making and saving deals in the global business environment: dispute resolution in public procurement...

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Making and Saving Deals in the Making and Saving Deals in the Global Business Environment: Global Business Environment: Dispute Resolution in Public Dispute Resolution in Public Procurement Procurement Hamline University School of Law- Dispute Hamline University School of Law- Dispute Resolution Institute Resolution Institute University of Rome - La Sapienza University of Rome - La Sapienza ADR Center ADR Center Presented by Jason P. Matechak Jason P. Matechak Rome, Italy Rome, Italy June 24, June 24, 2004 2004

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Page 1: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Making and Saving Deals in the Global Making and Saving Deals in the Global Business Environment:Business Environment:

Dispute Resolution in Public Dispute Resolution in Public ProcurementProcurement

Hamline University School of Law- Dispute Resolution InstituteHamline University School of Law- Dispute Resolution InstituteUniversity of Rome - La SapienzaUniversity of Rome - La Sapienza

ADR Center ADR Center

Presented by

Jason P. MatechakJason P. MatechakRome, ItalyRome, Italy

June 24, 2004June 24, 2004

Page 2: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Dispute Resolution in Public Procurement

Session Outline

1.What is Procurement in General?

2.Why is Procurement Different?

3.How do Procurement Disputes Arise?

4.What is the Role of ADR in Procurement?

Methodology

Page 3: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

What Is Public Sector Contracting?

General Overview

Procurement Principles

1.Fairness

2.Openness

3.Accountability

4.Value for Money

Page 4: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

How Public Sector Contracting Different From Commercial Contracting?

National Legal and Regulatory Overview

1. Socio-economic preferences

2. Domestic industry preferences – e.g., BAA/TAA

3. Foreign policy cudgel – (U.S. – Iraq)

4. Export and trade controls

5. Public corruption

6. Intellectual property/data rights

7. Sovereign rights

Page 5: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

How Public Sector Contracting Different From Commercial Contracting?

International Overlay

1. World Trade Organization GPA

2. Multilateral Development Banks (ADB/EBRD)

3. Supranational Harmonization (EU, NAFTA – Ch 10)

Page 6: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

How is Public Sector Dispute Resolution Different?

Sovereign Immunity

Mandated Procedures

Strict Standing Rules

Designated Forum

Page 7: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Overview of Procurement Disputes:

Bid Protests1. Hey, that’s my contract!

Claims1. You owe me money!

Termination, Debarment and Suspension1. You can’t fire me!

Audits and Investigations Where are you going with that gun in your hand?

Page 8: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Procurement Disputes: ADR

Bid Protests

Claims

Termination, Debarment and Suspension

Investigation and Audit

Page 9: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Procurement Disputes: Non-Party Actors

Media

Independent Watchdog groups

Freedom of Information

Whistleblowers

Page 10: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Procurement Dispute Issues

Legal Authorization to Conduct ADR

Pre-Dispute Resolution

Perception of Corruption

Confidentiality

1. Other Proceedings – Criminial.

2. Other Aspects – Knowledge, Not for truth of the matter asserted.

3. Enforcement – “Don’t smell that skunk.”

4. Sunshine Laws and Third Parties.

Page 11: Making and Saving Deals in the Global Business Environment: Dispute Resolution in Public Procurement Hamline University School of Law- Dispute Resolution

Making and Saving Deals in the Global Making and Saving Deals in the Global Business Environment:Business Environment:

Dispute Resolution in Public ProcurementDispute Resolution in Public Procurement

Jason P. Matechak, Esq.Jason P. Matechak, Esq.Reed Smith LLPReed Smith LLP

1301 K Street, N.W. 1301 K Street, N.W. Suite 1100 - East TowerSuite 1100 - East TowerWashington, D.C. 20005Washington, D.C. 20005

(202) 414-9224(202) [email protected]@reedsmith.com

www.reedsmith.comwww.reedsmith.com