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4. The procurement process pdg Partnership for Democratic Governance
Integrating end-users’ feedback and lessons learned It is important to consider feedback from the endusers of the service as well as from other stakepdg holders (see Box 4.3). Whilst helping to evaluate Partnership contract performance, the feedback process can for Democratic also gain Governance users’ support and increase their awareness that the service is ultimately being provided by the partner government. Feedback can be acquired in many ways, including face-to-face contact, phone or e-mail exchanges, surveys, users’ scorecards or other tools. In gathering user feedback, it is important to seek responses that help determine whether the contractor has met the requirements of the contract rather than the users’ expectations. This is essential for fairness and to foster accountability between the partner government and its contractor as well as between end-users (citizens) and their government or local authority. Often users’ expectations will be based on their individual circumstances and may differ from the contract performance standards. User feedback is also useful in deciding to extend or re-tender a contract. It is also important to identify and document lessons learned during the procurement process after the contract has ended. These can be used to refine subsequent procurements, and can provide significant and unexpected findings, as shown by another recent experience in Afghanistan (Box 4.4).
Fulfilling government’s contractual obligations Another key role for government is to pay the contractor in accordance with the payment mechanism outlined in the contract. To meet these obligations, government must have a payment system to ensure secure and timely payments. If payments are not made on time, the contractor may have grounds to halt the provision of services until payment is received. This is because the contractor invoices the government or seeks payment after it has provided the services and has incurred the costs in delivering
these services. If payment is not received on time, the contractor may not be inclined, or able, to continue to incur further costs. The government may also have other obligations under the contract, such as providing land, equipment, facilities, permits or statutory approvals to the contractor so that they can deliver the services. It is critical that the government meet these obligations. Failure to meet them will delay the delivery of services and may also cause the contractor to withdraw from the contract. The contractor may also seek compensation if the government’s failure to comply with contractual obligations led to financial or reputational damage to the contractor. >TIP: The government can ensure it can meet its contractual obligations by preparing for them before the contract is awarded.
Deciding the next steps While the contract services are being delivered, government can also build its own capacity so as to be able to provide the services itself once the contract ends. Towards the end of the contract, the government will need to assess whether its capacity is sufficient to undertake this role. If it is, then provisions will be needed to return the services from the contractor to the government at the end of the contract period. If the government’s capacity is not considered suitable to deliver the services or if it seems that better value for money is achieved by contracting out (while minimising risks, as described in Chapter 2), then the services will continue to be contracted out. Under this scenario, the government will need to either extend the current contract or re-tender the contract. Re-tendering will enable the government to revise contractual arrangements, including the scope of work and performance standards, if its needs have changed since the initial contract was tendered or on the basis of lessons learned in the current contract period. These decisions must be made before the end of the contract so that there is adequate time to plan for their successful implementation.
OECD PDG HANDBOOK ON CONTRACTING OUT GOVERNMENT FUNCTIONS AND SERVICES IN POST-CONFLICT AND FRAGILE SITUATIONS © OECD 2010