The Tallinn Environment and Public Works Department (keko) conducted an internal audit. The audit found no legal violations, but identified many deficiencies in procurement.
According to the audit, the procurement process was correct. However, it was found that the department lacks sufficient oversight of contracts. In the procurement of street furniture, product descriptions were made based on specific companies' products. The internal audit sent the information to the police, who initiated a criminal investigation.
Keko director Jaan Tarmak said the audit was based on incomplete information. The information is currently being clarified. The audit found several deficiencies. For example, market research is not conducted before the start of procurement. Therefore, the department does not seek advice from entrepreneurs and experts.
The quality of technical descriptions is poor. The author of the description does not always have sufficient knowledge. Additionally, consultations that could improve the descriptions are not used.
The procurement process takes too much time. Suppliers submit hundreds of questions. If the descriptions were better, there would be fewer questions. Procurements are also more expensive than planned. In some cases, the cost has been exceeded by up to 153%. This is not a legal violation, but it violates the principles of public procurement.
Tarmak said that keko sees the need for a better construction cost forecast. He did not agree with the audit figures because the sample was too small.
The audit recommended making market research mandatory. Tarmak believes it should only be mandatory when necessary. Otherwise, it could be recommended.
The audit recommended using not only price-based procurement but also value-based procurement. Keko is currently working on new procurement methods. These allow for innovative solutions.
Keko plans to award additional points to suppliers who complete work faster. This will help reduce street closure time.