A PROCUREMENT ASSESSMENT MODEL

1. A PROCUREMENT ASSESSMENT MODEL Joel Turkewitz World Bank April 2003

2. Model created by • Peder Blomberg • Working paper • This is a model – not an example of a monitoring system that has been adopted in a particular country

3. Key Performance Areas • Legislative Framework • Central Institutional Capacity • Procurement Implementation and Operation Environment • System for Control and Corrective Measures

4. Performance Measures • Performance Standard not achieved (NA) • Performance Standard partially achieved (PA) • Performance Standard substantially achieved (SA) • Performance Standard fully achieved (FA)

5. Indicators • Standard of the Public Procurement Law • Availability of Supporting Regulations • Central Institutional Organization • Institutional Development Capacity • Procurement Management and Operational Standard

6. Indicators (con’t) • Market Performance • Control and Audit Standard • Quality of the Complaint Review Process

7. Standard of the Public Procurement Law • Goal: To adopt of public procurement law within X years that is fully compliant with the GPA • Baseline: The PPL shall progressively be designed with reference to the GPA as well as recognised international procedures and rules for procurement below the GPA thresholds.

8. Variables on Law • Scope of application and coverage • Procurement methods • Advertising rules and time limits • Rules on participation and qualitative selection • Tender documentation and technical specifications

9. Law Variables (con’t) • Tender evaluation and award criteria • Receipt and opening of tenders • Complaint review procedures

10. Dimensions of the variable • a)      Scope of application and coverage -  Contracting entities at all levels, including municipalities and utilities should be included; • - All areas of procurement; works, goods and services should be included; • -Public procurement, irrespective of contract value, is regulated by law/regulations;

11. Performance Measures -All requirements met as listed above: FA -Some procedural deficiencies, but most requirements met: SA -Procedural deficiencies and more than 50% of the requirements not met: PA -Serious procedural deficiencies and only a few requirements met: NA

12. Indicator 2. Availability of Supporting Regulations • Performance Goal: The availability of a complete range of supporting regulations, policy guidelines and Users´guides not later than (?) year after the adoption of the new draft PPL.

13. Availability Variables a) A regulation on tender notices; b) A regulation on model tender documents for goods, works, and services; c) A regulation on evaluation of tenders and award of contracts; d) A regulation on qualification procedures;

14. Availability variables (con’t) e) A regulation on procurement of consultant services; f) User’s Guides for contracting entities; g) Proposals for General Conditions of Contracts for public sector contracts covering goods, works and services based on international contract models;

15. Performance Measures • All regulations finalised under a)- f) and preferably g) after (?) months: FA • 75% of regulations finalised after (?) months: SA • 50% of regulations finalised after (?) months: PA • Less than 50% of regulations finalised after (?) months: NA

16. Indicator 3. Central Institutional Organisation • Performance Goal: The establishment of a central procurement organisation (PPO) within (?) years time that is fully operational, equipped and staffed enabling it to carry out it’s functions, tasks and duties effectively and efficiently to the satisfaction of all stakeholders of the procurement system, such as the government, the parliament, the contracting entities and the private sector

17. Central Institution Variables • The status and legal basis for the establishment of a central Public Procurement Organisation • The coverage of the TOR of the PPO • Organisation and staffing of the PPO • Access to legal support and other service functions at the regional level

18. Performance Measures • Meets all the requirements under item a), b), c) and preferably d): FA • Meets the requirements under item a) and b) but not sufficiently c) and d): SA • Meets only the requirements under a) but no other items: PA • Meets no requirements: NA

19. Indicator 4. Institutional Development Capacity • Performance Goal: To develop and strengthen the public procurement system of the country in the sectors listed below to a standard truly comparable with an average of countries in the European Union within a period of (?) years.

20. Institutional Capacity Variables • The system for dissemination of procurement information • National training and information systems on public procurement • The use of international technical and quality standards in public procurement • Technical and methodological development

21. 5. Procurement Management and Operational StandardIndicator • Performance Goal: The overall procurement management and operational standard of the contracting entities will meet within a period of (?) years in terms of planning, procedures, administrative routines, procurement and commercial competence, and professionalism in general, as an average, a standard that are fully comparable with international procurement best practices

22. Operations and Management Variables • The level of procurement competence • The level of sophistication of routines and administrative systems • The availability of efficient organizations, decision- making structures and control mechanisms • The existence of typical commercial developments

23. Indicator 6. Market Performance • Performance Goal: to develop a well-functioning and competitive public procurement market with an ability to deliver goods, works and services efficiently and effectively in line with the standard of a suitable selection of countries.

24. Market Variables • The system for collection of procurement market information data • The functional standard • The competitiveness of the procurement market

25. Indicator 7. Control and Audit Standard • Performance Goal: To develop within (?) years the control and audit standard in the field of public procurement up to a standard fully comparable with a selection of other countries in possession of a demonstrated high standard in this area

26. Control and Audit Variables • A legal and regulatory basis for financial control and audit of procurement operations in line with international standards in place; • Organisation and procedures for internal and external control of public procurement operations follow international practices • Fraud and corruption

27. Indicator 8. Quality of the Complaint Review System • Performance Goal: To establish with a period of (?) years a credible, trustworthy and effective complaint review system, as so experienced by the private sector, contracting entities and the public in general, in compliance with international standards

28. Complaint Variables • The legal basis • Degree of compliance with international models, such as the EC Remedies Directives • The capacity and quality of the complaint review system