Project Executor: Public Institution CPO LT
Project Duration: September 26, 2024 – September 26, 2025
Source of Funding: “The project is funded by the Development Cooperation and Humanitarian Aid Fund”
The project’s goal is to assist Moldova in preparing for the creation and implementation of an electronic tool for centralized public procurement into the public procurement system.
The project aims to achieve the following results: a) assess the possibilities and prospects of centralizing public procurement in the electronic space; b) assist in preparing the legal framework for these procurements; c) adapt the version of the CPO LT electronic catalog module creation to the partner’s needs; d) develop PO competencies to use this tool.
The beneficiaries of the project are: a) the Ministry of Finance of Moldova and the Public Procurement Agency (PPA), responsible for implementing digitalization and promoting sustainable development in public procurement; b) POs, which will save human, administrative, and time resources; c) business companies (suppliers), which will have equal opportunities to participate in public procurement and simplified proposal submission; d) the public, as conducting procurement in the electronic space, without human involvement, eliminates manifestations of corruption in public procurement, ensures rational use of funds, and saves budget resources.
The implementation of the digital tool in public procurement will become a qualitatively new stage and help implement the public procurement system development program.
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Project Executor: Public Institution CPO LT
Project Duration: 2024.06.20 – 2025.12.31
The project addresses the problem of automated processing of analytical data on market prices of goods and their comparison with prices of goods purchased in the CPO LT electronic catalog, calculation, evaluation, and publication of savings in centralized public procurement using smart data processing algorithms – artificial intelligence.
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To create an innovative solution with an artificial intelligence (AI) tool for market price analysis, forecasting, and performing procedures for determining savings in centralized public procurement.
The implementation of an innovative solution into public procurement processes will achieve the following goals:
a) implement the recommendations of the Organization for Economic Co-operation and Development (OECD) for Lithuania, provided in the project “Increasing Public Sector Efficiency in the Lithuanian Public Procurement System by Implementing Centralization and Professionalization Reform.” The OECD recommended to the Lithuanian national central purchasing organization CPO LT to “(…) create a price-saving model, as well as “(…) promote discussion on the methodology for calculating savings at an international conference to exchange countries’ experiences”;
b) increase process efficiency (the use of technology for market price analysis and savings calculation will increase work productivity, reduce time costs, and allow the CPO LT data analyst to focus on more complex tasks requiring human involvement; it will free POs and suppliers from “homework” in preparing to conduct centralized public procurement);
c) increase transparency in public procurement execution (publicly accessible, structured comparative price data will reduce the possibility for POs to indicate an unjustifiably low purchase price and for suppliers to raise it); d) reduce the probability of errors (analyzing a large database will increase accuracy and reliability, ensuring high information quality); e) use and manage data from public procurement conducted through the CPO LT information system more efficiently (due to inefficient manual data management, it is not possible to fully collect, process, and analyze them. By transferring this process to AI, 100% of the information will be processed).
The innovative solution created and implemented with the AI tool during the project will lead to the following changes in the activities of CPO LT and its clients:
a) public procurement executors (CPO LT, POs, suppliers) will receive reliable market price data, which will be updated in real-time. Savings from purchases conducted in the CPO LT electronic catalog will be generated and published using a more accurate calculation methodology: comparing the prices of concluded purchase contracts with average market prices (until then, CPO LT did not have this opportunity, so it compared the announced basket prices with the prices of concluded purchases. The savings indicators were not entirely accurate, as noted by the OECD);
b) CPO LT will become one of the first central purchasing organizations in the EU to implement AI in the preparation stage for public procurement. According to CPO LT data, in 2023, only the Italian Central Purchasing Organization had a similar tool for calculating market prices, using the country’s Statistics Department database;
c) implement OECD recommendations and share this experience internationally;
d) it is expected that the number of announced but unexecuted public procurements due to incorrectly determined procurement values by POs or inflated prices offered by suppliers will significantly decrease;
e) CPO LT will contribute to increasing transparency and preventing corruption in public procurement;
f) reduce the administrative and time burden on clients, users of the CPO LT electronic catalog, in preparing for the execution of public procurement procedures.
Project Executor: Ministry of Economy and Innovation
Project Partner: Public Institution CPO LT
Project Duration: 2023.10.16 – 2026.04.30
The project aims to further digitize the management and administration service of centralized public procurement. The expansion of the CPO LT electronic catalog, by creating a new subsystem (10 centralized object components/modules), will ensure the main goal of public procurement policy – to increase the efficiency and transparency of public procurement.
The project contributes to the implementation of the objectives planned in the Government Program Implementation Plan (VPNĮP) of the Eighteenth Government of the Republic of Lithuania – to create public procurements oriented towards economic benefit.
The project contributes to the implementation of the National Progress Plan task No. 1.7 of the 2021-2030 State Digitalization Development Program of the Ministry of Economy and Innovation of the Republic of Lithuania “To create technological solutions and tools that allow safe and convenient use of services.”
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The expansion of public procurement centralization and digitalization by creating 10 new standardized objects in the CPO LT electronic catalog. This will significantly help improve the management of public administration entities’ activities, providing even greater opportunities for public sector and municipal contracting authorities to conduct public procurement in the electronic space.
Contracting authorities seeking efficient, high-quality, rational, and transparent execution of public procurement. Business entities – suppliers aiming to increase sales volumes through centralized public procurement under equal conditions and fair competition with other suppliers. CPO LT – the project will help achieve the institution’s strategic goal – to ensure that, when conducting public procurement through the CPO LT electronic catalog, public sector funds and administrative resources are used rationally.
10 new procurement modules have been created in the CPO LT electronic catalog, which will centralize and digitize public procurement, 10 video instructions for filling the order basket have been prepared; training materials for remote seminars have been prepared, and 600 users of the CPO LT electronic catalog have been trained to use the new procurement modules.
The Public Institution CPO LT is implementing an EU-funded project No. 10.1.2-ESFA-V-916-01-0007
In May 2017, the Public Institution CPO LT and the European Social Fund Agency signed a contract for the implementation of the project “Expansion of the Management System of Centralized Public Procurement Conducted through the Public Institution CPO LT Electronic Catalog,” valued at almost 750,000 (747,824.86) euros.
The project is implemented under the measure “Implementation of National Anti-Corruption Measures” of the 10th priority “Public Governance Meeting the Needs of Society and Advanced” of the 2014–2020 EU Funds Investment Action Program and is included in the list of state projects.
The Public Institution CPO LT, conducting centralized public procurement on a national scale, implements the main goals of public procurement policy – to increase the transparency and efficiency of public procurement. Conducting public procurement through the CPO LT electronic catalog is a means that allows eliminating corruption risk factors, as all processes – from purchase formation, announcement, proposal submission, supplier competition, envelope opening, and even contract formation – take place electronically, in an automated manner. This ensures the transparency of the public procurement process, eliminates the risk of the “human factor” and the possibility of influencing the process. Goods, services, and works are acquired according to standardized technical specifications, so there is no possibility of exceptions – the market participates in procurements under equal conditions. In addition to these benefits, CPO LT also helps contracting authorities save time, human, and financial resources, as it centralizes public procurement, performs all public procurement procedures, concludes preliminary contracts with suppliers, and otherwise oversees the entire process from start to finish. Thus, contracting authorities can acquire goods, works, and services faster, more rationally, and more efficiently.
In the first stage of project implementation from May 2017 to December 2020, the CPO LT electronic catalog was expanded with 10 new procurement modules, remote training (seminars) were held for 1,200 employees of municipal contracting authorities in the country, who were trained to use the electronic catalog, familiarized with new procurement modules, and their competencies in centralized public procurement were deepened.
In the second stage of project implementation from January 2021 to August 2023, the CPO LT electronic catalog will be expanded with 10 new procurement modules, and remote training (seminars) will be held for 1,200 employees of public sector institutions’ contracting authorities in the country. The implementation of the project effectively contributes to the realization of public procurement goals and the creation of benefits for buyers, suppliers, and the state. By September 2022, 14 modules of goods, services, and works electronic catalog have already been created, which essentially meet the needs of most contracting authorities and, due to the centralization of innovative procurement objects and technological solutions, is an efficient and convenient tool for users.
"Creation and Implementation of the Centralized Public Procurement Management System by the Central Project Management Agency"
The project was implemented with the support of the European Union Structural Funds under the measure "Improvement of the System of Public Administration Entities" of the Human Resources Development Action Program's 4th priority "Strengthening Administrative Capacities and Increasing Public Administration Efficiency," measure No. VP1-4.2-VRM-03-V.
Project Goal
To contribute to the improvement of internal administration and activity management of public administration entities by creating and implementing a centralized public procurement management system. The project's task is to create and implement a centralized public procurement management system.