E-Government Procurement - World Bank · Project Information Stakeholders: - Contracting Authorities - Central Procurement Agency (CPA) - Public Procurement Regulatory Commission

E-Government Procurement

Safet Hoxha

KosovoNovembar 2015

Project Information

Stakeholders: - Contracting Authorities

- Central Procurement Agency (CPA)

- Public Procurement Regulatory Commission (PPRC)

- Procurement Review Body (PRB)- Economic Operators- Public

Project start date: December 15th 2014

Project duration: 12 months

Development or customization of transactional modules for e-procurement system,

including ICT infrastructure and contract management information system

ITB No: PSMP/PPRC/1B2.1/2014-02/03

Project: Public Sector Modernization Project (PSMP)

Project No: IDA P101614

Purchaser: Ministry of Finance (MF) on Behalf of Public Procurement Regulatory Commission (PPRC)

Supplier: InfoDom d.o.o. Komtel Project Engineering

Business Trust Methodologies

B2B, B2G

High value transactions

Traditional business Online business

Vs

• Government procurement is 15%-20% GDP (OECD)

• Procurement account for 70% of budget (OECD)

• Links the public financial system with social and economic outcomes (World Bank)

• Poor procurement can result in infrastructure that reduces national growth - investment becomes a disinvestment (IMF)

• Procurement saving of 1% equals about €10Million / year for Kosovo

• Expect e-Procurement to yield 5%-20% savings

Why e-Procurement is Important

EFFECTIVENESSEfficiency

Informed ManagementValue-for-money

ECONOMIC DEVELOPMENTCompetitiveness

Technological EnablementMarket Access

GOVERNANCETransparency

AccountabilityPublic Confidence

E-GP

Countries Begin with Different Goals

Electronic Public Procurement Platform

Main modules

Central registration

Dashboard (BAM)

e-Tendering e-Complaints

Central Procurement

Framework Agreements

e-Contract e-PMISAudit trails

e-Reverse Auction

e-Quotinge-Auctionweb services

(tax registry,eID)

The Hardware and software inventory :

Disaster Recovery (DR) Site:Production Site:

Key Performance Indicators -

Examples

Base line Evaluation Criteria

Percentage of notices

publicized electronically

compared with baseline

(number & value) – after 6,

12

months

6 months pilot

By Agency:

Ratio of Total no. of Electronic

tenders to Total number of

Tenders in Pilot entities by the end

of Pilot phase

12 months roll out Ratio of Total

number of Electronic tenders to

Total number of Tenders in Pilot

entities by the end of Pilot phase

If ratio is less than

50% then strategy

has to be changed.


50% then strategy

has to be changed.

Number of economic

operators registered

(number

& value) – after 6, 12

months

o 6 month: 500 bidders

o 12 months: 3000 bidders


50% then strategy

has to be changed.

Key Performance Indicators - Action Planning

Savings through e-

Procurement based

competition

Percentage of saving against

estimated cost

Target 3-5% saving

Percentage of economic

operators satisfied with the

procurement process

compared with baseline

Both for procuring entities and

bidders

o Bidding Process

o Efficiency improvement

Positive vs. Negative

response

Positive response

should be at least

75%

Number of complaints related

to the use of the e-

Procurement system

Ration of number of complaints

against number of tenders

Should not be more than 5%

Need to review

Time saving from RFT to

notice of award (NOA)

RFT to NOA Reduced by

50%


Contract award results

published online

Percentage of contract awards

against total e-Tenders

Target 100%

Supplier training Number of economic operators

addressed in road-shows,

materials circulated, etc. Number

of economic operators registered

System reliability System down time vs 100% Down time should be

less than 0.1%

Skills development Redundancy in systems

administration capacity

Target 100%


Overview of Indicators for the Performance Measurement Public Procurement System

[

Management system

Objective Indicator Measured by: Source of data

collection

CAs have sufficient and duration in the workplace of procurement staff for conducting procurement activities

The quantity of the

procurement staff

List of procurement

officers (number of

employees %

procurement

officers)

By the dates of

the MPA,PPRC,

KIPA and CAs

Frequent replacing the

procurement staff in Cas

% less than 3 years

% 3 to 5 years

% 6 to 8 years

% 9 to 11 years

%10 years and

above

By the dates of

the PPRC and CAs

An effective training program is in place to improve procurement staff skills and suppliers

Staff Training the number of training

days

% of all procurement

officer trained

% of suppliers trained

By the dates of PPRC

and KIPA

Key training program

components are

efficient and

effectiveness

Quality of training

materials comply with

standards and actual

with the practical issues

Survey of or

interviews with

participants in the

procurement training,

also the assessor

should focus on

formal training to

meet the

requirements of the

job for those involved

in the procurement

process.


Organizational

standards

support

efficient,

effectiveness

and

transparent

public

procurement

The completeness of

procurement records in a

procurement transaction

% of monitored cases

Completeness of procurement

preparation documents (Before

initiation of a procurement

activity and Record of bid receipt

and opening, Approved Evaluation

Report, Record of Contracts

Committee Award decision,

Evidence of receipt by bidders of

the contract award notices,etc).

By the dates of

the CAs

The completeness of

procurement records in a

contract management

% of monitored cases

Completeness of procurement

contracting documents (Contract

Implementation plan etc.).

By the dates of

the CAs


Activities of CAs Managers and Procurement officers are efficient, effectivenessand transparent

Reporting

Requirements

% of CAs that have

reported on the PPRC for

the annual procurement

activities

% of procurement officer

that have been reported

for the procurement

activities of CAs were not

in conformity with PPL

From the dates of

the PPRC as well as

meetings and

interviews with the

managers and

procurement officers

Implementation of

PPRC recommendations

% of CAs monitored have

implemented, have not

implemented and partially

implemented the

recommendations of the

PPRC

From the dates of

the PPRC and CAs


Ethics and anticorruption policy are efficiency and effectiveness

Anticorruption Measures % the of cases from

procurement area

prosecutors

investigated and a

decision is

concluded

% the cases the

action taken against

corrupted

contracting

authorities

By the dates of

the PRB and

Supreme Court of

Kosovo

Effectiveness of the

anticorruption measures

on public procurement

% of favorable

opinions by the

public on the

effectiveness of the

anticorruption

measures

Survey or

interviews with

citizen and other

stakeholders


Fair, transparency and accountable public procurement system and Establish a good environment to invest and do business

Access to the public

information of public

procurement dates

Relevant information on

public procurement process

from initial to the end.

Awareness of use

procurement website

From PPRC dates and

Survey or interviews

with participants on

the procurements

process, NGO, etc.

Legal framework The PPL and other legislation

promote fair end the open

competition system

Survey or interviews

with participants on

the procurements

process, NGO, etc.

Complains and legal

protection

% of complaints processed

within the time limits in the

legal framework

% of decision taken that are

endorsement

% of the decisions that are

addressed to the court for re-

review

From the PRB dates,

CAs and Survey or

interviews with

participants on the

procurements process,

NGO, etc.


Procurements

planning

facilitates

orderly

execution of

annual

procurement

activities and

according to a

preliminary

analysis/researc

h of the market

Integration of

procurement planning in

approved annual budget

% CAs which are monitor had

their procurement planning

integrated in the annual

approved budged

% e CAs, submitted final

procurement planning to the

CPA on time

From CAs, CPA,

sample of

procurement case

questioner and MoF

Variance between the

procurement plan and

what is actually

procured (by value,

activity and time

frames)

% of the procurements

activities monitored are in

accordance with the plans

made (here making a divided

by categories: goods, services

and works).

% of the procurements

activities monitored are

implementing according to the

time frame contemplated in

the final planning

procurement.

From CAs, Sample

Procurement case

questioner and

Ministry of Finance

(MoF)


Procurement process

Procurements

planning

facilitates

orderly

execution of

annual

procurement

activities and

according to a

preliminary

analysis/researc

h of the market

Determine the

estimated value

of the contract

% of the procurements activities

monitored may make an analysis of

the relevant market before bringing

the preliminary/final procurement

planning

% of procurements activities

monitored determination of the

estimated value in the contracting

authority’s records

The compression of the estimated

value of the contract and the value

of the signing the contract

Sample

Procurement case

questioner


The bidding

process is

efficient

and support

competition

Value vsprocurement method

% of procurements (value) by method of procurement

% of procurements (no.) by method of procurement

% of procurement activities have having conducted

through framework contract, join or centralizations

procurement)

% (value) of procurement spending in category: goods,

works and services

% of procurement activities monitored that have used

methods of procurement prescribed by the law.

By the dates

of PPRC

,CPA, CAs

and Sample

Procurement

case

questioner

Transparency, openness and real opportunity for economic operators to submit bids

% of procurement activities monitored which have

been part of an indicative notice

% of procurement activities monitored fulfilled the form

published contract notice and as required

% of procurement activities monitored fulfilled the form

published contract award notice as required

% of procurement activities monitored that the contract

notice and contract award notices is published

Average of days time allowed for preparation of bids

(according the competitive procedures)

By the dates

of PPRC and

Sample

Procurement

case

questioner


The bidding

process is

efficient and

support

competition

Tender documentation and technical specifications

% of tenders reject in

each process

% of procurements

activities monitored

that use model tender

documentation

(goods, works and

services)

% of procurement

activities are canceled

By the dates of

the PPRC and

Sample

Procurement case

questioner


The

bidding

process is

efficient

and

support

competiti

on

Tender evaluation and award criteria

% of tender dossier including non quantifiable or

subjective evaluation

% of procurement activities that CAs have used the

criterion most economically advantageous tender

% (both number and value) of awarded procurement

contracts in which social dimensions are considered

either in the selection or the award criteria

% (both number and value) of awarded procurement

contracts in which environment-related technical

dimensions are considered either in the selection or the

award criteria

% (both number and value) of awarded procurement contracts in which the whole life-cycle or life-cycle costing is explicitly taken into consideration (especially)

% of procurement activities with complete record of evaluation process ( exception of small value contracts)

% of competitive procurement where stipulated evaluation criteria are clearly followed

% of monitored cases when bids security is confiscated

By the

dates of the

PPRC and

Sample

Procureme

nt case

questioner


The bidding

process is

efficient

and support

competition

Level of confidence by private sector in the process

% of tenders participants in each process

Average percentage (both number and value) of procurement contracts that are awarded to SMEs

Average percentage (both number) and value of

procurement contract when demand aggregation

arrangements are in place (e.g. fraction of contract

awarded to SMEs in framework contract).

By the

dates of the

PPRC and

Sample

Procureme

nt case

questioner

Time taken to complete the procurement cycle

Average number of days between the start of the

procurement activities (this is the date when

Authorizing Officer authorizes of procurement

officer) and the end of the procurement cycle –

signing of contract (open procedure only)

Average number of days between the contract notice

and award contract in open, restricted and

negotiation procedures.

Sample

Procureme

nt case

questioner


Contract

Managem

ent is

performe

d

effectivel

y

Management

contract activities

are effective and

consistent with

legislative

requirements

% of monitored contracts assigned contract manager prior

to its implementation

% of monitored contracts have prepared the contract

management plan in time

From the PPRC

dates and the

Sample of

Procurement case

questioners

Quality and

consistency of

payment process

% of monitored contracts where payments are

processed within the payment period specified in the

contract

% of monitored contracts payments are not processed in

time after contract completion for completions reports to

be preparation

% of monitored contracts in delays payments of suppliers

Average number of days of delay in contract completion

% of monitored contract where is the activation of payment

penalties

% of monitored cases where is not returned performance

security

Percentage (both number and value) of contracts that are entirely cancelled (“rescinded”) during the contract execution

From the PPRC

dates and the

Sample of

Procurement case

questioners


Contract Management

Contrac

t

Manage

ment is

perform

ed

effectiv

ely

Contract

annex

% of monitored contracts with annex

contract

Average value of cost overruns (as measured by the percentage of the awarding price of the contract

From the PPRC

dates and the

Sample of

Procurement case

questioners

Evaluation of suppliers performance

% of monitoring of contract that the contracting authority has requested by the PRB, the introduction of economic operator blacklisted because of poor performance

% of monitored contract where the third party is engaged in monitoring the implementation or/ and after execution of contracts

Level of “customers satisfaction index” involving civil society or other non-

government stakeholders in the oversight of the contract management

By the PRB dates,

the Sample of

Procurement case

questioners and

interviews or

survey of civil

society or other

NGO and end

users.


Thank you!

E-Government Procurement - World Bank · Project Information Stakeholders: - Contracting Authorities - Central Procurement Agency (CPA) - Public Procurement Regulatory Commission

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