Benchmarking and best practices EXPP/2011/07 EN point 6 of the Agenda Meeting of the Commission Government Experts Group on Public Procurement 07 December 2011

Best practice benchmarking Evaluation of processes and performance in relation to best practice organisation’s processes and performance, usually within a peer group defined for the purposes of comparison allows organizations to develop plans on how to make improvements adapt specific best practices, usually with the aim of increasing some aspect of performance May be a one-off event, but often treated as a continuous process in which organizations continually seek to improve their practices

Best practice benchmarking Dimensions typically measured time cost quality The participants can identify the performance metrics and targets learn from the best performers and, more importantly, understand why the best performers are successful

Benchmarking in the evaluation Exemplary aspects/dimensions where comparisons across Member States can be made Level of cross-border procurement* Duration of procedures* Costs of procedures (time spent in person-days)** Quality of data in notices published* Based on: *OJ/TED data; **survey based on OJ/TED data

Duration of procedures PROPOSED DIMENSION Duration of procedures

Duration of procedures Fig. 1): Time for the entire procurement process (from the day of dispatching of the CN to the date of award) – median number of days Source: PwC, Ecorys, London Economics

Duration of procedures Potentially influenced by Structure of procedures used e.g. in the UK the restricted procedure is used more frequently (++ duration) More procurement in sectors where purchasing tends to takes longer Business services, construction (++ duration) Commodities and food (-- duration)

Duration – country effects Fig. 2): Number of days relative to the average Source: PwC, Ecorys, London Economics

Costs of procedures (time spent in person-days) PROPOSED DIMENSION Costs of procedures (time spent in person-days)

Costs of procedures (person-days) Costs (person-days) Quickest Slowest Difference Authorities 11 68 57 Firms 10 34 24 Duration of procedure (authorities + firms) 22 93 71 Significant discrepancies in efficiency amongst Member States  importance of enhancing correct and smart application of the rules

Costs of procedures - CAEs Fig. 3): Cost of procedures in man-days – contracting authorities and entities Source: PwC, Ecorys, London Economics

Costs of procedures - firms Fig. 4): Cost of procedures in man-days – firms Source: PwC, Ecorys, London Economics

Costs of procedures - combined Fig. 5): Cost of procedures in man-days – combined Source: PwC, Ecorys, London Economics

Quality of data in notices published PROPOSED DIMENSION Quality of data in notices published

Quality of notices Fig. 6): Percentage of CANs with data provided in value field (2010) Source: DG MARKT

Discussion - questions Are these indicators appropriate? Proposals for other indicators / dimensions that should be taken into account Can Member States that rank high share their expertise with the others? What makes them successful (methods, instruments introduced)?