Using E-Procurement data to measure the transparency and performance of public spending
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1 Using E-Procurement data to measure the transparency and performance of public spending M.Sc. Marija Jovanoska Head of department Monitoring and -Procurement Department
2 USERS OF THE SYSTEM Public Procurement Bureau management, maintenance, upgrading, promotion and monitoring of e- Procurement system Contracting Authorities registered Contracting Authorities (100% of all CA s public and state bodies and agencies) Economic Operators Over registered Economic Operators Domestic EO s Foreign EO s State Appeal Commission State Audit Office Public wide public information accessible
3 FUNCTIONALITIES AND MAIN ASPECTS OF THE SYSTEM Web-based - simple and user-friendly system Centralized system one location for all e- procurement transactions in Macedonia (one-stop-shop) Aligned with the e-procurement Golden Book of Good Practice (17 out of 24) Enables conducting the entire public procurement procedure electronically Enables electronic communication between contracting authorities and domestic and foreign economic operators Eliminates paper work thus ensuring efficiency and costeffectiveness of the contract award procedures Ensures traceability of actions and data
4 ESPP VISIT RATE IN 2014 Hits Daily average of hits 850,145 Page views Total page views 48,522,880 Daily average page views 132,576 Average page views per visitor Visitors Daily average of visitors 1,573 Traffic Total traffic Traffic from visitors Daily average traffic GB GB 2.21 MB Daily visitors Daily hits Activity by day of the week
5 PUBLICATION OF THE CONTRACT NOTICE AND TENDER DOCUMENTATION Mandatory publication of all contract notice together with tender documentation and all contract awards notices and cancelation notices Download of tender documentation (only registered EO) All EO s receive with all the contract notices published within the categories they are subscribed (Subscribe for INFO) EO s who downloaded tender documentation receive with the amendment if a corrigendum notice has been made CA s receive daily notification who downloaded the tender documentation Statistics: YEAR AVERAGE MAX IN ONE DAY Obligation for publishing the contract notices above threshold of on TED (1.045 notices published on TED in 2014)
6 BID SUBMISSION AND DIGITAL CERTIFICATES EO s submit their bid electronically through ESPP EO s receive confirmation in their mailbox that the bid is successfully submitted Virtual Dossier of participation in finished procedures separate module in EO s user profile where they can review their submitted bid and attached documents after the public opening (after the encryption of the documents) The electronic documents which are attached and exchanged via the EPPS (issued by the EO, not other institutions), in accordance with the Public Procurement Law, have to be digitally signed. The Digital signature have to be obtained by registered issuers of qualified digital certificate from the country the EO is from and it is applied to the document The CA is responsible for verifying the validity and can contact the issuer if he has any doubt in the applied digital certificate.
7 COMMUNICATION, PUBLIC OPENING, EVALUATING BIDS Posting questions and answers Questions and answers before public opening Questions/Answers in evaluation phase Proof of delivery/reception in ESPP Mailbox Online submission of tenders/requests to participate EO s receive proof of delivery in their Mailbox upon successful submission of their tender CA s receive notification that a bid has been submitted EO s can resubmit their tenders up until the submission deadline The platform keep tenders encrypted until the opening session Public opening and evaluation of tenders Users can follow the public opening from their computer Documents are decrypted on the time of public opening After evaluating the offers EO s receive an invitation to e-auction or notification that their offer is rejected
8 PUBLIC PROFILE OF ESPP CONTRACT AWARD NOTICES All CA s have obligation to publish a contract award notice within 30 days after the implementation of the open procedure, restricted procedure, competitive dialog, negotiated procedures or design contest. This contract award notices are published on the public profile where the general public can search the award notices by different criteria
9 READY FOR MANDATORY USE OF ESPP New amendments in the Public Procurement Law for mandatory use of e-procurement by % of all procurement procedures have to conducted through ESPP by % of all procurement procedures have to conducted through ESPP by % of all procurement procedures have to conducted through ESPP by 2018
10 STATISTICAL DATA PPB collects and stores large statistical data on the PP procedures generated within a separate module for monitoring and statistical review of the trends in public procurement. The implemented module is Business Intelligence Solution PPB creates and delivers annual report with comparative data and on demand reports
11 VOLUME AND VALUE OF CONTRACT AWARDS FORMED THROUGH e-pp In 2014, 3,085 contract award notices were conducted electronically with value of 198 million i.e. approximately 14% of the total number of published contract award notices and 20% of the total value of published contract award notices. * In the above charts are presented the Value and Number of supplies, services and works awarded through e-submission
12 VOLUME AND VALUE OF CONTRACT AWARDS FORMED THROUGH e-pp Value (%) of concluded contract awards by EO category: Value of concluded contracts according to the type of public contract -Micro business 5% - S&M enterprises 48% - Large enterprise 35 % - Foreign 12 % SME; 48% Large; 35% Number (%) of concluded contract awards by EO category: -Micro business - 13% - S&M enterprises 71% - Large enterprise 14% - Foreign 12% Micro; 5% Foreigner; 12%
13 PRICE REDUCTION/PRICE VARIATION In 2014, 2,303 contract notices were conducted electronically, i.e. approximately 15% of the total number of published contract notices. Average % of savings by type of procedure Type of procedure Total amount of savings Percentage of savings Simplified competitive procedure up to LP % EUR 5,000 MEAT % Simplified competitive procedure up to LP % EUR 20,000 MEAT % Open procedure LP % MEAT %
14 AVERAGE NUMBER OF BIDS Average number of tenders submitted in procedures carried out fully through the ESPP is 3.4 tenders per procedure, while with respect to the paper-based procedures, 2.9 tenders are submitted in average. Procedure Average number of tenders Simplified competitive procedure up to EUR 5, Simplified competitive procedure up to EUR 20, Open procedure 3.17 Restricted procedure 2.33 Negotiated procedure with prior publication of a contract notice 2.94 Negotiated procedure without prior publication of a contract notice 1.82 Awarding public services contract for service category Qualification system 3.50 Average of all procedures 2.79 Type Average number of tenders Supplies 2.88 Services 2.54 Works 3.73 * Average of the submitted tenders at the contract award procedures (including both those carried out electronically and in a paper-based form) presented in the Tables above
15 AVERAGE DURATION OF TENDER PROCEDURE Average duration of tenders submitted in procedures carried out fully through the ESPP is 28 days from the end date (public opening) until the conclusion of the contract, while with respect to the paper-based procedures, the average duration of tenders is 98 days in average. Average duration of contract award procedures 2014 Simplified competitive procedure (up to EUR 5,000) 21 days Simplified competitive procedure (exceeding EUR 5,000) Open procedure Restricted procedure Negotiated procedure with prior publication of a contract notice 24 days 45 days 139 days 77 days * Average duration of tenders at the contract award procedures (including both those carried out electronically and in a paper-based form) presented in the Table above
16 DIRECT AWARDS AS A % OF TOTAL NUMBER OF PUBLIC CONTRACTS Value of concluded public contracts according to the type of procedure Negotiated procedure with prior publication of a contract notice 2% Qualification system 5% Negotiated procedure without prior publication of a contract notice 6% Awarding public services contract for service category (total) 1% Simplified competitive procedure with a value threshold up to EUR 5,000 2% Simplified competitive procedure with a value threshold exceeding EUR 5,000 4% Restricted procedure 1% Open procedure 79% Only 5 % of the total number and 8% of the total value of public contracts are awarded to Negotiated procedures (DIRECT AWARDS)
17 BENEFITS AND BARRIERS Benefits from e-pp for CA s and EO s increased transparency better and faster communication between the contracting authorities and the economic operators unification and standardization of the steps undertaken when carrying out certain types of procurement procedures decreasing the time needed to conduct the procedures and the expenses for printing, posting and requiring the necessary documentation. increased confidence in ESPP (All actions traced - logged in the system) Barriers to adopt e-pp for CA s and EO s fear of the unknown and resistance to change the well-established manner of carrying out paper-based public procurement procedures; insufficient knowledge of the information and communication technology and its use; distrust in the new technologies to undertake actions related to public procurement procedures.
18 NEWS AND UPDATES OF ESPP Version for mobile devices and new design of ESPP Total redesign on the homepage and the user profiles of EO s and CA s (restricted section on ESPP)
19 FUTURE PLANS Project TENDER DOSSIER CLOUD DATA STORAGE Introduce e-invoicing and e-payment
20
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