jiří skuhrovec, charles university, praguezindex – best practice ranking of contracting...
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Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities
zIndex.czRanking of best practice in public procurement
Jiří SkuhrovecCentre of applied economics
Charles University, Prague
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 2
Motivation
Czech
Republic
Hungary
Estonia
Cypru
s
Slova
k Republic
Bulgaria
Germany
Latvi
a
Netherla
nds
Belgium
Denmark
Norway
Sweden
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Share of tenders in Negotiated procedure without publication (TED, 2013)
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 3
Motivation II
Some authorities overuse non-competitive procedure
Criticism? So what, law allows it …Savings? No need, the budget has been set.
For public entity, there is no other motivating factor besides political responsibility.
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 4
zIndex - Core idea
EU Directive and Procurement laws give authority wide borders to operateThere are guides, white papers defining „best practice“ within these bordersLet’s measure the deviation from best practice!
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 5
zIndex – why?
Point out most and least efficient authoritiesMotivate them to compete, do better Foster discussion:
What is the best practice anyway?
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 6
zIndex – how we rate
We rate each institution over period of timeCurrently we rate all cities over 2011-2013Why 3 years? Elections time span minus one
Computed over Procurement dataBudget dataBusiness registry data
10 main criteria, indicating good practice
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 7
Graph: Czech budget spending on goods and services 2010
Small-tenders (not published)Old contracts (before 2006)
zIndex: Registered procurement volume / all purchases
What we rate #1 : Budget share
Public procurement(single bidder)No procurement
Public procurement
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 8
What we rate #2 : procurement details
Procedure type (penalize negotiated without publication)Number of bidders (penalize low bidders in competitive markets)Tender cancellations, changing specificationSuccessful law suits against authority
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 9
What we rate #3 : procurement results
Supplier rating: Unknown ownersProcurement share on total turnoverRed flags (no employees, ROI 100% and higher..)
Market concentration – same supplier winning over and over againPoor data quality (prices, suppliers not well identified)
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 10
zIndex – major issues
Data – never ending jobCollect, clean, merge, process..Quality – we have better data than state, still not good enough (once you want to rate..)
ComparabilityInstitution type, sizeComposition of procured goods / services
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 11
What we currently work on
Nice web application displaying resultsTBA 9/2014 (prior to municipal elections)Will be portable to other languages
Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities 12
Thanks for your attention (suggestions welcome, we want to make zIndex better)