Editura Universitara Performance management of public procurement in military organizations

Publisher: Universitară

Author: Florin Emil Mardale

ISBN: 978-606-28-0615-6

DOI: 10.5682/9786062806156

Publisher year: 2017

Pages: 228

Product Code: 9786062806156 Do you need help? 0745 200 718 / 0745 200 357
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  • MANAGEMENTUL PERFORMANT AL ACHIZITIILOR PUBLICE IN ORGANIZATIILE MILITARE

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FLORIN EMIL MARDALE

TABLE OF CONTENTS / 5

PREFACE / 9

CHAPTER 1. DETERMINATIONS OF PUBLIC PROCUREMENT SYSTEMS / 15
1.1. The historical evolution of commercial transactions and their influence on the progress of human society / 16
1.1.1. History of commercial transactions, from barter to e-commerce / 17
1.1.2. Auctions, part of commercial transactions, superior form of exchange / 25
1.1.3. Brief history of military acquisitions. Current issues 29
1.2. World Trade Organization Strategy in accordance with European Public Procurement Rules and Procedures / 37
1.2.1. World Trade Organization Strategy on Public Procurement / 37
1.2.2. European public procurement rules and procedures / 44
1.2.3. Common conceptual determinations on public procurement in the Agreement on Public Procurement of the World Trade Organization and in European legislation / 50
1.3. The European concept of public procurement / 53
1.3.1. The new European concept on public procurement / 53
1.3.2. Strategy for applying the concept of public procurement to the main economic actors of the European Union / 60
1.3.3. The public procurement mechanism in Romania, a component part of the European public procurement system / 64
1.3.4. Public procurement component of military organizations, active subsystem of the national public procurement system / 69

CHAPTER 2. CONSIDERATIONS ON THE MANAGEMENT OF PUBLIC PROCUREMENT IN MILITARY ORGANIZATIONS IN PERFORMANCE CONDITIONS / 75
2.1. Conceptual delimitations regarding the public procurement management in front of the current requests for performance increase / 75
2.1.1. The concept of public procurement in public institutions / 77
2.1.2. Performance in public procurement, between necessity and desideratum / 80
2.1.3. Current economic pressures on public procurement management in public organizations / 83
2.2. The managerial system of public procurement in military organizations / 86
2.2.1. The concept of efficient management system of public procurement in military organizations / 87
2.2.2. Methodological-managerial subsystem / 91
2.2.3. The decisional subsystem / 93
2.2.4. Information subsystem / 99
2.2.5. Organizational subsystem / 103
2.3. Considerations regarding the efficient management of public procurements in military organizations / 108
2.3.1. The need to ensure an efficient management of public procurement in military organizations / 109
2.3.2. The current economic challenges regarding the application of the principles of public procurement in performance conditions / 111
2.3.3. The functions of efficient public procurement management / 116
2.3.4. Risk management in the field of public procurement specific to military organizations / 122
2.4. Planning, organizing and conducting public procurement procedures in military organizations in performance conditions / 126
2.4.1. Adequate planning of public procurement in military organizations to achieve performance in carrying out specific activities / 126
2.4.2. Performance organization of planned public procurement procedures in military structures / 128
2.4.3. Carrying out public procurement procedures in military organizations in performance conditions / 131

CHAPTER 3. OPTIONS FOR INCREASING THE PERFORMANCE OF THE PUBLIC PROCUREMENT SYSTEM IN MILITARY ORGANIZATIONS / 137
3.1. The main influencing factors of public procurement in military organizations / 137
3.1.1. Factors with a positive influence on public procurement / 139
3.1.2. Factors with negative influence on public procurement / 143
3.1.3. Positive modeling options for factors influencing public procurement in military organizations / 149
3.2. Determinations of increasing the performance of public procurement in military organizations / 153
3.2.1. The European concept of performance evaluation in public procurement / 154
3.2.2. Measures to increase performance in public procurement specific to military organizations / 159
3.2.3. Elements of evaluating the performance of public procurement in military organizations / 164
3.3. Performance indicators of public procurement in military organizations / 167
3.3.1. New trends in public procurement evaluation / 167
3.3.2. Public procurement performance indicators for use in military organizations / 172
3.3.3. Possibilities for modeling the performance indicators of public procurements / 183
3.3.4. The effect of using performance indicators in public procurement activity in military organizations / 187
3.3.5. Case study: Analysis of the creditworthiness of the bidders participating in the public procurement procedure of the “diesel” product at UM 0XXX Sibiu / 191

CONCLUSIONS / 201
LIST OF ABBREVIATIONS AND ACRONYMS / 207
SELECTIVE BIBLIOGRAPHY / 209
ANNEXES / 217

Contemporary society is at a crossroads, which probably does not represent the "end of history" proclaimed by Francis Fukuyama at the time of the collapse of communism, but is much closer to the "clash of civilizations" predicted by Samuel Huntington in 1997. The attempt to create poles stability and the determination of tendencies to "normalize" economic evolution are increasingly difficult to achieve. In the years before the economic crisis, economic growth was around 4% per year, but now are considered true performance, rates of economic growth higher than 2%.
The involvement of the state, determined as a ratio between public expenditures and national income, increased for two reasons, which overlapped and supported each other, namely: the increase of expenditures financed from the state budget, most often from deficit, used to accelerate economic development, doubled by tax increases in order to sustain them.
Theoretically, expenditures should have been reduced during periods of economic growth in order to achieve surpluses to cover the deficits created, but this decrease did not occur, being otherwise difficult to achieve in terms of social and political effects it would generate. . In periods of economic advancement, asking their own citizens to be modest in using their own income is too high a political risk for the ruling class. Also, the adjustment of state revenues, determined by a decrease in taxes, duties and social contributions in the same period of the boom, would contribute significantly to the decrease of possibilities for stimulation in pre-election periods, which is not currently considered acceptable. .
Therefore, referring to the evolution of the global economy, conditioned by the growing needs to increase spending on the one hand, but also by contracting state revenues on the other hand, we consider that the pursuit of a market sector of about 20% of GDP The world, which is represented by public procurement, has become a necessity. Therefore, we intend to treat the field of public procurement in terms of the place they occupy in an economy, but also how to effectively manage public procurement processes within organizations funded by national budgets in general, and those military in particular.
By virtue of the practical experience gained in the field of public procurement, by the nature of the job of chief accountant in a military organization of gendarmes, but also as a result of gaining international experience following participation in an international audit mission (on the functional mechanism and budget execution of To the European Gendarmerie Force in Vicenza), we considered necessary the elaboration of the present scientific paper, a useful study for both specialists and those interested in the efficient managerial functioning of this complex field.
In our scientific approach we approached theoretical aspects regarding the evolution of commercial transactions, auctions, but also the new conceptual approaches accepted at European level, then following the management of the public procurement process at the level of military organizations. We concluded by presenting the theoretical and practical options for optimizing the public procurement process carried out at the level of a military organization of tertiary credit ordering level, as well as the effects of using indicators to evaluate this activity.
Thus, in the first chapter, entitled "Determinations of public procurement systems", we will highlight, both historically and conceptually, the evolution of trade activities, starting from barter and reaching, nowadays, e-commerce and the use of new electronic money. At the same time, we will try to capture aspects of the public procurement market in different European countries, as well as different approaches to the concepts provided in the new European directives.
Last but not least, we will present the development and adaptation of the public procurement system in our country to European legislation and economic realities. In this sense, we will highlight the procedures, techniques and methods used internally, which coincide with the European provisions, specifying that on this date the legislative correlation with the European directives from 2014 was achieved.
Also, an important component of the public procurement system is the subsystem created by organizations in the sector of defense, public order and national security, which, although it has some peculiarities, aims to adapt to these realities and meet increasingly complex requirements. of these institutions, by applying the public procurement procedures and techniques used by the other participants on the profile market. To this end, our scientific approach is trying to convince specialists in the field of public procurement in military organizations as an open, European approach in all specific activities must remain a goal as soon as possible to be achieved and pursued in daily activities.
In the second chapter, entitled "Considerations on the management of public procurement in military organizations in performance conditions", we will reveal, both theoretically and practically, the concept of public procurement developed in performance conditions, the evolution of this phrase in recent years and the application within the use of public funds of new parameters for quantifying efficiency.
We will analyze the functioning of a military organization following all four managerial subsystems, respectively the methodological-managerial, the decisional, the informational and the organizational, emphasizing the place and importance of each of them, within the leadership process.
In order to ensure an efficient management of public procurement at the level of military organizations, we will follow at the same time the current economic challenges and constraints on the application of European principles. We will also present the current functions of management, but also the risks encountered in the current activity faced by specialists in the field of procurement.
Last but not least, we will reach the practical aspects of the public procurement process, starting from the planning, organization and control of its development in performance conditions, which can allow the completion of an procurement procedure, but also the achievement of organizational objectives.
We will also insist on ensuring a complete human resource at the level of support structures, and implicitly at the level of marketing and procurement departments within military structures, emphasizing, on the one hand, the importance of this field of activity, but following the possible subsequent evolution. of socio-economic reality.
In the last chapter "Options for increasing the performance of the public procurement system in military organizations" we will recommend the main influencing factors of public procurement, both with positive and negative determination. We will then present the existence of positive political, economic, social conditions belonging to the external environment, but also the internal ones, aiming first of all at the institutional structuring, so that their modeling will follow the achievement of the proposed objectives in terms of performance.
In order to perform the public procurement process in military organizations, we will propose here, for analysis, performance indicators adequate to measure the financial savings obtained, product prices, but also the annual efficiency of using public funds and the final implementation of a contract or project. , and on the other hand, indicators necessary to determine the competitive performance of the bidders-suppliers participating in the selection processes related to the public procurement procedures programmed and carried out in the military organizations. We will also monitor the impact generated on a military organization by applying these indicators.
In order to achieve the performance of the actions of programming and development of public procurements within the military organizations, we appreciate that in our research it remains essential to combine in an efficient way the main resources available, namely the human ones, together with the financial ones.
The determination of performance, within this sector of activity, can be practically reduced to a measurement of the saved financial resources, to the registration of the achievement of the organizational goals, to the quality of the actions performed by the military organization, as well as to the modeling of the human component of the organization.
All these are based on the size of the budget, the type of authorizing officer of the military organization, the manner and sources of financing the activities, the security of their realization, as well as the period of time to be allocated to the activity.
From a military managerial point of view, from our point of view, the development directions will follow the conception phase of the public procurement strategies, the actual development stage, the post-factum control and the professionalization of the specialized internal departments.
We will also try to propose a model for evaluating the performance of public procurement, which will be able to follow the efficient and effective realization of this process. This model is simple and easy to use, has a clear purpose, and based on the results obtained will generate effective feedback. We also want the possible application of this model to lead to improved public procurement performance, and not only to monitor it, to try to identify and eliminate unnecessary losses, but also to determine a proper coordination and monitoring of programming and development processes. public procurement from the managerial structure of the military organization.
Thus, we can summarize by stating that our scientific approach aims to achieve the following objectives:
• highlighting the characteristics of commercial transactions, auctions and acquisitions;
• presentation of the new European concept on public procurement;
• highlighting the aspects regarding the performance and the increase of the performance in the military organizations within the public procurement processes;
• planning, scheduling and coordinating actions appropriate to a successful management of public procurement in military organizations;
• highlighting the main influencing factors of public procurement in military organizations;
• presentation of indicators for determining the performance of public procurement in military organizations and the practical way of applying them in a public procurement process.

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