RESTRICTED
WORLD TRADE WT/WGTGP/W/8
31October 1997
ORGANIZATION(97-4772)
Original: French Working Group onTransparency
inGovernment Procurement
NATIONAL PROCEDURES AND PRACTICES RELATING TO
TRANSPARENCY INPUBLIC PROCUREMENT
Communication from Tunisia
1. Presentation ofthesystem
InTunisia, government procurement isthemostappropriate legalinstrument forcarrying out
public sector projects andsatisfying agreat variety ofcommunity needs inrespect ofworks, supply
ofgoods andservices orstudies. Astheamounts involved eachyearareconsiderable, itisimportant
toensure optimum allocation ofthese resources through better buying, i.e.byconcluding thebest
possible contracts.
During the1980s, therewasadecline intheintensity ofcompetition. Calls fortenders brought
inonlyoneortwobids, andsometimes noneatall.Thesource oftheproblem layinthefactthat
needs weresometimes poorly expressed andtechnical specifications weresometimes tooscanty ortoo
rigid, withtheresult thatsuppliers could neither comply withthespecifications forfearofsubmitting
abidthatwasincomplete andunreliable, norstrayfromthespecifications forfearofhaving theirbid
rejected.
Theproblem alsostemmed fromthefactthatnotenough wasdonetoensure thatpublic tenders
were widely publicized. Forexample, there wassometimes atendency toinvoke urgency asa
justification forissuing callsfortenders withveryshort deadlines. While itistruethaturgency is
afactoflife,itisoccasionally deliberately confused withhaste toprotect public tenders from free
competition.
Thus, ithadbecome essential tointroduce anewlegal framework defining therules and
procedures pertaining togovernment procurement.
Government procurement iscurrently regulated byasetoflegislative andregulatory texts.
Theseregulations,whichwereheavilyrevisedin1989,laydownthreebasicprinciples:freecompetition,
transparency intheawarding ofcontracts andpreservation oftheprinciples ofsound management.
Itistruethatthismechanism involves anumber ofprocedures -advertising inthenewspapers,
submission oftenders insealed envelopes, opening oftheenvelopes, examination ofthetenders, control
byspecial commissions, etc.Buthowever numerous theymaybe,these procedures arenotvery
complex, andinfactamount toways ofensuring thatthethreeabove-mentioned principles areupheld
andthatpublic funds areproperly managed.WT/WGTGP/W/8
Page2
2. Freecompetition andtransparency
Theregulationscovereveryaspectoftheseprinciples.Theyensurethatgovernmentprocurement
isexposed tothebroadest possible competition withaviewtoobtaining thebestpossible quality and
prices. They havemade transparency afundamental principle, closely linked tofreecompetition as
ameans ofensuring synergy. Thisapplies tothedifferent phases ofgovernment procurement.
Asregards thetender documents, thetechnical specifications must define thescope ofthe
procurement andtheconditions under which itistotakeplace. Theymustalsolaydown theconditions
forparticipation, theselection criteria andtheirrelative weight, andtherights andobligations ofthe
parties concerned.
Theregulations alsostipulate thattender documents must beclear astowhat isrequired:
characteristics andcontent must beindicated precisely. They must bedefined withreference to
previously established technical specifications, andpossibly tospecifically identified national or
international standards. Anyindication ofabrand name oranyother element thatcould direct the
purchase towards agiven product isprohibited.
Withrespecttotypesofprocurement,inordertoensuremaximumcompetitionandtransparency
theregulations favour tendering (appel d'offres )asthenormal legalprocedure, while maintaining the
possibilityofawardingcontracts(adjudication)onthebasisofasinglecriterion,namelyprice.Although
certain provisions allow forsingle tendering, thisremains anexceptional procedure tobeapplied only
incertain specific cases laiddown intheregulation, suchasextreme urgency owing tounforeseen
circumstances, cases involving national security orthehigher interests oftheState, orprocurement
related toresearch, testing, experimentation, etc.
Stillinconnection withfreecompetition andtransparency, theregulations stipulate thatcalls
fortenders mustbeadvertised asbroadly aspossible toensure thatallpotential bidders areinformed.
TheTunisian regulations governing thesending, receipt andopening oftenders include agreat
number ofprecautions toensure thatthevarious operations involved arecarried outwithcomplete
transparency. Thus, allbidsmustbesentbyregistered mailwithin aperiod oftimespecified inthe
tender documents, which cannot belessthan20days. Anybidswhich donotcomply withtheseformal
conditions orwhich arereceived beyond thedeadline areautomatically rejected.
Theopening oftheenvelopes, inthecaseofbothauctioning andtendering andeveninthe
caseofconsultation,iscarriedoutcollectivelybyacommission,inthepresenceofanoperationalauditor,
andgenerally inthepresence oftheparticipants. Inexceptional cases where theopening ofthetenders
isnotpublic, forexample forreasons ofurgency, theadministrator isrequired toposttheresults of
theopening immediately following themeeting ofthecommission.
Theregulations stipulate that,forreasons oftransparency, theexamination ofthebidsand
thechoice ofsupplier mustbecarried outbyacommission, which proceeds byconsidering thebids
andeliminating those which donotmeet theestablished conditions, classifies theremaining offers
exclusively andstrictly onthebasis ofthecriteria andweighting setforth inthetender documents.
These documents mustbetransmitted, against receipt, toallcandidates, whomayinnocircumstances
modify theirbidsretroactively.
Thecommission thendraws upadetailed report describing allofthese operations andsingling
out,onthebasis ofthisclassification, thebidthatitconsiders themost suitable.WT/WGTGP/W/8
Page3
Itshould bestressed thattheregulations donotconfine themselves toestablishing general
principles suchastransparency andtoorganizing theprocedures required toputthem intopractice.
Theyalsoseektoensure thatthose principles areproperly applied byproviding formandatory control,
interaliaofcompliance withtheregulations.
3. Thesystem ofcontrol
Government procurement involves theuseofgovernment funds, whose management mustbe
accountedforatdifferentstages.Inadditiontoaconcomitantcontrolbymeansofon-the-spotinspections
andapostcheck bytheCourt ofAuditors, theregulations haveprovided forapriorcontrol mechanism
inwhich theprocurement commissions playthekeypart. Thepurpose ofthiscontrol istoensure
thatprocurement iscarried outinaproper andregular manner bybringing tolightpossible irregularities
orshortcomings before theyoccur, aswellasexamining disputes between theparties concerned.
These commissions aremade upofrepresentatives ofthedifferent Ministries (Trade, Industry,
Finances, Equipment andHousing, andEconomic Development, theCentral Bank etc.).
Thispreventive control mechanism cancome intoplayinanyofthesuccessive stages ofthe
government procurement procedure, fromthedrawing upoftechnical specifications totheawarding
ofthecontract.
However, thechoice ofthestage orstages atwhich thecommission actually intervenes has
totaketwoessential factors intoaccount: firstly, theneedformaximum efficiency, andsecondly,
theneedtoactpromptly. Thefirstofthese considerations argues foramore thorough control, while
thesecond argues forasrapid acontrol aspossible.
Inviewofthese considerations, thereform of1989 opted forthemiddle-of-the-road solution
ofcontrolling thereport oftheexamination ofthetenders, acheck which isessentially consultative,
since ittakes theform ofreasoned opinions notified totheadministrative headormanaging director
oftheState enterprise concerned.
4. Challenges anddispute settlement
According totheregulations, anyproblem, challenge ordispute mustbebrought before the
competent procurement committee, which examines theclaims andgrounds ofeachoftheparties in
thelightoftheregulations, andgives areasoned opinion.
Ifthedispute continues, itcanbesettled amicably inanadhoccommittee chaired byamember
oftheadministrative court andincluding, among itsmembers, arepresentative oftheprofession and
arepresentative oftheHigher Procurement Commission. Thiscommission endeavours tofindcommon
ground between thetwoparties andproposes whatitconsiders tobethefairest solution.
Iftheparties havenotaccepted thecommittee 'samicable solution, theymayeachrequest
arbitration orbring thecasebefore theTunisian courts.
5. Preference fordomestic products
Owing tothediversity ofthesectors involved, theamount ofpublic expenditure anditsimpact
ondomestic industry, government procurement alsoconstitutes atoolofState intervention inthe
economy.WT/WGTGP/W/8
Page4
Consequently, following theexample ofothercountries, theregulations concerning government
procurement include measures fortheprotection oflocalindustry byestablishing theobligation for
foreign suppliers, incases ofinternational callsfortender, toform ajointventure withTunisian
enterprises ortosubcontract asmuch aspossible oftheproject tolocal firms bygranting a20per
centpreference forproducts ofTunisian origin. Itgoeswithout saying thatrecourse tointernational
callsfortender ispossible whenever theproject tobecarried outcallsforaskillthatlocalenterprises
donotpossess oraproduct thatisnotmanufactured locally, oriftheproject isco-financed byaforeign
entity whose regulations require international competition.
Itshould benoted inthisconnection thatinternational donor organizations suchastheWorld
Bank accept jointventures andsubcontracting, andgrant localproducts a15percentpreference.