Procurement Risk:
Low
Score:
68/100
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. Defence and national security purchases are made in accordance with the Law on Public…
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The 2012 Law on Public Procurement is strict, although does not specifically address corruption risks [1]. Article 146 demands exclusion of the bidding party…
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The procurement legislation in the defence sector is actively followed. The 2012 Law on Public Procurement produced a comprehensive public procurement system, the implementation…
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Q58
75/100
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 defence procurement cycle follows the procedures outlined in the Law on Public Procurement[1] and Law on Public Procurement in the Defence and Security…
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The procedures for the defence procurement cycle are underlined in the Law on Public Procurement [1], Law on Public Procurement in the Defence and…
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Public procurements executed by the Ministry of Defence are all accessible to the public and are required to be published on the Electronic Public…
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Q59
92/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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There are two layers of control and oversight mechanisms for defence and security procurements. One is outlined in the Law on Public Procurement [1]…
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In 2016, The Bureau for Public Procurement (BPC) canceled 2881 public procurement procedures [1]. In 814 of these cases, the cancellation was due to…
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The Electronic System for Public Procurement operated by the Bureau for Public Procurement (BPC) does not file non-transparent purchases [1]. The system contains a…
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Forward planning for potential purchases is made public. Indeed, the 2012 White Paper on Defence estimated the defence purchases for the coming decade [1].…
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The government publishes the plans for defence purchases in detail for at least the next 4 years. The adequate and timely information (e.g. elements…
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The defence procurements are made public and shared on the Electronic System for Public Procurement (EPPS), maintained by the Bureau of Public Procurement [1].…
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Data from non-confidential purchases is published in excel format and is accessible to the public for comparison [1]. However, confidential purchases are not published.
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Capability Gap and Requirements Definition
Q62
75/100
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 procedures and standards that the companies are required to have in order to work for the Ministry of Defence and the Army of…
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The procedures for bidding and awarding public procurement are strict and announced using the Electronic System for Public Procurement (EPPS). The use of the…
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Q63
67/100
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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Formally, procurements are based on and derived from national security strategies. The Ministry of Defence’s 2012 White Paper on defence, the Long-Term Defence Development…
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Within the Ministry of Defence, procurements are scrutinised by the Internal Audit Department (IAD) and the Ministry’s Inspectorate. The IAD has unlimited access to…
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Formally, all purchases are based on planned arrangements through the strategic documents. These documents and their procurement plans have been developed in line with…
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Tender Solicitation, Assessment and Contract Award
Q64
88/100
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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General procurement is open and competitive in accordance with the Law on Public Procurement [1]. According to a recent government decision, classified procurements should…
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All non-classified procurements, including the single-sourced ones, are subject to revision. The audit of the contracts is carried out periodically and simultaneously to the…
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Q65
42/100
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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Tender Boards are subject to regulations stipulated in the Law on Public Procurement [1] and the Code of Ethics when carrying out public procurement…
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There is not enough information to score this indicator, due to the lack of information regarding whether audit trails exist and can be found.…
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The regulations and the Code of Ethics are fully transparent. The procedures for bidding and awarding public procurement are clear and announced using the…
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There is no clear external verification that the particular specifications that have been included are necessary. External experts’ role is only assisting with/in the…
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Q66
63/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Basic legislation against collusion between bidders is embodied in the Law on Public Procurement [1] and the Law on Protection of Competition [2]. Article…
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The Procurement Commission advises the cancellation of procurement procedures if preconditions of Article 101 are fulfilled, in details elaborated in articles 114 and 79…
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According to its 2016 report, the Commission on the Protection of Competition has triggered forty-administrative procedures; 31 against collusions/concentrations; and 13 against the control…
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The Law on Public Procurement only addresses collusion amongst bidders. Procurement officials undertake general training but it is unknown whether this also covers the…
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Contract Delivery and In-Service Support
Q67
88/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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All contracts outline a protection mechanism such as bank guarantee to ensure timely and quality performance. If the conditions are not met, the guarantee…
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According to provisions in the Law on Public Procurement, Article 6, all non-classified contracts are publicly available, including any contracts which have undergone Ministry…
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In line with the Ministry of Defence Rulebook on Procurement, it is mandatory to control the quality and quantity of procurements. Hence, the Quality…
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In case of a breach of contract, the Rulebook on Procurement prescribes that the issue should firstly be raised with high-level management within the…
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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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The Law on Public Procurement provides ample opportunities for complains and formal appeals [1]. In cases of important violations of the law and procurement…
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Ahead of the procedure involving the State Appeals Commission (SAC), an applicant, must pay compensation for the management of the procedure, depending on the…
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Given the number of complaints lodged on the State Appeals Commission website which have been solved, displayed chronological from 2009 onwards, (with more than…
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Corruption related offences are clearly defined in the Law on Public Procurement [1]. Article 146 prescribes exclusion of the bidding party from the public…
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Prior to 2015, three high-profile corruption cases in the Ministry of Defence were investigated, including suppliers and two former Ministers of Defence. The cases…
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Sanctions for corrupt activites differ. In the Law on Public Procurement, these range from exclusion (if the bidder was involved in corrupt activities over…
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Offset Contracts
Q70
NEI/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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Offset contracting was legally introduced in 2014. The Law on Production and Trade of Arms and Military Equipment specified the offset arrangements and circumstances…
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There is not enough information to provide a score for this indicator, as no offset contracts for defence procurement have so far been concluded…
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So far, there have been no offset contracts within defence procurement. [1] Article 31-i of the Law for Production and Trade of Arms and…
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There is not enough information to provide a score for this indicator. So far, no offset contracts for defence procurement have been concluded [1].…
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There is not enough information to provide a score for this indicator. A Special Committee was tasked to review requests for import-export, transit, broker…
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There is not enough information to provide a score for this indicator. So far, no offset contracts for defence procurement have been concluded [1].
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There is not enough information to provide a score for this indicator. The Law for Production and Trade of Arms and Military Equipment does…
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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?
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In the official self-assessment document, provided by the Ministry of Defence in 2015, it is reported that the Ministry of Defence does not use…
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There is not enough information to score this indicator due to lack of evidence to establish whether sanctions are applied. In the official self-assessment…
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Financing Package
Q74
25/100
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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Detailed information of the financing package surrounding major arms deals prior to the signing of contracts is not available. Both the Law on Public…
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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. Macedonia’s political and strategic aim to join NATO has also determined its defence acquisitions.…
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This indicator is not assigned a score in the GDI. In general, joining and operating within NATO follows the strategic aims for the country.…
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This indicator is not assigned a score in the GDI. So far, the defence budget represented about 1% of the national budget (equivalent to…
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