Indicators

Description

Calculation

%

of competitive lots

A basic indicator that determines the extent to which the procuring entity uses the Prozorro system and open procedures to carry out their procurement transactions.

Calculation

Ratio of the share (amount) of completed competitive procurement transactions (lots) in the selected period to the total amount of all completed procurement transactions (lots) in the selected period.

Performance

%

of successful lots

The purpose of announcing each procurement transaction (lot) is to conclude a contract. This indicator determines the extent to which this goal is achieved.

Calculation

Ratio of the share (number) of successfully completed competitive procurement transactions (lots) in the selected period to the total number of completed procurement transactions (lots) in the selected period.

%

of cancelled lots

Canceling bidding at the initiative of the procuring entity may indicate a poor quality of planning of their needs and preparation of procurement, as well as affect the overall performance. The excessive number of canceled procedures indicates the systemic problems of the procuring entity in the preparation of a procurement transaction. The procuring entity should strive to minimize the indicator of cancelled procurement transactions.

Calculation

Ratio of the share (number) of cancelled competitive procurement transactions (lots) in the selected period to the total number of completed procurement transactions (lots) in the selected period.

% of reduction in expected cost
(“savings”)

% of reduction in expected cost (“savings”)

The purpose of competitive procurement is to achieve the effect of competition among participants and reduce the prices of their proposals due to this effect.

Calculation

The average value of the sum of the bids of awarded participants in completed competitive procurement transactions (lots) in the selected period to the sum of the expected values in the completed competitive procurement transactions in the selected period.

Competition

Competition among participants

The number of participants has a direct positive impact on the efficiency of procurement. The higher the quantitative competition, the greater the chances that the cost and terms of a procurement transaction will be as close as possible to objective market conditions.

Calculation

Average number of participants in successful completed competitive lots.

% of decrease in bids at an auction

An indicator of high-quality competition is the impact that the use of a three-round auction had on the efficiency of procurement. Low competition at the auction may indicate that procurement participants do not show real competitive behavior, and the effect of competition for the contract is insufficient.

Calculation

The difference between the initial and final bid amount based on the results of the auction (calculated for the awarded participant in completed competitive procurement transactions) in relation to the expected value of the procurement transaction (lot).

% of lots with a minimum number of participants

The minimum number of participants may indicate a low efficiency of competitive procurement. Tracking the share of tenders with low competition allows determining how common this problem is.

Calculation

The ratio of successfully completed competitive lots with a minimum number of participants to the total number of successfully completed competitive lots in the selected period.

Openness

% of lots with disqualifications

Disqualification of bids of participants negatively affects the competitiveness and success of procurement. Disqualifications may arise both through the fault of the participant (improper preparation of the bid) and through the fault of the procuring entity (vague wording of the tender documentation, discriminatory requirements, unreasonable decision). Disqualifications themselves do not indicate inefficiency, but an excessive number of disqualifications indicates a systemic negative impact on competition. The procuring entity should try to minimize the rate of disqualifications by formulating clearer requirements and avoiding restriction of competition.

Calculation

The share of successful competitive lots that have at least one disqualification to the total number of successful completed lots.

% of difference between
awarded and disqualified bids
to expected cost (EC)

% of difference between awarded and disqualified bids to expected cost (EC)

The “lost savings” indicator shows how much lower the procuring entity's costs would have been if they had not disqualified the winning bids. Similarly to the previous indicator, high indicators of lost savings may indicate the scale of the negative impact due to disqualifications.

Calculation

The average value (the difference between the lowest and the winning bids in the completed lots in the selected period relative to the total cost of successfully completed lots).

% of lots with more than
3 questions/requirements

% of lots with more than 3 questions/requirements

A large number of questions and requirements on the part of participants may indicate unclear wording of the tender documentation or discriminatory requirements and restrictions.

Calculation

The share of successfully completed competitive lots with the number of questions and requirements of more than 3 to the total number of successfully completed competitive lots.

Violations (compliance with procedures)

% of lots with violations
detected by the monitoring body

% of lots with violations detected by
the monitoring body

Confirmed violations, following the monitoring by the State Audit Service, indicates that the procuring entity does not comply with the law. This affects the quality and efficiency of their procurement.

Calculation

The ratio of the number of successfully completed competitive lots with an expected cost of more than UAH 1 million in which there are confirmed violations, according to the monitoring by the State Audit Service in the selected period, to the total number of successfully completed competitive lots with an expected cost of more than UAH 1 million in this period (if the procuring entity does not have any confirmed violations, the point is not accrued).

% of lots with the complaints
redressed by the AMCU

% of lots with the complaints redressed by the AMCU

Redressed complaints by the AMCU are a confirmation of discriminatory restrictions and violations of the rights of participants in procurement, which negatively affects the quality and efficiency of procedures.

Calculation

The ratio of the number of successfully completed competitive lots with an expected cost of more than UAH 1 million, which contain redressed complaints by the AMCU in the selected period, to the total number of successfully completed competitive lots with an expected cost of more than UAH 1 million in the period (If the procuring entity does not have any complaint redressed, the point is not accrued).

Calculation

The Procuring Entity Index is calculated according to the following formula:

I=(Р1+Р2+Р3+Р4)/4×Кк×Кn

where, P1 is the value of the group of indicators “Performance”;

  • Р2 is the value of the group of indicators “Competition”;
  • Р3 is the value of the group of indicators “Openness”;
  • Р4 is the value of the group of indicators “Violations”;
  • Кк is the coefficient relative to the share of competitive procurement transactions of the procuring entity;
  • Кn is the coefficient relative to the average number of procurement transactions of the procuring entity per month (in the selected period).

P1, P2, P4 are calculated as the average value of points for indicators that are part of the group of indicators. For example, for the group of indicators “Performance,” the value of P1 is calculated as the average for the indicators “% of successful lots,” “% of canceled lots,” and “% of reduction in expected cost.”

P3 is calculated as the average value of the points for the indicators included in the group of indicators, considering the coefficient of the number of procurement participants, which directly affects the probability of such an event as disqualification, question, or requirement:

P3 = (score % of lots with disqualifications + score % of the amount under disqualifications + score %3 and more questions/requirements) / 3*K,

where K is determined as:

  • If the Avg. number of participants is more than 3, then K=1.0
  • If the Avg. number of participants is lower than 3, then K=0.3333*Avg. number of participants

Кк is determined in accordance with the percentage of competitive procurement transactions of the procuring entity (by the amount of procurement transactions). If the percentage of competitive procurement transactions is equal to or greater than 90%, Кк = 1. If the percentage of competitive procurement transactions is less than 90%, then it is calculated by the following formula:

Кк = 5/9×% of competitive lots+0,5

Кn is determined according to the average number of completed competitive procurement transactions per month. This coefficient should minimize the impact of two negative factors that affect the objectivity of the assessment:

  • If the procuring entity announces few (mostly small in amount) procurement transactions, the probability of the occurrence of such negative factors as confirmation of violations by the monitoring body, disqualifications, etc., is significantly lower than in the case of more procurement transactions.
  • The impact of abnormal values of individual procurement transactions is significantly higher in cases of small procurement samples. A high score in a procurement transaction can significantly affect the entire assessment result.

Consequently, procuring entities with a small number of procurement transactions have a certain advantage over procuring entities with a much larger number of procurement transactions. To minimize this impact on the objectivity of the assessment, a coefficient on the number of completed procedures per month is applied.

If the number of completed competitive procedures is more than or equal to 50/month, Кк = 1. If the number of completed competitive procurement transactions is less than or equal to 10/month, Кк = 0.8. If the number of procurement transactions is less than 50/month, but more than 10/month, the coefficient is calculated by the formula:

Кк =0.005×Number of completed competitive procurement transactions+0.75