Open Data Albania is exploring the value of public contracts made for purchase of articles by units. Public contracts are contracts that are funded with taxpayer?s money. Contracts are entered in order to perform works, provide services, or public supplies and are finalized through public procurement procedures.

The value of the contracts is projected through a certain limit fund, and it is determined by bids of the participants taking part in the competition. The Value of the Bid must be fair and defined during a free competition process between operators. The public competition has to be as regular as possible in order that the taxpayer’s money are efficiently spent through contracts.

In the given case, Open Data Albania, based on data released in the Public Procurement Agency database, has analyzed the price of ‘Firewood’ item submitted from Contracting Authorities, which are mainly used for heating of schools, dormitories, budgetary institutions of the local government units and Municipalities.

Value limit fund per unit VS price winning bid per unit (meter stere)

Value in ALL excluding VAT

Source: app.gov.al
Contributed: Open Procurement Albania

The authority that has provided the highest price per unit is the Workers Directorate No.3 in Tirana with a price of ALL 7527 per meter stere. The total value of the contract entered with the contractor ALCANI SHPK on 12/28/2015 is ALL 5.16667. The type of procedure is the Request for Proposal. Only one contender participated in the competition. The amount purchased is 686.4 meter stere.

The cost includes not only the supply with the purchased item, but also transportation service to the territory covered by this Directorate. This contract between Tirana Directorate of Workers No.3 and ALACNI LLC is renewed through a direct negotiations procedure (no contest) on date 02/17/2016 with a value of ALL 5,191,670 of the limit fund. The third announcement of this Directorate is made on 08.03.2016 and the price per unit by the limit fund is ALL 7333 per meter stere

The total limit fund is ALL 6,013,330 and the amount quoted with this fund is 820 mst. This procurement has been also won from the same company that submitted a bid equal to the limit fund. The procedure is characterized by the lack of competition due to several extremely restrictive criteria in the accouchement of 06/22/2016. But concerning the territory of Tirana Municipality, the announcement of Directorate No.2, which is another Directory of this unit contains high values.


Source: app.gov.al
Contributed: Open Procurement Albania


Source: app.gov.al
Contributed: Open Procurement Albania

The highest difference between “the value per unit by the limit fund” and “the unit per price by the winning bid” is noticed in the Municipality of Kruja where the difference stands at 19%,  concerning Purchases with Small Values, with a Limit Fund of ALL 400 000 and Winning Bid of ALL 325 000.

This municipality is followed by other procurement authorities such as Përmet Municipality with 8%, and the Municipality of Durrës with 6%. The higher the difference the greatest is the effect of the free competition on obtaining a bid that guarantees an efficiency with public funds.


Source: app.gov.al
Contributed: Open Procurement Albania

Price per Unit (mst) Fire Wood. Which of the Economic Operators bids with the Highest Price


Source: app.gov.al
Contributed: Open Procurement Albania

The data and tender passports are published in the portal of Open Procurement Albania.

Comments and Analysis: Open Data Albania
Contributed by: Eva Meqemeja