Baseline Indicators and Performance Measurement Framework for Procurement

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Baseline Indicators and Performance Measurement
Framework for Procurement

• Regional Workshop on Procurement Capacity
  Development
• Lima, Peru
• 24-26 April 2007
• Bernard Becq
• Chief Procurement Technical Advisor
• The World Bank and
• Co-Chair, JV for Procurement

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The OECD/DAC Joint Venture for Procurements
Methodology for Assessment of National
Procurement Systems

• Current version of the subject assessment tool
  was issued in July 2006
• Consists of the following key parts
• Introduction and guidance for use
• Benchmarking tool
• Suggested framework for performance measurement
  and monitoring
• Template for recording outcome of assessment and
  recommendations

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Procurement Baseline Indicators

• Four Pillars
• I. Legislative and Regulatory Framework
• II. Institutional Framework and Management
  Capacity
• III. Procurement Operations and Market Practices
• IV. Integrity of Public Procurement System

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Twelve Indicators

• Pillar I Legislative and Regulatory
  Framework
• 1. Complies with applicable obligations deriving
  from national and international requirements.
• 2. Regulations, documentation and tools to
  support implementation.

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Twelve Indicators

• Pillar II Institutional Framework and
  Management Capacity
• 3. Degree of Integration into PFM System
• 4. Existence of a Functional Management Body
• 5. Existence of Institutional Development Capacity

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Twelve Indicators

• Pillar III The Procurement Operations and
  Market Practices
• 6. Efficiency of Procurement Operations and
  Practices
• 7. Functionality of the Public Procurement Market
• 8. Existence of Contract Administration and
  Dispute Resolution Provisions

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Twelve Indicators

• Pillar IV The Integrity of the Public
  Procurement System
• 9. Existence of effective control and audit
  systems
• 10. Existence and efficiency of appeals mechanism
• 11. Degree of access to information
• 12. Existence of ethics and anticorruption
  measures

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Baseline description of key components that
relate to indicators

• Each of the twelve indicators has descriptions of
  key components related to the indicator which are
  sub indicators
• The sub indicators help describe the standard
• Strengths and weaknesses of the system are
  revealed based on score achieved for each sub
  indicator
• Scoring guidance provided on a 0-3 scale
• Provides a tool for countries and donors to use
  in the development of a reform strategy

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Methodology for Use

• Client countries are encouraged to use baseline
  indicators to self assess
• Share results of baseline indicators assessment
  with donors in a validation process
• Update assessment when aspects of the system
  change
• Use outcome of assessment to provide information
  for better integration with Public Financial
  Management System

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Performance Measurement

• Baseline indicators provide a broad country
  picture at a point in time
• Performance measurement framework designed to
  capture performance data and measure change over
  time
• Performance data is important to management of
  the reform process and determining the
  effectiveness of the strategy
• Reporting is enhanced by reliance on performance
  data.

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Performance Measurement Framework
Performance measure framework is linked to the
various sub indicators, but not every sub
indicator has a suggested performance measurement
indicator Framework designed to provide
countries with options on establishing a country
specific performance measurement capacity
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Comments from World Bank Perspective

• World Bank participated in the development of the
  OECD/DAC benchmarking tool and is committed to
  using the methodology.
• The Bank has already introduced the methodology
  into our Country Procurement Assessment (CPAR)
  work, especially in the LCR and will continue to
  expand its use
• The World Bank is committed to the Paris
  Declaration and will continue to participate
  actively to see that the goals and objectives of
  the Paris Declaration are met.

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Questions?

• Thank you