National Procurement in Israel: Understanding Public Procurement Processes and Regulations
Procurement is considered as the backbone of any organization, and the same goes for the government of Israel. The public procurement system in Israel is very complex, with various procedures, regulations, and guidelines that need to be followed by all government organizations. In this blog post, we will take an in-depth look at the basics of national procurement in Israel, and how it works.
What is Public Procurement?
Public procurement refers to the process by which the government of Israel acquires goods, services, or works from outside sources. It is a process that is designed to ensure that the government gets value for money, while also promoting competition and transparency in the market. The procurement process can include the development of specifications, the identification of suppliers, and the evaluation of bids or proposals.
Types of Procurement
There are two types of procurement systems in Israel – central procurement and decentralized procurement. The central procurement system is managed by the Government Procurement Administration (GPA), while the decentralized procurement system is managed by the individual government ministries.
Central Procurement:
Central procurement is used for the purchase of goods or services that are required by multiple government agencies. The GPA oversees the process, which includes identifying potential suppliers, issuing tenders or requests for proposals, evaluating bids or proposals, and awarding the contract. For example, the central procurement system might be used for the purchase of office supplies or IT equipment for many government agencies.
Decentralized Procurement:
Decentralized procurement is used by individual government ministries or agencies for the purchase of goods or services that are specific to their needs. Each ministry or agency is responsible for its procurement process, though they must follow the same regulations and guidelines laid out by the GPA. Decentralized procurement might be used for specialized goods, such as medical equipment for a hospital or specific research equipment for a government laboratory.
Government Procurement Regulation
The government of Israel has strict regulations in place to ensure that the procurement process is transparent, competitive, and fair. The Public Procurement Law of 1992 sets out the legal framework for government procurement in Israel. This law is supplemented by additional regulations, such as the Regulations for the Public Procurement Act and the Provisional Order for Electronic Public Procurement.
Best Practices in Public Procurement
There are several best practices that government agencies in Israel should follow to maximize the benefits of public procurement. These include:
1. Defining Clear Objectives:
Before starting the procurement process, government agencies should define their objectives and requirements clearly. This will help to ensure that they select an appropriate supplier and that the work is completed to the required standard.
2. Conducting a Market Analysis:
A market analysis should be carried out to identify potential suppliers and to determine whether there is adequate competition in the market. This will help to ensure that the government gets value for money and that the procurement process is transparent.
3. Establishing Evaluation Criteria:
Evaluation criteria should be established before the procurement process begins. These should be clearly defined and objective, and should be used to evaluate the bids or proposals that are received.
4. Ensuring Fair and Transparent Procurement Procedures:
Procurement procedures should be fair and transparent. The government should issue tenders or requests for proposals, evaluate bids or proposals objectively, and award the contract to the supplier that offers the best value for money.
Conclusion
The government of Israel has a complex procurement process in place to ensure that it gets value for money, while promoting competition and transparency. Public procurement is critical to the functioning of the government, and there are strict regulations and guidelines in place to ensure that it is carried out fairly and transparently. By following best practices in procurement, government agencies can maximize the benefits of public procurement and ensure that they select the appropriate supplier and complete the work to the required standard.