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1. BENCHMARKING PUBLIC PROCUREMENT
Global Indicators Group, Development Economics
International Public Procurement Conference IPP6, August 15th
Sophie Pouget
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Introduction (1): A new WB initiative
BACKGROUND
Need for more analytical work to better identify shortcomings in the public
procurement legal framework
INITIATIVE LAUNCHED IN 2013
Initial demand came from the G20 Anti-Corruption Working Group
A WBG initiative started in 2013 to develop global indicators on public
procurement legal systems and related practices
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Introduction (2): Objectives
OBJECTIVES
It assesses transparency, accountability, and efficiency in public procurement
systems through actionable information tools
Conduct a yearly standardized assessment across economies
ANGLE OF ANALYSIS
Encourage a peer-to-peer learning exercise among governments
Facilitate policy dialogue and stimulate reforms
4. Introduction (3): A tool used by various stakeholders for
multiple purposes
www.enterprisesurveys.org Global Indicators Group
BPP
Multilateral
Development
Banks
Academics
and
Research
Community
Policymakers
and
Government
Agencies
Private Sector
(notably small
and medium
enterprises)
5. Introduction (4): An objective measurement of public
procurement systems and a strong motivator for reform
www.enterprisesurveys.org Global Indicators Group
At a global level
Access to actionable, objective data
Good practices identified through the
benchmarking exercise can be easily
replicated
Regional and global cooperation
At a national level
Identify areas of improvement
Motivate reforms through country
benchmarking
Promotes a critical factor of a
country’s competitiveness
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Methodology of the Benchmarking Public Procurement
initiative (1)
Builds on the World Bank Group Doing Business program :
Used as guide for reforms in 189 countries in the world
Close to 2000 reforms generated since the project’s inception in 2003
Similar methodological approach undertaken with the BPP initiative:
11 countries covered for the pilot phase in the Fall 2013 (Afghanistan, Chile, Ghana, Jordan,
Mexico, the Russian Federation , Sweden, Thailand, Turkey, Uganda and the United States)
84 countries to be covered in the Fall 2014 and 189 countries to be covered in the future
7. Methodology
Indicators
covering 4
thematic areas
Legal indicators
(de jure indicators):
All public procurement
regulations, other legal
texts of general application,
judicial decisions and
administrative rulings
Time and motion
indicators
(de facto indicators):
Procedure
Time
Cost
More than 200 individual data
points for each country
Respondents include:
- Public procurement lawyers
- Accounting and consulting
firms
- Public procurement authorities
(government officials)
- Private sector suppliers
- Law professors
Standardized yearly
assessment of the
regulations and
procedures, thus
recording each reform
and change of practice.
ABCMethodology (2): 4 set of indicators
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Methodology (3): the Expert Consultative Group
.
• Public Sector Governance Unit
• Operations Risk Management Department (OPSOR)
• Regional Vice-Presidencies for Africa; Eastern Europe and
Central Asia and East Asia and the Pacific Regions;
•Investment Climate Department (FIAS)
•Independent Evaluation Group (IEG)
•Global Manufacturing and Services Department (in IFC)
Internal experts
• Public procurement law academics at the George
Washington University Law School
• Leading private sector companies (e.g. GE) to learn more
about their experience dealing with public procurement
processes
• International organizations such as EBRD; EU; OECD and
UNCITRAL.
External experts
An extensive consultation was organized with a roster of public procurement experts
over 9 months in order to refine the methodology, the thematic coverage and the final
objectives of the initiative.
9. Methodology (4): Limitations
Methodological limitations Interpretation of data
BPP is not a survey of company or suppliers’
perceptions.
Though they aim to measure the typical
experience of a company involved in public
tender, the BPP indicators are not
representative of all tenders.
BPP data on the efficiency of administrative
processes are specific to the country’s largest
business city and not necessarily
representative of common practices in other
cities in each economy (not a sub-national
study).
For the pilot year, BPP’s thematic coverage
is limited to 4 areas and does not provide
comprehensive measures of countries’ legal
and regulatory frameworks for public
procurement.
BPP does not measure the full range of
factors, policies and institutions that affect
the public procurement systems in an
economy or its national competitiveness.
The indicators are based on hypothetical
case study assumptions which allow for
global comparison but limit the interpretation
of the data to one scenario.
10. Thematic coverage
Accessibility of public
procurement
regulations
Bidding for a public
procurement tender
Filing a complaint
Accountability and
oversight
mechanisms
Measures the ease of bidding for a procurement tender
(time and motion indicators)
Analyzes the process to challenge a public
procurement tender through a complaint system (time
and motion indicators)
Assesses oversight mechanisms, reporting capacities
and the extent of procuring official’s accountability
(legal indicators)
Evaluates the accessibility and clarity of public
procurement regulations (legal indicators)
11. 1. Accessibility of public procurement regulations
Accessibility of public procurement regulations assesses the ease of access to
public procurement regulations and the transparency of the procurement
process.
- Questions cover both the pre-tendering and tendering phases;
- Questions also cover both:
- accessibility of procurement-related information for the public (for
instance, accessibility of the procurement plan);
- and accessibility of information on the bidding process to the bidders
(and in particular: the legal requirement for publication of
procurement opportunities, as well as criteria for evaluation and bid
results).
12. On accessibility of public procurement regulations
The type of media used to advertise tender notices vary significantly
from one country to another:
In Chile: only 1 channel is required (the e-procurement platform);
In Afghanistan: 4 channels are required.
The content of the tender notice also vary significantly across
countries:
In Jordan: only 6 pieces of information are required in the tender
notice (and the rest is left to the discretion of the procuring entity);
In Turkey: 12 pieces of information (including, for instance,
information on the commencement and completion dates for the
subject matter of the procurement).
13. On accessibility of public procurement regulations
Access to the evaluation criteria and method of assessment is key for bidders to
formulate the best offer possible and reinforce their trust that bids will be evaluated on
merits.
Rules on the communication of the evaluation criteria & method of assessment
vary significantly from one country to the other.
14. 2. Bidding for a public procurement tender
Bidding for a public procurement tender assesses the ease of bidding for a
procurement tender.
Legal indicators assess specific
steps of the bidding process :
- In the pre-tendering phase:
- consultation with the
private sector;
- potential restrictions.
- In the tendering phase:
- ease of obtaining
information and accessing
the tender notice;
- possibility to request
changes;
- ease of the bid submission.
The topic assesses the procedure,
time and cost related to:
- Submitting a question to the
procuring entity;
- Obtaining the tender
documents from the procuring
entity;
- Requesting changes to
technical specifications;
- Submitting a bid;
- Obtaining feedback on the
reasons why a bidder did not
qualify or win a tender.
15. Pre-tendering phase:
In practice, the consultation with the private sector happens in person, and
most of the time informally.
Only four surveyed countries regulate the possibility for companies involved
in the consultation phase to bid for the particular procurement tender that is the
product of such consultation.
In Turkey and Mexico, companies already been consulted for the needs
assessment phase are not allowed to bid.
In the United States and Afghanistan, there is a similar interdiction but the
laws allow for more flexibility in certain circumstances.
In other surveyed countries, general legal provisions on conflict of interest
are relevant.
On bidding for a public procurement tender
16. On bidding for a public procurement tender
Tendering phase: Information on Public Procurement Opportunities:
Cost to access tender documents:
Bidders can access the tender documents for free, such as in Chile and
Sweden where free access to tender documents is guaranteed.
Otherwise, bidders access the tender documents for a particular fee
requested by the procuring entity.
In practice, the amount does not differ significantly from one country to
another and is not prohibitive enough to prevent companies from
bidding.
Time to access tender documents:
In four surveyed countries, the applicable public procurement law or
regulation does not specify a time limit within which the procuring entity
must provide the tender documents to potential bidders.
This creates some uncertainty for bidders as to when they will have
access to the tender documents.
17. 3. Filing a complaint
Filing a complaint measures the process to challenge a public procurement
tender through a complaint system.
Legal indicators assessing the
quality of complaint mechanism:
- Complaints filed before the
conclusion of the procurement
contract (e.g. methods; review
bodies ; suspension of the
procurement process)
- Complaints filed to challenge the
award of the contract
- Complaints filed in case of a
potential conflict of interest
Topic also assesses the procedures, time
and cost related to:
- Notification of complaint to the
procuring entity;
- Requirement to show standing;
- Process to file a complaint before the
first-tier review body
- Process to appeal the decision before
the second-tier review body
- Process to challenge the award of the
contract
- In case of conflict of interest, removal
of public official from the tender panel
18. On filing a complaint
Time Limit for the First-Tier Review Body to Render a Decision:
19. On filing a complaint
Range of Remedies Awarded to Suppliers:
20. 4. Accountability and Oversight Mechanisms
Accountability and Oversight Mechanisms assesses oversight mechanisms,
reporting capacities and the extent of procuring official’s accountability.
- General reporting obligations within local government entities:
- whether public officials are required to report suspicions of fraud,
misconduct or maladministration;
- how public officials can report misconduct and if it can be done
anonymously.
- General recording obligations (through notably the protection of files on
record through limited access, and regular and specific updates);
- Internal control and management procedures and the monitoring
performance of the internal control system (for instance, through internal
audits on the internal control system’s performance);
- Routine external control and ad hoc external controls.
21. On accountability and oversight mechanisms
Reporting misconduct:
In a majority of countries: public officials cannot report misconduct
anonymously.
In Jordan, Sweden and the United States: it is possible to report
misconduct anonymously without any restriction.
In Uganda: if a public official reports misconduct anonymously, he
cannot benefit from the protection of the Whistleblowers Act of
2010.
23. Conclusion: Next steps
On the basis of the data collected in 2013, an analytical report is
currently being finalized.
The project’s approach is being refined and the indicators and their
methodology will be reassessed accordingly through consultation with
the Experts Consultative Group.
Geographical scale up to 84 countries for the Fall 2014.
26. On accessibility of public procurement regulations
Publication of the contract award is widely considered as the basis of
transparent procurement systems.
The requirements regarding publication of the contract award vary significantly
from one country to the other:
27. On bidding for a public procurement tender
Allowing bidders to use fast and reliable ways of communication, such as
emails and e-procurement portals, is a way to improve considerably the
transparency and efficiency of the procurement process.
28. On filing a complaint
In a lot of countries, the issue of suspension of the procurement
process during the review of a complaint is left to the discretion of the
reviewing body, and the law is vague on the issue. It may depend on the
circumstances or left at the discretion of the reviewing body, therefore, the
suspension is unpredictable to the protesting company.
Although there is a statutory time limit in some of the countries for the
review body to issue a decision, often this limit is not respected and
therefore the period of review is unpredictable.
30. On accountability and oversight mechanisms
None of the countries surveyed have a detailed regulatory framework on
internal controls:
In six surveyed countries (Afghanistan, Chile, Mexico, Thailand, Uganda
and the United States), internal controls should to be conducted throughout
the procurement process.
However, the legal framework does not specify their frequency.
Very often, in practice, internal controls are conducted only during the
post-tendering phase, for the payment and delivery phase.
Even if internal controls are usually recorded, this depends of the practice of
each procuring entity as, very often, public procurement laws are silent on this
aspect.
