The Dynamics of Direct Procurement in Albania: A 14-Year Analysis
The Dynamics of Direct Procurement in Albania: A 14-Year Analysis

Author(s): Etion Kapedani, Edlira Martiri
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Direct procurement; Public procurement; Savings; Competition; Albania
Summary/Abstract: Governments spend part of taxpayers’ money through Public Procurement. Depending on the scope and requirements, public bodies use different forms of contracting: open tenders, requests for proposals, etc. By far, the most problematic form is Direct Procurement because it significantly limits the competition from the private sector, unlike other forms of procurement where competition is a given. It is precisely the scope of this study to examine the dynamics of Direct Procurement in Albania from 2009 to 2022. In this study period, Albania spent 581 Million Euros via Direct Procurement in 18,990 different contracts. This study finds that although savings amounted to 2.1%, significantly lower than other forms of procurement that are more competitive, Albania has been decreasing the usage of Direct Procurement. Data shows a considerable decline trend in the number of contracts and amount of funds dedicated to an un-competitive procedure such as Direct Procurement.

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