The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

Articles By Topic

By Topic: Government Contracts

  • From Vol. 4 No.12 (Jun. 10, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Seven Steps to Take During and After a Procurement Process (Part Three of Three)

    Winning a contract through a public procurement process presents a tremendous opportunity for a company trying to enter or expand in an emerging market – the World Bank estimates that procurements account for approximately two-thirds of spending in such areas.  However, these rich sources of business do not come without risk.  Procurement processes require companies to interact with foreign officials and often involve third-party agents or local partners, providing ample opportunity for bribery.  The FCPA Report is publishing a three-part article series to help companies mitigate the corruption risks that arise before, during and after the public procurement process.  This third and final article in the series details seven steps a company should take to protect itself during and after a procurement process.  The first article examined how procurement works and when and how bribery occurs during the procurement process.  The second article provided six steps a company should take prior to engaging in a procurement process.  See also “The World Bank’s Wide Reach and Its Growing Anti-Corruption Program,” The FCPA Report, Vol. 3, No. 11 (May 28, 2014).

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  • From Vol. 4 No.11 (May 27, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Steps to Take Prior to Entering into a Procurement Process (Part Two of Three)

    The World Bank estimates that in high-risk countries, public procurement can account for up to 60 to 70 percent of all government expenditures.  As companies continue to expand globally, more view engaging in public procurements as a tremendous growth opportunity.  However, such activity is inherently risky given the necessary interaction with government officials.  How can a company get a slice of the public procurement pie while mitigating bribery risk?  This three-part article series is designed to educate companies on the risks they face when participating in a public procurement process and help provide a framework for an implementable anti-corruption policy relevant to that process.  The first article examined how procurement works and when and how bribery occurs during the procurement process.  This, the second article in the series, details six steps a company should take prior to engaging in a procurement process.  The third article will explore additional actions the company should take during and after the process. 

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  • From Vol. 4 No.10 (May 13, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Understanding the Procurement Process (Part One of Three)

    The World Bank estimates that governments in developing countries spend $820 billion a year on procurement, presenting huge, but precarious, opportunities for multi-national companies positioned to provide goods and services for those governments.  The 2014 OECD Foreign Bribery Report found that 57% of the global foreign bribery enforcement actions it studied involved bribes to obtain public procurement contracts.  This three-part article series is designed to help companies mitigate the risks associated with participating in a public tender.  This, the first article in the series, examines how procurement works, the riskiest points of the process and common bribery schemes related to procurement.  The second article will detail six steps a company should take before engaging in the procurement process; and the final article will explore additional actions a company should take during and after the procurement process.  See “Key Compliance Takeaways from the OECD Foreign Bribery Report,” The FCPA Report, Vol. 3, No. 25 (Dec. 17, 2014). 

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