zindex.cz Czech ranking of buyers best practice
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1 zindex.cz Czech ranking of buyers best practice E-Procurement Forum, Vienna, Jiří Skuhrovec Centre of applied economics Charles University, Prague
2 Czech Republic Portugal Hungary Romania Estonia Spain Cyprus Lithuania Slovak Republic Italy Bulgaria Slovenia Germany Austria Latvia Poland Netherlands France Belgium United Kingdom Denmark Finland Norway Greece Sweden Ireland Motivation 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Share of tenders in Negotiated procedure without publication (TED, 2013) 2
3 Motivation II Some authorities overuse non-competitive procedure Criticism? So what, law allows it Savings? No need, the budget has been set. For public entity, there is no other motivating factor besides political responsibility. 3
4 zindex - Core idea EU Directive and Procurement laws give authority wide borders to operate There are guides, white papers defining best practice within these borders Let s measure the deviation from best practice! (defined by OECD, EC, TI..) 4
5 zindex used data We use for calculation: Central procurement registry (further cleaned) Buyer profiles Business registry Buyer s accounting reports Database of court decisions Other minor sources (Political party donors, State offices registry..) In ALL the cases, we write the software to extract the data ourselves (no opendata) 5
6 zindex how we rate We rate each buyer over a period of time We did cities , state offices Why 3 years? To capture elections time span We plan to repeat rating 11 main criteria, indicating good practice Detailed Results at zindex.cz Buyers get their results in advance 6
7 What we rate #1 : Budget share Public procurement (single bidder) No procurement Graph: Czech budget spending on goods and services 2010 Small-tenders (not published) Old contracts (before 2006) zindex: Registered procurement volume / all purchases Public procurement 7
8 What we rate #2 : procurement details Procedure type (penalize negotiated without publication) Number of bidders (penalize low bidders in competitive markets) Tender cancellations, changing specification Successful law suits against authority 8
9 What we rate #3 : procurement results Supplier rating: Political party donors Procurement share on total turnover Red flags (no employees, ROI 100% and higher..) Market concentration same supplier winning over and over again Data quality (prices, suppliers, minor law violations) 9
10 zindex findings 1/3 of purchases spent through PP 50% of issued calls are cancelled/modified 30% of political party donors are PP suppliers 10 % in zindex results = 8 % lower chance of legal misconduct 1.4 % higher average savings 10
11 zindex policy impact Our outputs contributed to: Ban of bearer shares (anonymous ownership) Strict regulation of single-bidder procurement Institution-level changes (publication quality) We hope to get more prior to elections (2016 regions, 2017 state) 11
12 Digiwhist: zindex beyond Czech republic? 90 % of the methodology is applicable in other countries. However.. Data quality and availability Legal differences below threshold Digiwhist project with Cambridge Uni Get comparable procurement data across EU-28 Propose set of risk indicators Happy to cooperate with national stakeholders 12
13 Thanks for your attention (suggestions welcome, we want to make zindex better) zindex.cz/en digiwhist.eu 13
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