The procurement system in Armenia is regulated by the Law on Procurements adopted on December 12, 2016. The type of procurement system is mixed: the Law provides opportunities to conduct procurements both electronically and on paper. The Law has separate articles on documents, their validity and e-procurement. As the new Law was adopted on December 12, 2016 (signed on January 14, 2017), there are neither international nor domestic assessments or analyses of Armenia’s new procurement system.
The PPL assessment showed that the major findings in terms of strengths of the system, its problems and flaws are strongly connected with the implementation of the Law, because the proper interpretation of the Law will lead to a good procurement system and vice versa. Overall, Armenia received one of the lowest points among the target countries, lagging behind in terms of transparency of the system, as well as accountability and efficiency. Substantial efforts can be made to improve the pre-tendering and post-tendering legislative framework of Armenia.
The new Law changed the system structurally, however, one of the main changes is the status of Procurement Complaint Review Board: previously 3 members of Procurement Complaint Review Board were selected by certification (test) from both public and private sector. According to the new regulation of the Law, Procurement Complaint Review Board consists of up to 3 members, who are appointed for five years by the President upon nomination of the Prime Minister. The member is not in labor relations with the Republic of Armenia and may not hold any other office or perform other paid work during his term, except for scientific, pedagogical and creative work. Thus, the board member can’t be from either civil society or from public sector during his/her term. At the same time, there are no limitations or criteria of their previous activities.