Transparency

Transparency is a core principle of public procurement. In NATO procurement, the procurement manual defines it as “unimpeded visibility”. Procurement activities must be open to scrutiny, and the procedures used to buy goods and services must be openly advertised to prospective bidders.

The principle exists because NATO procurement uses and accounts for the funds of member countries. Contractors are entitled to timely, accessible and accurate information, and that entitlement is limited only by commercial confidentiality. For suppliers, transparency is the reason a solicitation spells out what the customer needs and how the buy will be run. The definition comes from NATO's procurement manual.

How NATO defines unimpeded visibility

NATO's procurement manual treats transparency as a practical requirement, not a general aim. Procedures must be openly advertised before and during solicitation. Contractors must be given information that is timely, accessible and accurate. The manual also recognises that some information cannot be shared, so the duty to inform operates within the limits of commercial confidentiality.

A UK Government procurement source describes the same idea as access to clear, precise and accurate information that is understandable to all, and it ties transparency to scrutiny of public spending. That guidance shows how closely transparency and public scrutiny are linked.

Transparency from planning to execution

NATO's procurement policy requires procurement authorities to ensure transparency at all stages, from planning through to execution. It is not limited to the moment a notice is published. The policy also requires solicitation documents to describe the customer's needs clearly and to state the applicable procurement procedure. A bidder reading a solicitation should be able to tell what is being bought and which rules govern the competition. The requirements are set out in NATO's procurement policy.

Internal and external scrutiny

NATO's procurement system is subject to two kinds of scrutiny, and transparency is what makes both possible.

• Internal scrutiny is carried out by auditors and compliance personnel.
• External scrutiny is carried out by member states, the International Board of Auditors, the press and other observers.

Because outside parties can review procurement activity, the record of how a buy was run must be visible and accurate. This is closely connected to accountability, which is the obligation to answer for how funds were spent.

Debriefings and commercial confidentiality

Transparency has limits, and NATO states them plainly. Its competitive-procurement procedure provides for post-award debriefings to unsuccessful bidders on request. The same procedure protects proprietary or competitively sensitive information, so a debriefing explains the outcome without exposing another bidder's confidential material. The procedure is described in NATO's procurement procedure.

What transparency means for a Canadian supplier bidding

A Canadian supplier responding to a NATO solicitation can rely on the following:

• The procedure is openly advertised, so the competition is visible before and during solicitation.
• The solicitation documents describe the customer's needs and the applicable procedure, so a bid team can build its response against stated requirements.
• Information provided to contractors is meant to be timely, accessible and accurate.
• An unsuccessful bidder can request a post-award debriefing.
• The bidder's own proprietary and competitively sensitive information is protected.

Bid teams should read the procedure and the solicitation documents closely, because those documents are where transparency is put into practice.