THE REPUBLIC OF TURKEY

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ERKAN OZDEMIR

Public Procurement Specialist

Regulation Department

Public Procurement Authority erkanozdemir@kik.gov.tr

Institutional Set Up and

The Role Of Central Institutions in Turkey

7th IPA Regional Public Procurement Conference

9 – 10 September 2014 Vlora, Albania

KEY INSTITUTIONS

The institutional framework is already well-established in

Turkey. However, legal and institutional improvements

introduced to Turkish public procurement system during

the accession process require further developments in

terms of functionality of the existing framework.

Key institutions involved in public procurement system

are the Ministry of Finance and the Public

Procurement Authority. Besides these institutions,

Turkey has also centralised purchasing system and

institutions.

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MINISTRY OF FINANCE

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The Ministry of Finance (MoF), as the competent authority,

has responsibilities and powers to ensure and steer the

implementation of a coherent policy in all areas related to

public procurement and to coordinate all aspects related

to negotiations between Turkey and EU on Chapter 5:

Public Procurement.

The MOF has been assigned the task “to determine the

key policies on public procurement in the context of

general economic policies and strategies, and to ensure

coordination among the related parties in the preparation

of the draft laws in this area” by the Law No. 5917, dated

June 25, 2009.

MINISTRY OF FINANCE

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As for public procurement, the MoF has the final word

regarding any legal drafts related to public procurement

(including concessions/PPPs) in order to ensure the

coherence of the system and the effective and correct

adoption of public procurement legislation.

In order to facilitate the negotiation process, “Public

Procurement Coordination Unit” was established within

the Ministry of Finance-General Directorate of Budget

and Fiscal Control. Public Procurement Coordination Unit

is currently operating with 11 personel.

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• Coordinating the accession negotiations between the EU and Turkey on Chapter 5: Public Procurement,

• Carrying out needs assessment on administrative and operational capacity at all levels of public administration (central, regional and local level) in order to improve effectiveness of the public procurement system,

• Updating the National Strategy on Public Procurement taking into account the needs assessment,

• Examining the draft laws for consistency with the existing public procurement legislation in terms of terminology, principles and procedures; and compliance with the acquis,

Functions to be carried out

under the coordination of MoF can

be summarized as follows:

MINISTRY OF FINANCE

PUBLIC PROCUREMENT

AUTHORITY 6

Public Procurement Authority (PPA), which was

established in 2002, is a regulatory and supervisory

body responsible for regulating and monitoring the

public procurement system.

PPA is related to the MoF and has administrative and

financial autonomy in the realization of its functions

which implies that no organ, entity or person can issue

orders or instructions for the purpose of influencing the

decisions of the Authority.

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PPA consists of:

the Public Procurement Board (PPB) acting as a

decision making body with 9 members,

Presidency,

and service units.

PPB members are appointed by the Council of Ministers upon the proposal of the Ministry of Finance and their term of office is for 4 years and a member can be elected more than once.

The president of the PPA is also the president of the Board.

At present, the Authority has been operating with 333 Personnel including 155 public procurement specialists.

PUBLIC PROCUREMENT

AUTHORITY

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The main duties and powers of the PPA are:

to prepare, develop and guide the implementation of Public Procurement Law (PPL) and Public Procurement Contracts Law (PPCL)

to review the complaints about the tender process and proceedings conducted by the contracting entities covered by PPL,

to prepare secondary legislation in relation to the implementation of the PPL and PPCL

to provide training on procurement legislation both in public and private sector, to ensure national and international coordination in this field,

PUBLIC PROCUREMENT

AUTHORITY

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to collect, analyze and publish the data concerning the procurements carried out within the framework of the PPL,

to keep the records of tenderers prohibited from participating in tenders

to regulate the principles and procedures with regard the tender notices and to publish the Public Procurement Bulletin in electronic environment,

to establish and operate the Electronic Public Procurement Platform (that platform became operational on September 1, 2010)

PUBLIC PROCUREMENT

AUTHORITY

CENTRALISED PURCHASING

Centralisation is one of the key procurement

strategies.

Full Centralization

• Procurement is carried out by central purchasing bodies

Full Decentralization

• Each contracting entity carries out its own procurement

Hybrid Models

• Combine both centralized and decentralized purchasing.

• Some procurement activities are carried out by central purchasing bodies/by each contracting entities.

The optimal level of centralization is a challenging issue

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KEY PLAYERS OF CENTRALIZED

PURCHASING SYSTEM IN TURKEY

State Supply Office

Public Hospitals Unions

Economic Operators

Contracting Authorities

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Ministries

Public Procurement Authority

Turkish Public Procurement System (TPPS) is a mixture of centralised and decentralised model.

Majority of public

procurement is conducted by the individual contracting authorities (currently more than 28.000).

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STATE SUPPLY OFFICE

The State Supply Office (SSO), established in 1926, is the

national central purchasing body of Turkey.

The SSO purchases various goods and services (such as

vehicles, tables, chairs, and other office supplies) listed in its

articles of association for other contracting authorities.

The SSO shall procure in accordance with the PPL, whereas

purchases of contracting authorities from the SSO are outside

the scope of PPL.

Hower, it is not compulsory for contracting authorities to

purchase supplies and services from or through SSO.

Statistics indicates that the majority of public procurements is

conducted by the individual contracting authorities in

accordance with the PPL.

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PUBLIC HOSPITALS UNIONS

Turkish Institution of Public Hospitals was established

by Legislative Decree no 663 dated 11 November

2011.

Public Hospitals Unions (PHU) are established in 52

cities under Turkish Institution of Public Hospitals. PHU

conduct public procurement in health sector for all the

public hospitals in the relevant region.

PHU shall act in accordance with PPL for their

centralized procurement. Framework agreements also

provide an instrument to PHU for their centralized

purchasing.

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MINISTRIES AND CONTRACTING

AUTHORITIES

Needs of various contracting authorities subordinate to a

Ministry may be procured by the central organisation of

that Ministry.

In addition, contracting authorities may come together to

procure their common needs through framework

agreements or by making protocols in accordance with

the PPL (joint procurement).

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FURTHER DEVELOPMENTS

Work for improving the administrative capacity is on-

going

In order to ensure an effective implementation of a

coherent and sound public procurement system,

institutional framework will be rendered fully functional

and administrative capacities will be further

strengthened.

Within this framework, taking into account their

institutional set-ups and according to their peculiar needs

for strengthening administrative capacity, organisational

changes will be introduced in the institutional structures

of key institutions.

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THANK YOU FOR YOUR

ATTENTION