Latvia’s public-sector info and communication expertise (ICT) governance requires basic reform, with plans now underway to audit ICT procurement practices, increase the supervisory mandate of the Ministry of Good Administration and Regional Improvement (VARAM), and centralise key ICT assist capabilities, Minister for Good Administration and Regional Improvement Edgars Tavars and Deputy State Secretary for Digital Transformation Gatis Ozols introduced at a press convention.
The proposed audit will embody a evaluation of catalogues throughout the Digital Procurement System (EIS), measures to extend competitors, strengthen the state’s inner ICT capability, enhance entry to software program supply code, and introduce different reforms aimed toward rising effectivity and transparency.
Increasing VARAM’s oversight function is predicted to enhance the evaluation of procurement effectivity, introduce centralised danger monitoring, and improve transparency within the administration of state ICT investments.
Tavars said that the ICT sector inside Latvia’s public administration has been in “disarray” for at the very least the previous six years.
“This example has benefited many individuals, which is why
basic modifications are needed to maneuver in the direction of clear ICT governance
and a clearer procurement system,” the minister stated.
Probably the most important issues recognized, in accordance with Tavars, is that software program growth contracts have typically been procured primarily based on hourly charges reasonably than on the supply of concrete options and concepts. Consequently, one of many key goals of the reform will likely be to minimise using hourly-rate procurement fashions.
Ozols famous that state and municipal establishments have spent 452 million euros on ICT procurement over the previous two years. Roughly one-third of software program growth procurements have been primarily based on buying labour hours reasonably than competing options.
He additionally identified that round 60% of software program growth positions listed within the EIS catalogue entice solely restricted competitors.
Tavars additional defined that
ICT experience throughout the public sector is very fragmented, with specialists dispersed throughout quite a few establishments.
He acknowledged that the state can not afford to take care of top-level ICT experience in each particular person establishment and due to this fact wants cross-sector competence centres that may consolidate extremely certified specialists.
Based on info compiled by VARAM, 45 tasks price 160 million euros are being financed by way of the European Union’s Restoration and Resilience Facility between 2023 and 2026. As well as, 59 tasks price 156 million euros are being funded by way of the European Regional Improvement Fund for the 2021–2027 programming interval.
The minister pressured that tasks assessed as efficient and never dealing with important dangers of shedding funding will likely be allowed to proceed.
Total,
state and municipal establishments spent 175 million euros on ICT procurement in 2024,
of which 76% consisted of state procurement. In 2025, ICT procurement expenditure reached 277 million euros, with 85% financed from the state finances.
VARAM introduced that throughout the subsequent two weeks it can invite ICT trade associations, skilled organisations and different stakeholders to submit proposals for enhancing the governance and procurement system of public-sector ICT tasks.
These proposals will subsequently be evaluated and mentioned with trade representatives earlier than remaining suggestions are ready for the federal government.
The ministry plans to submit an info report containing particular reform proposals to the Cupboard of Ministers by the top of July.
A number of of the recognized measures are anticipated to be launched already through the third quarter of this yr
to make sure that enhancements in public ICT governance are launched as shortly as potential and ship long-term advantages for the administration of public digital investments.
As beforehand reported, Prime Minister Andris Kulbergs has imposed a 30-day moratorium on massive and dear ICT procurement tasks to evaluation their effectiveness and procurement procedures. The restrictions don’t apply to procurements valued under 142,000 euros.
Beneath the Prime Minister’s decision, the Ministry of Finance, along with VARAM and the Procurement Monitoring Bureau, should put together proposals for enhancing the Digital Procurement System with a view to improve competitors, improve worth and repair comparability, and cut back the event of pointless custom-made options when appropriate market-ready alternate options exist already.
On the similar time, VARAM, in cooperation with different establishments, has been tasked with getting ready proposals to enhance the governance and oversight of ICT tasks, bearing in mind suggestions issued by the State Audit Workplace.
Learn additionally: Latvia’s authorities change to value greater than half one million euros as cupboard seeks finances financial savings