The Analytical Center Presentes Regional Procurement Efficiency Ranking

6 july 2016

The governmental regional procurement efficiency ranking was developed for independent assessment of quality and efficiency of the governmental procurement process on municipal and regional levels. “The assessment is done by 5 basic criteria, namely competitiveness, cost effectiveness, planning effectiveness, conflicts possibility and doubtfulness of purchases. In our view, these are the most representative characteristics of procurement processes,” said Deputy Head of Analytical Center Ms. Tatiana Radchenko, presenting the results of the ranking at a TASS press conference.

Regions are assessed by 5 criteria separately, and each criterion has its own ratio for calculating the total rating. “The ranking is, first and foremost, an evaluation tool which enables us not only to find out ‘bad’ procurement cases, but also to follow and analyze procurement processes,” explained Ms. Radchenko. “We expect regions to use it, for example, for finding out which suppliers have a negative influence on their rating and assume measures to deal with existing problems.”

The ranking is based on the data provided by Zakupki360, whose database contains information about state and municipal purchases from the official website http://zakupki.gov.ru. “All the data used in our rankings and information systems are acquired from official sources on a continuous basis, then processed automatically and calculated to a high precision,” said Vladimir Ivichev, CEO of Zakupki360.

During the presentation for TASS, the rankings for 2015 and Q1 2016 were shown. “In 2015, the top two regions by efficiency were the Kaluga and Yaroslavl Regions, ranking first and second accordingly. In 2016, they are still among the top 3, but the first position in ranking is taken by the Lipetsk Region. Furthermore, the Kaluga and Yaroslavl Regions are in the top 15 by each criterion, which is an exceptionally good result,” Ms. Radchenko commented, presenting detailed rankings. Apart from the regions named above, the top 10 also include St. Petersburg, Chuvashia, the Novosibirsk Region, the Altai Territory, Udmurtia, the Republic of Tatarstan, the Sverdlovsk Region, the Kirov Region.

According to the results of Q1 2016, the Republic of North Ossetia-Alania is ranking last (it was 82d of 85 in 2015). The Republic of Kalmykia, which had the lowest rating in 2015, has moved up to the 78th position by reducing the percentage of purchases with violations detected in comparison with 2015 and lowering procurement doubtfulness level. “Kalmykia, which was on the bottom line of the ranking in 2015, has managed to move to the 78th place; however, half of the procurement deals there are made with the same supplier. It shows that the procurement processes are not quite efficient,” clarified Ms. Radchenko. Dagestan, Yakutia, North Ossetia-Alania, the Bryansk Region, the Republic of Tyva, the Altai Republic, the Trans-Baikal Territory, Karachay-Cherkessia, the Chukotka Autonomous District, the Sakhalin Region.

The procurement performed by the federal executive authorities in regions was among the most representative cases. “In the Ministry of Internal Affairs of Karachay-Cherkessia, despite the fact that the procurement process was organized via the online auction, there was only one company to apply and it won on the same terms as stated in the auction. We have checked procurement specifications and the terms of the contract and found out they are absolutely similar,” added Ms. Radchenko. At the same time, in the Republic of Ingushetia, daily procurement rate was approximately RUB 230,000, whereas the average sum across Russia is about RUB 20,000.

The governmental regional procurement efficiency ranking is compiled for the first time; from now on, the ratings will be calculated two times a year, based on the data of 6 and 12 months of each year.

Photo by TASS