Procurement Performance Measurement System

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<p>Public Procurement and Disposal of Public Assets Authority</p> <p>Procurement Performance Measurement SystemUser's Guide</p> <p>August 2008</p> <p>Public Procurement and Disposal of Public Assets Authority</p> <p>Procurement Performance Measurement SystemUser's Guide August 2008</p> <p>Rambll Management Consulting Nrregade 7A DK-1165 Kbenhavn K Denmark Phone +45 3397 8200</p> <p>Table of contents</p> <p>1. 2. 2.1 2.2 2.3 2.4 3. 3.1 3.2 3.3 4. 4.1 4.2 4.3 5. 5.1 5.2 5.3 6. 6.1 6.2 6.3 7. 7.1 7.2 7.3 7.4</p> <p>Introduction to the Users Guide Overview of the Procurement Performance Measurement System Objectives of the PPMS The PPMS cycle Activity, output, outcome, and impact indicators Organisational setup Collecting Data Overview of data collection tools Roles and responsibilities during data collection Operational steps in data collection Aggregating Data Overview of data aggregation tools Roles and responsibilities during data aggregation Operational steps in data aggregation Reporting Findings Introduction to reporting of findings Roles and responsibilities during reporting Operational steps in the reporting of findings Using Findings Introduction to using findings Roles and responsibilities during the use of findings Operational steps in the use of findings Sustaining the Performance Measurement System Ensuring a demand driven functioning of the system Ensuring resources are available for running the system Ensuring continued relevance of information gathered Future perspectives to pursue</p> <p>3 5 5 5 6 7 9 9 10 11 13 13 14 14 15 15 16 16 18 18 18 19 21 21 21 21 22 23 26 27 29</p> <p>Annex 1: Overview of Indicators for the Performance Measurement System Annex 2: Quarterly Monitoring Questionnaire (Legal and Compliance) Annex 3: Quarterly Monitoring Questionnaire (Audit and Investigations) Annex 4: Procurement Case Questionnaire</p> <p>Performance Measurement System Users Guide</p> <p>I</p> <p>List of AcronymsPDE PDU PM PMSC PPDA PPMS Procurement and Disposal Entity Procurement and Disposal Unit Performance Measurement Performance Measurement System Coordinator Public Procurement and Disposal of Public Assets Authority Procurement Performance Measurement System</p> <p>Procurement Performance Measurement System Users Guide</p> <p>1/30</p> <p>2/30</p> <p>Performance Measurement System Users Guide</p> <p>1.</p> <p>Introduction to the Users GuideThe Public Procurement and Disposal of Public Assets Authority (PPDA) was established in 2003 under the Public Procurement and Disposal of Public Assets Act of 2003. One of the central functions of PPDA is to monitor the performance of Procurement and Disposal Entities (PDEs) with a view to improve procurement and disposal capacity in weak areas, hereby enhancing the fairness, competitiveness, transparency and value for money of public procurement in Uganda. Since its creation, PPDA has introduced several tools aimed at providing the institution with a platform to monitor procurement performance at PDE level. These include compliance checks, performance audits, and most recently, a national assessment of the public procurement system in Uganda based on the OECD-DAC Methodology to Assessment of National Procurement Systems. While providing PPDA with highly useful information on the state of public procurement in various areas and entities, these tools have at the same time revealed a need for a performance measurement system capable of identifying weak performance areas continuously and across individual PDEs. As a result, in early 2008 PPDA embarked on designing a Procurement Performance Measurement System (PPMS) enabling the institution to regularly monitor and track performance trends across PDEs. 1 The purpose of this Users Guide is to introduce PPDA staff members, officers conducting procurements at PDE level, and other stakeholders to the public procurement system to the overall purpose and structure of the PPMS. In addition, the Users Guide offers a detailed step-by-step guide to PPDA staff members on how to use and sustain the PPMS. The Users Guide falls in three main parts: Chapter 2 offers a general introduction to the PPMS, its overall objectives and structure, the activities required to run it, and the organisation setup accompanying it. The chapter targets all stakeholders interested in understanding the overall concept and importance of performance measurement in public procurement. Chapters 3, 4, 5 and 6 provide a detailed step-by-step guide to the four main steps in the performance measurement cycle: Data collection, data aggregation, reporting of findings, and using findings. These chapters target all officers re-</p> <p>The process was supported by DFID Uganda and carried out with the assistance of consultants Ms. Marie Louise Refsgaard (Team Leader), Ms. Karin Attstrm and Mr. Silas Harrebye, Ramboll Management Consulting.</p> <p>1</p> <p>Procurement Performance Measurement System Users Guide</p> <p>3/30</p> <p>sponsible for carrying out the operational and strategic activities required to effectively operate the PPMS. At the operational level, this includes the appointed PPDA focal points, auditors and compliance check officers, IT officers and data clerks involved in collecting, aggregating, analysing and/or reporting on findings. At the strategic level, the chapters target the PPDA management who are responsible for making management decisions based on the acquired knowledge on performance trends. Chapter 7, finally, goes beyond the everyday use of the Performance Management System and presents a set of considerations to be made on a continuous basis in order to ensure that the design of the PPMS remains useful as a strategic tool to steer performance and continues to reflect the priorities of public procurement reform in Uganda. The target group of this chapter is therefore mainly PPDA representatives responsible for the overall management of the PPMS as well as the PPDA management who play a central part in making decisions on what constitutes key performance areas of importance to public procurement in the future of Uganda.</p> <p>4/30</p> <p>Performance Measurement System Users Guide</p> <p>2.2.1</p> <p>Overview of the Procurement Performance Measurement SystemObjectives of the PPMSThe overall objective of the PPMS is to bring about knowledge about the procurement performance at PDE level as well as at the level of PPDA itself. By doing so, PPMS aims to assist the PPDA in two important respects: To guide and adjust the continued public procurement reform efforts led by PPDA. To inform external stakeholders (Ministry of Finance, Auditor General, development partners, the public) about the results of the activities carried out by PPDA.</p> <p>In short the PPMS is designed to make it possible to measure procurement performance, throughout the procurement cycle, allowing for tracking of progress over time. In this way, the system will enable the PPDA to analyse performance related strengths and weaknesses throughout the procurement cycle (for example weaknesses related to procurement planning, bid evaluation, or contract management practices), to support such weaknesses through targeted capacity development interventions, and to report on progress to different stakeholders.</p> <p>2.2</p> <p>The PPMS cycleThe PPMS is designed as a permanent monitoring system revolving around four core steps, which together constitute a recurring monitoring cycle as illustrated below.</p> <p>1 Collecting data</p> <p>Using findings 4</p> <p>2 Aggregating data</p> <p>Reporting findings 3</p> <p>The four consecutive steps of the PPMS cycle together represent the milestones of the system and constitute the framework for measuring procurement performance.</p> <p>Procurement Performance Measurement System Users Guide</p> <p>5/30</p> <p>Each step has its own set of activities, players and associated tools. For example, the data collection is carried out though a number of developed questionnaires (see chapter 3), while the data aggregation and reporting steps (see chapter 4 and 5) utilise electronic databases and reporting tools designed to provide targeted information in selected performance areas. At the same time, the system avoids duplication by complementing and building on existing monitoring tools, for example by drawing upon data already collected via audits, compliance checks, monthly reports, etc. Furthermore, the PPMS enables focused analysis of the progress and development within particular sectors. As an example the PPDA may choose to analyse the health sector procurements more closely due to concerning data reports and find out that too many bidders are rejected in the preliminary examination. Based on the information, specific strategic and practical steps can be taken to improve performance and in that way move the procurement reform process forward.</p> <p>2.3</p> <p>Activity, output, outcome, and impact indicatorsThe PPMS is built on indicators, following the intervention logic of PPDA and the procurement cycle. Consequently, indicators are gathered relating to activities conducted by PPDA, the outputs produced by the activities, the intended outcomes (improved performance) and impact (more value for money). The table below provides an example of how indicators are systematised 2 :Indicator types Output and Activity Indicator Outcome Indicator Objective Indicator example # of training days (total) Means of data collection Training database Frequency of collection Yearly</p> <p>Trainings are provided by PPDA</p> <p>The bidding process is efficient and supports competition Fair, transparent, and accountable public procurement system</p> <p>% of procurements using correct SBDs % of reviewed procurement cases rated as low risk</p> <p>Procurement Case Questionnaire 3</p> <p>Continuously</p> <p>Impact Indicator</p> <p>Quarterly Monitoring Questionnaire 4</p> <p>Quarterly</p> <p>As illustrated in the table, a number of tools for data collection (questionnaires) have been developed to capture information on indicators at regular intervals. The data collection tools, as well as the mechanisms established to aggregate collected information and generate reports on their findings, are explained in more detail in the next chapters.</p> <p>2 3 4</p> <p>A full overview of indicators is provided in Annex 1 of this Users Guide. See Annex 4 See Annex 3</p> <p>6/30</p> <p>Performance Measurement System Users Guide</p> <p>2.4</p> <p>Organisational setupTo ensure that the PPMS is fully utilised and to support the ongoing implementation of each of the four steps in the PPMS cycle, an organisational setup for the PPMS has been established. The organisational setup is illustrated below:</p> <p>Departmental focal points: Communicate findings to PPDA management (annually)</p> <p>PPDA management: Determine use of findings (annually)</p> <p>Departmental focal points: Fill general questionnaires (quarterly)</p> <p>1 Collecting data</p> <p>Auditors / compliance officers: Fill case questionnaires (continuously)</p> <p>Using findings 4</p> <p>PMSC: Plan and coordinate all activities, and serve as link to PPDA management</p> <p>Departmental focal points: Draft Performance Report (annually)</p> <p>2 Aggregating data</p> <p>Reporting findings 3Database analyst: Supervise focal points on data analysis (annually)</p> <p>Database analyst: Supervise data clerks (quarterly)</p> <p>Data clerks: Data entry (quarterly)</p> <p>At the centre of the organisational setup is the Performance Measurement System Coordinator (PMSC), who shall be appointed by the Executive Director of PPDA. The PMSC shall assume responsibility of the overall coordination and running of the PPMS and serve as a central contact point for all other PPDA staff members using the system. Furthermore the PMSC shall serve as the direct link to the PPDA management by facilitating swift management decisions on performance findings. In addition to the PMSC, a departmental focal point shall be appointed by the Directors of the Legal and Compliance Department, the Audit and Investigations Department, and Training &amp; Capacity Building Department respectively. The three departmental focal points shall assume specific responsibility for the practical collection of data 5 and for analysing, reporting and communicating performance findings of specific value to their departments. In addition to the above key staff to the PPMS, the organisational setup also includes a number of PPDA staff outside the Corporate Office and the three departments.5</p> <p>The focal point of the Training and Capacity Building Department is exempted from this activity as the monitoring of this department is based solely on data already collected and aggregated by the department through the training database.</p> <p>Procurement Performance Measurement System Users Guide</p> <p>7/30</p> <p>These include the Database Analyst who will be supporting the statistical analysis of performance information, and data clerks who will carry out the data inputting to the system. The roles and responsibilities of each of the above staff members are described in more details in the chapters below.</p> <p>8/30</p> <p>Performance Measurement System Users Guide</p> <p>3.3.1</p> <p>Collecting DataOverview of data collection toolsAs illustrated in the previous chapter, the collection of data constitutes the first step of the Performance Measurement Cycle.</p> <p>1 Collecting data</p> <p>Using findings 4</p> <p>2 Aggregating data</p> <p>Reporting findings 3</p> <p>To assist the systematic collection of information for the PPMS, a number of data collection tools have been developed. These tools comprise of three short questionnaires: Quarterly Monitoring Questionnaire for the Legal and Compliance Department: Contains questions on the activities carried out by the Legal and Compliance Department. To be completed once at the end of each quarter. Quarterly Monitoring Questionnaire for Audit and Investigations Department: Contains questions on the activities carried out by Audit and Investigations Department. To be completed once at the end of each quarter. Procurement Case Questionnaire: Contains procurement case specific questions relating to selected stages of the procurement cycle and selected contract types. To be completed once for every one procurement case reviewed during audits and compliance checks at any time.</p> <p>These three questionnaires together cover all the information needed to establish performance trends on the majority of indicators in the PPMS 6 . Please refer to Annex 2, 3 and 4 for the full questionnaire templates.</p> <p>6</p> <p>On certain indicators, data is derived directly from existing resources (such as the training database, monthly reports, the Register of Investigations, etc.) and hence does not require the use of separate data collection tools.</p> <p>Procurement Performance Measurement System Users Guide</p> <p>9/30</p> <p>As indicated above, the three questionnaires are not to be collected by PDEs, but by the departments concerned as an integrated part of these departments already established monitoring activities. By building upon these activities, the system avoids generating additional field visits, monitoring systems and work requirements, but rather packages...</p>


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