Standard 3.3.1. CSO Engagement in Service Provision and Competition for State Contracts

CSOs are the main stakeholders delivering social services for a wide range of beneficiaries. In 2019, no legal initiatives were taken or discussed on the law on public procurement. The current legal framework presents many challenges and issues to be addressed in order to create a supportive environment for CSOs involvement in the provision of social services with public funds. The tendering rules are unified and applied equally to CSOs and other private entities bidders. The main criterion for public procurement awards is the lower price offer, disregarding the quality of services. In addition, the associated bidding costs and contracts’ financial conditions (i.e. guarantee fund, expenses reimbursement versus up-front payment, no regular and clear payment schedules) represent a serious impediment to participation of CSO in any tendering procedure.

With regards to social enterprises, no legal initiative was pushed forward and, as expressed in the previous MM Reports, the package is found very problematic because it treats social enterprises as state enterprises, limits to extreme opportunities of SEs to access non-governmental funding and minimize the space for their productivity, and the fiscal regime is very restraining.

CSO are increasing their role in social services provision and according to data from the State Social Service there are 165 non-public service providers (66%), and 86 public service providers (34%). Most of the non-public service providers are civil society organizations.

0 – 20 Fully disabling environment20 – 40 Disabling environment
40 – 60 Partially enabling environment60 – 80 Enabling environment
80 – 100 Fully enabling environment

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