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About the Government Procurement Administration

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About the Government Procurement Administration

The main purpose of the Government Procurement Administration is to realize the benefits of having a central procurement system.

The Government Procurement Administration is a staff body in the Division of Economic Offices at the Accountant General's Division. Its main functions are to outline government procurement policy, create key engagements for government ministries and auxiliary units, establish digital infrastructure to carry out procurement and pre-procurement processes, and assist government bodies in executing and implementing procurement policy in their ministries.

Advantages of conducting central procurement

  1. Taking advantage of the benefit that is the size of the government, resulting in savings in procurement budgets.
  2. Reduction of administrative costs deriving from conducting ministry tenders.
  3. Implementing procurement theory and advanced work processes, while constantly examining and implementing new methods and models and adopting advanced procurement methods.
  4. Outlining a uniform procurement policy for the entire government for the purpose of simplifying bureaucratic procedures and increasing competition.
  5. Improving work processes with government suppliers. The Procurement Administration strives to improve the work interface between the government and suppliers through maximum transparency in tender and contracting procedures.

Government Procurement Policy

The Government Procurement Administration is acting to implement procurement policy as determined by the government and the Knesset through publication of the Administration's directives that guide the ministries (provisions of the Finance and Economy Regulations), and also assists in policy formulation procedures. The Procurement Administration has the advantage of being able to incorporate various goals and values that shape procurement policy, and to recommend policies that balance the various goals, while constantly learning practices of the world and recommendations of government bodies, headed by the OECD. To this end, the Procurement Administration is taking an active part in the meetings of The Working Party of the Leading Practitioners on Public Procurement (LPP) at the OECD.

Innovation and Digital in Government Procurement Processes 

The Government Procurement Administration, deals with the promotion of innovative procurement processes in order to simplify and refine procurement processes and enable innovation procurement to be carried out in the government. The Government Procurement Administration also promotes digital systems for managing procurement processes, from initiating procurement, pre-procurement and procurement itself, including: a system for managing shortened procurement procedures (up to 50,000), a system for managing tender committees, a digital tender box, a digital tender management system, a dynamic tender center, an innovation arena and more.

Procurement Economy 

The Government Procurement Administration is responsible for the development and formulation of economic methodologies in the field of procurement on an academic basis of the tender theory, which is a sub-branch in the field of game theory and practical experience from Israel and the world. As part of the economic work, procurement personnel are required to take into account selection mechanisms, including formulation of appropriate preference functions that weight all components, including quality and price. Another consideration is the competitive environment and an ability to achieve decent competition between bidders even when the level of competition in the market is limited. Formulation of the tender model, including a preference function based on preparatory work, in which both demand and supply are examined in order to reach an equilibrium result within the framework of the tender procedures.