This chapter describes the current state of play of the ongoing professionalisation reforms of the public procurement function in Lithuania. The chapter starts by overviewing an action plan to professionalise the public procurement workforce (2019-2022), which was adopted by the Government of Lithuania in March 2019, building upon the recommendations provided by the OECD under the EU-funded project (2018-2019). Then, the chapter evaluates the main achievements of the action plan and discusses way forward to reinforce the professionalisation of the public procurement workforce in Lithuania. In particular, the chapter focused on the certification framework and competency model, capability-building systems, reinforcing the uptake of innovation procurement, and the collaboration with knowledge centres.
Public Procurement in Lithuania
2. Professionalisation
Abstract
During 2018 and 2019, the government of Lithuania closely worked with the OECD under the EU-funded project Support for the Improvement of the Lithuanian Public Procurement System through professionalisation of the national workforce and streamlining of R&D tendering (see Box 2.1). Building upon this project, the government of Lithuania has taken strong initiatives to professionalise the public procurement workforce through the close collaboration between the MoEI and the PPO.
Lithuania approved its action plan to professionalise the public procurement workforce in March 2019 to implement the recommendations proposed by the OECD. (Ministry of Economy and Innovation of the Government of Lithuania, 2019[1]) For example, in July 2022, Lithuania launched its first-ever national certification framework for the public procurement workforce. Lithuania enhanced its collaborative approach with knowledge centres to launch its first master’s program on public procurement law in the country. Currently, Lithuania provides the world with good practices to professionalise the public procurement workforce.
This chapter overviews the current state of play of professionalisation in Lithuania in accordance with the approved action plan and identified key elements to professionalise the public procurement workforce. (OECD, 2023[2]) In particular, the chapter focuses on the professionalisation action plan, competency model, certification framework, capability-building mechanisms, and collaboration with knowledge centres.
Figure 2.1. Key elements to professionalise the public procurement workforce
Source: (OECD, 2023[2])
Box 2.1. EU-funded project Support for the Improvement of the Lithuanian Public Procurement System through professionalisation of the national workforce and streamlining of R&D tendering
The OECD worked with the government of Lithuania under the Structural Reform and Support Services (SRSS) from the European Commission. In this project, the OECD proposed a detailed outline of the certification framework and professionalisation strategy tools, built upon a comprehensive assessment of the challenges with the key stakeholders and close discussion with the Ministry of the Economy and Innovation (MoEI) and the Public Procurement Office (PPO) of Lithuania.
The proposed certification framework consisted of two levels: basic and advanced. It was proposed that candidates would be required to complete in total of 60-hour courses (42 hours and 18 hours for each level) on 19 procurement topics such as public procurement law, market analysis, technical specifications, award criteria, integrity in public procurement and strategic procurement (green public procurement, SMEs, innovation, and socially responsible public procurement). The OECD also proposed tools to promote the professionalisation strategy. These tools include e-learning, degree programmes, self-support tools (manuals, guidelines and standardised templates), a one-stop shop procurement portal for the community of practice, an award system exclusively for public procurement professionals and practical training (On-the-job training, job-swapping, mentorship and internship programmes).
As part of the key delivery of this project, the OECD provided two one-week Training of Trainers (ToT) programmes to build capabilities for the future trainers who will provide the training sessions required under the proposed certification framework. To deliver the ToT programmes, the OECD developed training materials that cover 11 procurement courses out of the total 19 courses required in the proposed certification framework. This corresponds to 31 hours, which accounts for approximately half of the total 60 hours required to complete both levels.
Source: (OECD, 2019[3])
2.1. Action plan
It is essential to develop a professionalisation strategy and/or action plan to define activities and their targets within a specific timeline. In March 2019, MoEI prepared an action plan to professionalise the public procurement workforce (2019-2022) in close collaboration with the Public Procurement Office, to implement the professionalisation reforms and the recommendations provided by the OECD under the EU-funded project (Ministry of Economy and Innovation of the Government of Lithuania, 2019[1]). The action plan aimed at developing training programmes for the public procurement workforce, methodological tools, and solutions to motivate contracting authorities and procurement specialists to conduct procurement more efficiently. This action plan was prepared in the table format that lists measures/activities, responsible institutions, implementation deadline (by December 2022), and result (progress) for the five key areas, as shown in Table 2.1. Summary of the evaluation of the professionalisation action plan (2019-2022)
The professionalisation action plan covers five key areas:
Strengthen the capacities of the public procurement workforce (closely linked with the establishment of the certification framework);
Develop methodological and support tools to reduce the administrative burden of public procurement or facilitate the sharing of good practices;
Improve the motivation system for contracting authorities and procurement specialists;
Raise awareness of other agents/entities participating in procurement; and
Evaluate the effectiveness of the implementation of the public procurement professionalisation plan
Each of these five key areas has a set of measures and activities with concrete deadlines for implementation and entities responsible for the implementation of a particular measure listed. The overall implementation deadline was set for December 2022. MoEI updated the implementation progress of each measure on its website. As shown in Table 2.1. Summary of the evaluation of the professionalisation action plan (2019-2022), all the activities and measures were completed within the implementation deadline (December 2022).
Table 2.1. Summary of the evaluation of the professionalisation action plan (2019-2022)
Note: PPO: Public Procurement Office, MoEI: Ministry of Innovation and Economy, MoE: Ministry of Environment
In particular, the followings are the main achievements of the action plan of professionalisation (2019-2022):
Establishment of the national certification framework (see section 2.2)
Development of training materials, standard templates, and methodological tools (see section 2.3)
Establishment of the master programme on public procurement through a collaborative approach (see section 2.4)
Excellence award system: Since 2021, to further motivate contracting authorities, the MoEI has organised the Most Effective Public Procurement Awards in collaboration with the PPO for three years in a row (2020, 2021 and 2022). This excellence award system rewards contracting authorities in four categories: the most sustainable, the most innovative, the smartest, and the best procurement governance/processes. (Ministry of Economy and Innovation of the Republic of Lithuania, n.d.[4])
The next sections overview the main achievements of the action plan and discusses way forward to reinforce the professionalisation of the public procurement workforce in Lithuania.
2.2. Certification framework and competency model
A competency model maps critical skills and their capability levels, which are required for the overall strategic direction of an organisation. A certification framework certifies the level of skills and competences acquired by public procurement officials. Therefore, both mechanisms are closely linked to each other. These mechanisms allow procurement officials to identify their skill gaps and can be used for human resource management purposes: recruitment, promotion and training on the skills and competences. (OECD, 2023[2])
Recently, countries have been increasingly introducing these mechanisms for the public procurement workforce, but with limited progress. As of 2020, 41% of OECD countries had introduced a competency model for the public procurement workforce, compared to 30% in 2018. (OECD, 2021[5]) Lithuania is one of the OECD countries that have introduced these mechanisms.
Indeed, one of the biggest achievements of the professionalisation action plan was the establishment of the certification framework. On 1 July 2022, Lithuania launched its first-ever national certification framework for the public procurement workforce. Recommendations proposed by the OECD under the EU-funded project (2018-2019) have emphasised the relevance of establishing a certification framework as a critical element in professionalising the public procurement workforce, and even proposed its essential parameters such as the curriculum and specific implementation model.
It can be considered that Lithuania also has a national competency model, although Lithuania does not have a document named “competency model.” The document on the certification framework describes the knowledge and skills that procurement officials need to demonstrate for twenty topics (e.g., legislation, market research and needs analysis, green public procurement) to obtain a certificate. These twenty topics or modules can be considered as competences in a broad sense.
This section overviews a certification framework and a competency model of Lithuania.
2.2.1. Certification framework
On 1 July 2022, the Order on the Approval of the Procedure for the Knowledge Test of the Procurement Specialists entered into force to launch a national certification framework for the public procurement workforce. (Public Procurement Office of the Republic of Lithuania, 2022[6]) PPO organised a series of workshops to present the certification framework system from June 2022.
Article 19 (3) of the amendments to the Law on Public Procurement, which were adopted by the Parliament in October 2021 and entered into force in January 2023, requires that contracting authorities shall include at least one certified public procurement official in the public procurement commission which shall be set up to carry out a procurement procedure except for some procedures (e.g., low-value procurement procedure). (Parliament of the Republic of Lithuania, 2021[7])
The MoEI and the PPO worked together to design a certification framework, building upon the OECD’s proposal in 2019 under the EU-funded project Support for the Improvement of the Lithuanian Public Procurement System through professionalisation of the national workforce and streamlining of R&D tendering (OECD, 2019[8]) (see Box 2.2).
Box 2.2. Proposal on establishing a certification framework and training programmes in Lithuania under the EU-funded project (2018-2019)
The OECD worked with the government of Lithuania under the SRSS from the European Commission. In this project, the OECD proposed a detailed outline of the certification framework.
The proposed certification framework consisted of two levels: basic and advanced.
Table 2.2. Overview of certificate levels
Source: (OECD, 2019[8])
Candidates will be required to complete in total 60-hour courses (42 hours and 18 hours for each level) on 19 procurement topics such as the public procurement law, market analysis, technical specifications, award criteria, integrity in public procurement and strategic procurement (green public procurement, SMEs, innovation, and socially responsible public procurement).
There are various elements to be considered when designing the institutional structure of the certification framework. They include, but are not limited to, the number of levels; the exam structure; the pre-requirements to take the exam (e.g., completion of trainings, academic and/or professional experiences); validity of certificate; renewal conditions, use of the certificate to carry out tasks related to public procurement; and the ownership. (OECD, 2023[2])
Table 2.4 shows the summary of the certification framework in Lithuania.
Table 2.4. Overview of the certification framework in Lithuania
Note: (*) Each of these modules are accompanied by supporting material, freely accessible on the PPOs website (legislation, training and methodological material (guidelines, recordings of training, etc.)
In accordance with Article 95 (4), the Public Procurement Office of Lithuania (PPO), as the main body that provides public procurement officials with training and implements the public procurement policies, is responsible for administering the certification framework and adopting its regulations (Parliament of the Republic of Lithuania, 2021[7]). In July 2022, the PPO launched a national certification framework by issuing the Order on the Approval of the Procedure for the Knowledge Test of the Procurement Specialists that set up its procedure (Public Procurement Office of the Republic of Lithuania, 2022[6]). PPO implements the following functions:
Establishes the requirements for the examination content;
Establishes the rules for the examination, the issuance of the certificate and its renewal;
Prepares and administers the examination for obtaining the certificate; and
Issues and renews the certificate.
Lithuania decided to set up only one level in the certification framework instead of the two levels proposed by the OECD. However, Lithuania integrated the elements of the proposed two levels into one level.
Candidates need to pass the exam to obtain a certificate. It is not mandatory to complete training to take the exam, while the OECD proposed the completion of 60-hour training (42-hour courses for the basic level and 18 hours for the advanced level) like the case of countries such as Chile and Croatia. Lithuania made this decision to provide each candidate with the flexibility and discretion on how to gain the relevant knowledge indicated in each of the 20 modules, and prepare for the exam (e.g., attend the training organised by training providers such as the PPO and private companies, learn individually with the materials provided by the PPO, etc.). The exam is closed-booked with 50 single or multiple-choice questions to be answered within 120 minutes. Each candidate needs to mark at least 80% (40 out of 50 questions) to pass the exam. The exam fee is EUR 19. (The Government of the Republic of Lithuania, 2023[9])
In January 2022 ahead of July 2022, the PPO issued a document “Checking the knowledge of procurement specialists” to specify knowledge and skills level for 20 topics which shall be demonstrated by a candidate to obtain a certificate. (Public Procurement Office of the Republic of Lithuania, 2022[10]) These 20 topics are aligned with the competences originally proposed by the OECD in 2019. Some competences proposed by the OECD in 2019 such as Negotiation methods and tactics and Ex ante & Post Control were not included, considering that these topics are very difficult to be evaluated in the written exam (See Table 2.5. 20 topics (modules) specified in the certification framework). However, PPO uploaded lecture video on negotiations in their website, based on the training workshop organised by the OECD in May 2022 under the EU-funded project (2021-2023).
Table 2.5. 20 topics (modules) specified in the certification framework
It is worth mentioning that the PPO digitalised all the processes of the certification framework. Candidates can apply and pay for the exam and take it anytime online through the virtual attestation system. Candidates are not required to submit any paper documents to apply for the exam nor go to the venue of the PPO to take the exam. PPO introduced artificial intelligence (AI) solutions to identify possible misconduct during the exam. This digitalisation provides each candidate with the maximum flexibility, as the system allows them to take the exam anytime online. However, PPO also allows candidates to take the certification exam at the venue of the PPO since November 2022. Each candidate can know their result immediately after finishing the online exam. If the candidate fails to pass the exam (at least marking 80%), he or she has the right to challenge its result against the PPO, and/or can take the exam again in two weeks.
The certificate will be valid for 5 years after its issuance. To renew the certificate, it is necessary to pass the exam again before the issued certificate gets expired. This validity of 5 years is set longer than 3 years proposed by the OECD in 2019. Some international practices shows that the validity is shorter than 5 years in some countries that have a similar scheme (3 years for Chile and Croatia and 2 years for Peru). Lithuania could consider the possibility of shortening the current validity period of five years, as the trend of public procurement evolves rapidly, such as the amendments to the legal framework and more use of strategic procurement. Another possibility would be to introduce the requirement to complete the specified training on the important topics (such as the amendments to the legal framework) within a specified time, as conditions to keep the validity of the certificate.
One year has passed since Lithuania successfully launched its first-ever national certification framework. As of May 2023, 820 candidates were certified with the successful rate of 65% (against 1 247 candidates). Initial feedback from candidates show that it is more difficult to pass the exam than expected although it is feasible to pass it after proper preparation. Lithuania could benefit from analysing the quality of the exam by analysing the accuracy rate of each question and module. In addition, Lithuania could benefit from carrying out a survey to receive feedbacks on the current certification framework from procurement professionals who have taken the exam (see Box 2.3).
Box 2.3. Potential survey question for the feedbacks on the certification framework
About the candidate
How long (months) do you have professional experiences in public procurement?
o Have you ever taken the exam for the certificate?
When did you obtain a certificate?
How many times did you take the exam?
How many hours did you spend to prepare for the exam?
How did you prepare for the exam? (e.g., took the training course, used the training materials provided by the PPO in the study guide)
About the exam
How would you rate the difficulty of the exam?
How would you rate the quality of the exam questions (in addition, open comment to specific questions/examples)
Did you use the materials provided by the PPO in the study guide?
(If yes) do you think that the materials are aligned with the difficulty of the exam?
Please choose the five modules which were the most difficult for you
Do you have any suggestions to improve the quality of the exam?
Feedbacks on the certification framework
Do you think that the level of the certification framework is aligned with its objective of certifying a member of public procurement commission?
Do you think that the current level of the certification framework allows a certificate holder to perform well for complex procurement procedures (such as green public procurement and innovation procurement)?
Do you think that Lithuania needs more than one level of certificate? (or certificate for specific topics such as green public procurement and innovation procurement)
Do you have any suggestion to improve the certification framework?
Source: prepared by the author
Lithuania could also consider the possibility of setting up more than one level, based on the survey result. Currently, Article 19 (3) of the amendments to the Law on Public Procurement requires one certified public procurement official in the public procurement commission for procurement procedures including complex ones such as innovation procurement. Therefore, as one potential option, the advanced level or the thematic certificate could be required for at least one member of the public procurement commission for more complex public procurement procedures such as large infrastructure projects and innovation procurement, while the basic level can be required to at least one member of public procurement commission for less complex procurement procedures. Setting up these certificates will help recognise the skills of the public procurement workforce as part of the capability-building initiatives, even if these are not required for the member of the public procurement commission.
Lithuania could consider a higher-level certificate (e.g., advanced) as the OECD proposed in 2019 or a thematic certificate (e.g., innovation procurement, green public procurement). Reinforcing further the elements of innovation procurement and green public procurement could be a priority, as the National Progress Plan (2021-2030) adopted in 2020 set an ambitious target of 20% for innovation procurement and 55% for green public procurement by 2030. (see Table 2.6) (The Government of the Republic of Lithuania, 2020[11]) For green public procurement, starting from 2023, the Government of the Republic of Lithuania updated the target from 55% of the National Progress Plan (2021-2030) to 100%, by adopting the Resolution No. 1133 on the determination and implementation of green public procurement objective. (The Government of the Republic of Lithuania, 2021[12])
Table 2.6. Target of innovation procurement and green public procurement
Note: Share as a percentage of total procurement value in EUR
For example, Norway has two types of certificates: Basic (introduction to public procurement) and sustainable public procurement (see Box 2.4). It should be noted that the purpose of the certificate in Norway is to acknowledge the skill level of the public procurement workforce, and there is no requirement to carry out procurement procedures (e.g., being a member of the tender committee).
Box 2.4. Certification framework in Norway
The Norwegian Government Agency for Public and Financial Management (DFØ) established a national certification scheme for public procurement (SOA). The certification framework under SOA consists of two types of certificates: SOA Basic and SOA Sustainability.
SOA Basic, which started in 2019, functions as a basic-level certificate. It covers five main topics: introduction to public procurement, procurement planning, market competition, contract management, and public procurement legal framework.
SOA Sustainable public procurement, which started in 2021, focuses on green public procurement and socially responsible public procurement by covering the same five topics as the SOA Basic. Weighting of the exam is climate change (35%), worker’s right (30%), human rights (30%) and other social aspects (5%). There are 40 questions to be answered for 60 minutes.
DFØ is responsible for administering the exam to obtain a certificate as the owner of SOA, while private companies (currently 6 companies for SOA Basic and 4 for SOA Sustainability) are in charge of providing training although completing a course is not mandatory to take the exam.
Source: ((DFØ), 2023[13])
2.2.2. Competency model
Lithuania does not have what is so-called a national competency model for the public procurement workforce. However, the certification framework guidelines show the knowledge to be demonstrated by a candidate for each of the 20 modules (see an example in Box 2.5). These modules can be considered as a competence in a broader sense. Therefore, it can be mentioned that Lithuania has a de facto one-level competency model for the public procurement workforce, which is linked with its national certification framework.
Box 2.5. Example of module (competence) description: XI Module Green procurement
The Procurement Officer must:
1) know the basic concepts;
2) knowledge of the principles of the circular economy;
3) be able to apply the requirements of environmental management standards;
4) knowledge of environmental principles that can be used independently setting environmental criteria;
5) be familiar with the life-cycle costing approach;
6) be familiar with the application of energy efficiency and environmental protection requirements to purchase vehicles;
7) be familiar with energy consumption legislation on energy efficiency;
8) be able to apply environmental criteria;
9) be familiar with the legal framework governing green procurement
Table 2.7 benchmarks Lithuanian competencies linked with the certification framework against 30 competences of the ProcurCompEU competency matrix.
Table 2.7. Benchmarking of Lithuanian competences against the ProcurCompEU matrix
Source: Prepared by the author based on (European Commission, 2020[14]) and (Public Procurement Office of the Republic of Lithuania, 2022[10])
The result of benchmarking exercises shows that all the 19 procurement specific competences are covered by Lithuania except the three competences: C7 (category specific), C9 (negotiations) and C17 (certification and payment). Some competences of Lithuania cover more details than the equivalent ProcurCompEU competences, in accordance with the OECD proposal under the EU-funded project (2018-2019). For example, C5 (sustainable procurement) is divided into three competences with more details: green public procurement, socially responsible public procurement, and SMEs. C13 (technical specifications) is divided into three competences in Lithuania: grounds for exclusion and selection criteria, technical specifications, and contract award criteria. On the other hand, only one soft competence (C23 ethics and compliance) is included in the Lithuania competence model, although this competence is slightly covered as part of Module II. Introduction to public procurement. Soft competences of the ProcurCompEU matrix are not included, because soft competences are difficult to be evaluated in the written examination under the certification framework. C7 (category specific) are not included, because it is very difficult to be evaluated in the exam and this could be covered by other members of the public procurement commision, who may be not certified, however, have the required knowledge on the specific category related to the subject matter of contract,. Lithuania could benefit from examining benchmarking exercise result and updating competences on a regular basis. For example, the competence related to risk management (including integrity aspect) will be worth considering, as PPO published updated guidelines related to this topic in 2023 (Guideline for ethical conduct in public procurement and Confidentiality in public procurement)
It does not mean, however, that Lithuania underestimate uncovered competences. Indeed, PPO provides training stuff such as lecture video and materials for competences such as negotiations, communication, stakeholder relationship management and project management. These training materials were provided for the training workshop organised by the OECD in May 2022 (Public Procurement Office of the Republic of Lithuania, 2023[15]).
2.3. Capability-building systems
Lithuania reinforced its capability-building system of the public procurement workforce by aligning it with the certification framework and competency model. In particular, the document “Checking the knowledge of procurement specialist” issued by the Methodological Assistance Division of the PPO functions as a very useful study guide to prepare for the exam under the certification framework, and even as a self-study guide to anyone who would like to improve their skillsets related to public procurement. It includes the link to lecture videos, guidelines/manuals, relevant articles of the Law on Public Procurement, and relevant case laws for each of the 20 modules.
In addition to training materials for 20 modules, as already mentioned earlier, PPO also provides training materials for the competences which are not included in the current certification framework such as negotiation, communication, stakeholder engagement and project management. These training materials were provided for the training workshop organised by the OECD in May 2022. All the materials are available on the website of the PPO (Public Procurement Office of the Republic of Lithuania, 2023[15]).
While the Methodological Assistance Division is mainly responsible for providing training, other divisions of the PPO also provide training on topics related to their specialisation. For example, the E-procurement Division delivers training on e-procurement, the Sustainable Public Procurement Unit delivers training on sustainable public procurement and the Supervision Division delivers training on the most common infringements in public procurement, etc. In addition, other public institutions are invited by the PPO to deliver training. For example, CPO LT provides training on centralised procurement. The training provided by the PPO is free of charge. Training is organised online and/or on the face-to-face basis. In particular, the practical workshops such as the use of formulas and calculations to apply the BPQR criteria are delivered on the face-to-face basis.
Lithuania developed many guidelines and standard documents / templates, as one of the key five areas of the professionalisation action plan II. Develop methodological and support tools to reduce the administrative burden of public procurement or facilitate the sharing of good practices and its continuous effort.
Methodological assistance constitutes a key pillar to strengthen the capacity-building systems of the public procurement workforce. It includes tools such as manuals and guidelines, standardised templates, and help desks. It is a useful tool to support public procurement officials to undertake their daily tasks effectively, and complements training courses. (OECD, 2023[2])
Guidelines and manuals provide practical information on specific procedures and topics. PPO prepared and/or updated many methodological guidelines on various topics. These include, but are not limited to, selection / qualification criteria, contract award criteria, specific procurement categories, integrity in public procurement, market consultation, centralised purchasing and promotion of SMEs (see Table 2.8). For example, in December 2023, PPO updated the Guidelines for Selecting the Most Economically Advantageous Bid, which describes the principles for determining the most economically advantageous bid and discusses different formula to be used.
Table 2.8. Guidelines available for contracting authorities at the PPO website
Note: (*) prepared in collaboration with the Environmental Projects Management Agency of the Ministry of Environment, (**) prepared in collaboration with CPO LT, (***) prepared in collaboration with Lithuania Innovation Centre (LIC). In addition, LIC and MoEI also prepared similar guidelines on innovation procurement
Standardised templates are ready-to-use forms that contracting authorities can use to facilitate their work. Such templates usually include, but are not limited to, tender notices, tender documents, contract documents and tender evaluation formats. They help contracting authorities save time and avoid errors. They also contribute to assuring the quality of procurement procedures and decrease the administrative burdens of economic operators who prepare bid proposals. (OECD, 2023[2])
PPO developed many standardised templates, building upon the OECD’s recommendations in 2019 under the EU-funded project Support for the Improvement of the Lithuanian Public Procurement System through professionalisation of the national workforce and streamlining of R&D tendering. These include tender documents, contract documents, and check list for the progress of public procurement (see Table 2.9).
Table 2.9. Standardised templates available for contracting authorities at the PPO website
Source: Prepared by the author based on (Public Procurement Office of the Republic of Lithuania, 2023[17]) and (Public Procurement Office of the Republic of Lithuania, 2020[18])
PPO also published EXCEL spread sheet calculators for BPQR (Public Procurement Office of the Republic of Lithuania, 2021[19]) and life cycle cost for nine product categories (Public Procurement Office of the Republic of Lithuania, 2023[20]). For example, the spreadsheet on the formulas for the evaluation of the price/quality ratio for the selection of the most economically advantageous tender was designed to help contracting authorities to carry out a simulation during the tender preparation phase to see how the chosen formula, the quality criteria and the weightings assigned to each of them can influence the selection of the most economically advantageous tender. The manual on how to use this spreadsheet was also developed.
In addition to these standard templates and methodological tools, PPO publishes frequently asked questions (Public Procurement Office of the Republic of Lithuania, 2023[21]) and documents related to the most common mistakes made in public procurement such as the publication of the call for tender (Public Procurement Office of the Republic of Lithuania, 2020[22]).
Lithuania could continue updating the document “Checking the knowledge of procurement specialist” on a regular basis by reflecting all the lecture videos and guidelines.
It is also worth mentioning that since January 2020 Lithuania has been providing methodological assistance to key stakeholders of public procurement such as the auditors and the economic operators. In 2020, 2021, and 2022, PPO provided 279 auditors online and face-to-face training on how to audit procurement procedures to help them audit public procurement in a systematic way not only on the legally proper execution of procurement procedures but also on its outcome. (Ministry of Economy and Innovation of the Government of Lithuania, 2019[1]) PPO also provide economic operators with training, open event and guidelines to facilitate their participation in public procurement opportunity. The developed guidelines and tool include ABC of public procurement for economic operators (7 April 2020) (Public Procurement Office of the Republic of Lithuania, 2020[23]), How to succeed in public procurement (23 October 2020) that summarises the most common mistakes made by economic operators that lead to the rejection of their bid proposals (Public Procurement Office of the Republic of Lithuania, 2020[24]) and a video on how to fill in the European Single Procurement Document (ESPD) (30 June 2020). (Public Procurement Office of the Republic of Lithuania, 2020[25])
Although Lithuania reinforced its capability-building system, the country could take further initiatives to improve the current system by enriching the capability-building opportunity. The result of ProcurCompEU survey carried out to 119 participants from 6 CPBs in Lithuania provides some insights to determine priority topics (see Section 1.4.4). The self-assessment survey result identified C6 (Innovation Procurement) as the weakest competence of the participants with the lowest average point of 1.14, followed by C17 (Certification and payment) and C30 (Risk management and internal control) (see Figure 1.11). It is worth mentioning that C17 (Certification and payment) marked the second lowest average point because it is not their daily task of most participants. C5 (Sustainable procurement) and C6 (Innovation Procurement) were selected as the two 1st-priority competences that require more methodological assistance (see Figure 1.12). Therefore, Lithuania could benefit from reinforcing the capability-building initiatives for the topics such as innovation procurement, sustainable procurement, and risk management.
The next section focuses on reinforcing the capability of the public procurement workforce to implement innovation procurement to meet its ambitious target set by the government.
2.4. Reinforcing the uptake of innovation procurement
Countries have been taking initiatives to spur innovation through public procurement, as innovation is key to the green and digital transformation, to sustainable healthcare systems and to reducing public sector costs in the long term. (European Commission, 2021[26])
Lithuania, like many other EU countries, is still at early stages of promoting the uptake of innovation public procurement, mostly due to the lack of capability of public procurement officials as innovation demanders. (Lithuanian Innovation Centre, 2020[27]) This is evidenced by the ProcurCompEU survey result in which innovation procurement marked the lowest average score in the self-assessment and was identified as one of the 1st-priority competences that require more methodological assistance.
Promoting innovation procurement is a top priority agenda in Lithuania. In the National Progress Plan (2021-2030) adopted in 2020, the government of Lithuania set 20% target for innovation procurement by 2030, in terms of the share of the total procurement value, with the interim goal of 5% by 2025. (The Government of the Republic of Lithuania, 2020[11]) This target is considered as very ambitious, considering the benchmarking data of 0.02% as of 2019 (see Figure 2.2) and 0.02% as the average during the decade (2011 - 2021) (Public Procurement Office of the Republic of Lithuania, 2022[28]). It is worth mentioning that green public procurement, which is also linked with innovation procurement, has the target of 100% starting from 2023. (The Government of the Republic of Lithuania, 2021[12])
Figure 2.2. Evolution of share of innovation procurement in Lithuania (2011-2021), value
Note: The relatively high share recorded in 2012 is attributable to the procurement of design, construction works for the "Establishment of the National Centre for Physical Sciences and Technology with the amount of EUR156.6 million, which accounted for 97.4% of the total amount of innovation procurement in this year (EUR 160.8 million)
Source: Prepared by the author based on the statistics published at (Public Procurement Office of the Republic of Lithuania, 2022[28])
A number of concrete actions are planned to achieve this goal (Parliament of the Republic of Lithuania, 2018[29]) (Ministry of Economy and Innovation of the Republic of Lithuania, 2022[30]):
Establishment of a national Lithuanian Innovation procurement competence centre within the Innovation Agency
Financial support for innovation procurement for contracting authorities
More staff working at the Innovation Agency that work on innovation procurement
New guidelines and templates for public procurements for stakeholders
Lithuania has some training materials on innovation procurement, as it is one of the twenty competences specified under the national certification framework. For example, Lithuania published the following three guidelines / manuals on innovation procurement.
Table 2.10. Guidelines and manuals of innovation procurement in Lithuania
These three guidelines are well drafted and useful to procurement practitioners. They provide essential concepts of innovation procurement and good examples from Lithuania and other countries. These guidelines cover similar elements, as these documents are prepared in close collaboration among the MoEI, PPO, and Lithuanian Innovation Centre (LIC) (see Box 2.6). For example, the guideline drafted by PPO aims at helping procurement professionals prepare for the innovation procurement module of the certification exam, but it has similar contents with other guidelines as it was prepared in collaboration with Lithuanian Innovation Centre (LIC), which contributed to the preparation of all the three documents. It is worth mentioning that these guidelines may be built upon the manuals of innovation procurement prepared by the European Assistance for Innovation Procurement (EAFIP). (European Assistance for Innovation Procurement (eafip), n.d.[33]).
Box 2.6. Elements covered in the three guidelines of innovation procurement
What is innovation?
What is innovation procurement? (how is it different from other procurement?)
Why it is important?
Preconditions for successful innovation procurement (culture of innovation, procurement strategy, stakeholder engagement, and capabilities)
How to carry out innovation procurement with basic description of each step
Needs assessment
Market analysis
Choice of procedure from legal perspectives
Prepare tender document (the subject matter of contract and technical specifications, exclusion, selection, evaluation, quality management system and environmental management system standards, options for variants, value engineering, intellectual property)
Tender procedure
Contract management
Cases / examples from countries
Source: Created based on (Lithuanian Innovation Centre, 2020[31]) and (Public Procurement Office of the Republic of Lithuania, 2023[32])
However, there is some room for improving the quality further. First, the guidelines could benefit from including more detailed description for all the steps from the actual innovation procurement procedures. Documents have boxes or sections of case studies, but they are more narrative and descriptive in a few pages, rather than showing actual examples of all the steps specified in the documents (from needs assessment to contract management) based on actual innovation procurement procedures. This point was mentioned by the policy document published by Lithuania Innovation Centre Innovation public procurement in Lithuania: how to move forward? – 10 steps guide. (Lithuanian Innovation Centre, 2020[27]) It emphasises the needs to provide “showcase examples” of innovation public procurement, in order to share their first-hand experience and provide practical lessons and tips for public procurers. The document also pointed out the lack of Lithuanian examples, although the guidelines include some reference to the case of Bank of Lithuania and Lithuanian Airports. There are several cases of ongoing pre-commercial procurement (PCP) projects, but none of the public procurement of innovative solutions (PPI) case is available to share. Thus, Lithuanian procurers “have a feeling” that innovations are procured in other countries which are more advanced regarding the innovation development. (Lithuanian Innovation Centre, 2020[27]) Therefore, it is indispensable to enrich the case examples by showing step-by-step examples of various innovation procurement procedures (e.g., competitive dialogue, competitive procedure with negotiation, PCP, PPI, Innovation Partnerships) actually implemented inside and outside Lithuania. In addition, some links within the guidelines are not valid anymore. In addition, it will be more useful if the guidelines are accompanied with the templates of tender documents of innovation procurement procedures such as innovation partnerships and pre-commercial procurement. Indeed, a survey carried out by the Lithuanian Innovation Centre (LIC) identified the development of tender documents as the biggest challenge related to innovation procurement. The Norwegian Agency for Public and Financial Management (DFØ) developed a template for competition rules for pre-commercial procurement of research and development. (The Norwegian Agency for Public and Financial Management (DFØ), 2019[34])
Figure 2.3. Challenges related to innovation procurement
Note: The survey was conducted by Lithuanian Innovation Centre (LIC). The survey was answered by 62 individuals (procurement
specialists, lawyers, heads of institutions, innovation department specialists) who were requested to choose the three most important topics out of ten.
Source: prepared by the author based on (Lithuanian Innovation Centre, 2020[27])
Lithuania could reinforce training related to innovation procurement. Currently, PPO makes available a 90-minute video on innovation procurement to help candidates prepare for the national certification framework. Procurement professionals keen on carrying out innovation procurement will benefit from more detailed online or face-to-face training on innovation procurement, based on the enriched guidelines on innovation procurement. For example, the national competence centre on innovation procurement in Austria organised training related to innovation procurement. (see Box 2.7)
Box 2.7. Innovation procurement training in Austria
The national competence centre on innovation procurement (IÖB Service Centre) was established within the Austrian Federal Procurement Agency (BBG) in 2013 with the financial contribution by the Federal Ministry for Digital and Economic Affairs and the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology. It serves as the single point of contact for pre-commercial procurement and innovation procurement issues in Austria. For example, IÖB provides the pilot projects to support contracting authorities in finding and initiating innovation-promoting procurement projects by accompanying them from the pre-project phase through the entire procurement process.
In 2022, IÖB provided public officials with a series of free training courses on innovation procurement in cooperation with the Federal Academy of Public Administration:
Introduction to innovation procurement (March 2022)
Unit 1: IÖB and innovation procurement (90 minutes)
Unit 2: IÖB services for contracting authorities and innovation in the public sector (90 minutes)
Unit 3: Innovation in Public Procurement Law (90 minutes)
The levers for procuring innovations in public procurement law (May/June 2022)
Unit 1: Introduction to innovation procurement
Unit 2: Market research, process and partner selection (90 minutes)
Unit 3: Technical specifications (90 minutes)
Unit 4: Special instruction: Innovation Partnership (90 minutes)
Bonus unit: Questions, final discussion and support offer (45 minutes)
Practical tools for procuring innovations (October 2022)
Deepen knowledge of practical and applicable methods and instruments for innovation procurement through a short webinar (90 minutes) and seminar (8 hours)
Procurement as an instrument of innovation management
Observation of trends and markets
Discovering and prioritising innovation potential
Strategic market exploration for innovative solutions
Designing procurement procedures to be innovation-friendly
Experiences from innovative procurement projects and tips from project managers.
Courses were organised using different forms: lectures, face-to-face workshops, webinars, practical exercises.
2.5. Collaboration with knowledge centres
Recently, an increasing number of countries have recognised the role that knowledge centres such as universities, think tanks or policy centres can play in promoting the professionalisation. The OECD Recommendation of the Council on Public Procurement recognises the importance of these interactions, calling upon countries to promote collaborative approaches with knowledge centres to improve skills and competences (OECD, 2015[36]). In 2020, 79% of OECD countries had adopted a certain collaborative approach with knowledge centres, compared with 74% in 2018. (OECD, 2023[2])
Lithuania implemented many recommendations on promoting collaboration with knowledge centres from the previous DG REFORM project, such as the establishment of the master programme in public procurement.
Developing courses and degree programmes at university are increasingly recognised practices of collaboration with knowledge centres. Its availability not only cultivates young generations who are interested in working in the field of public procurement, but also contributes to enhancing the sense of professionalism among the public procurement community.
MoEI and the PPO collaborated with Mykolas Romeris University to launch its first-ever master’s programme in public procurement, the Master of Law (LL.M.) in Public Procurement Law in September 2021. (Mykolas Romeris University, n.d.[37]) They provided advice on the curriculum. CPO LT, the largest central purchasing body in Lithuania, grants scholarships to some of the students enrolled in this master’s programme (5 students in 2022 and 10 students in 2021).
This master’s programme is designed to prepare highly qualified specialists in public procurement law who are able to:
provide legal advice in this field;
explain the latest issues and development trends in public procurement law;
organise public procurement;
analyse and evaluate complex legal contexts related to public procurement;
promptly and efficiently resolve public procurement relations arising legal disputes;
represent contracting authorities or economic operators in the courts; and
submit proposals to the legislator regarding the improvement of the legal framework of public procurement.
The duration of the programme is 1 year. This is considered as a professional school that focuses more on the practical aspects than on academic ones. To complete the programme, candidates are required to obtain 60 credits including passing the final examination. However, a master's thesis is not required. The modality is presential in general. Courses are provided on weekdays from 6 p.m. until 9 p.m. (no more than 3 working days per week) and on Saturdays from 9 a.m. to 4 p.m. (no more than 2 Saturdays per month). Tuitions are €1,610 per semester (2023).
Table 2.11. Curriculum of the LL.M. in public procurement law at Mykolas Romeris University
This initiative will contribute to increasing professionalism as well as raising awareness of public procurement as a future career option among younger generation. Lithuania could also benefit from expanding this outreach toward younger generation. For example, Scotland established the Procurement People of Tomorrow programme (PPoT) cultivate future procurement professionals through providing the information on career in public procurement and communicating the mission and impact of public procurement in the society (see Box 2.8).
Box 2.8. Procurement People of Tomorrow programme (PPoT) in Scotland
Procurement People of Tomorrow programme (PPoT) is a Scottish Government and Academia-led initiative to build and sustain public procurement talent pool, supported by the Chartered Institute of Purchasing and Supply and public and private sectors. It focuses on engaging with young people to build their skills and promote procurement as a career choice for young people.
Procurement Modern Apprenticeship: A Modern Apprenticeship is a job which lets people aged over 16 earn a wage and gain an industry-recognised qualification. Procurement is one of over 80 modern apprenticeship frameworks. Procurement Modern Apprenticeship aims at raising awareness of procurement as a viable career option
Procurement People of Tomorrow charter: Organisations can sign the agreement document to signal their commitment towards new entrants in procurement. There were PPoT twelve commitment menu such as hiring a Procurement Modern Apprentice, providing a paid internship and participating in career or awareness-raising events at schools.
Guidance documents on public procurement career for young people: The following guidance documents were prepared to inform young people of the impact of public procurement and career in public procurement:
Procurement schools pack (2019): designed for secondary school students
Procurement Higher and Further Education pack (2020): designed for graduates with an interest in entering the procurement profession. Information includes what procurement is, the power of procurement, relationship of procurement with daily life, procurement job titles, roles and estimated salary ranges, necessary skills, and training courses
Procurement career case studies (2016): Case studies telling the stories of new entrants to procurement in the public sector. Students can find more about public procurement and its career opportunities. Career advisors or teachers can use these guidance documents to highlight public procurement as a career choice.
Awareness-raising video The following videos are uploaded in the programme website to raise awareness of public procurement as a career option.
Make an impact. Build a career in procurement
Looking for a career? – Modern Apprenticeship in Procurement: Why procurement as a career choice?, What do you enjoy about procurement (social, environmental, economic changes), Skills learnt through the programme, What advice would you give to young people considering a career in procurement?
Young procurement staff that completed the Modern Apprenticeship in Procurement and currently continues their career of procurement talks about the impact that people can make through public procurement and what a career in procurement would be like. They communicate that the impact made in procurement is much more wide ranging now in the agenda such as climate change and human rights.
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