The operator whose supply is not less than 250% costlier than one other supply was chosen because the winner within the procurement of cellular communications “Rail Baltica”

That is additionally confirmed by the research of the cellular communications trade carried out by the worldwide analysis and enterprise firm “KPMG Baltics”, which analyzes public procurement in Latvia and overseas.

A world research confirms that cash is being spent uneconomically within the provision of telecommunications in Latvia

The aforementioned “KPMG Baltics” research exhibits a moderately disagreeable image – the analysis standards used within the audited public procurements in Latvia restrict the person’s means to supply essentially the most economically advantageous to decide on. In different phrases, each the connection payment (month-to-month payment) for the precise tariff plan and individually the payment for primary items or providers – calls, textual content messages, knowledge transmission, and so on.

The issue is that the connection payment criterion in observe already contains the payment for primary providers, and this duplication of analysis standards for a similar supply trigger a scenario that limits the opportunity of selecting essentially the most economically advantageous supply, since candidates have the chance to deal with it. value setting supplied. This, in flip, can result in elevated prices for purchasers, in addition to a damaging influence on the general aggressive scenario.

A scenario like this, the place a number of overlapping value circumstances are included within the monetary presents, is current in a lot of the audited provisions. This differs from the method noticed in worldwide observe of evaluating a single value criterion for your entire supply, which permits a transparent dedication of what the client pays for the service ultimately.

When taking part in public procurement, one typically feels that the purchasers don’t totally use the alternatives to get essentially the most helpful cellular communication providers or that they dwell ten years in the past or extra. It’s advisable for a buyer to fee and provides factors on the price of one name minute or 1 MB, if the client needs to purchase limitless transmission plans that embrace the calls of the – free and cellular web. Or a disproportionately massive variety of factors are assigned to some technical parameter that’s actually inappropriate in evaluating the standard of the service offered. This creates a scenario the place provide is blocked, sources are wasted and advantages are given to 1 explicit market participant.

The present system of procurement factors additionally creates a scenario the place, in most procurements, even the procurement organizer himself, when receiving tenders, can’t fairly evaluate tenders operators’ funds, as totally different objects of provide are in contrast, however not the whole quantity of the whole. present

Cash wasted in Latvian telecommunications provision just isn’t a fantasy

The worldwide research of “KPMG Baltics” confirms that a part of the acquisition of cellular communication in Latvia is made in such a manner that prepayments are made for a service as easy and on a regular basis as cellular communication. Is the Latvian state actually so wealthy that it could possibly afford it? I simply wish to remind you that the event and development firm of the “Rail Baltica” undertaking “RB Rail AS” has chosen a cellular operator because the winner within the public procurement of cellular communication providers, whose supply is not less than 250% costlier . than the supply submitted by one other candidate. This query of prices is especially related now, when issues are being raised about subsequent 12 months’s state finances and tax modifications within the public sector.

Sadly, for the time being, not a lot consideration is given to the availability of cellular communication by the accountable establishments of the state, as a result of they don’t embrace the quantities which are, for instance, within the subject of development. It promotes a way of management and autonomy.

“KPMG Baltics” analysis on tender analysis standards relevant in public procurement of cellular digital communication providers was carried out in February 2024. It analyzes 10 public procurements in Latvia, in addition to 15 procurements overseas – in Estonia, Lithuania, Poland, Sweden and Norway. The survey “KPMG Baltics” could be discovered by contacting the corporate’s contacts.