Overview of the application of the OECD/DAC Procurement Assessment Tool

The OECD/DAC Benchmarking Tool Working towards a consistent understanding and application of the OECD/DAC benchmarking tool.

Background

OECD/DAC benchmarking tool was introduced in current form in 2006

Created through the work of the Joint Venture on Procurement, a working group under OECD/DAC’s Aid Effectiveness Working Party

JV Procurement includes bilateral donors, multilateral development banks, UN, and more than 15 partner countries

Structure of the Benchmarking Tool

Four Pillars:

I – Legislative and Regulatory Framework

II – Institutional Framework/Management

III – Operations and Market Practices

IV – Integrity and Transparency

Twelve Indicators

Fifty-four sub-indicators – level at which scoring is undertaken

Purpose of the Tool

Provide information to the end user “snap shot” overview of system including how it links with other PFM/Governance aspects

Identify gaps with regard to defined and agreed benchmarks or standards

Management tool to support development of a reform/change management strategy

Supports a capacity development dialog between government and donors

Tracks change over time if reform strategy is pursued

PILLAR I Indicator 1 – Legislative and Regulatory Framework

Sub-indicator 1( a) – Scope of application and coverage of the legislative and regulatory framework.

Sub-indicator 1(b) – Procurement Methods

Sub-indicator 1(c) – Advertising rules and time limits

Sub-indicator 1(d) - Participation

Pillar I Indicator 1 (continued)

Sub-indicator 1(e) – Documentation and specifications

Sub-indicator 1(f) – Evaluation and award criteria

Sub-indicator 1(g) – Submission, receipt and opening of tenders

Sub-indicator 1 (h) - Complaints

PILLAR I Indicator 2- Implementing Regulations and Documentation

Sub-indicator 2(a) – Implementing regulations

Sub-indicator 2(b) – Model documents for goods, works and services

Sub-indicator 2(c) – Pre-qualifications

Sub-indicator 2(d) – Contracting for services

Sub-indicator 2(e) – User’s guide or manuals

Sub-indicator 2(f) – General conditions of contract (GCC)

PILLAR II Indicator 3 – Procurement is integrated into governance system

Sub-indicator 3(a) – Procurement planning is part of budget formulation and contributes to multiyear planning.

Sub-indicator 3(b) – Budget law supports procurement, contract execution & payment

Sub-indicator 3(c) – No procurement initiated w/o budget appropriation

Sub-indicator 3(d) – Completion reports prepared for reconciliation with budget

Pillar II Indicator 4 – Normative/regulatory body

Sub-indicator 4 (a) – Status and basis for body covered in legislative framework

Sub-indicator 4(b) – Body has a defined set of responsibilities

Sub-indicator 4(c) – Body’s funding, staffing and independence are consistent with responsibilities

Sub-indicator 4(d) – Responsibilities are clear and avoid conflict of interest and direct involvement in procurement

Pillar II Indicator 5 – Institutional Development Capacity

Sub-indicator 5(a) – System for collecting and disseminating information

Sub-indicator 5(b) – System for collecting and monitoring procurement statistics

Sub-indicator 5(c) – Sustainable training strategy and capacity to implement

Sub-indicator 5(d) – Quality standards for staffing and to monitor performance

PILLAR III Indicator 6 – Operations and practices are efficient

Sub-indicator 6(a) – Level of competency of procurement officials is consistent with their level of responsibility

Sub-indicator 6(b) – Training and information programs are consistent with demand

Sub-indicator 6(c) – Established norms for safekeeping of records and documents

Sub-indicator 6(d) – Provision for delegating authority

PILLAR III Indicator 7 – The public procurement market

Sub-indicator 7(a) – Effective mechanisms for partnerships between public and private sector

Sub-indicator 7(b) – Private sector institutions are organized and able to facilitate access

Sub-indicator 7(c) – No major systemic constraints inhibiting access

PILLAR III Indicator 8 – Contract administration and dispute resolution

Sub-indicator 8(a) – Contract administration procedures are clearly defined and cover inspection/acceptance, amendments, and quality control

Sub-indicator 8(b) – Contract include dispute resolution procedures

Sub-indicator 8(c) - Procedures exist to enforce the outcome of dispute resolution process.

PILLAR IV Indictor 9 – Effective Control and Audit Systems

Sub-indicator 9(a) – Control Framework in place to provide for internal/external controls and audit

Sub-indicator 9(b) – Enforcement and follow-up on findings and recommendations to foster compliance

Sub-indicator 9(c) – Internal controls provide timely information to enable management action

Sub-indicator 9(d) – Internal control system supports performance auditing

Sub-indicator 9(e) – Auditors are sufficiently informed about procurement to conduct quality audits

PILLAR IV Indicator 10 – Efficiency of Appeals Mechanism

Sub-indicator 10(a) – Decisions made on basis of information; final decisions reviewed; enforcement capacity under the law.

Sub-indicator 10(b) – Capacity to handle complaints efficiently and means to enforce remedy

Sub-indicator 10(c) – System is fair with decisions balanced and justified

Sub-indicator 10(d) – Decisions are published and available to public

Sub-indicator 10(e) - Complaint review body has authority and independence

PILLAR IV Indicator 11- Degree of Access to Information

Sub-indicator 11(a) – Information is published and distributed through available media and is supported by information technology when feasible

PILLAR IV Indicator 12 – Ethics and Anticorruption measures in place

Sub-indicator 12(a) – The legal framework and procurement documents include provision addressing corruption, fraud, conflict of interest and unethical behavior

Sub-indicator 12(b) – Legal system define responsibilities, accountabilities and penalties for individuals/firms found to have engaged in fraud or corruption

Sub-indicator 12(c) – Evidence of enforcement exists

Pillar IV Indicator 12 (continued)

Sub-indicator 12(d) – Special measures exist with regard to fraud and corruption in procurement

Sub-indicator 12(e) – Stakeholders support the creation of a market known for its integrity and ethical behavior.

Sub-indicator 12(f) – Secure mechanism for reporting fraud and corruption

Sub-indicator 12(g) – Codes of Conduct and disclosure for staff in decision-making positions

Some emerging lessons

Tool is useful and relatively easy to use

Standardization creates need to use tool flexibly in a given country – may require customization.

Some indicators will require adjustment (we have experience from over 40 countries)

Use of the tool is an input to a process so don’t focus too much on scoring but on the information learned and how it can be used to improve the system.