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.
If ratio is less than
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
If ratio is less than
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%
Key Performance Indicators - Action Planning
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%
Key Performance Indicators - Action Planning
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.
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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.
Overview of Indicators for the Performance Measurement Public Procurement System
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)
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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
Overview of Indicators for the Performance Measurement Public Procurement System
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.
Overview of Indicators for the Performance Measurement Public Procurement System
Thank you!