Result analysis
The results of the assessment are not only a way to assess the overall performance of the procuring entity. It is also a tool for identifying factors that negatively affect the efficiency of procurement.
The results of the assessment are not only a way to assess the overall performance of the procuring entity. It is also a tool for identifying factors that negatively affect the efficiency of procurement.
What the procuring entity / governing body needs to do?
Review approaches and policies for pre-tender work and market analysis. It is possible that the tender documentation is not sufficiently developed, and the technical requirements do not meet the existing offers on the market.
Develop the category expertise of the procuring entity and work more actively with the market: conduct pre-tender consultations, open discussions, etc.
What the procuring entity / governing body needs to do?
Analyze the reasons why the procuring entity cancelled the procurement transaction. To do this, you can find the desired procuring entity in the public analytics module and select the procurement status “cancelled procurement transaction.”
If frequent reasons for cancellation are violations of the law that cannot be eliminated, attention should be paid to systematic approaches to the formation of tender documentation requirements, in particular to determining typical qualification requirements for participants, a typical list of documents from the participant—to minimize the risks of recurring violations.
Frequent cancellations due to a change in demand at the winner qualification stage may indicate an abuse by the procuring entity in order not to conclude a contract with the awarded participant. In this case, it is necessary to check in more detail how the demand is identified and changes, whether there are policies that clearly regulate this process, and introduce tools to minimize abuse at this stage.
What the procuring entity / governing body needs to do?
It is necessary to analyze the categories of procurement transactions (for example, by CPV groups) and understand which of them are the least effective. This can be done in the public analytics module using the Construction Kit or by uploading all the procurement transactions of the procuring entity.
If a low percentage of “savings” is combined with a low value for the “competitiveness” group of indicators, this may indicate a low market interest in the procurement of the procuring entity. This can be caused by the procuring entity's discriminatory requirements, a poor description of the technical characteristics of the procurement item, or inactive work with the market.
What the procuring entity / governing body needs to do?
The small number of participants in procurement (quantitative competition) indicates that the procuring entity's transactions are not interesting enough for the market. This may result from a number of factors that need to be verified:
What the procuring entity / governing body needs to do?
Low competitive activity in the auction (qualitative competition) may indicate that procurement participants may be related to each other or coordinate their behavior in the auction.
Analyze the categories of procurement in which competition in auctions is the lowest and analyze the market. It may be necessary to expand the criteria and technical requirements to attract new market participants. Conduct additional market consultations to better understand how to increase effective competition.
What the procuring entity / governing body needs to do?
Analyze the lots with a minimum number of participants, try to systematize them (find common features) and take measures in accordance with the previous clause.
A high percentage with a minimum number of participants indicates a systemic problem of low competition, which negatively affects the efficiency of procurement.
What the procuring entity / governing body needs to do?
It is necessary to select tenders with disqualifications and analyze their reasons for the following factors:
Identify the reasons for the high percentage of disqualifications and take measures to minimize the following factors: reduce the number of formal requirements and documents of the participant that do not affect the quality of the contract, give more time to prepare the proposal, formulate clearer requirements for the participants and the procurement item, etc.
What the procuring entity / governing body needs to do?
Analyze procurement transactions in which there is the most significant difference between the winner's bid and the bid of the disqualified participant. Such transactions contain a high risk of discriminatory requirements that contribute to overstating the cost of procurement.
It is worth checking whether the disqualification of the participant who submitted an abnormally low bid (if any) was justified. Were there any questions, requirements, and complaints about the criteria for assessing participants and requirements for the procurement item that were not accepted by the procuring entity (which may indicate an intentional restriction of competition). Whether the inconsistencies of the disqualified bids were significant, and if not, whether it is possible to formulate the requirements of the tender documentation in such a way as to avoid such disqualifications in the future.
What the procuring entity / governing body needs to do?
May indicate poor quality of preparation of tender documentation. Review certain requirements for participants and the procurement item: whether they comply with the requirements of the legislation, whether they are justified and do not limit the competition of participants.
It is also worth checking whether participants need more detailed guides, clarifications on certain requirements.
What the procuring entity / governing body needs to do?
Analyze the findings of the monitoring body on the identified violations and take them into account to prevent them in future procurement.
The procuring entity should also analyze the practice of monitoring by the State Audit Service regarding other procurement transactions to identify possible risky requirements and conditions for procurement that may potentially not meet the requirements of the law.
What the procuring entity / governing body needs to do?
Redressed complaints may indicate obvious violations of the rights of participants by the procuring entity, which negatively affects market confidence in the transactions of the procuring entity, the level of competition and market interest in public procurement.
Introduce systemic solutions that would allow avoiding the recurrence of such a negative phenomenon.
Don’t affect the index calculation yet
Don’t affect the index calculation yet
What the procuring entity / governing body needs to do?
A change in the contract a short time after its conclusion contains risks that the supplier will get such conditions for the performance of the contract that do not correspond to those specified in the procurement procedure.
If this situation is systemic, it is necessary to analyze the reasons for the change in contracts: whether they are due to unpredictable factors and whether they indicate abuse on the part of the procuring entity.
For example, in the case of frequent changes in the terms of the contract, while the bidding provided for much shorter terms. This may indicate a change in the terms of the contract, which significantly affect the cost of the contract and contain high corruption risks.
Review the reasons for the change in the cost of the goods (in the case of concluding such additional agreements). Make sure that other conditions are not hidden under the guise of improving the terms of the contract, which may affect the cost of the contract, etc.
What the procuring entity / governing body needs to do?
A high percentage of terminated contracts may indicate the ineffectiveness of the procurement transaction, on which the procuring entity spent time and resources. Analyze whether the problems with the supplier, in particular the improper performance of the contract on their part, affected the termination of the agreements, as well as whether all possible measures have been taken regarding the claim work.
Provide for higher requirements in the terms of contracts regarding the supplier's liability for non-fulfillment of their obligations.
If the procuring entity often terminates contracts early due to a change in their needs, stricter requirements for identifying and justifying the need should be introduced to minimize such factors.
What the procuring entity / governing body needs to do?
If the deadlines for the performance of the contract are often violated, measures similar to those set out in the previous clause should be taken.