Analysts Updated Regional Public Procurement Efficiency Rating

31 january 2017

The Analytical Center published results of the regional public procurement efficiency rating for H1 2016. The leaders are the Kaluga, Lipetsk and Yaroslavl Regions. Moreover, while the Kaluga and Yaroslavl Regions were in the 2015 TOP-3, the Lipetsk Region improved its position significantly, having risen from the 17th place to the 2nd place. The worst positions were held by the Republics of North Ossetia-Alania, Dagestan, Sakha (Yakutia) and the Chukotka Autonomous Region. The total procurement volume covered by the rating analysis was RUB 1.7 trillion, 2/3 of which were purchases of regional customers. The calculations were made under the database as of 30th November, 2016.

“The regional public procurement rating shows an independent assessment with respect to the quality and efficiency of purchases organized and performed by customers of regional and municipal levels,” reminded Mrs. Tatiana Radchenko, Deputy Head of Analytical Center. The key assessment criteria applied therein are competitiveness, cost effectiveness, planning efficiency, conflictness and suspiciousness of purchases, which, in the opinion of the analysts, describe procurement processes in the most accurate manner. “To ensure compatibility of results, we applied the calculation methodology developed last year, although the Analytical Center received proposals on its improvements from some Russian regions following presentation of the 2015 rating,” said Mrs. Radchenko. “These proposals will be taken into consideration in the methodology when preparing the 2016 rating that is updated once per six months.”

Some regions changed their positions considerably in the updated rating and these changes occurred in both directions. For example, the Primorski Krai advanced from the 60th place to the 22nd place. The experts explain this rapid progress by lower procedural violations detected by the Federal Antimonopoly Service (FAS): the region rose from the 67th to the 5th position in the conflictness subrating and improved its indicators in terms of other criteria. Improvements are observed in the Smolensk and Ivanovo Regions (by 33 positions), Sevastopol (by 32 positions) and the Ulyanovsk Region (by 31 positions). Totally, 15 regions advanced by over 15 positions versus the 2015 rating. The largest drop was recorded in the Tomsk Region - from the 13th to the 56th position and that change was generally caused by a dramatic fall in the subratings of competitiveness (from the 26th to the 50th place) and conflictness (from the 6th to the 51st place), according to the analysts.

We remind that the rating was calculated based on publicly available information published in free access at the official website of the Unified Information System for Public Procurement in accordance with Federal Law No 44-FZ dated 5th April, 2013 “On the Contract System in the Field of Procurement with Goods, Works and Services for Governmental and Municipal Needs”. These data are processed by Procurement 360 automated system. The sampling based on which the rating is built includes all purchases posted in the analyzed period and paid in rubles following which contracts have been signed with public customers of regional and municipal levels. The first rating prepared for 2015 and preliminary calculations made for Q1 2016 were presented by the analysts in July last year.

The consolidated table of the principal rating, distribution of regions in 5 subratings forming final indicators and details of the calculations are contained in the Report ”Regional Procurement Efficiency Rating - H1 2016”.