RESTRICTED
WORLD TRADE WT/WGTGP/W/11
19December 1997
ORGANIZATION(97-5591)
Original: English Working Group onTransparency
inGovernment Procurement
APEC NON-BINDING PRINCIPLES ON
GOVERNMENT PROCUREMENT: TRANSPARENCY
Communication from Hong Kong, China
The following communication, dated 6December 1997, hasbeen received from
Miss Adeline Wong ofHong Kong, China, inhercapacity asChair oftheAPEC Government
Procurement Experts Group.
_______________
Iamwriting inconnection withtheAPEC Government Procurement Experts Group (GPEG),
which wasestablished in1995toconsider waystoincrease transparency of,andliberalize, government
procurement markets inaccordance withtheOsaka Action Agenda adopted byAPEC Economic Leaders
in1995.
Under theaction planoftheGPEG, asetofnon-binding principles ongovernment procurement
willbedeveloped in1997-2000. Inundertaking thiswork, theGPEG hasdecided tostartwiththe
principle oftransparency andsubsequently agreed onasetofelements pertaining totheprinciple of
transparency ingovernment procurement andalistofpractices illustrating howtheycould be
implemented. TheGPEG hasalsoagreed to,asanAPEC contribution toWTO 'swork ontransparency
ingovernment procurement, forward these elements andillustrative practices totheWTO Working
Group onTransparency inGovernment Procurement forreference atthestudy phase.
Iampleased toattach acopyoftheelements oftransparency andillustrative practices developed
bytheGPEG, which were endorsed byAPEC Ministers attheir meeting on21-22 November in
Vancouver, Canada.
Iwould liketostress thatthese elements oftransparency andillustrative practices arenon-
binding, andshallnotprejudice theposition ofindividual APEC member economies inthediscussion
ontransparency ingovernment procurement intheWTO.
_______________WT/WGTGP/W/11
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INTRODUCTION
1. Under APEC 'scollective action planongovernment procurement (GP), asetofnon-binding
principles onGPwillbedeveloped in1997-2000 foradoption bymembers onavoluntary basis. In
pursuing thiswork, theGovernment Procurement Experts Group (GPEG) hasdecided tostartwith
theprinciple oftransparency.
2. TheGPEG hasidentified asetofelements pertaining totheprinciple oftransparency inGP,
which aresetoutintheensuing paragraphs. Examples onpractices arealsoprovided forthepurpose
ofillustrating thepossible ways togiveeffect tothese elements, andarenotintended asprescriptions
ofhowthese elements should begiven effect inpractice. Itshould alsobenoted thattheelements
oftransparency inGPidentified bytheGPEG arenon-binding andindividual economies areinthe
bestposition todecide ontheapplicability ofindividual elements oftransparency tothem, andhow
besttotranslate these elements intopractical measures, taking intoaccount thespecific characteristics
oftheireconomy andpossibly thecosts andbenefits ofadopting specific transparency measures.
ELEMENTS OFTRANSPARENCY
3. Thegeneral principle isthatsufficient andrelevant information should bemade available to
allinterested parties consistently andinatimely manner through areadily accessible, widely available
medium atnoorreasonable cost. Thisgeneral principle isapplicable toallaspects ofGP,including
thegeneral operational environment, procurement opportunities, purchase requirements, bidevaluation
criteria andaward ofcontracts, asfurther elaborated inparagraphs 5to14.
- Sufficiency andrelevance ofinformation :toenablepotentialsupplierstomakeinformed
decisions. Forexample, potential suppliers must haveaccess toinformation onthe
conditions forparticipation andtherequirements oftheintended procurement inorder
todecide whether toparticipate andtoprepare aresponsive offer.
- Timeliness :toensure thattheinformation isvalid anduseful when available tothe
receiver.
- Availability toallinterested parties :toensure thattheprocurement process isfair
toallparticipants andseentobefair.
- Through areadily accessible medium atnoorreasonable cost:toensure that
information isaccessible inpractice.
- Consistency :theobjectives ofmaintaining atransparent procurement system canonly
beachieved ifthesystem remains consistently transparent. Thisalsoincludes making
information uptodateandinforming relevant parties ofchanges andadditional
information promptly.
4. Notwithstanding theabove, thefollowing information maybywithheld: commercially sensitive
information, andinformation therelease ofwhich would prejudice faircompetition among suppliers,
impede lawenforcement, contrary topublic interest orcompromise security oftheeconomy concerned.
Where suchinformation iswithheld, thereason should begiven onrequest.WT/WGTGP/W/11
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Thegeneral operational environment
5. Thelaws, regulations, judicial decisions, administrative rulings, policies (including any
discriminatory orpreferential treatment suchasprohibitions against orsetaside forcertain categories
ofsuppliers), procedures andpractices (including thechoice ofprocurement method) related toGP
should betransparent.
6. Thisistoletsuppliers know therulesofthegame sothattheycandecide whether toparticipate.
Inpractice, thiscaninclude:
- publishing these "rules" inamedium which isreadily accessible toall;
- publishing either apositive ornegative listoftheentities subject tothese "rules";
- publishing anychanges immediately;
- establishing contact points forenquiries;
- wherever possible, providing adescription oftheabove information ontheAPEC GP
Home Pageandlinking APEC members 'individual GPHome Pages, where available,
withtheAPEC GPHome Page.
Procurement opportunities
7. Procurement opportunities should betransparent.
8. Thiswouldencouragewiderparticipationleadingtoincreasedchoicesforthebuyerandenhanced
competition, contributing toachieving better value formoney inprocurement activities. Inpractice,
thiscaninclude:
- making open andcompetitive tendering thepreferred method oftendering. Where
other procurement methods aretobeused, anyprocurement invitations issued should
indicate theintended method;
- where opentendering isadopted, publishing procurement opportunities inamedium
readily accessible tosuppliers (e.g.official journals/gazettes, newspapers, specialized
trade journals, Internet, andthrough embassies andconsulates);
- allowing adequate andreasonable timeforinterested suppliers toprepare andsubmit
responsive bids;
- publishing contact details ofpurchasers, andtheirproduct/service purchase interests,
forsuppliers wishing toregister theirinterest inbeing notified ofbidding opportunities
which maynotbepublicly advertised;
- making early advise ofcomplex high-value procurement needs available tointerested
suppliers through staged procedures suchaspublic requests forinformation, requests
forproposals andinvitations forprequalification, andallowing adequate timefor
interested suppliers toprepare andsubmit aresponse;
- making available requirements andprocedures forprequalification ofsuppliers.WT/WGTGP/W/11
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Purchase requirements
9. Alltheinformationrequiredforsupplierstopreparearesponsiveoffershouldbemadeavailable.
10. Thisistofacilitate effective andefficient participation bypotential suppliers intheprocurement
exercise. Also, because potential suppliers know thespecific requirements, thenon-responsive offers
thatthebuyer mayhavetoprocess canbeminimized, increasing theoperational efficiency ofthebuyer.
Inpractice, thiscaninclude:
- including inprocurement notices thefollowing information: thenature oftheproduct
orservice tobeprocured, specifications, quantity, time-frame fordelivery, closing
times anddates, where toobtain tender documentation, where tosubmit bids, and
contact details from which further information canbeobtained;
- publishing anychanges totheabove information immediately;
- providing tender documentation andotherinformation tosuppliers promptly onrequest;
- whereverpossible,drawingupspecificationsintermsof
performance/functional/operational requirements using international orother relevant
standards.
Bidevaluation criteria
11. Allcriteria forevaluating bidsshould betransparent andbidsshould beevaluated andcontracts
awarded strictly according tothese criteria.
12. Thisistoensure fairness andintegrity. Inpractice, thiscaninclude:
- setting outinprocurement notices and/or tender documentation allevaluation criteria,
including anypreferential arrangements;
- maintaining proper record ofdecisions.
Award ofcontracts
13. Theaward ofcontracts should betransparent.
14. Thiswould demonstrate government accountability tosuppliers andthepublic. Inpractice,
thiscaninclude:
- publishing theoutcome ofthetender including thename ofthesuccessful supplier and
thevalue ofthebid;
- asaminimum, promptly notifying unsuccessful suppliers oftheoutcome oftheirbids
andwhere andwhen contract award information ispublished, anddebriefing
unsuccessful suppliers onrequest.WT/WGTGP/W/11
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Dueprocess
15. Dueprocess andpublic accountability areessential elements offair,open andimpartial
procurement procedures, andtheavailability ofanavenue/channel forreview ofcomplaints isanelement
oftransparency. Inpractice, thiscaninclude:
- designating abody/person forthepurpose ofreviewing supplier complaints about
procurement processes which arenotabletoberesolved through direct consultation
with theprocuring agency inthefirstinstance. This maytaketheform ofan
independent authority;
- making information onreview procedures readily available;
- making thereview process available equally todomestic andforeign suppliers.