key performance indicators for well- functioning public...
TRANSCRIPT
Moving forward with …
Key Performance indicators for well-
functioning public procurement systems
Paulo MaginaHead of the Public Procurement Unit, OECD
e-Procurement Forum: Enhancing Public SpendingVienna – Dec. 2015
WHO WE ARE
The OECD…
• …is the global organisation that drives better policies for
better lives:
• The OECD provides a forum where countries compare
and exchange policy experiences, identify good practices,
discuss emerging challenges and adopt
recommendations for better policies.
• The OECD’s mission is to promote policies that improve
economic and social well-being of people around the
world.
www.oecd.org
3
34 member countries, 3 + 2 accession
5 Key partners
4
Fast facts
5
Part of a global community
6
PUBLIC PROCUREMENT MATTERS…
Government procurement as share of GDP and of total govt. expenditures
8Source: OECD National Accounts Statistics. (2013)
% %
France
Ireland
Slovenia
Mexico
Italy
Portugal
Greece
Austria
Belgium
Denmark
Switzerland
Spain
OECD (WA)
Luxembourg
Hungary
Poland
Norway
United States
Slovak Republic
Finland
United Kingdom
Sweden
Iceland
Estonia
Czech Republic
Australia
Germany
Israel
Canada
Netherlands
Korea
Japan
New Zealand
29.0
0 10 20 30 40 50as share of total government expenditure
12.1
0.05.010.015.020.025.0as percentage of GDP
Public Procurement really matters
Supports governments in reforming public procurement systems for
sustainable and inclusive growth and trust in government through:
• Building evidence from useful, reliable and comparable data
across OECD countries on the performance of public procurement –
Government at a Glance; Key Performance Indicators
• Undertaking hands-on peer reviews that provide assessment of
public procurement systems, either national or sectorial, and tailored
proposals to address implementation gaps in specific context – in
Italy, Greece, Northern Ireland but also US, Korea, Mexico, Colombia
• Organising policy dialogue to share insights & shape directions for
future reforms, build strategic partnership with private sector - G20
• Identifying good practices and providing international standards
on public procurement – Compendiums on Green Procurement,
Transparency, Accountability and Anticorruption
OECD contribution to reforming public
procurement
9
Participation
Efficiency
Capacity
Integrity
Access
Balance
E-Procurement
Evaluation
Risk Management
Transparency
Integration
Accountability
10
The 2015 Recommendation on Public
Procurement: 12 integrated principles
• Vision: An international reference for public procurement
standards, good practice and forward-thinking
• Implementation of the Recommendation 2015-2018
Implementing the 2015 Recommendation:
Encompassing OECD procurement activities
- Building evidence:
- Assessment tools, MAPS
- Key performance indicators
- Strategic use of PP =>
Green, SME, innovation
- Professionalisation
- G@G
- eProcurement
- Toolbox - innovative, practical,
collaborative solutionsData
Policy instrument
Toolbox
Reviews
Network
11
E-PROCUREMENT IN OECD COUNTRIES
12
Number of OECD 29 countries providing for the functionalities in e-procurement systems
Mandatory and Provided
Not mandatory but provided
81%
100% 100%
87% 87%
61%
97%
68%
55%
42%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Publishingprocurementplans (aboutforecasted
governmentneeds)
Announcingtenders
Provision oftender
documents
Electronicsubmission ofbids (excluding
by emails)
etendering eauctions (intendering)
Notification ofaward
Ordering Electronicsubmission of
invoices(excluding by
emails)
Expostcontract
management
Provided in e-procurement systems
Mandatory in a central eprocurementsystem
Mandatory within a given threshold
(defined in the law or other decrees)
Mandatory in eprocurement systems ofspecific procuring entities
9.3 E-procurement
Functionalities provided in e-procurement systems
Source: 2014 OECD Survey on Public Procurement13
Use of e-procurement systems by sectors
9.3 E-procurement
80%86%
64%
79% 80% 79% 79% 79% 80% 77%
3%7% 7% 10% 10% 10% 10% 10% 13% 13%
17% 7%
29%
10% 10% 10% 10% 10% 7% 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Health General publicservices
Defence Public order andsafety
Environmentalprotection
Recreation,culture and
religion
Education Social protection Economic affairs Housing andcommunity
amenities
Use of e-procurement systems by sectors
Central e-procurement systems are used Sector specific e-procurement systems are used e-procurement is not used.
Source: 2014 OECD Survey on Public Procurement14
Main challenges to the use of e-Procurement systems
9.3 E-procurement
Source: 2014 OECD Survey on Public Procurement
0%
10%
20%
30%
40%
50%
Low knowledge/ ITCskills
Low knowledge of theeconomic opportunities
raised by this tool
Low innovativeorganizational culture
Low utility given to thekind of goods purchased
by the entity
Difficulties caused byproprietary
interfaces/processes(e.g., need for special…
Do not know
Main challenges to the use of e-Procurement systems faced by procuring entities
Difficulties caused by
interfaces/processes(e.g., need for special…
Main challenges to the use of e
0%
10%
20%
30%
40%
50%
Low knowledge/ ITCskills
Low knowledge of theeconomic opportunities
raised by this tool
Difficulties to understandor apply the procedure
Difficulties in the use offunctionalities (e.g.
catalogue management)
Difficulties caused byproprietary
interfaces/processes
Low propensity toinnovation
Do not know
Main challenges to the use of e-Procurement systems faced by potential bidders/suppliers
15
KPI ON PUBLIC PROCUREMENT
PRELIMINARY FINDINGS OF THE PILOT PROJECT
In Feb. 2013, the Leading Practitioners on Public Procurement
asked the OECD to help developing a set of indicators to
measure the performance of public procurement systems and
their evolution over time.
Four areas for the development of indicators were identified:
1. Efficiency of the public procurement cycle
2. Openness and transparency of the public procurement cycle
3. Professionalism of the public procurement workforce
4. Contract performance management
Towards key performance indicators
• In November 2013 a report was prepared by the OECD
providing an overview of what public procurement data is
collected by countries in each of the aforementioned four
areas. The main conclusions are:
Countries are already collecting a significant amount
of data.
Mostly, they use the information to promote an open,
fair and transparent procurement system.
However, still some challenges need to be overcome
to be able to have complete, clear or timely dataset
allowing the creation of indicators.
The stocktaking report
1. Efficiency of the public procurement
cycle
1.1 Use of contracting mechanisms (2011-2014)
41% 40% 36% 34%
38% 37% 36%34%
20% 23% 26% 32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
In terms of value
46% 44%37% 41%
34% 34%34%
34%
21% 22%29% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
In terms of number .
Framework agreements
Consolidated contracts
One-off contracts
1. Efficiency of the public procurement
cycle
1.2 Uptake of e-Procurement
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014
Uptake of e-Procurement (in %)
Pilot AVG
1. Efficiency of the public procurement
cycle
1.4 Savings
Goods72%
Services28%
1. Efficiency of the public procurement
cycle
1.4 Savings
Services28%
Energy (incl. Electricity)25%
Software Licensing, Hardware and IT equipmentFuel and LGP
Mobile CommunicationsPaper and Stationery
13%
8%
8%6%
.....
Goods72%
1. Efficiency of the public procurement
cycle
1.4 Savings
Goods72%
Facility management15%
Landline Communications
General consultanciesInsurance and financial
services
Services28%
4%
4%
3%
2.1 Promoting competition: procurement procedure
2.2 Promoting competition: number of bids and number of
international bids
2.3 Transparency of public procurement information
2. Openness and Transparency of the
public procurement cycle
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
Open Tendering
Single sourcecontracting (direct
award)
Restricted Procedure
MAIN CHALLENGES AND POSSIBLE IMPROVEMENTS
• Lack of extensive nation-wide data on
public procurement
• Discrepancy between CPB’s roles across
countries
• Use of different contracting mechanisms
and classification of sectors
Main challenges
• Review the types of data collected and methodology
• Stricter definition of the scope of data
• More extensive data collection and coordination
• Aligning the OECD and national classification methods
Next steps
For more information on OECD work on public
procurement
www.oecd.org/gov/ethics/public-procurement.htm
