New Leaders in Regional Procurement Efficiency Rating

23 may 2017

Analytical Center for the Government of the Russian Federation and Zakupki360 Company have prepared Regional Procurement Efficiency Rating for 2016. At the top of the list are Yaroslavl, Kemerovo and Tyumen oblasts which in 2015 took the 2nd, 35th, and 25th places correspondingly.

Kemerov Oblast demonstrated a considerable growth by all assessment criteria. For instance, the share of tenders questioned by claims supported by the Federal Antimonopoly Service (FAS) decreased twofold. Tyumen Oblast also improved its results by all the criteria, except for conflict intensity, where the region experienced a slight decrease.

The worst results (places 82-85 in the rating) are those of the Republics of Kalmykia, Karachay-Cherkess, North Ossetia-Alania, and Dagestan. In 2015, they were also at the tail end of the rating (except for the Karachay-Cherkess Republic that was 77th). Analysts say that the low level of efficiency of public procurement in the regions is due to relatively low procurement competition manifested in a large portion of purchases from a single supplier and the small number of bidders. These regions also see a large share of procurement with complaints filed against it which are recognized as substantiated by the FAS.

Saint-Petersburg and Moscow account for 5.3 % and 16 % of the total procurement volume analyzed. The regions have 4th and 18th places in the rating (3th and 19th in the rating of 2015). Just like in 2015, they are leaders in competitiveness, which is partially mitigated by a large number of complaints against tenders organized by regional and municipal authorities.

The total volume of analyzed procurement amounts to 3.9 trillion rubles.

The calculations, like the year before, are based on the database of the Zakupki360 Company that contains information on public and municipal procurement available on http://zakupki.gov.ru. 

Last year demonstrated that regions are very meticulous about their places in the rating, and many did not agree with the assessment they received. "Automated calculation of rating indicators stimulates the authorities to pay more attention as to which data they enter in the Unified Data System. Mistakes obviously can affect a region's position in the rating" - clarified deputy head of the Analytical Center, Tatiana Radchenko.

"We have carried out extensive analysis and research, taking into account the results of the previous regional efficiency assessments.   We have collected regional representatives' feedback, and on its basis added a number of new indicators. Anyone can have their own rating calculated for each of the indicators.  Today the rating helps to identify large-scale problems with procurement procedures and to focus on most high-risk aspects at both regional and municipal levels.  For example, one of the new indicators shows that at the end of the year at least 78 out of 85 regions delayed and did not close in the Unified Data System more than 20% of their 2016 contracts by the time the rating was under calculation. And that discredits open public data," says Zakupki360 Company CEO Vladimir Ivichev.

Let us remind that the Regional Procurement Efficiency Rating was designed by the Analytical Center for the Government of the Russian Federation and Zakupki360 Company and presented for the first time in 2016. It aims at assessing objectively the quality and efficiency of procurement organization and implementation by state bodies at the regional and municipal levels. The assessment of the regions is made by 5 main criteria: competitiveness (share in the final rating - 0.5), cost effectiveness (0.08), planning efficiency (0.2), conflict intensity (0.2) and suspicious purchases (0.1). Thus, the rating is first of all an analytical tool enabling not only to detect "bad" procurement, but also to monitor and analyze procurement processes. That means it helps the regions to identify gaps on their own and take measures to improve the situation.