This document discusses establishing an independent review body for legal protection in public procurement. It recommends that countries develop a clear policy and legislative framework aligned with EU standards [1]. The institutional framework should enable effective implementation of procurement policy and law, with strong oversight bodies [2]. It also discusses Croatia's experience setting up its review body, noting challenges like limited budgets and staff, but also its proactive steps like education and developing case law [3]. Overall, it emphasizes the importance of transparency, education, and investing in human resources to ensure the successful operation of an independent procurement review system.

1. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
How to set-up independent
review body in charge for legal
protection
Zoran Blažević, Croatia
Chisinau, Moldova, 9 June 2014

2. Content
• Public procurement system:
– Policy, legislative and institutional framework,
– Procurement related questions,
– Reviews and remedies.
• National procurement system–Croatian example
• Lessons learned
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3. Policy framework
• A country needs a policy making which meets formal
requirements as well as good practice.
• Policy making should be clear, consistent and have
continuity.
• Strategy of development public procurement system
should be defined and adopted.
• Action plans should be defined and adopted.
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4. Legislative Framework
• Transposition the public procurement EU acquis into
national legislation.
• Implementation of good practice:
– Clearly drafted
– Principle based
– Value for money
• Contracting authorities/entities should apply the
provisions of the public procurement legislation in a way
to enable effective procurement and efficient spending of
public procurement funds.
• Role of representatives of private sector?
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5. Institutional Framework
• Should enable the effective implementation of policy and
legislation.
• Needs to be strong to provide and support development
of the public procurement system as a whole:
 Primary and secondary legislation
 International co-ordination
 Oversight and monitoring
 Advisory and operational support
 Publication and information
 Development of the education system (contracting authorities
and tenderers).
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6. Reviews and remedies
• A crucial mechanism for protecting the legality and
integrity of the procurement process.
• Directive 2007/66 (amending Directive 89/665/EEC and
92/13/EEC)
• Independent review body
• It is forbidden to attempt to influence and impact on the
decision of the review body.
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7. National Implementation
Main questions at the begining
Independent
PRB
Specialized
review body?
Administrative or
civil judicial
review?
Composition of
review bodies?
Number and
size of review
bodies?
Procedural law?

8. Status of a tribunal
(inmeaning ofArticle 234 of the EEC Treaty)
- Conditions for semi – judicial type of PRB -
Independent
PRB
The body is
established by
law
It is a permanent
state body
Its jurisdiction is
compulsory
Its procedure is
inter partes
It applies rules
of law and it is
independent

9. Public procurement market
• The public procurement market should be open and
competitive.
• Invitation for tenders are published on central electronic
platforms and/or web sites of contracting
authorities/entities.
• Competition among tenderers is based on competence,
capacity, price and quality.
• Role of review institution?
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10. How to establish independent PRB
• Financial budget
• Premises
• Number of employees
• Number of cases
• Other questions
• Legal education,
• Contracting authorities
and private sector
• Attitudes of contracting
authorities and private
sector
• Public Procurement
Law
• Procedural law?
• Law on PRB
• By laws
• Official manuals
• Courts or review
bodies
• If you decide to use
courts question of
independence and
number of other issues
are solved
Institutional
framework
Legal
framework
Functional
PRB
Review and
remedies
culture

11. First steps – Croatian example
• December 2003. – 6 employees
• Labor Law, vs Civil Servants Law
• Independents – key of success
• December, 2004. – 11 employees / 761 complaints
• December, 2006. – 20 employees / 696 complaints
• December, 2008. – 21 employees / 637 complaints
• December, 2009. – 21 employees / 1422 copmplaintes
• Budget per year cca 700.000,00 EUR
• Average value of appeal cases per year
cca 800.000.000,00 EUR in 2004-2008

12. First problems
2003 - 2005
• Office premises – SC was on second floor of Ministry
of Finance
• Insufficient budget
• Lack of staff
• Lack of practical expiriance in the PRB members,
regarding public procurement
• Position between executive Government and judiciary
•
• Visibility of the institution

13. Proactive approach
• Education, web – page development ww.dkom.hr,
day to day advice
• Workshops for the representatives of private sector
• Manuel for the contracting authorities and private
sector – topic public procurement remedies
• Development of DMS (Document management
system)
• SIGMA assistance

14. Branding of the institution
- visibility issue-

15. Internet web page

16. Appeal procedure

17. Transparency thru Internet

18. Lessons learned
• Transparent decision making process of the PRB
• Importance of the case law.
• Education of the private and public sector about
legal protection in public procurement.
• Important role of media’s and journalist.
• Investment in human recourse – guaranties of the
results in the future.

19. Thank you for your attention !
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