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Dominican Republic’s Public Procurement Agency Boosts Transparency and Efficiency

Santo Domingo, Dominican Republic - The country’s public procurement agency, DGCP (Dirección General de Contrataciones Públicas), has made significant strides in increasing transparency and efficiency in government procurement processes.

Key Innovations

  • A simple module that allows buyers to embed on their own websites, enabling them to complete transactions without duplicating information. This reduces effort and ensures the procurement agency can track the process wherever it’s being run.
  • Over 80% of the country’s public procurement processes are now run through the agency.

Early Warning System

DGCP has developed an “Early Warning System” with 21 indicators that allows real-time monitoring of its processes, covering over 300 procurements daily by more than 500 buyers engaging with 111,000 providers. Red flags include:

  • Ties between providers and politicians
  • Large contracts broken up to undercut thresholds
  • Links to prohibited practices

Business Intelligence Tool

The agency has also developed a business intelligence tool using OCDS data in collaboration with OCP and Microsoft Advanced Cloud Transparency Services to identify corruption red flags. This tool is currently being piloted and refined before its public release.

Strengthening Institutional Capacity

DGCP’s second pillar focuses on strengthening the efficiency and institutional capacity of purchasing agencies to ensure timely tracking of existing regulations and processes. The agency has:

  • Introduced a Code of Ethics
  • Assigned official compliance officers in 17 key public buyers, such as health, education, medicine purchases, agriculture, housing, and the police
  • Provided training on public procurement, risk management, and supplier due diligence to institutions like the National Institute for Student Welfare (INABIE)

Collaboration and Cross-Agency Coordination

DGCP recognizes that tackling corruption requires collaboration with other institutions. The agency has:

  • Engaged key partners from the Ministry of Industry and Commerce, Auditor General, public prosecutors, and integrity institutions
  • Set up an “intelligence unit” to support these agencies in analyzing and using their data
  • Passed on red flags indicating potential conflicts of interest or collusion to the competition agency for further action

Results

The reforms have yielded positive results:

  • Monitoring is now automated, allowing for faster assessment of procurement processes
  • More public buyers are using the system
  • Cross-referencing public procurement data against business registries has helped uncover conflicts of interest
  • In 2023, DGCP debarred over 60 suppliers for violations, and the number of open complaints and canceled tenders declined
  • The proportion of open procedures increased from 93.8% in 2020 to 96% in 2023
  • Perceptions of corruption have reduced, and assessments such as the regional Capacity to Combat Corruption Index see the Dominican Republic improve its capacity for a third year in a row

Anti-Corruption as a Means to an End

While combating corruption is essential, DGCP’s ultimate goal is to guarantee development and public investment. The agency aims to:

  • Increase contracts directed to SMEs from 20% to 30%
  • Integrate more suppliers into the system, such as 22 families selling local produce in Constanza
  • Promote transparency and fairness in procurement processes

Sometimes raising a red flag can mean giving a green light to a more transparent and fairer process that benefits all.