Public procurement

Action point 4

Promote existing qualitative initiatives on human rights and social responsibility

Promouvoir les initiatives qualitatives existantes relatives aux droits de l’Homme et à la responsabilité sociétale

The Flemish Government presents its three-year funding project with the ILO “Private and Public Procurement and the Social Economy, South Africa” (for an amount of € 1,735,926 €). Flanders intends to support the social economy and businesses so that they make better use of the regulatory framework for procurement of their goods and services. The project aims at:

• Re-evaluating, among stakeholders, the role of public and private procurement as a stimulus for job creation in the social economy.
• Enabling and stimulating an environment for public and private procurement by social enterprises.
• Offer better assistance to social enterprises, for aspiring, beginning and established entrepreneurs.

Action point 13

Strengthen and monitor the respect for human rights in public procurement

Renforcer et contrôler le respect des droits de l’Homme dans les marchés publics

This is the main action point on public procurement, and covers specific plans for the federal governments as well as all three Belgian regions.

The federal government engagements include:

• An examination by the Working Group on Sustainable Public Procurement of the Interdepartmental Commission for Sustainable Development on how to strengthen and optimize the integration of respect for human rights into the purchasing policy of the public authorities. This will include stakeholder consultations.
• The transposition of the EU public procurement directives (Directives 2014/24/EU and 2014/25/EU). Monitoring activities will pay particular attention to the application of award criteria, in particular to the application of price as the sole award criterion.
• The government will analyze the best way to verify and monitor compliance with the criteria set out in the procurement procedure for products and services in several sensitive sectors, some of which are produced in so-called “risk” countries, in order to ensure that the requirements relating to respect for human rights set out in the specifications have been complied with. Existing best practice in European countries will be used as sources of inspiration.
• The Working Group on Sustainable Public Procurement analyzed various case studies on monitoring compliance with ILO clauses and human rights in supply chains in order to test, through pilot projects, whether such an initiative is feasible in Belgium. Implementation and follow-up of this initiative will be carried out in cooperation with the relevant federal, regional and local administrations.

The Wallonia engagements include:

• As participant of the Working Group on Sustainable Public Procurement the public service of Wallonia will also be part of above-mentioned research with the aim of identifying optimization processes for the integration of human rights in public procurement policy.
• Moreover, the Wallonia and Bruxelles regions have established a portal for public procurement in 2009. A series of tools have been developed and/or gathered into the portal to favour the inclusion of environmental, social and ethical criteria in public procurement.    
• In 2013, the government of Wallonia decided to set up a purchasing policy on sustainable public procurement, in which Wallonian contracting entities are invited to register for their purchases of supplies, services and works.
• Reflections and workshops are conducted to strengthen the environmental, social and ethical clauses in public procurement relating to certain product categories. This includes human rights.
• By the end of 2016 the public procurement plan will be renewed for the period 2017-2019 and will include several actions to make purchases more sustainable in Wallonia.
• Additionally, Wallonia will organize a competition to promoting public procurement contracts that incorporate ambitious environmental, social and/or ethical criteria, rewarding public purchasers and companies that have concluded such contracts.

The government of Bruxelles’ engagements include:

• In 2014, the region adopted an order on the inclusion of environmental and ethical clauses in public procurement by regional and local authorities. The aim of including such ethical clauses is the respect for the fundamental rights of persons or social impartiality. Within each contracting authority there shall also be appointed at least one contact person responsible for ensuring the implementation of this order; the implementation of which shall be assessed every 3 years.

The Flemish engagements include:

• In 2016, the 2016-2020 Plan on Flemish Public Procurement was approved, a plan that emphasizes innovation, sustainability, reduction of human rights violations in supply chains, professionalization and access of SMEs.
• Pilot projects (related to plan mentined above) in this context the political fields of “Employment and Social Economy” and “Chancellery and Public Governance” will, together with the buyers of the various contracting authorities, monitor the credibility of the supporting documents (concerning the respect for human rights, etc.) and the respect for ILO core Conventions. This is necessary in order to verify that the human rights criteria included in the conditions are also effectively complied with. In this respect, the Flemish Authority will concentrate primarily on the procurement of textile products.
• Support buyers in the integration of social criteria in public procurement contracts. It especially includes diversity, accessibility, and the inclusion of people from vulnerable groups. The pilot project aims at giving a practical benchmark instrument to buyers, which can be used systematically in each part of the public contract.

Read more about Belgium

Pillar 1: The State Duty to Protect Human Rights

Strand 5: Public Contracts (page 42-44)

During activities with citizens’ participation, it was repeatedly said, as highlighted by the Guiding Principles, that the State must lead by example and include human rights standards in the purchase or goods and services. Thus, the State not only integrates these standards in their own operations, but it also influences the actions and mechanisms of business enterprises celebrating contracts with the State.

Action Point 5.1

• The Chilean System of Public Purchases, (Chilecompra), has the mission to facilitate the contracting of goods and services by the State through a public market web platform, in the different purchase procedures. Chilecompra will:
  o Incorporate an “Integrity Agreement” clause,* where the supplier bounds himself/herself to respect human rights in accordance with the Guiding Principles. Through the integrity agreement, suppliers commit, inter alia, to act with transparency, probity and truthfulness regarding the information and details submitted in the tender papers. This clause will be included in all terms and conditions of the Framework Agreement, and use thereof will be encouraged in the terms and conditions of public tenders. For the correct understanding of this clause, Chilecompra will train suppliers in its contents, including the issues of business and human rights.
• Assess the possibility to gather, through a relevant guideline, recommendations for buyers aimed at safeguarding the respect for human rights in the process of acquiring goods and services.
• Carry out initiatives allowing to strengthen the information tool of the public purchase system. This will be made possible by adhering to SEGPRES Open Government Plan, under the commitment to create a set of Guidelines and a Policy of open date promoting and developing the use of open data in public purchase procedures to strengthen transparency of the Chilean System of Public Purchases and foster probity and efficiency in this area.
• Strengthen the inclusion of sustainability considerations in public purchase procedures, specifically though the following:
  • Development of a joint project with the Ministry for the Environment aimed at drafting policies for institutional purchases that take sustainability aspects into consideration.
  • Framework agreements including sustainability considerations relevant for the industry.
  • Online shop of the framework agreement including identifiable sustainability seals.
  • An Action Plan aimed at encouraging the participation of women in the system of public purchasing, through certain actions including a campaign to encourage the use the Sello Empresa Mujer seal developed in 2016, which identify companies that are owned or led by women; an intensive work with purchaser to encourage the use of the Sello Empresa Mujer seal as a criterion in their purchases; training workshops for women that supply the State.
  • Commitment with the initiative “She Trades” led by the United Nations, which seeks to link business women with the marketplace, thus strengthening the economic actor role of women.

* The Integrity Pact (IP) is a tool proposed by Transparency International against corruption aimed at the bidding companies, with the purpose of reducing corruption and waste in procurement for the public sector. Reducing corruption in procurement enables governments to make more efficient use of taxpayers’ money and limit the pernicious consequences of corruption. In the Chilean case, the integrity pact consists of a clause, within the bidding rules, which establishes the behavioural framework of the State suppliers, collecting a series of commitments to which the bidders and suppliers adjudicated are subject during the validity of a specific framework agreement or tender. Through this clause, suppliers undertake, among other matters, to act with transparency, probity and veracity in the information and background presented in a given proposal. Failure to comply with any of the hypotheses regulated in the aforementioned Covenant implies the sanction of early termination of the framework agreement.

 Action Point 5.2

The Ministry of Foreign Affairs will gather information about the criteria used in purchases and tenders carried out by the institution with the purpose of identifying potential gaps and proposing improvement to the system.

Action Point 5.3

The INDH will adopt a human rights and environmental policy for the purchase of goods and services.

Action Point 5.4

The Ministry of Social Development will:

• Organise training, through the Division of Public-Private Cooperation, to be given to the Procurement Department of the Administration and Finance Division of the Under-Secretariat of Social Assessment, about the United Nations Guiding Principles on Business and Human Rights, releasing Chilecompra’s guidelines from their direct impact on human rights.
• The National Disability Service will review the operation of Guideline 17 about inclusive public purchases that promote equal opportunities in the public marketplace, with the purpose to improve its enforcement in line with the Guiding Principles.

Read more about Chile

VIII. FUNDAMENTAL PILLARS

i. Fundamental Pillar 1: The State’s obligation to protect human rights

Strand 9 [Eje nº 9]: The state as economic actor

(…)

• The Procurement Agency [Colombia Compra Eficiente] will accompany the implementation of the Socially Responsible Public Procurement Guide for state entities that are carrying out procurement processes.

ii. Fundamental Pillar 2: The duty of business to respect human rights

(…)

Strand 2[Eje nº 2]: Promoting corporate human rights due diligence

(…)

• The Procurement Agency [Colombia Compra Eficiente] will disseminate the due diligence framework established by the entity in the Guide for Socially Responsible Public Procurement within state entities.

Read more about Colombia

Supply chains and conflict minerals [page 20-21]

“One solution lies in certification schemes proving the origin of raw materials. The certification authority guarantees that workers’ rights have not been infringed during mining or production. These certificates are issued by state and international organisations on the one hand, and private issuers on the other. Current legislation allows the public sector to take into account or to demand this certification in the course of procurement, in which case it is only necessary to comply with the conditions of transparency, equal treatment and non-discrimination. …

Tasks: …

• In the public sector’s procurement of high-risk products and raw materials, consider giving preference to suppliers participating in recognised certification schemes.
  Coordinators: All ministries
  Deadline: Running”

Public procurement [page 22-24]

“Implements Principle 6

In OECD states alone, public procurement accounts for 12% of GDP. Worldwide, public contracts are estimated to be worth more than EUR 1,000 billion. [footnote – http://ec.europa.eu/trade/policy/accessing-markets/public-procurement/] On some markets, contracting authorities are so prominent that they can influence standards and practices throughout a sector by flexing their market strength. This is why numerous states have legislated the requirement of certain human rights standards among their suppliers. Other countries enable these standards to be incorporated into contracts. In addition, certain international standards, such as ISO 26000, contain criteria recommended for human rights risk assessments. EU law [Recital 75 of Directive 2014/24/EU and Recital 85 of Directive 2014/25/EU] initially expressly refers to “labelling”, making it possible to incorporate labels and certificates attesting to the environmental, social and human rights properties of products or suppliers into procurement evaluations.

Aspects of human rights protection can be encouraged in public procurement after weighing up the nature of a public contract and the deliverable; specific human rights requirements must reflect these aspects accordingly. In practice, human rights protection requirements can be factored into the conditions for participation in award procedure or into rules for the evaluation of bids and must be verifiable, for example, in the form of a label. [Section 94 of Act No 134/2016 on public procurement] It is always advisable to reflect these requirements in the contract between the contracting authority and the supplier. The protection of and respect for human rights should also be taken into account in public procurement. In their public procurement, contracting authorities should know how to reflect and evaluate environmental and social requirements and the protection of human rights correctly in relation both to the supplier and, as far as practicable, the supplier’s subcontractors. In this respect, guidance should be drawn up for award procedure in accordance with human rights. This guidance should encompass specific practical examples, including model contractual provisions and/or a model tender dossier. The guidance should be accompanied by an overview of international platforms and initiatives sharing experience and information on socially responsible public contracts. This guidance should be preceded by consultations and should be produced in collaboration with business associations.

Current state of play:

• The recitals of the Public Procurement Directive [Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement] expressly provide that, when selecting the most appropriate participant in award procedure, it is not always necessary to limit the assessment to the price. Requirements concerning environmental protection and the support of sustainable development can be set, and social aspects can be incorporated. This forms a framework for the interpretation of Czech law.
• ECJ case-law makes it possible (subject to compliance with the conditions of transparency, non-discrimination and equality) to demand, in public procurement, various certificates and labels attesting to the environmental, social, human rights and other similar impacts of the goods. [Judgment of the EU Court of Justice of 10 May 2012 in European Commission v Kingdom of the Netherlands (C-368/10)]
• Under the Public Procurement Act, requirements relating to the environment and social consequences of a public contract may be applied to participants in the award procedure. [Section 37(1)(d) of Act No 134/2016 on public procurement]
• A number of local government authorities are involved in voluntary initiatives for socially responsible public contracts, such as Fairtrade Town.
• Guidance on a responsible approach to public procurement and purchasing is being drawn up.

Tasks:

• Incorporate human rights issues into the guidance that is being drawn up.
  Coordinator: Ministry of Regional Development
  Co-coordinators: Ministry of Labour and Social Affairs, Ministry of Human Rights
  Deadline: 31 December 2017
• Incorporate information on the social and human rights context of public contracts – and on basic opportunities to take these issues into account – into training courses for contracting authorities.
  Coordinator: Ministry of Regional Development
  Deadline: 31 December 2018”

Read more about Czechia

2. The state duty to protect human rights

2.2 Recommendations from the Council for CSR on the state duty to protect [page 10]

“In November 2011, the Danish Council for CSR started working on recommendations to the Government on how the UNGPs on the state duty to protect could be implemented. The council finished its work in January 2012 where the recommendations were handed over to the Government. Among other initiatives, the Council for CSR recommended that the Danish Government: …

• Encourages responsible public procurement by requiring government contractors to perform due diligence on human rights in relation to the products or services covered by the contract, including regularly supervising the contractual requirements;”

2.3 Actions taken

Promotion of human rights in commercial transactions [page 13]

“The Government has committed itself to promoting responsibility in public procurement through several initiatives among other:

• By publishing a set of common guidelines for responsible procurement in the public sector in collaboration with municipalities and other relevant parties. The guidelines will serve as a practical tool to determine when and how the UNGPs can be applied in connection with public procurement (GP 6). The tool is available in Danish: www.csr-indkob.dk.”

Appendix 1, GP 6

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles [page 29]

“As part of the 2008 national action plan, a requirement that all future joint state supply contracts systematically should embed social responsibility as articulated in the conventions that provide the foundation for the UN Global Compact.

All state procurement officers have access to guidelines for embedding social responsibility.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 29]

“To promote responsibility in public procurement, the Government has developed common public sector guidelines for responsible procurement in collaboration with municipalities and other relevant parties. The guidelines are a practical tool to determine when and how Corporate Social Responsibility ca n be applied in connection with public procurement. The tool is available in Danish: www.csr-indkob.dk.”

Read more about Denmark

Abstract

“Key aims for the action plan are the legislative report, definition of the due diligence obligation, and the application of social criteria in public procurement.”

Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan

“Key aims for the action plan are the legislative report, definition of the due diligence obligation, and the application of social criteria in public procurement.”

Social criteria in public procurement

The EU Procurement Directive better allows social issues to be more effectively taken into consideration in public procurement. The possibilities for emphasising quality factors and social responsibility afforded by the Directive are being used in the comprehensive amendment of the Act on Public Contracts. Amendment of the Act on Public Contracts is being carried out under the Ministry of Employment and the Economy in cooperation with stakeholders.

Foreword

“As a state, Finland actively works to ensure that human rights are respected in international arenas. In Finland, the Constitution provides strong protection for the realisation of human rights. The working group has written down objectives for Finland’s international activities, but improvements are also proposed for the state’s operations as a public procurer …”

2 The state and companies

2.1 The state as an economic operator [page 20-21]

SOCIALLY RESPONSIBLE PUBLIC PROCUREMENT

“The value of public procurement in relation to EU gross domestic product is approximately 17 per cent. It is likely that such a large amount includes procurement that may have significant impacts on human rights. In its Resolution on Corporate Social Responsibility, the Finnish Government encourages public procurers to take social aspects into consideration. For the promotion of human rights, the procurement act allows consideration of aspects related to employment, working conditions, the position of vulnerable individuals and corporate social responsibility in connection with public procurement. The Ministry of Employment and the Economy has published a guide to socially responsible procurement, with practical examples gathered from procurement units, explaining how social aspects can be taken into consideration in each stage of the procurement process. In addition, the Ministry maintains the CSRkompassi.fi website (available in Finnish and Swedish, some material also in English), with information and material for taking social aspects into consideration in long production chains related to public procurement.

In connection with the consultations organised by the working group, the idea of a statutory obligation to take social aspects into consideration in public procurement was presented. For instance, there is a federal obligation in the United States to include terms on the prohibition of the worst forms of forced labour and child labour in public procurement. In Finland, procurement legislation is procedural in nature, and it makes no statement on what is procured or on what terms. It provides guidelines for the types of procedures that should be used in order for the procurement process to meet the legal principles related to transparency, non-discrimination and equality. There are approximately 30,000 to 40,000 procurement objects, which means that setting a categorical obligation for all procurement may lead to significant challenges in an individual procurement. A categorical obligation would produce the need to allocate monitoring resources to procurement with only a small risk related to human rights impacts. The third challenge related to the proposal is the functionality of the compelling guiding methods. Some of the state procurement is made through Hansel Ltd., and some directly from agencies and ministries. Except for procurement legislation, the state has no other power to guide municipal procurement.

The Act on Public Contracts is currently being amended on EU directives so that social aspects can be taken into consideration more easily in the future.

As a follow-up measure, the working group proposes that

• references to Section 49 of the Act on Public Contracts and to the Guide to socially responsible procurement be added to the procurement guidelines for ministries; and
• the responsibility themes in the state procurement manual be updated;
• in connection with the reform of the public procurement online notification service “Hilma”, a field be added to the sections containing procurement data to indicate whether social aspects have been taken into consideration in the procurement. This would improve statistics related to social procurement and encourage the consideration of social aspects in the future.
• A report will be made on the product groups that pose the highest risk for human rights violations. The report would increase the awareness related to responsible procurement and help target the consideration of the social aspect for the product groups that pose the highest risk.
• Finland promotes socially responsible public procurement in the EU by distributing information and experiences of Finnish practices.
  Principal responsible parties: Ministry of Finance, Ministry of Employment and the Economy, schedule by the end of 2015.”

Read more about Finland

I- The State’s Obligation to Protect Human Rights

The National Framework

10. The Reinforcement of Legislation [page 23]

Recent public policies have led France to adopt new legislative measures supporting CSR.

…

• Article 13 of the SSE Act seeks to ensure that more public purchases are made from socially responsible businesses (many of which are part of the SSE) and that better use is made of social clauses in procurement contracts. It states that, if a maximum annual procurement amount is exceeded, contracting authorities must adopt schemes promoting socially responsible purchases. This article came into force on 1 February 2015 (Decree of 28 January 2015).

…

11. The Inter-Ministerial Exemplary Administration Action Plan and the National Action Plan for Sustainable Public Procurement [page 25]

On 17 February 2015, the Prime Minister issued instructions concerning the 2015-2020 Inter-ministerial Exemplary Administration Plan, on the basis of which each ministry was requested to draw up its own exemplary administration plan. These plans must outline initiatives to be implemented by 2020 in the fields of energy saving, sustainable mobility, resource consumption, waste reduction and biodiversity preservation. They may also address social and societal impacts as part of their focus on social and environmental responsibility.

Public Procurement Policy 

Under Article 15 of Decree 2016-360 of 25 March 2016, contracting authorities may choose to include general administrative terms and conditions in public contracts. These terms and conditions cover general rather than specific provisions (performance of services, payment, auditing of services, presentation of subcontractors, deadlines, penalties, general conditions, etc.). Article 6 of these terms covers the protection of labour and working conditions, and states that contract holders must respect the working conditions set down in the labour laws and regulations of the country in which workers are hired or, otherwise, ILO’s eight fundamental conventions where these have not been incorporated into the country’s laws and regulations.

The National Action Plan on Sustainable Public Procurement seeks to help the State, local government and hospitals make sustainable purchases as per Ordinance 2015-899 of 23 July 2015 and Decree 2016-360 of 25 March 2016 on public procurement.

This national action plan encourages those making purchases for the State or local government to introduce social and environmental clauses in public contracts. To this end, it sets specific targets for social and environmental provisions. These targets may be reflected in special requirements in the tender’s terms and conditions, specific criteria used to select suppliers’ bids and/or performance clauses supporting social and/or environmental progress that are applicable to successful tenders. A register (of public procurement contracts worth over €90,000 with provisions) is kept by France’s Economic Observatory for Public Procurement, with the results being published annually.

The new legal framework for public procurement gives purchasers several ways of addressing social and environmental impacts. Having transposed Article 57 of Directive 2014/24/EU of 26 February 2014 on public procurement, French law now states that public contracts may not be awarded to economic operators that have been found guilty of fraud, corruption or the trafficking or exploitation of human beings (Article 45 of Ordinance 2015-899). Article 59 of Decree 2016-360 obliges public purchasers to reject bids that do not comply with applicable laws, particularly in the social and environmental fields. Transposing Article 69 of the abovementioned directive, the decree also enables purchasers to reject tenders that are abnormally low because they do not respect applicable environmental,
social and labour obligations established by French law, European law, collective agreements or by international environmental, social and labour law provisions (Article 53 of the abovementioned ordinance and Article 60 of the abovementioned decree). This also applies to subcontractors (Article 62 of the abovementioned ordinance and Article 133 of the abovementioned decree). Finally, over and above the analysis of tenders, Article 18 of Directive 2014/24 requires Member States to “take appropriate measures to ensure that in the performance of public contracts economic operators comply with applicable obligations in the fields of environmental, social and labour law established by Union law, national law, collective agreements or by (…) international environmental, social and labour law provisions.”

Actions Underway [page 26]

• The State and local government are committed to promoting and respecting the UN Guiding Principles in all of their activities—as lawmakers, employers and producers.
• The State is committed to ensuring that businesses in which it holds shares respect human rights and the environment.
• France ensures that the UN Guiding Principles and other established international texts are respected in public procurement guides, public procurement policies and training for purchasers.

Read more about France

Objective 25.2.1: Ensure contradictory mechanism of demonstrating monopoly and oligopoly at any sector and segment of market.

Objective indicators:

1) Number of projects of legislative acts elaborated with the aim to improve ”Law of Georgia on the Conflict of Interests in Public Service” and appropriate normative acts.

Activities:

A. Legislative data analysis and elaborating projects of appropriate legislative acts.

Responsible agency: The office of the Business Ombudsman of Georgia, Competition Agency.

B. Initiating elaborated projects of legislative acts to the parliament and implementing them.

Responsible agency: Ministry of Economy and sustainable development of Georgia.

2) Document of conducted research; Number of recommendations; Number of elaborated legal acts projects.

Activities:

A. Conducting research with the aim to define work efficiency of dispute reviewing board of State Procurement Agency.

Responsible agency: State Procurement Agency.

B. Improve regulatory legislative base of state procurement.

Responsible agency: State Procurement Agency.

Partnership agencies: Business sector; Global compact Georgia; CIDA.

Objective 25.16.1: Ensure foreseeing issues of human rights protection in state procurement process, including women strengthening principles, not only at supportive but also obligatory level and mainstream human rights based.

Objective indicator: Prepared amendments according to the finest international practice.

Activity: Seeking best international practice about human rights protection issues during state procurement process.

Responsible agency: Human Rights Secretariat of the Administration of the Government; Ministry of Economy and sustainable development of Georgia.

No partnership agency.

Read more about Georgia

The German NAP includes a specific section on public procurement.

1.2 Public procurement [page 21-22]

“The total value of public procurement contracts amounts to about €280 billion a year. The federal, state, and local authorities bear particular responsibility in this domain, in that they must discharge the state duty to protect human rights and ensure that the use of public funds does not cause or foster any adverse impact on human rights. By placing greater emphasis on sustainability in their procurement transactions, public authorities not only perform their function as role models but can also wield significant leverage in increasing the supply of sustainable products. The 2030 Agenda also makes explicit reference to sustainable public procurement as an instrument in the quest for sustainable development.

The current situation

“Germany has fully transformed into domestic law its obligations to protect human rights under international agreements. This applies, for example, to the prohibitions of child labour and forced labour that are imposed by the ILO core conventions. If enterprises break the law in Germany in either of these respects, they can be disqualified from receiving public contracts. The Federal Government is already implementing a number of measures designed to promote sustainable public procurement by federal, state and local authorities and institutions:

• Since 2010, the federal, state and local authorities have been cooperating in the framework of the Alliance for Sustainable Procurement, chaired by the Federal Government. Its purpose is to contribute to a significant increase in the percentage of sustainable goods and services among the purchases made by public bodies. The Alliance enables the main public procuring bodies to share their experience and is intended to contribute to more widespread application of uniform national and international standards by all three tiers of government – federal, state and local.
• Since 2012, the Centre of Excellence for Sustainable Procurement at the Procurement Office of the Federal Ministry of the Interior has been assisting public contracting bodies in applying procurement criteria. The Centre of Excellence is available to assist procurers in situ, for example by providing advice in person or by telephone and by forwarding information material. In 2014, the Centre of Excellence, along with the BITKOM association of German digital goods and service firms, drew up an initial sectoral agreement in the form of a Declaration on Social Sustainability for IT, which provides for adherence to the ILO core labour standards in procurement procedures. Other sectoral agreements on critical product categories are planned.
• Other Federal Government initiatives and support measures are to be found in the Programme of Sustainability Measures, into which Federal Government targets for sustainable procurement have been incorporated.
• “Kompass Nachhaltigkeit” (sustainability compass), an information platform funded by the Federal Government, provides an overview of sustainability standard systems and supplementary requirements and assists public contracting bodies in incorporating a sustainability dimension into their procurement procedures.
• The “Fair Procurement Network“ of municipalities, which is part of the service agency Communities in One World, provides advice to municipalities, among other things, and familiarises local authorities with the issue of sustainable procurement through specialised promoters. An information and dialogue campaign entitled “Deutschland Fairgleicht “ informs municipal decision-makers and contracting bodies and raises their awareness of sustainable procurement.

Following the reform of procurement law in 2016, with which three new EU procurement directives were transposed into German law, the new Part IV of the Restraints of Competition Act lays particular emphasis on observance of the law, especially taxation, labour and social legislation (sections 97(3) and 128(1) of the Act). The new legal framework enables procurement bodies to make greater use of public contracting to underpin the pursuit of strategic goals such as social standards, environmental protection and innovation.”

Measures

• “The Federal Government will examine whether and to what extent binding minimum requirements for the corporate exercise of human rights due diligence can be enshrined in procurement law in a future revision. It will draw up a phased plan indicating how this aim can be achieved.
• The expertise of the Centre of Excellence for Sustainable Procurement in matters of human rights, including the application of the ILO core conventions to procurement procedures, and in the implementation of the UN Guiding Principles will be used to expand the knowledge of procurement staff in the context of training courses.”

VI. Monitoring [page 41]

“The National Action Plan marks the starting point of a process that will be continuously updated and developed. The process will be shaped by the implementation of the measures for which this Plan provides as well as by a comprehensive procedure for monitoring the implementation of these measures by all players.

To this end, the Federal Government is planning, subject to budgetary approval, the immediate execution of the following steps: …

“The interministerial committee will verify the implementation and coherence of the adopted measures and drive forward the development of the NAP implementation process. The main areas of activity to come under its scrutiny will be the measures relating to the state duty to protect (public procurement, promotion of external trade, etc.) and the fleshing-out of due diligence obligations (chapter III above), including the planned definition of sectoral specifications and the corresponding support services.”

Read more about Germany

Section 2: Current legislative and Regulatory Framework

Procurement [page 15]

“Public procurement in Ireland is governed by EU and National law and National Guidelines. The Office of Government Procurement is committed to ensuring that human rights related matters are reflected in public procurement and embedded in national public procurement policy. The EU Treaty principles of equal treatment and non-discrimination, transparency, mutual recognition, proportionality, free movement of goods and services and the right of establishment must be observed in all tenders.

Most recently, the 2014 EU Directives on Public Procurement, which have been transposed into Irish law contain specific provisions excluding tenderers who are guilty of certain human rights infringements from participation in public procurement.

Extensive general guidance on legal procurement requirements is available to public authorities on the Irish portal for public procurement. (Irish Portal for Public Procurement: http://etenders.gov.ie)

Annex 1 – List of additional and ongoing actions to be carried out across Government

Trade and Investment [page 21]

“14. Under the aegis of the office of Government Procurement, continue to follow good practice on procurement and human rights standards in all Requests for Tenders, in line with EU law.”

Read more about Ireland

IV. Italian ongoing activities and future commitments

Environment

“The Ministry for Ecological Transition is in charge for monitoring implementation of legislative decrees enforcing the ‘Circular Economy Package’ and preparation of corrective decrees; National Action Plan for the environmental sustainability of consumption in the Public Administration will be defined to maximize green public procurement (…)” (p. 35)

“In relation to environmental sustainability in the Public Administration, a first step in this direction was the “Guide for the integration of social aspects in public procurement”, adopted by the aforementioned Ministry by Ministerial Decree of June 6, 2012, as part of the National Action Plan on Green Public Procurement (PANGPP)

(…)

The Guide aims to provide operational guidance on how to take social aspects into account in the definition of public tenders relating to supply, service and works contracts. It considers experiences of integrating social criteria in public procurement developed by different EU countries.” (p. 37)

“In addition, Legislative Decree No. 50 of 19 April 2016 in transposing EU Directives 23, 24 and 25/2014, outlines a regulatory framework for social and environmental responsibility in the management of public procurement, including the possibility of introducing criteria relating also to human rights within the contract life cycle (definition of the subject of the contract, criteria for selection of candidates, technical specifications, award criteria and contract performance clauses). The EU Commission has recently published a second edition of the guide for socially sustainable procurement (“Buying Social – A guide to taking account of social considerations in public procurement” – Second edition (2021/C 237/01)), referred to in the previous NAP BHR. It has provided indications to identify a set of clauses that will be included by ANAC in the Standard Notice for e-procurement.

(…)

To this scope a full life-cycle monitoring through the National Database of Public Contracts, managed by ANAC, will be facilitated by the adoption of the new models covered by Regulation (EU) 1780 of 2019, which will be fully operational in October 2023. In collaboration with other administrations concerned for adoption of models and adaptation to national requirements, ANAC will give right emphasis identification processes over social and environmental sustainability clauses in calls for tenders and compliance with them throughout the life cycle of the contract (…)” (p. 38)

Public procurement

“Italy fully adheres to the principle of socially responsible procurement and is committed to ensuring that respect for human rights is taken into account at all procurement stages.

Legislative Decree No. 50/2016 (Public Contracts Code) has transposed 2014 EU Directives in force in this field: basic principles are aimed at guaranteeing access to and the conduct of decent work, respect for social and labour rights, as far as SMEs’ participation in public contracts.

In the framework of the BHR NAP 2016-2021, in the field of public procurement ANAC has provided operational guidance to administrations to introduce social and environmental criteria in contractual activities of public administrations through the Guidelines on the Economically Most Advantageous Offer (Guidelines 2 of 2 May 2018 https://www.anticorruzione.it/-/linee-guida-n.-2). In the framework of the PNRR, the role of the Public Contracts Database and the Single Transparency Platform managed by ANAC is set to gain importance also to facilitating the involvement of civil society in the control on legality and life cycle approach in public procurement through available digital tools.

The Ministry of Infrastructure and Transport publishes on its website calls for tenders for public infrastructure contracts, as well as the notice of award. In line with Global Standard of Contracting 5 (C5) and other supranational best practices, “Opencantieri” project has been set up: it is an online platform that includes open, complete and updated information on public infrastructure processes.

Contracts related to infrastructure development owe their standards of integrity and transparency also to Consip, the national Central Purchasing Body (CPB) at the Ministry of Economy and Finance (MEF). Its mission is to make the use of public resources more efficient and transparent, while at the same time providing tools and expertise to public administrations and strengthening competition among businesses. Consip has granted a greater and easier access to data and information on its activities, providing useful tools to clearly understand and correctly interpret data, as well as a geo-referencing system that, using interactive maps, allows to consult data on purchases. In order to make the sharing of data and information understandable and systematic, Consip published its second Sustainability Report, with the aim of describing its mandate and contribution to the national public procurement system. In order to ensure a clear and complete accounting of its actions, the Report was drafted according to GRI standards. It describes Consip’s operations and performance in terms of environmental, economic and social sustainability, noting how this approach has contributed to the achievement of some SDGs.

The raising of standards of integrity and transparency in the development of infrastructures is also guaranteed through the dissemination of Legality Protocols: these are voluntary agreements between the Prefecture or other Public Security Authorities and public or private companies involved in the management of public works, which have proved particularly useful in combating criminal infiltration. The role of such protocols has recently been strengthened through regulatory interventions (Decree Law No. 76/2020 converted into Law No. 120/2020, added to Legislative Decree No. 159/2011 – Antimafia Code – Art. 83-bis on the subject of “legality protocols”), which give contracting stations the possibility to assess in notices, calls for tenders or letters of invitation that failure to comply with the legality protocols as a cause for exclusion from the tender or termination of the contract.

In order to raise the level of transparency and encourage virtuous mechanisms of larger control over public procurement by citizens and civil society, the ANAC has made available through an Open Data portal all information contained in the National Database of Public Contracts. These data concern both tender procedures and execution of contracts. In addition, ANAC has made available on its website a platform for the processing of these data by citizens and users.

In addition, ANAC is working with other stakeholders in the project “Measuring the risk of corruption at territorial level and promoting transparency” (funded by the National Operational Programme Governance and Institutional Capacity 2014-2020 – ERDF, ASSE 3 – Specific Objective 3.1 Action 3.1.4), to identify quantitative indicators of the effectiveness of anti-corruption measures implemented by the administrations (so-called contrast indicators). The project also intends to create inter-institutional collaboration networks to guarantee transparency in every sector of the Public Administration. The intent is to raise awareness of the private sector, academia and civil society on the need to overcome the current approach, based on exclusively subjective corruption indicators, and to promote a further approach to measuring corruption, based on reliable data in line with the principle of “leading by example”. As suggested by the OECD “investing in improving data quality to enhance risk assessments can provide a context for organizations to address broader issues along the value chain, improving the use of data within decision-making processes” (OECD, 2019).” (p.48)

Read more about Italy

Chapter 2. Action Plan

2. Areas of the NAP

(2) Measures of the Government as an Actor regarding State Duty to Protect Human Rights

A. Public Procurement

(Existing framework/Measures taken）

As measures that have already been conducted, the public procurement procedures have been implemented appropriately, including the implementation of international commitments, in accordance with various laws and regulations, including the Public Accounting Act (Act No. 35 of 1947).

In particular, the Government has promoted enhanced awareness by companies for respecting human rights and the environment in accordance with the Act on Promotion of Procurement of Goods and Services from Disability Employment Facilities by the State and Other Entities (Act No. 50 of 2012, hereinafter referred to as the “Act on Priority Procurement Promotion for Persons with Disabilities”), the Women’s Participation Act, the Act on Prevention of Unjust Acts by Organized Crime Group Members (Act No.77 of 1991), and the Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Act No. 100 of 2000, hereinafter referred to as the “Act on Promoting Green Procurement”).

Furthermore, the revision of the Act on Promoting Quality Assurance in Public Works (Act No. 18 of 2005) in 2019 set forth the obligations of the commissioning entity, such as setting appropriate periods for construction projects and ensuring that they are allocated evenly throughout the year as opposed to being concentrated in the same period. The revision also included a new requirement for a wide range of surveys regarding public works to be carried out. In addition to this, the Construction Business Act (Act No. 100 of 1949) and the Act for Promoting Proper Tendering and Contracting for Public Works (Act No. 127 of 2000) were revised in 2019 to promote work style reform in the construction industry, including redressing long working hours (e.g. appropriate construction period) and improvement of treatment of workers at construction sites.

(Future measures planned）

Thoroughly implement procurement rules relevant to business and human rights, including grievance procedures (initiatives based on Act on Priority Procurement Promotion for Persons with Disabilities, initiatives related to public procurement based on Article 24 of the Women’s Participation Act, and initiatives concerning exclusion of organized crime groups)

• Continue to promote the self-reliance of persons with disabilities working at the facilities for persons with disabilities and of those working at home through steady implementation of the Act on Priority Procurement Promotion for Persons with Disabilities. [All Ministries]
• Continue to promote measures to exclude organized crime groups from public works, etc in accordance with the Initiative on Exclusion of Organized Crime Groups from Public Works, etc. (Agreement by the Working Team on Comprehensive Measures, Including the Control of Organized Crime Groups dated December 4, 2009). [All Ministries]
• Continue to award additional points to business enterprises with certification under the Women’s Participation Act and other laws, when the Government and incorporated administrative agencies use criteria other than price (in the procurement procedures applying to the overall‐greatest‐ value evaluation method and the competitive proposal evaluation method). The aforementioned certification is provided to business enterprises promoting measures, such as work-life balance. This scheme is being implemented in accordance with the Guidelines for Utilization of Public Procurement and Subsidies Towards the Promotion of Women’s Advancement (decided by the Headquarters for Creating a Society in Which All Women Shine on March 22, 2016) and other criteria. [Cabinet Office]
• Continue to promote work style reform in the construction industry to deepen understanding of the purpose of the Act on Promoting Quality Assurance in Public Works, Construction Business Act, the Act for Promoting Proper Tendering and Contracting for Public Works, and the guidelines for these acts. [Ministry of Land, Infrastructure, Transport and Tourism]

B. Development Cooperation and Development Finance

(…)

(Future measures planned)

Implement effective measures regarding environmental and social consideration in the fields of development cooperation and development financing

(…)

• Continue to promote efforts to incorporate respect for human rights into all aspects of the procurement process, including procurement requirements, screening and selection, and contract terms. [Ministry of Foreign Affairs, Ministry of Finance]

Read more about Japan

Read more about Kenya

The Lithuanian NAP makes no reference to public procurement.

Read more about Lithuania

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.5. Increase the consideration of the UN Guiding Principles on Business and Human Rights by contracting authorities in their public procurement procedures

Context

The UN Guiding Principles on Business and Human Rights pay particular attention to the role of the state when acting as a business actor. Guiding Principle 6 states that “States should promote respect for human rights by enterprises with which they do business”.

Several studies (e.g. OECD, DIHR) show that actors responsible for public procurement lack technical knowledge on the integration of “business and human rights” standards such as the UN Guiding Principles on Business and Human Rights or the OECD Guidelines for Multinational Enterprises. According to the OECD, “the changing perception of the real cost of a product or service in relation to the potential environmental and social impacts requires a change in the culture of traditionally risk-averse public procurement officials. This means that in order to effectively integrate these standards into public procurement, in addition to the technical knowledge and skills required to manage the procurement process, government officials, as well as government auditors, should be trained to understand human rights considerations and their potential application to the technical stages of procurement.

Furthermore, according to the baseline study, there is no explicit guidance on human rights and the UN Guiding Principles in the general public procurement framework, which may mean that public purchasers are not sufficiently aware of the potential risks to human rights. According to this study “clear guidance should be provided to public purchasers on business, human rights and the UN Guiding Principles”.

Public procurement is governed by European guidelines for European bidders and for bidders from countries that are party to the WTO Agreement on Government Procurement (GPA). For countries outside the GPA, discussions are currently taking place under the International Procurement Instrument (IPI).

(…)

1.10. Preparation of the implementation in Luxembourg of the EU regulation on conflict minerals

Context

The legislative challenge in 2020 is to create a regulatory framework to implement the EU Conflict Minerals Regulation. Indeed, the regulation on minerals from conflict zones will enter into force on January 1st 2021. It will be essential to involve the various stakeholders (business and civil society), and in particular those represented in the Business and Human Rights Working Group, in the reflection on the implementation of the Regulation. In this context, it should also be recalled that the government was invited by a motion of the Chamber of Deputies, in the context of the vote on the Public Procurement Act in April 2018, “to ensure that public procurement in the future incorporates the due diligence criterion at the level of metals affected by Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 (tantalum, tin, tungsten, gold).”

The 2020-22 NAP states the second edition of the National Action Plan complements the first NAP. Additional information about the first NAP can be found here.

Read more about Luxembourg

CHAPTER II. Actions to improve the duty of the state in protecting human rights

5. Create a legal environment that respects human rights standards and criteria in the procurement of goods, works and services with state and local funds, and in the selection of contractors in large development projects.

Actions and measures to be implemented:

Develop and promote awareness and understanding of human rights criteria and methodology in the procurement of goods, works, and services with state and local funds.

• Time frame: 2023-2025
• Criteria: Criteria and methodology will be developed and adopted. Actions will be taken to promote criteria and methodology and to build capacity.
• Implementing organisations: Ministry of Finance (MoF) State Procurement Agency (SPA) PCSP
• Jointly implementing organisations: All general budget governors Authority of Government Supervisory (AGS) Governors of all levels State and locallyowned enterprises Confederation of Mongolian Trade Unions (CMTU) Professional associations NGOs, IOs

In the Law on Procurement of Goods, Works and Services with State and Local Funds, include provisions on human rights criteria in the basic requirements and criteria for suppliers and contractors, and define organisations and their functions to provide technical and methodological support and carry out monitoring.

• Time frame: 2024-2025
• Criteria: The draft law will be developed and submitted for approval. The result will be presented to the government and the public.
• Implementing organisations: MoF, SPA.
• Jointly implementing organisations: All general budget governors PCSP GMIA Governors of all levels State and locally owned enterprises

Create a legal framework in which environmental and human rights obligations are taken into account in public-private partnership and investment agreements

• Time frame: 2023-2024
• Criteria: The draft law to amend the Law on Investment will be developed and submitted for approval.
• Implementing organisations: MED [Ministry of Economy and Development], MoF [Ministry of Finance].
• Jointly implementing organisations: Relevant ministries and agencies.

Read more about Mongolia

Pillar I

Central government procurement and private-sector instruments

In relation to Pillar 1, the NBA appraisal notes that improved policy coherence can bolster government efforts on business and human rights. The government is looking for possible ways of aligning both central government procurement and grants frameworks for the business community with RBC duties and responsibilities.

Government procurement

“The government wants its procurement practices to set an example and contribute to the application of RBC by businesses. Government procurement totalled approximately €16 billion in 2021. The government’s new central government procurement strategy, ‘Procurement with Impact’ presented in 2019, takes sustainable, social and innovative procurement as its new point of departure. In 2021 the government presented its new National Plan for Sustainable Public Procurement (SPP) for 2021-2025 aiming to encourage compliance by contracting authorities, including central government agencies.

The government’s central procurement strategy includes the International Social Conditions (ISCs). These have applied to all EU contract award procedures since 2017 and aim to establish more sustainable international supply chains by preventing or responding to risks related to working conditions, human rights and the environment. The ISCs are one of the contractual conditions obliging contractors to apply due diligence.

Lessons can be learned from the various studies and evaluations which have taken place since the introduction of the current ISC policy framework in 2017. The government has promised to improve the application of ISC in its central procurement process partly based on these lessons. On 13 June 2022 the government published an ISC implementation plan to meet this commitment. This document describes the steps that will be taken to improve the implementation of international procurement conditions.

The ISC Implementation Plan includes three lines of action:

LINE OF ACTION 1: Improve implementation of the current ISC policy framework

The government’s drive to improve the current ISC policy framework will focus on strengthening contract management in relation to international social conditions. Focusing on improving knowledge and knowledge sharing and developing practical tools will better enable stakeholders to apply and follow up on contractual requirements, including providing in a timely manner a risk analysis, an improvement plan and a publicly available annual report. One example of this is the ISC support centre set up by the PIANOo Public Procurement Expertise Centre. The implementation of the ISC policy is moreover guaranteed in the individual plans of the eight risk categories. Finally, monitoring of the application and follow-up of ISC policy will be improved, among other things by enhancing coherence between the various instruments and by identifying and implementing clear and actionable Key Performance Indictors (KPIs) in already existing instruments.

LINE OF ACTION 2: Expand the application of ISCs

In addition to the compulsory application of international social conditions in public procurement contracts above the European threshold, the government also encourages the voluntary application of ISCs in other procurement processes. BZ, BZK and SZW will take a leading role in the application of ISC policy in all public procurement, both generic and specific. Alongside actions aimed at stimulating the voluntary application of international social conditions, the government plans to carry out two studies into the feasibility and desirability of an expansion of the ISC policy framework. Finally, it will initiate campaigns to inform various actors about compulsory and voluntary application of ISCs in central government public procurement.

LINE OF ACTION 3: Improve policy coherence

This includes both administrative and substantive improvements. For example, central government website content should be consistent in its message about legislation and procurement policy. Other points of focus include how ISC procurement policy relates to the approach set out in the UNGPs and to due diligence policy as set out in the OECD Guidelines. Existing documents on ISC policy such as guidelines and specifications will, where possible, be brought in line with the OECD Guidelines for Multinational Enterprises and the UNGPs. Furthermore, subnational authorities will be encouraged to apply ISCs via buyer groups in which public and private contracting authorities collaborate on a shared vision and strategy to improve the sustainability of a specific product category.

Although the ISC implementation plan relates specifically to central government public procurement, instruments promoting the application of ISCs will be made broadly available. This will stimulate the application of ISCs by subnational authorities and ensure that the implementation agenda is consistent with the ambitions formulated in the National Plan on Sustainable Public Procurement for 2021-2025. Progress on the ISC implementation plan will be noted each year in the Central Government Operational Management Annual Report.

Under the National Plan on Sustainable Public Procurement, central government commits to maintaining the SPP desk at the PIANOo Public Procurement Expertise Centre, to maintaining and developing the SPP criteria tool, to establishing a special ISC Procurement Academy and to providing access to an SPP self-evaluation tool to help procurement services implement and monitor sustainable procurement. It has also published a guide to monitoring and assuring SPP. The government is drawing up a new SPP Manifesto for 2022-2025 to encourage sustainable commissioning and procurement, including ISCs, by government bodies and other parties. The buyer groups mentioned above also often apply ISCs.

A human rights platform for municipalities was set up in 2021 as a result of the National Action Plan on Human Rights. The platform enables municipalities to include business and human rights considerations in their procurement processes.” PP. 31, 33.

p. 34

Read more about Netherlands

The Nigeria NAP provides a list of existing constitutional obligations, domestic legislation, internation obligations, and police and administrative steps. This breakdown only looks at the list of challenges and the implementation of the 3 pillars of the UNGPs.

PILLAR 1 – STATE DUTY TO PROTECT HUMAN RIGHTS
ACTIONABLE ITEMS
B. LEGLISLATION AND POLICIES
“The Federal Government of Nigeria and all state governments to include in all contracts, Memoranda of Understanding and other business-related policy documents, a clause that clearly spells out the human rights obligations of the parities including possible sanctions for violations.”

PILLAR 2 – CORPORATE RESPONSIBILITY TO RESPECT HUMAN RIGHTS
ACTIONABLE ITEMS
B. DUE DILIGENCE FOR HUMAN RIGHTS
“…Where a state directly engages in business, government assumes dual roles- i.e. the International Human Rights obligation to Protect is retained; and having delved into business, it also has additional obligation to Respect Human Rights from a corporate perspective.” (p.162)

Read more about Nigeria

2. The State duty to protect human rights

2.5 Public procurement [page 25]:

“The sixth principle deals with public procurement:

6. States should promote respect for human rights by business enterprises with which they conduct commercial transactions.

Since the UN Guiding Principles and the OECD Guidelines do not distinguish between public-sector and private-sector business conduct, it is important that the state should have high standards. It is not logical to have high expectations of private companies if the state does not set the same expectations for itself. The state is also Norway’s largest purchaser, a fact that was emphasized by companies and organisations in their input to the action plan. For example, in 2013 the public sector purchased goods and services worth NOK 432 billion. The state’s procurement practices should therefore reflect the UN Guiding Principles.

The Government has held a public consultation on a proposed amendment to section 6 of the Procurement Act to include a provision stating that contracting authorities should have adequate procedures for ensuring social responsibility in connection with public procurement. The Agency for Public Management and eGovernment (DIFI) provides guidance on such matters.

Measure:

• continue the efforts to develop measures to promote respect for international human rights in public contracts.

Read more about Norway

CHAPTER 3: National Action Plan Priority Areas and Proposed Actions

3.2. NAP Priority Areas

3.2.1. Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 18)

‘Public procurement in Pakistan is governed by various legislative instruments and the entire process is managed by the Public Procurement Regulatory Authority. Implementation of human rights standards in the context of business operations can be encouraged in public procurement processes by requiring evidence of demonstrable respect for human rights as part of the bid. In addition to this, financial transparency of companies should also be considered a condition for the approval of a bid.’

Proposed Actions

• Federal (pages 18-19)

‘10. Review and update the Public Procurement Regulatory Authority Rules to incorporate human rights due diligence as a key criterion in the bidding and evaluation process, and give preference to businesses that demonstrate actions taken to meet their human rights obligations.

Performance indicator(s): (i) Updated rules incorporating human rights due diligence

UN Guiding Principle(s): 1, 2, 3, 4, 5, 6, 8, 9

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 9 – Industry, Innovation, and Infrastructure; Goal 16 – Peace, Justice and Strong Institutions’

This information is also covered under Annex 1: Implementation Plan, Proposed Action 10 designating the Ministry of Law and Justice, the Ministry of Human Rights, the Public Procurement Regulatory Authority as Leading Entities, and designating the Provincial Law Departments; Provincial Human Rights Departments; Ministry of Commerce; Provincial Commerce Departments; Ministry of Industries and Production; Provincial Industries & Production Departments; Federal Cabinet; Provincial Governments; NGOs & INGOs with relevant expertise on public procurement; legal experts as Additional Entities (page 46).

‘11. Develop a model Code of Conduct, making explicit the relationship between business and human rights, for businesses that are State owned, controlled or which work with the State.

Performance indicator(s): (i) Development of a Code of Conduct; (ii) Number of businesses to which the Code of Conduct is disseminated; (iii) Number of businesses that formally announce the adoption of Code of Conduct

UN Guiding Principle(s): 1, 2, 3, 4, 5, 6, 8, 9

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 9 – Industry, Innovation, and Infrastructure; Goal 16 – Peace, Justice and Strong Institutions’

This information is also covered under Annex 1: Implementation Plan, Proposed Action 11 designating the Ministry of Human Rights; Ministry of Industries and Production; Ministry of Commerce as Leading Entities, and designating the Ministry of Law & Justice; Ministry of Planning and Development; Provincial Human Rights Departments; Securities and Exchange Commission of Pakistan; Provincial Labour Departments as Additional Entities (page 47).

ANNEX II: Measures Already Undertaken by Pakistan

B | Measures Relevant to NAP Priority Areas

i. Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 73)

‘The Public Procurement Regulatory Authority has also been established at a Federal and Provincial level to assess procedures and take measures to improve governance, management, transparency, and accountability of all work related to public procurement. Should any changes require specific laws or rules, the Authority can recommend new laws and policies to the State to be enacted.’

Read more about Pakistan

Read more about Peru

11.Ministry of Foreign Affairs

Public procurement

[page 31]

“In the coming years, the MFA intends to uphold the current trend of supporting social policy through public procurement. Due to the entry into force – as of 1 January 2021 of the new law of 11 September 2019 – Public Procurement Law (Journal of Laws of 2021, items 1129 and 1598), the Ministry of Foreign Affairs amended the Regulations for the Award of Public Contracts at the Ministry of Foreign Affairs and the Guidelines for the Award of Public Contracts by Foreign Missions. It introduced, among other things, the obligation to prepare a needs and requirements analysis for contracts with a value equal to or exceeding the EU thresholds, taking into account social, environmental or innovative aspects of the contract.

In addition, the issues of the UN Guiding Principles are signalled during trainings for administrative and financial managers when discussing the description of the object of the contract and are included in the presentation.”

12. Public Procurement Office

The new Public Procurement Law (Journal of Laws of 2021, items 1129 and 1598)

[page 32-35]

“The new Public Procurement Law, which came into force on 1 January 2021 (Journal of Laws of 2021, items 1129 and 1598) introduces changes both in terms of existing instruments of a social nature, as well as completely new solutions aimed at increasing the extent to which social aspects are taken into account in the public procurement.

Among the new solutions in the Public Procurement Law, which – in addition to the regulations already existing in this respect – are aimed at supporting the implementation of social policy objectives within the framework of public procurement, the following, inter alia, should be mentioned:

• addition to the catalogue of rules for awarding public procurement contracts of the principle of economic efficiency (Article 17(1)), which means awarding a contract in a manner ensuring both the best quality of the subject-matter of the contract given the funds which the contracting body may allocate to its performance, as well as the best relation of expenditures to effects, including those of social, environmental and economic nature;

• obligation to conduct a needs and requirements analysis before launching the procedure, taking into account the type and value of the contract. As part of the analysis, under Article 83 of the new Public Procurement Law, the contracting body should also indicate the possibility of considering the social, environmental or innovative aspects of the contract;

• introduction of a legal basis for the creation of the state purchasing policy as a tool for implementing the state economic policy. Under the new Public Procurement Law (Article 21), the state purchasing policy defines the state’s priorities in the field of public procurement, as well as the desired direction of activities for contracting authorities with respect to awarding contracts, which includes in particular the purchase of innovative or sustainable products and services, taking into account, among others, corporate social responsibility and the use of social aspects.

The new Public Procurement Law also includes solutions of a social nature that were provided for in the existing public procurement legislation as well. Based on the experience of previous years, these regulations were simplified and made more precise so as to allow for an even better implementation of social policy objectives. These are as follows:”

• Article 94, according to which the contracting body may stipulate in the contract notice that only economic operators having the status of a sheltered workshops, social cooperatives and other economic operators whose main purpose or main purpose of the activities of their organisational units that will perform the contract is the social and professional integration of socially marginalised persons, in particular persons with disabilities, the unemployed, jobseekers, who do not remain in employment or do not perform gainful employment, to-be self-reliant persons, persons deprived of liberty or released from prisons, persons with mental disorders, homeless persons, persons who have obtained refugee status or subsidiary protection in the Republic of Poland, persons under the age of 30 and over 50 years of age with job-seeker status, without employment and persons who are members of disadvantaged minorities, in particular members of national and ethnic minorities pursuant to the regulations on national and ethnic minorities and on regional language or persons who are members of groups that are otherwise socially marginalised, provided that the percentage of employment of persons belonging to one or more of the aforesaid categories is not less than 30% of the persons employed by the economic operator or in its unit that will perform the contract,

• Article 95, according to which the contracting body shall specify in the contract notice or procurement documents for service or construction works the contract performance requirements related to employment by the economic operator or subcontractor under an employment contract of persons performing activities within the contract performance, specified by the contracting body, if the performance of these activities involves the performance of the work in a manner specified in Article 22 § 1 of the Act of 26 June 1974 – the Labour Code.

• Article 96, which provides for the possibility for the contracting body to specify in the contract notice or procurement documents contract performance requirements, which may include, among others, aspects related to employment of the unemployed, jobseekers, who do not remain in employment or do not perform other gainful employment, to-be self-reliant persons, adolescents, persons with disabilities or persons from other groups indicated in the provisions on social employment. These requirements may also cover other social aspects such as the promotion of decent work, respect for human rights and labour law, support for social inclusion (including of persons with disabilities), the social economy and SMEs, the promotion of equal opportunities and the principle of ‘accessible and designed for all’, including sustainable criteria along with consideration of fair and ethical trade”

• Article 104 on the possibility of direct reference by the contracting body to a specific label in the description of the subject-matter of the contract, the description of the contract award criteria or in the contract performance requirements in order to highlight the specific characteristics of the contract (including social ones). Labels by means of which contracting bodies may specify requirements connected with the pursuit of social objectives in the description of the subject-matter of the contract, the contract award criteria and the contract performance requirements , in the criteria on which their award to certain products and services is based, refer, inter alia, to compliance with social and economic rights, such as guaranteeing adequate remuneration for work, protecting women’s rights and combating discrimination against them (equal pay, participation in decision-making), prohibition of forced labour and non-use of child labour, freedom of association, health and safety at work, contribution to the development of local communities. Said right of the contracting body is subject to the cumulative fulfilment of the conditions set out in Article 104 of the PPL,

• Article 100 concerning the requirement to draft the description of the subject-matter of the contract taking into account accessibility requirements for persons with disabilities and design for all users, unless this is not justified by the nature of the subject-matter of the contract,

• Article 108(1), concerning the obligation to exclude from public procurement procedures economic operators who have been the subjects of a conviction for trafficking in human beings

• Article 224(3) which provides that one of the elements that the contracting body shall examine in the event that the offered price or cost, or their essential components, appear to be abnormally low in relation to the subject-matter of the contract or raise doubts of the contracting body as to performance of the subject-matter of the contract, is the compliance of the tender with labour law and social security provisions applicable in the place where the contract is performed. At the same time, the value of labour costs used by the economic operator for determining the price shall not be lower than the minimum wage for work specified under the provisions on minimum wage,

• Article 242, which indicates that non-price contract award criteria used by the contracting body to select the most advantageous tender may be quality criteria, including functional characteristics such as accessibility for persons with disabilities or responding to user needs, as well as social aspects, including the social and occupational integration of disadvantaged persons.

Given the entry into force of the new Public Procurement Law, the Public Procurement Office plans to organise a series of trainings and conferences devoted to social public procurement, where the above solutions, along with issues related to social public procurement, will be discussed. The Public Procurement Office plans also to prepare publications and materials that will not only cover the 35 relevant regulations, but will also contain practical examples of their application, as well as model documents to support contracting bodies in correct application of social instruments provided for in the Public Procurement Law.

These activities will be carried out by the Public Procurement Office with the participation of the funds from the European Social Fund under the project ‘Professionalization of human resources in the public procurement’ (Operational Programme Knowledge Education Development, Priority Axis II: Effective public policies for the labour market, economy and education, Measure 2.18: High quality administration services).”

Appendix 2 (information of the Ministry of Foreign Affairs)

GOOD PRACTICE CATALOGUE FOR FOREIGN MISSIONS IN THE FIELD OF BUSINESS AND HUMAN RIGHTS

[page 48]

Recommendations

“In their activities supporting Polish entrepreneurs, public procurement and development aid projects implementation, Polish foreign missions are guided by the following principles requiring them to:”

(…)

“- in the implementation of public procurement, actively apply the provisions of the ‘Public Procurement Law’ relating to the adherence to social aspects;

– in the implementation of public procurement, take into account the so-called sustainable procurement criteria in  order to integrate requirements, specifications and criteria ensuring environmental protection, social progress, and support for economic development”

Read more about Poland

The state’s expectations of business enterprises

Several new legal provisions proactively ensure the strengthening of respect for human rights in business, which involves… considering environmental, social and labour law aspects in public procurement. (pg. 7)

Principle 2 – States sets expectation for respecting human rights

The Public Procurement Act, entered into force in April 2016, provides for solutions to make public procurement simpler, more flexible and more efficient, and places a greater emphasis on some aspects of social and environmental policies. (pg. 10)

Such amendments introduce principles relating to the environment and social integration, as well as ensuring respect for rights arising from the legislation in force, thus promoting, in the context of public procurement, the social and environmental responsibility of enterprises and helping them to consolidate their standing in the market. (pg. 10)

Principle 3d – Planned Measures – Environment

In accordance with the Framework Programme for the Transition to a Green Economy, the Slovenian Government will focus on further activities for developing and interconnecting green economy policies. The focus will be placed on… green public procurement and green budget reform; sustainable urban development; public sector activities that may serve as models; education and training for the green economy; and green practice in agriculture. (pg. 22)

Principle 6 – Commercial transactions between states and businesses

The State may enter business relations with economic operators also through public procurement activities. Public procurement is thus an important tool for pursuing and achieving the objectives of secondary policies, such as environmental, social and sustainable policies. In this vein, the Public Procurement Act, which entered into force on 1 April 2016 and follows the EU law in this field, puts special emphasis on the various aspects of social and environmental policies. (pg. 26)

As one of the fundamental principles of public procurement, the Act includes the horizontal social clause, which requires economic operators, when implementing public contracts, to observe obligations under EU environmental, social and labour law, regulations in force in Member States, collective agreements and international law. (pg. 26)

In the amended Public Procurement Act (ZJN-3A),  which took effect on 1 November 2018, when the contracting authority is informed that the court, by a final decision, determines violations of labour, environmental or social law on the part of the contractor or any of the subcontractors, or when the contracting authority is informed that, during the implementation of the contract, the competent state authority determined, on the part of the contractor or any of the subcontractors, at least two violations related to wages, working hours, rest periods, work on the basis of civil-law contracts despite evident elements of employment relationship or illegal employment for which, by a final decision or multiple final decisions, a fine for a minor offence has been imposed. (pg. 26-27)

The Act also specifically stipulates that the contracting authority must take into consideration the principles of socially responsible public procurement by including measures related to social aspects. Social inclusion is also promoted by the possibility of reserved contracts, whereby the contracting authority may reserve the right of participation in public procurement procedures for certain economic operators, e.g. sheltered workshops, job centres and social enterprises employing disadvantaged workers. (pg. 27)

In Slovenia, green public procurement has been mandatory since 2011; the amended Act stipulates in what cases green public procurement is mandatory, which environmental aspects must be taken into consideration by contracting authorities when publishing calls for applications, and which objectives must be achieved by the contracting authority regarding every public contract. (pg. 27)

In public procurement, special attention is also devoted to the subcontracting chain, the transparency of which must be ensured by the main contractor. (pg. 27)

Principle 6 – Planned Measures

Slovenia will promote the achievement of the goals set by labour, social and environmental policies, also through the instrument of public procurement, and strive for accelerated and effective implementation of regulatory provisions. (pg. 28)

Slovenia will implement awareness-raising activities and training in the inclusion of social and environmental aspects in public procurement procedures and will continue to provide a single point of contact, the so-called Helpdesk, which will offer professional assistance to contracting authorities and economic operators participating or interested in public procurement procedures. (pg. 28)

The single point of contact has already been established and has been functional at the Public Procurement Directorate at the Ministry of Public Administration of the Republic of Slovenia since 15 September 2016. (pg. 28-29)

Slovenia will continue to update its structures in the field of green public procurement and keep adapting them to technological advances and the situation in the market. (pg. 29)

Read more about Slovenia

C. Current Status

1. Domestic Status [page 3]

• Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.
  * Article 3-2 (Encouraging Social Responsibility)
  The administrator of the Public Procurement Service may reflect social and environmental values such as environment, human rights, labor, employment, fair trade, and consumer protection in the procurement process to encourage corporate social responsibility.

…

2. Implementation of the Second NAP [page 4]

• Promotion of social responsibility, including respect for human rights in managerial activities
  – Revision of 「Procurement Business Act」 and addition of an article promoting corporate social responsibility on January 2016.

…

D. Tasks for the Third NAP

Institutionalization of Human Rights Management

3. Public procurement considering social responsibility [page 5]

• Revise related institutions and bylaws with newly organized clause in 「Government Procurement Act」 which promotes social responsibility.
• Highly recommend to apply the guidelines which reflects the corporate social responsibility
  – Give additional credit points to companies which are ‘female·disabled friendly companies’ and which offer work-learning dual program following the guidelines of qualification examination on goods purchase(Public Procurement Guidelines).
  – Give additional 10% point on management condition mark when female·disabled friendly companies or social enterprises record construction ratio over 30% according to detailed guidelines of qualification examination on facility construction(Public Procurement guidelines).

Read more about South Korea

Guiding Principle 5

Measure 1

“The Public Administrations will exercise an adequate supervision of the possible impact on human rights when contracting the services of companies, both within and outside of Spanish territory. This supervision must take into account the criteria of the specialized institutions, in accordance with the application of the Spanish CSR Strategy.”

Guiding Principle 6

Measure 1

“The Government will examine how to apply criteria aligned with the Guiding Principles in relation to Royal Legislative Decree 3/2011, of November 14, which approves the revised text of the Public Sector Contracts Law, the Law 16 24/2011 , of 1 August, of contracts of the public sector in the fields of defense and security, and other regulations in force in the same field..”

Measure 2

“The Government will ensure strict respect for human rights by companies in commercial transactions with other companies, establishing the necessary measures so as to: not discriminate against SMEs; respect the provisions of the Treaty of the EU on non-discrimination; equal treatment and transparency: and no administrative charges are to be added to contracting authorities or companies.”

Read more about Spain

Annex: Measures planned [page 27-28]

Regulations and legislation

“The EU has adopted new procurement directives: a Directive on public procurement, a Directive on procurement by entities operating in the water, energy, transport and postal services sectors, and a Directive on the award of concession contracts. The recitals of the Directives expressly state that the contracting authorities or entities in their contracts can require suppliers, in the performance of the contract, to comply in substance with the provisions of the basic International Labour Organisation (ILO) Conventions. Such conditions might also be intended to favour the implementation of measures for the promotion of equality of women and men at work, the increased participation of women in the labour market and the reconciliation of work and private life, the protection of the environment or the recruitment of more disadvantaged persons than are required under national legislation. Furthermore, the new directives prescribe that the contracting authorities or entities exclude tenderers who have been found guilty in a definitive judgment of crimes including child labour and other forms of human trafficking in accordance with Directive 2011/36/EU. The Directives are to be transposed into national law by April 2016.”

Read more about Sweden

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Given the federal government’s direct influence on the activities of federal government-associated businesses, it has a particular obligation to ensure that these companies respect human rights, for example by conducting human rights due diligence. It also expects federal government-associated businesses to have in place human rights best practices.

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

Guiding Principle 6

The federal government is committed to ensuring that the value chains of goods purchased by the public sector are free of human rights abuses. It promotes respect for human rights by business enterprises with which they conduct commercial transactions.

Measure 12: Criteria under the core ILO conventions in public procurement at federal level

The Federal Council attaches great importance to sustainable public procurement practices. Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA) and the Ordinance on Public Procurement (PPO). The PPA stipulates that the federal government must, as a minimum, monitor compliance with the core ILO conventions where goods and services are to be supplied abroad. The contracting authority may require bidders to comply with other core international labour standards, provide proof of compliance, and agree to audits.

The Public Procurement Act is currently being revised in line with changes to the WTO Agreement on Government Procurement (GPA) 2012. The PPA (as amended) will include all three pillars of sustainability – economic, environmental and social. Accordingly, the principle of sustainable public procurement will govern the interpretation and implementation of the PPA and the PPO. In its recommendations on sustainable procurement, the Federal Procurement Conference specifically calls for social, environmental and economic factors to be taken into account, including the human rights criteria covered by the core ILO conventions. It also recommends that sustainability criteria be reflected in award procedures.

The federal government will also explore the option of creating a national platform to promote sustainable public procurement practices and facilitate information-sharing between the different levels of government.

Read more about Switzerland

III. The State duty to protect human rights

B. Actions taken

• Promoting human rights through government procurement operations (page 8)

‘Taiwan has implemented regulations that include such measures, including the “Government Procurement Act,” “Resource Recycling Act,” “Statute for Industrial Innovation,” “Greenhouse Gas Reduction and Management Act,” and “Indigenous Peoples Employment Rights Protection Act.” All these acts prohibit discrimination, encourage green purchasing, and promote environmental protection.

In addition, the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP5, Actions taken (page 44).

• Government procurement (pages 24-26)

Taiwan has implemented regulations with such measures, including the following;

Article 101, paragraph 1, subparagraph 14 of the “Government Procurement Act” provides that where the supplier discriminates on the basis of gender, aboriginal status, physical or mental disability, or status as the member of a disadvantaged group, where the details of the discrimination are particularly serious, it will be published in the Government Procurement Gazette and the supplier shall not be allowed to bid on a government contract (or be a sub-contractor) for one year.

Article 26-1 of the “Government Procurement Act” stipulates that an entity may prescribe technical specifications in accordance with Article 26 to promote the conservation of natural resources and protection of environment, and adopt related measures to save energy, save resources, and reduce greenhouse gas emissions. Increases in project expenditures or technical service fees, if any, shall be incorporated into the project budget for approval when preparing the technical specifications or measures.

Article 96 of the “Government Procurement Act” stipulates that an entity may provide in tender documentation that preference shall be given to a product with the government-recognized Green Mark.

Article 22 of the “Resource Recycling Act” stipulates that all Taiwan government agencies, public schools, public enterprises and organizations, and military authorities shall preferentially procure government-recognized environmentally preferable products, and that the central competent authority and all industry-specific authorities shall perform promotion activities for environmentally preferable products.

Article 27, paragraph 1 of the “Statute for Industrial Innovation” stipulates that central government authorities shall encourage government agencies/organizations and enterprises to purchase green products and services.

Article 25 of the “Greenhouse Gas Reduction and Management Act” stipulates that all levels of government, public education institutions, and government-run enterprises shall promote energy saving and use energy-efficient products or services to reduce GHG emissions.

Article 98 of the “Government Procurement Act” stipulates that for a winning tenderer which employs more than 100 persons locally, aborigines or persons with physical or mental disabilities shall account for a minimum of two percent of the total number of employees during the term of contract performance; otherwise, the foregoing tenderer shall pay a fee in lieu of performance and shall not hire foreign workers to make up the shortage in question.

Article 12 of the “Indigenous Peoples Employment Rights Protection Act” stipulates as follows:

“I. Companies winning bids according to the Government Procurement Act with more than one hundred staff shall hire indigenous people during the term of contract performance, with the total number of indigenous people accounting for no less than one percent (1%) of the total number of working staff thereof.

II. The indigenous people hired according to the provision in the previous section shall receive pre-job training before commencement of their work; training fees shall be subsidized by the government; the conditions, duration and amount of subsidies shall be determined by the competent authority for labor issues in the central government.

III. In the event that the winning bidder fails to hire enough indigenous people based on the requirement set out in paragraph I above, it shall make a cash payment to the employment fund of the Aboriginal Comprehensive Development Fund.”

Article 70 of the “Government Procurement Act” stipulates that an entity conducting a procurement procedure for construction work shall stipulate the responsibility of the supplier for quality control, environmental protection, as well as workplace safety and hygiene, and shall also establish inspection procedures and standards for the major items of the construction work.

Article 70-1 of the “Government Procurement Act” stipulates that in conducting the planning or design of a construction project, an entity shall analyze the potential construction hazards with an eye to the scale and characteristics of the construction project, prepare the drawings and specifications related to safety and health in accordance with the “Occupational Safety and Health Act” and its secondary regulations, and quantify related safety and health expenditures. Such information, and the requirements of the supplier to arrange or take necessary preventive equipment or measures, shall be included in the governmental tender documentation at the bidding stage. Where an occupational accident occurs at the construction site due to lack (or poor quality) of safety and health equipment or facilities as required by regulations or contract, the supplier shall not only be punished pursuant to the “Occupational Safety and Health Act” and its secondary regulations, but shall also be dealt with according to the “Government Procurement Act” and the contractual provisions.

In addition, the Public Construction Commission’s Procurement Evaluation Committee scoring tables for bidders shall include CSR indicators, such as “whether all employees have received pay increases,” “the quality of basic compensation received by procurement officers,” and “the quality of work/life balance measures.”’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP6, Actions taken (page 45).

Read more about Taiwan

3. The core content of the National Action Plan on Business and Human Rights

3.1 Action plan on labour

3.1.2 Challenges

• Public procurement: The Public Procurement and Supplies Management Act 2017 should be amended by requiring the state to examine human rights protection of business organizations and state-owned enterprises that benefit from government procurement, including consideration of adding respect and protection of human rights in the law and government procurement contracts for the business sector and state enterprises.

3.4 Action Plan on Cross Border Investment and Multinational Enterprises

3.4.3 Action Plan (2019–2022)

Pillar 1: State duties in protecting (Protect)

Read more about Thailand

CHAPTER FOUR: STRATEGIES AND INTERVENTIONS STRATEGIES

(…)

OBJECTIVE 4: To promote social inclusion and rights of the vulnerable and marginalized individuals and groups in business operations.

(…)

4.4.2 Engagement of business operators on human rights

Require human rights due diligence by businesses through comprehensive human rights impact assessments involving meaningful consultation with potentially affected groups, including consideration of gendered impacts of operations and covering value and supply chains.

1. Promote responsible sourcing practices and certification.

Read more about Uganda

The UK 2016 NAP highlights the report on “Public Procurement and Human Rights” launched by The Northern Ireland Human Rights Commission. [page 5]

The UK 2016 NAP, in the Government Commitments section [page 10], states:

“The Government will do the following to reinforce its implementation of its commitments under Pillar 1 of the UNGPs: (…) Continue to ensure that UK Government procurement rules allow for human rights-related matters to be reflected in the procurement of public goods, works and services, taking into account the 2014 EU Public Procurement Directives and Crown Commercial Service guidance on compliance with wider international obligations when letting public contracts. In addition, UK public bodies are required to have due regard for equality-related issues in their procurement activity.”

The UK 2016 NAP further highlights that [page 17]:

“The [Equality and Human Rights] Commission is working with the Institute of Human Rights and Business to publish guidance in early 2016 for UK businesses in the care and private security sectors. The guidance will include an assessment of the main human rights impacts in each sector and practical guidance for managers in areas such as human resources, operational delivery and procurement.”

Read more about United Kingdom

Section II: Priority Areas of the National Action Plan on Responsible Business Conduct
…

“2. Priority Area (2) Strengthening Respect for Human Rights in Federal Procurement Policies and Processes: […] Through this NAP, the USG commits to strengthen implementation of the existing regulations that prohibit human trafficking, trafficking-related activity, and forced or indentured child labor. To better identify violations of these prohibitions in the FAR, the USG will complete a review of reporting mechanisms as set forth in priority action 4.4.7 of the NAP to Combat Human Trafficking and will thereafter identify options for improving methods through which workers and civil society can inform the USG of human trafficking violations by federal contractors and subcontractors. In addition, State will pilot a new human trafficking risk mapping process for high-risk and high-volume contracts to assist the acquisition workforce as well as federal contractors to conduct greater due diligence during project design, solicitation, and monitoring.” (p.11-12)

Section III: Additional National Action Plan Commitments
…

Procurement (p.18-20)

“The USG has immense leverage to incentivize RBC through its procurement processes. U.S. prohibitions on human trafficking and child labor in federal supply chains have been pivotal to the effort to prevent U.S. taxpayer dollars from enabling human and labor rights abuses. The following commitments strengthen implementation of these regulations and expand areas through which the USG may be able to promote and incentivize RBC by government contractors and subcontractors.

Table 2: Procurement Commitments

• State’s Office to Monitor and Combat Trafficking in Persons and the Bureau of Overseas Building Operations will partner together to pilot a new human trafficking risk mapping process for acquisition personnel aimed at assessing and preventing risks during the design, solicitation, and monitoring of State construction contracts. Learnings will be used to apply to broader procurement efforts within State, especially contracts of high risk and high volume, and will be shared with the interagency.
• The U.S. Department of Defense (DoD) will conduct a review to evaluate the value of encouraging or requiring membership in the International Code of Conduct Association for Private Security Providers’ Association for its private security company (PSC) vendors as part of its commitment to continuously reviewing, updating, and strengthening its policy and oversight for contracted private security functions. While DoD already has a third-party certification requirement in place for its private security contractors, ongoing evaluation and review of options will ensure DoD continues to uphold its commitment to strengthening PSC oversight structures and incentivizing PSCs to engage in RBC.
• The U.S. Department of Homeland Security (DHS), CBP will draft guidance to direct the proactive consideration on a case-by-case basis, suspension and debarment whenever CBP issues a penalty under the customs laws for repeated violations of 19 U.S.C. § 1307 or other laws CBP enforces to combat forced labor. The guidance will also encourage consideration of suspension and debarment on a case-by-case basis when CBP issues withhold release orders (WROs) or Findings against entities or individuals. Suspension and debarment actions prevent agencies from contracting or engaging in other covered transactions directly with an entity or individual who is not presently responsible to do business with the federal government. Suspension and debarment also prevents contractors already in the federal marketplace from subcontracting with excluded entities.
• The Federal Acquisition Regulatory Council, consisting of the Office of Federal Procurement Policy, the General Services Administration, DoD, and the National Aeronautics and Space Administration, will consider regulatory changes to reduce or eliminate the ability of federal contractors to contract with subcontractors who have been debarred, suspended, or proposed for debarment. FAR 9.4052(b)’s $35,000 exemption threshold for subcontracting with contractors debarred, suspended, or proposed for debarment will be reviewed. In conjunction with increased consideration of suspension or debarment for entities subject to WROs, regulatory changes may not only help ensure entities subject to WROs take corrective action but will also help prevent items made with forced labor from being procured with federal dollars.
• Labor’s Bureau of International Labor Affairs (ILAB) will make it easier for contractors to identify “high-risk” sectors for federal contracts by standardizing naming conventions between their lists and those in the FAR and improving access for contractors to a designated ILAB webpage with information about USG resources, including ILAB’s child labor and forced labor reports. The technical amendment will harmonize naming conventions between the FAR and DOL to eliminate confusion. The webpage will make information more accessible to those in the contracting and procurement communities.
• ILAB will map the “List of Goods Produced by Child Labor or Forced Labor” to Product Service Codes (PSC) and country information to increase use by the acquisition workforce. DOL maintains the “List of Goods Produced by Child Labor or Forced Labor” to raise public awareness about forced labor and child labor around the world and to promote efforts to combat them; it is not intended to be punitive, but rather to serve as a catalyst for more strategic and focused coordination and collaboration among those working to address these problems. Mapping the named products to PSC will facilitate analysis of procurement data by country of origin and additional protections, such as those outlined in M-20-01, Anti-Trafficking Risk Management Best Practices & Mitigation Considerations, and could be imposed in awards with heightened risk of forced labor issues.
• INL, in partnership with the OECD and under the GPS, will increase integrity in public supply chains by developing a best practice toolbox built on OECD standards for risk-based due diligence, public procurement, and integrity. This toolbox will bring together suppliers, public buyers, and integrity public officials in a trustworthy environment to define practical steps businesses and governments can take to increase integrity in supply chains.
• The Senior Policy Operating Group’s Procurement & Supply Chains Committee will facilitate the production of a video informing workers of their rights under federal government contracts and subcontracts, with information about where and how to report violations.
• The Hotlines Working Group chaired by the Department of Health and Human Services (HHS), DHS, and the Department of Justice will coordinate within the interagency to identify options for improving methods through which workers and civil society can inform the USG of potential human trafficking violations in federal contracts after completing its ongoing review of reporting mechanisms as set forth in Priority Action 4.4.7 of the NAP to Combat Human Trafficking.
• HHS will work with industry partners, civil society, unions, individuals with lived experience, and other subject matter experts to develop and make available a suite of sector-specific tools, including online training, recommendations, model policies, and a resource portal, to prevent forced labor, human trafficking, and related practices in the supply chains (including purchased services) of U.S. health systems and public health institutions, pursuant to the Trafficking Victims Protection Act of 2000 (TVPA), as amended by the National Defense Authorization Act for Fiscal Year 2013, and Federal Acquisition Regulation Subparts 22.15 and 22.17.”

Table 4: Technology Commitments

The US Agency for International Development will “launch a five-year Advancing Digital Democracy (ADD) program in 2024. The program will strengthen rights-respecting digital ecosystems to promote the use of technology and data to advance rather than undermine democratic values and human rights. A key objective for ADD is to increase the extent to which human rights considerations are embedded in the design, development, deployment, use, and procurement of digital technologies.”

The Department of State will “internationalize efforts related to responsible government design, development, use, procurement, and deployment of AI through multistakeholder and multilateral initiatives. State will engage with the Freedom Online Coalition (FOC) to develop a pledge on responsible government development, use, and procurement of AI and will work with FOC members to develop new workstreams to promote knowledge-sharing among member governments to operationalize responsible AI principles.”

(p.26)

Read more about United States

II. TASKS AND ACTIONS

2. Policy and law improvement

a. In investment

– Reviewing, studying and proposing to improve the guiding instruments of the Law on Bidding (amended) to promote RBP in public procurement.

– Lead agency: Ministry of Planning and Investment

– Coordinating agencies: Ministries, ministerial-level agencies, other relevant agencies

– Outputs: the guiding documents of the Law on Bidding (amended)

– Deadline: 2024

Read more about Vietnam