Strategic Procurement Managament

Lecture: The course opens with the historical development of the procurement function in organizations—from an administrative purchasing process to a strategic management function. The concept of strategy in the public sector is examined, along with the legal and organizational differences between public and private procurement, the procurement maturity model, and the principles of strategic procurement.

Students analyze two cases—a public sector institution and a private company procuring the same product—and identify the key differences in procedures, responsibilities, and objectives.

Topics:

• Development of the procurement function: from an administrative to a strategic role.
• The concept of strategic procurement – definition, objectives, and principles.
• Legal and organizational differences between public and private procurement.
• Procurement maturity model (Krogstrup & Raahauge) – four levels.

Lecture: The course opens with the historical development of the procurement function in organizations—from an administrative purchasing process to a strategic management function. The concept of strategy in the public sector is examined, along with the legal and organizational differences between public and private procurement, the procurement maturity model, and the principles of strategic procurement.

Students analyze two cases—a public sector institution and a private company procuring the same product—and identify the key differences in procedures, responsibilities, and objectives.

Topics:

• Development of the procurement function: from an administrative to a strategic role.
• The concept of strategic procurement – definition, objectives, and principles.
• Legal and organizational differences between public and private procurement.
• Procurement maturity model (Krogstrup & Raahauge) – four levels.

Lecture: The institutional structure of public procurement in Latvia and the EU is examined, including the fundamental principles of the Public Procurement Law (transparency, equal treatment, efficiency), the impact of EU Directives 2014/24/EU and 2014/25/EU on national regulation, as well as the supervisory role of the Procurement Monitoring Bureau (IUB). Special attention is given to the findings of the State Audit Office’s 2024 audit on challenges in the public procurement system.

Seminar: Students analyze specific cases from regulatory acts and violations of Public Procurement Law principles, and compare the interaction between EU and Latvian regulatory frameworks.

Session topics:

• Fundamental principles of the Public Procurement Law and their application in practice.
• The impact of EU Directives 2014/24/EU and 2014/25/EU on Latvian regulation.
• The role of the Procurement Monitoring Bureau (IUB) and the complaint review process.
• Challenges in the public procurement system – findings from the State Audit Office’s 2024 audit.

Lecture: The institutional structure of public procurement in Latvia and the EU is examined, including the fundamental principles of the Public Procurement Law (transparency, equal treatment, efficiency), the impact of EU Directives 2014/24/EU and 2014/25/EU on national regulation, as well as the supervisory role of the Procurement Monitoring Bureau (IUB). Special attention is given to the findings of the State Audit Office’s 2024 audit on challenges in the public procurement system.

Seminar: Students analyze specific cases from regulatory acts and violations of Public Procurement Law principles, and compare the interaction between EU and Latvian regulatory frameworks.

Session topics:

• Fundamental principles of the Public Procurement Law and their application in practice.
• The impact of EU Directives 2014/24/EU and 2014/25/EU on Latvian regulation.
• The role of the Procurement Monitoring Bureau (IUB) and the complaint review process.
• Challenges in the public procurement system – findings from the State Audit Office’s 2024 audit.

Lecture: The importance of procurement planning in the strategic management of an organization is examined, including needs identification, the CPV coding system, procurement thresholds, and the selection of procedures. The market research process is analyzed in detail (RFI, preliminary market consultations, price surveys), as well as the use of artificial intelligence in market analysis.

Seminar: Group work – development of a procurement plan for a specific municipal institution, including prioritization of needs, CPV codes, selection of procedures, and a timeline.

Session topics:

• Principles of procurement planning and the structure of a procurement plan.
• Market research methods: RFI, preliminary market consultations, price surveys.
• The CPV coding system and procurement thresholds.
• Unjustified splitting of procurements – violations of Article 11 of the Public Procurement Law.

Lecture: The importance of procurement planning in the strategic management of an organization is examined, including needs identification, the CPV coding system, procurement thresholds, and the selection of procedures. The market research process is analyzed in detail (RFI, preliminary market consultations, price surveys), as well as the use of artificial intelligence in market analysis.

Seminar: Group work – development of a procurement plan for a specific municipal institution, including prioritization of needs, CPV codes, selection of procedures, and a timeline.

Session topics:

• Principles of procurement planning and the structure of a procurement plan.
• Market research methods: RFI, preliminary market consultations, price surveys.
• The CPV coding system and procurement thresholds.
• Unjustified splitting of procurements – violations of Article 11 of the Public Procurement Law.

Lecture: The types of public procurement procedures are examined (open procedure, restricted procedure, negotiated procedure, design contest), including the criteria for their selection and legal preconditions. The preparation of technical specifications, tender evaluation criteria (the MEAT principle), and the prevention of conflicts of interest are discussed in detail.

Students develop technical specifications and evaluation criteria for a specific procurement case and critically assess their neutrality.

Topics:

• Types of public procurement procedures and justification for their selection.
• Preparation of technical specifications – the principle of neutrality (Article 20 of the Public Procurement Law).
• Tender evaluation criteria: lowest price or MEAT.
• Conflict of interest in procurement – Article 25 of the Public Procurement Law and practical cases.

Lecture: The types of public procurement procedures are examined (open procedure, restricted procedure, negotiated procedure, design contest), including the criteria for their selection and legal preconditions. The preparation of technical specifications, tender evaluation criteria (the MEAT principle), and the prevention of conflicts of interest are discussed in detail.

Students develop technical specifications and evaluation criteria for a specific procurement case and critically assess their neutrality.

Topics:

• Types of public procurement procedures and justification for their selection.
• Preparation of technical specifications – the principle of neutrality (Article 20 of the Public Procurement Law).
• Tender evaluation criteria: lowest price or MEAT.
• Conflict of interest in procurement – Article 25 of the Public Procurement Law and practical cases.

Lecture: The application of project management principles in procurement planning and implementation is examined, including the procurement project life cycle, Gantt charts, stakeholder management, and the specifics of EU-funded procurements. Particular attention is given to the financial correction mechanisms of the Central Finance and Contracting Agency (CFLA) and timeline planning.

Seminar: Students develop a Gantt chart and stakeholder analysis for a specific EU-funded procurement project.

Session topics:

• Project management principles in procurement planning: life cycle, phases, decision points.
• Specifics of EU-funded procurements – Cabinet Regulation No. 104, CFLA control, and financial corrections.
• Stakeholder management in the procurement process.
• Timeline planning in EU-funded projects – the critical path.

Lecture: The application of project management principles in procurement planning and implementation is examined, including the procurement project life cycle, Gantt charts, stakeholder management, and the specifics of EU-funded procurements. Particular attention is given to the financial correction mechanisms of the Central Finance and Contracting Agency (CFLA) and timeline planning.

Seminar: Students develop a Gantt chart and stakeholder analysis for a specific EU-funded procurement project.

Session topics:

• Project management principles in procurement planning: life cycle, phases, decision points.
• Specifics of EU-funded procurements – Cabinet Regulation No. 104, CFLA control, and financial corrections.
• Stakeholder management in the procurement process.
• Timeline planning in EU-funded projects – the critical path.

Lecture: The application of project management principles in procurement planning and implementation is examined, including the procurement project life cycle, Gantt charts, stakeholder management, and the specifics of EU-funded procurements. Particular attention is given to the financial correction mechanisms of the Central Finance and Contracting Agency (CFLA) and timeline planning.

Seminar: Students develop a Gantt chart and stakeholder analysis for a specific EU-funded procurement project.

Session topics:

• Project management principles in procurement planning: life cycle, phases, decision points.
• Specifics of EU-funded procurements – Cabinet Regulation No. 104, CFLA control, and financial corrections.
• Stakeholder management in the procurement process.
• Timeline planning in EU-funded projects – the critical path.

Lecture: The types of procurement contracts are examined, including the requirements of Articles 58–63 of the Public Procurement Law, the admissibility of contract amendments (Article 61), and the application of FIDIC standards in construction procurement. The Harvard negotiation method and ethical constraints in negotiations with suppliers are also discussed.

Seminar: Role play – a negotiation simulation between the contracting authority and the supplier, observing the boundaries of the Public Procurement Law and the principles of the Harvard method.

Session topics:

• Types of procurement contracts and mandatory elements under Article 58 of the Public Procurement Law.
• Substantial and non-substantial contract amendments – the four exceptions under Article 61.
• FIDIC standards – the Red, Yellow, and Silver Books.
• Harvard negotiation method: interests vs. positions.

Lecture: The types of procurement contracts are examined, including the requirements of Articles 58–63 of the Public Procurement Law, the admissibility of contract amendments (Article 61), and the application of FIDIC standards in construction procurement. The Harvard negotiation method and ethical constraints in negotiations with suppliers are also discussed.

Seminar: Role play – a negotiation simulation between the contracting authority and the supplier, observing the boundaries of the Public Procurement Law and the principles of the Harvard method.

Session topics:

• Types of procurement contracts and mandatory elements under Article 58 of the Public Procurement Law.
• Substantial and non-substantial contract amendments – the four exceptions under Article 61.
• FIDIC standards – the Red, Yellow, and Silver Books.
• Harvard negotiation method: interests vs. positions.

Lecture: The types of procurement contracts are examined, including the requirements of Articles 58–63 of the Public Procurement Law, the admissibility of contract amendments (Article 61), and the application of FIDIC standards in construction procurement. The Harvard negotiation method and ethical constraints in negotiations with suppliers are also discussed.

Seminar: Role play – a negotiation simulation between the contracting authority and the supplier, observing the boundaries of the Public Procurement Law and the principles of the Harvard method.

Session topics:

• Types of procurement contracts and mandatory elements under Article 58 of the Public Procurement Law.
• Substantial and non-substantial contract amendments – the four exceptions under Article 61.
• FIDIC standards – the Red, Yellow, and Silver Books.
• Harvard negotiation method: interests vs. positions.

Lecture: The integration of sustainability principles into public procurement is examined, including green public procurement (GPP) under Cabinet Regulation No. 353 (9 mandatory categories), social criteria, reserved contracts (Article 15 of the Public Procurement Law), and ESG requirements for private companies (CSRD Directive).

Students integrate green procurement criteria into the development of technical specifications for a specific procurement, using a life-cycle cost approach.

Topics:

• Green public procurement – Cabinet Regulation No. 353 and 9 mandatory categories.
• Life-cycle costing (Article 52 of the Public Procurement Law) – methodology and practical application.
• Socially responsible procurement: disability quotas, social enterprises (Article 15 of the Public Procurement Law).
• ESG criteria and the CSRD Directive – impact on supply chain management.

Lecture: The identification and assessment of risks in the procurement process are examined, including legal, financial, reputational, and supply chain risks. The types of CFLA financial corrections (5%–100%) are analyzed in detail, along with the control functions of the State Audit Office (VK), the Procurement Monitoring Bureau (IUB), and the Corruption Prevention and Combating Bureau (KNAB), as well as the use of the IUB flagging system for proactive risk management.

Seminar: Students develop a risk register for a specific procurement process and design a mitigation plan.

Session topics:

• Application of risk matrices in the procurement process.
• Types and levels of CFLA financial corrections – most common violations.
• Delineation of control functions among the State Audit Office (VK), CFLA, IUB, and KNAB.
• Corruption risks and preventive measures – the four-eyes principle.

Lecture: The identification and assessment of risks in the procurement process are examined, including legal, financial, reputational, and supply chain risks. The types of CFLA financial corrections (5%–100%) are analyzed in detail, along with the control functions of the State Audit Office (VK), the Procurement Monitoring Bureau (IUB), and the Corruption Prevention and Combating Bureau (KNAB), as well as the use of the IUB flagging system for proactive risk management.

Seminar: Students develop a risk register for a specific procurement process and design a mitigation plan.

Session topics:

• Application of risk matrices in the procurement process.
• Types and levels of CFLA financial corrections – most common violations.
• Delineation of control functions among the State Audit Office (VK), CFLA, IUB, and KNAB.
• Corruption risks and preventive measures – the four-eyes principle.

Lecture: Electronic procurement solutions are examined, including EIS, PVS, and TED systems, the application of artificial intelligence in procurement preparation, and innovative procurement procedures (PCP, PPI). Data protection requirements (GDPR, NIS2 Directive, EU AI Act) and their impact on IT procurement are also discussed.

Seminar: Students explore the IUB data visualization tool and flagging system, and model a digital procurement process within the EIS environment.

Session topics:

• EIS, PVS, and TED – functions and publication obligations.
• Application of AI in procurement preparation – opportunities and limitations (GDPR).
• PCP and PPI – differences and application under the Public Procurement Law.
• NIS2 and the EU AI Act – impact on IT procurement specifications.

Lecture: The regulation of the Public Utilities Procurement Law (SPSIL) is examined, including SPSIL entities, sectors (energy, transport, water supply), the negotiated procedure, and differences compared to the Public Procurement Law (PPL). The lecture also covers private sector procurement practices—category management, the CPO function, and ESG requirements in the supply chain.

Seminar: Students compare the regulatory frameworks of the PPL and SPSIL, and analyze procurement practices of Latvenergo and Rīgas satiksme.

Session topics:

• Identification of SPSIL entities – three conditions.
• SPSIL negotiated procedure and its advantages.
• Differences between public and private sector procurement – legal and organizational aspects.
• ESG requirements and the impact of the CSRD on procurement management of private contracting entities.

Lecture: The regulation of the Public Utilities Procurement Law (SPSIL) is examined, including SPSIL entities, sectors (energy, transport, water supply), the negotiated procedure, and differences compared to the Public Procurement Law (PPL). The lecture also covers private sector procurement practices—category management, the CPO function, and ESG requirements in the supply chain.

Seminar: Students compare the regulatory frameworks of the PPL and SPSIL, and analyze procurement practices of Latvenergo and Rīgas satiksme.

Session topics:

• Identification of SPSIL entities – three conditions.
• SPSIL negotiated procedure and its advantages.
• Differences between public and private sector procurement – legal and organizational aspects.
• ESG requirements and the impact of the CSRD on procurement management of private contracting entities.

Lecture: The procedure for reviewing complaints by the Procurement Monitoring Bureau (IUB) is examined, including deadlines, deposit requirements, types of decisions, and their consequences, as well as the practice of administrative courts in public procurement cases. The case law of the Court of Justice of the European Union (e.g., C-275/98, C-324/14, C-42/13) is also analyzed, along with claims for damages and the dispute regulation under Articles 69–70 of the Public Procurement Law.

Seminar: Case analysis – review of IUB decisions and Supreme Court judgments; comparison of mediation and FIDIC DAB as alternative dispute resolution mechanisms.

Session topics:

• IUB complaint review procedure – deadlines, deposit, types of decisions.
• Case law of the Latvian Supreme Court and the Court of Justice of the European Union in procurement law.
• Articles 69–70 of the Public Procurement Law – grounds for contract ineffectiveness.
• Alternative dispute resolution methods: mediation, FIDIC DAB, arbitration.

Lecture: The procedure for reviewing complaints by the Procurement Monitoring Bureau (IUB) is examined, including deadlines, deposit requirements, types of decisions, and their consequences, as well as the practice of administrative courts in public procurement cases. The case law of the Court of Justice of the European Union (e.g., C-275/98, C-324/14, C-42/13) is also analyzed, along with claims for damages and the dispute regulation under Articles 69–70 of the Public Procurement Law.

Seminar: Case analysis – review of IUB decisions and Supreme Court judgments; comparison of mediation and FIDIC DAB as alternative dispute resolution mechanisms.

Session topics:

• IUB complaint review procedure – deadlines, deposit, types of decisions.
• Case law of the Latvian Supreme Court and the Court of Justice of the European Union in procurement law.
• Articles 69–70 of the Public Procurement Law – grounds for contract ineffectiveness.
• Alternative dispute resolution methods: mediation, FIDIC DAB, arbitration.

Lecture: The procedure for reviewing complaints by the Procurement Monitoring Bureau (IUB) is examined, including deadlines, deposit requirements, types of decisions, and their consequences, as well as the practice of administrative courts in public procurement cases. The case law of the Court of Justice of the European Union (e.g., C-275/98, C-324/14, C-42/13) is also analyzed, along with claims for damages and the dispute regulation under Articles 69–70 of the Public Procurement Law.

Seminar: Case analysis – review of IUB decisions and Supreme Court judgments; comparison of mediation and FIDIC DAB as alternative dispute resolution mechanisms.

Session topics:

• IUB complaint review procedure – deadlines, deposit, types of decisions.
• Case law of the Latvian Supreme Court and the Court of Justice of the European Union in procurement law.
• Articles 69–70 of the Public Procurement Law – grounds for contract ineffectiveness.
• Alternative dispute resolution methods: mediation, FIDIC DAB, arbitration.

Lecture: The identification and assessment of risks in the procurement process are examined, including legal, financial, reputational, and supply chain risks. The types of CFLA financial corrections (5%–100%) are analyzed in detail, along with the control functions of the State Audit Office (VK), the Procurement Monitoring Bureau (IUB), and the Corruption Prevention and Combating Bureau (KNAB), as well as the use of the IUB flagging system for proactive risk management.

Seminar: Students develop a risk register for a specific procurement process and design a mitigation plan.

Session topics:

• Application of risk matrices in the procurement process.
• Types and levels of CFLA financial corrections – most common violations.
• Delineation of control functions among the State Audit Office (VK), CFLA, IUB, and KNAB.
• Corruption risks and preventive measures – the four-eyes principle.