concluded in the defence sector of Latvia. Offset contracts…
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Agents / Brokers
Q73
63/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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The use of agents and intermediaries is technically allowed according to the legislation as far as the contractor is able to prove its eligibility…
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Sanctions have to be applied according to the legislation (Law on Public Procurements [1], Defence and Security Procurements Law [2]). There have been no…
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Financing Package
Q74
75/100
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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Usually major details of major procurements’ financing packages are made publicly available to include the sums involved and the timelines of delivery (e.g. CVR(T)s,…
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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. Almost no acquisitions are granted as a result of political influence by the selling…
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This indicator is not assigned a score in the GDI. The Ministry of Defence and the National Armed Forces almost always cite clear and…
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This indicator is not assigned a score in the GDI. Domestic political pressures have been growing in recent years to support the domestic defence…
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