Project on Creation and Installation of the Central Risk Management Analysis System of
Public Procurement (First stage)
Problems / issues
In the process of carrying out public procurement the most important function of the Public
Procurement Office (hereinafter – the Office) is to supervise compliance with the Law on Public
Procurement (hereinafter – the Law) and other relevant legislation. To achieve the best results in
implementing control, violation prevention and assessment of the performance results of public
contracts, efforts should be focused on public procurements, contracting authorities and economic
operators as well as public contracts which have the highest likelihood of infringing the Law. Timely
disclosure of such infringements would have a significant preventive effect. The Office is therefore
seeking to develop an information system aimed to combine more information about the planned,
currently implemented and carried out public procurements by the contracting authorities, the identified
infringements, the awarded public contracts and the suppliers who have submitted the best tenders, etc.
The information system will help ensure the processing of information to achieve one general integral
or several indicators to define a probability of infringing the requirements of the Law in the evaluated
public procurement or awarded public contract. To achieve the above said goals, the Office is carrying
out the Creation and Installation of the Central Risk Management Analyses System of Public
Procurement (First Stage) Project.
The Central Risk Management Information System in Implementing Public Procurement
(hereinafter –RMS) will help the staff of the Office, who carry out the functions of control, prevention
of violations and assessment of the performance results of public contracts, to process information
relating to the planned, currently implemented and carried out public procurements by the contracting
authorities as well as the identified infringements, the awarded contracts and the suppliers who have
submitted the best tenders, etc., and will offer information necessary to make the decisions on using
effective remedies in proportion to the scale of the violation made. RMS needs to be computerized and
offer a possibility, when needed, to use the information stored in both the Office and other information
systems and registers of the Republic of Lithuania and the EU. RMS is designed to help implement the
functions of the Office. Moreover, the systematic information collected by RMS would be stored and
regularly updated in the information system of the Office; the data would be analysed and the
information relating to risky public procurement would be provided to the contracting authorities.
What is RMS?
RMS is a system relating to the information systems and/or registers of the Office, and when
needed, the systems and/or registers of the Republic of Lithuania and the EU; RMS, is aimed to help
the staff of the Office, who controls the compliance with the Law and other relevant legislation, carries
out preventive activities, controls the implementation of public contracts and carries out assessment of
the performance results of public contracts, measure the risk posed by infringing the requirements of
the Law.
The most important objective of RMS
The objective is to help the Office assess the risk of planned, currently implemented and carried
out public procurement by the contracting authorities as well as the risk of the awarded public contracts
seeking to more efficiently and appropriately apply the prevention and control measures stipulated
under the Law and other relevant legislation.
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Functions and tasks of RMS:
1. To integrate the information stored in the information system of the Office on the
infringements of the Law as well as other related information from “the outside” about any possible
infringements of the Law.
2. To assess the risk of planned, currently implemented and carried out public procurement by
the contracting authorities and the awarded and carried out public contracts in accordance with the risk
management methodology.
3. To make it possible for the staff of the Office, who take decisions, to get at any time the
information they need.
4. To make it possible for the RMS registered and anonymous users to provide in the structured
format information about probable infringements of public procurement, dishonest suppliers or
contracting authorities, etc.
Requirements of RMS
1. RMS is designed for the internal use of the Office seeking to implement the functions
provided in the Law; also, there is an access possibility for external users like public and municipal
authorities of the Republic of Lithuania and other countries, institutions responsible for administration
of the programs and projects financed from the EU structural support funds, contracting authorities and
suppliers, etc.).
2. RMS needs to be computerised.
3. RMS needs to be in conformity with other information systems operated by the Office.
4. RMS needs to be flexible and easy to modify and adapt to the changing needs of the RMS
users and follow changes in other variables (regular variables need to be administered and those more
steady have to be programmable).
5. RMS has to be safe, i.e. must be only available to the authorized users of the system. The
information is provided according to the type of the user (for example, administrator, Office staff and
managers of the administrative division, suppliers, contracting authorities, etc.) and his access rights.
Access to the functions which are not necessary for the user work should be prevented or denied.
Transfer of undisclosed or other confidential information must be secure; any changes made in the data
must be registered.
6. RMS has to be simple and user friendly.
7. RMS has to ensure modification and updating of the evaluation criteria based on the realistic
numbers and peculiarities of the violations of the Law and other relevant legislation that regulate public
procurement.
The risk level of the violation of the requirements stipulated in the Law is measured by marking
the level of risk on a particular point scale, which may, for example, include points from 0 to 100,
where 100 is the possible highest risk. RMS should be able to identify specific reasons as to why the
risk of the particular contracting authority or its planned, currently implemented or carried out public
procurement and the awarded or carried out public contracts, is stated.
Elements and functioning of RMS
The users of RMS-generated results include the staff of the Office, contracting authorities, the
police and law enforcement bodies of the Republic of Lithuania, suppliers and other individuals.
Information sources:
1) internal:
a. Information is stored and processed in the information system managed by the Office.
b. Inferences drawn from the targeted analyses.
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c. Information submitted by means of RMS.
2) External:
a. Information by suppliers about the probable violation of the Law and other relevant
legislation.
b. Information by other persons about likely violations of the Law and other relevant legislation.
c. Public information.
d. Information by state and municipal institutions and the EU authorities.
e. Information from other information systems and /or registers of the Republic of Lithuania
and /or European Union.
Rules on how to determine the risk of violations of the requirements of the Law
a. Following the assessment of internal (structured) and external (unstructured) information the
risk of violation of the requirements of the Law is determined with the help of specific rules.
b. All the available information will be assessed comprehensively and objectively.
c. During the risk assessment, the risk level of violation of the requirements of the Law is
identified and, when needed (for example, when the contracting authority changes or deletes it’s
decisions or makes other actions which are contradictory to the Law), it can be changed. Changes can
be made with regards to a particular contracting authority and/or its planned, currently implemented or
carried out public procurement and awarded or carried out public contracts.
d. The initial risk level of violations of the requirements of the Law is assessed following the
receiving of information about the commenced, i.e. planned, currently implemented or carried out
public procurement or awarded or carried out public contracts.
e. The initial risk level of violations of the requirements of the Law is assessed for every
contracting authority.
Following the rules on determining the risk of violations of the requirements of the Law the
given risk factors or evaluation of circumstances will be summarized for every contracting authority
and/or its planned, currently implemented or carried out public procurement and awarded or carried out
public contracts. The summarized information reveals the risk of violations of the requirements of the
Law.
The public procurement and public contracts which present the highest risk of infringement are
chosen for verification. The highest risk posing contracting authorities are included into the list of
contracted authorities to be verified by the Office.
Financing of RMS and the duration of the project
The implementation and instillation of RMS is being financed from the European Social Fund
(85%) and the budget of the Republic of Lithuania (15%). The Creation and Installation of the Central
Risk Management Analyses System of Public Procurement (First Stage) Project is planned to be
finalized before 20 March 2014.