1. Work shop on Procurement Key-performance indicators with selected implementing entities Public procurement and property administration agency August 2016

2.  Introduction  Objective of the guide line  Over view of procurement KPI  Organizational set up  Roles and responsibilities of data collection

3.  Operational set up in data collection  Overview of data aggregation  Reporting and use of findings  Compiling and summarizing data  Selected indicators

4. The way for ward  Operational set up in data collection  Overview of data aggregation  Reporting and use of findings  Compiling and summarizing data  Selected indicators

5. Introduction Procurement services in the public sector are under considerable pressure to deliver performance improvements and to achieve financial savings through more efficient and coordinated service delivery. Increasing the effectiveness, efficiency and transparency of public procurement systems has become an ongoing concern of governments and of the international development community

6. Intro… cont To track progress and to keep focus on the changing environment, managers and procurement staff will need to monitor, manage and report on their performance in a consistent, straightforward and cost- effective way. To measure the performance of procurement design a procurement key performance indicators to enable the procuring entities to regularly monitor and track performance trend.

7. Objective of the guide line The fundamental objective of this manual is to deliver measurable improvement in public procurement performance over time, across the whole public sector in Ethiopia. This can only be achieved if procurement teams in every organization adopt a culture of collaboration & continuous improvement, create & actively use management information to inform strategic procurement decisions, embed best practice, & improve organizational processes.

8. Overview of Procurement KPI The general objective of procurement performance monitoring through KPI is to measure the procurement performance throughout the procurement cycle and to ensure maximum value for money (efficiency, economy and effectiveness), transparency, non discrimination and accountability in public sector.

9. Organizational set up To ensure the implementation of KPI's FPPA will coordinate and serve as a central contact point for procuring entities. The procuring entity the procurement unit has the responsibility to keep records, collect data, analyze its performance and use the result for further improvement of procurement unit. It report to FPPA based on format provided and facilitate implementation of key performance indicators.

10. Roles & responsibilities for data collection To ensure smooth data collection, procurement unit of procuring entities will be responsible for collecting data and monitoring questionnaires and conduct interviews The regulatory will check to ensure that questioners are completed by each procuring entities and review and assuring that questioners and required data are aggregated analyzed, action plan prepared and implemented for findings

11. Operational steps in data collection 1. Prepare Work Plan: this includes dates for dissemination of questionnaires; audit and compliance check periods; questionnaire completion dates; and quality assurance periods. In addition the work plan shall indicate the timing and sequencing of activities to be carried out as part of the data aggregation, reporting of findings, and using of findings.

12. Operational steps…cont 2. Dissemination of questionnaires: The procuring entities responsible to disseminate the relevant questionnaires and formats to procurement units and other stakeholders (as necessary) according to the work plan. 3. Filling questionnaires: It is the responsibility of the procurement Unit to ensure that questionnaires are completed as required and on time. All disseminated Procurement Questionnaires and formats shall be filled by procurement unit and other stakeholders.

13. Operational steps…cont 4. Collecting and quality assuring completed questionnaires: based on the work plan procurement unit will prepare, consolidate and analyze for internal use and will report to FPPA as necessary. The FPPA will review and prepare consolidated report at national level.

14. Overview of Data aggregation After the completed questionnaires and formats the procuring entities will aggregate the collected data to compare, analyses and prepare report

15. Roles & responsibilities for data aggregation The aggregation of questionnaire data will be carried out by data clerks employed by procuring entities using excel data base. The data aggregation phase consists of two core steps: 1. Data entry -this activity is the entry of each answer for each questionnaire and records into the relevant data aggregation format. 2. Quality assurance of data entered –in addition to the procuring entities, FPPA will carry out verifications on a small sample of entries in order to detect and correct systematic errors in the data entry approach

16. Reporting and use of finding s The overall findings on each of the established indicators are to be reported to the procuring entities on an annual basis in order to provide the top management with an overview of the status on procurement performance, including an indication of the overall areas in which the public procurement system is on track or not on track

17. Reporting…cont  The report shall be structured around the following headings:  Executive summary  Introduction  Overview of overall key performance trends and development  Recommendations for steps to be taken by procuring entities and FPPA

18. Data Collection The data that will be collected by procuring public bodies is divided into six categories. A. Identification (Data related to identification of contract information B. Process (Data related to process information regarding the procurement process of a particular contract) C. Price (Data related to price information of the particular contract) D. Competitiveness (Data that will help measure competitiveness) E. Contract Implementation Data that will help measure contract implementation of the particular contract ) and F. Complaint. (Data that will help measure effectiveness of complaint mechanism shall be recorded )

19. Compiling and Summarizing Data FPPA shall receive electronic copies of data recorded by procuring public bodies Procuring public bodies shall update the information for the procuring activities they undertake continuously as and when the information is available FPPA shall collect updated data bi annually for analysis.

20. Compiling…cont FPPA shall summarize the collected data for each procuring public body for the following four procurement categories 1. Goods 2 Works 3. No-Consultancy services and 4. Consultancy.

21.  Improvement in Procurement cycle time  Reduction in number of cancelled bids  Increase of open procurement methods  Increase in average number of bids per tender  Improvement in realistic procurement plan  Increase in number complaints resolved within the standard time frame  Increase in the amount of Procurement Information provided to the public  Reduction in contracts cost overrun  Reduction in contracts time overrun  Reduction in poor quality of contract deliverables Selected Indicators

22. Improvement in Procurement cycle time Average bid process Time shall be calculated for each procurement category of Goods, Works, Non-Consultancy Service, and Consultancy for each procuring public body Average Bid Process Time [Days] = average (contract signature date- date of bidding document available)

23. Average Bid Evaluation Time Average bid evaluation time shall be denominated in “days” and shall be calculated for each procurement category of Goods, Works, Non-Consultancy Service, and Consultancy for each procuring public body and for aggregate of all as follows: Average Bid Evaluation Time [Days] = Average(contract signature date(B17)-Actual bid Opening date(B) ) Improvement in Procurement cycle time

24. Reduction in number of cancelled bids  The number of cancelled bids shall be calculated for each procurement category of Goods, Works, Non- Consultancy Services, and Consultancy for each procuring public body. number of cancelled bids= count number of canceled bids

25. Increase of open procurement methods Share of open bids using contract amount  The share of bid using open procurement method shall be calculated by using the contract amount and shall be indicated in percentage of the total. Share of open bids using contract amount [%] = Total contract amount for open bid method * 100 Total contract amount for all procurement method

26. Increase of open procurement methods Share of open bids from total no of contracts [%]  The share of bid using open procurement method shall be calculated by using the number of contracts and shall be indicated in percentage of the total. Share of open bids using total contract number [%] = Total number of contract using open bid method * 100 Total umber of contract for all procurement method

27. Increase in average number of bids per tender Average number of bidders shall be calculated for each procurement category of Goods, Works, Non- Consultancy Services, and Consultancy for each procuring public body. average number of bids per tender= Average( Number of Submitted bids per tender)

28. Improvement in realistic procurement plan The average contract signature date delay shall be calculated in percentage by counting the number of contract that was signed with delay from the original planned date in the procurement plan Delay of contract signature from procurement plan [Days] = procurement plan signature date- actual contract signature date No of contracts that are delayed = Count if ( delays of contract signature from procurement plan in days) Contract signature delay [%] = =Total number of contract signature delayed * 100 Total umber of contract

29. Increase in the amount of Procurement Information provided to the public Increase in the number of bid advertisements posted on FPPA website The percentage of bid advertisement disclosed on FPPA website shall be calculated for each procurement category of Goods, Works, Non-Consultancy Services, and Consultancy for each procuring public body The percentage of bid advertisement disclosed on FPPA website [%] = Number of bid advertisement posted on FPPA WEBSITE * 100 Total umber of bid advertisements

30. Increase in the amount of Procurement information provided to the public Increase in number of contracts awards posted on FPPA website The percentage of contract awards disclosed on FPPA website shall be calculated for each procurement category of Goods, Works, Non-Consultancy Services, and Consultancy for each procuring public body The percentage of contracts awards disclosed on FPPA website [%]= number of contract award posted on FPPA WEBSITE * 100 Total umber of contracts

31. Increase in number complaints resolved within the standard time frame The percentage of complaints resolved within the standard time shall be calculated for each procuring public body and for aggregate all public bodies No of days to resolve a complaint [Days] = date of compliant resolved – date of compliant No of complaints resolved within the standard time = Count if(no of days to resolve a complaint< standard complaint resolved date) Percentage of complaints resolved within the standard time [%]= Number of complaints resolved with in standard time * 100 Total umber of complaints

32. Reduction in contracts cost overrun The average contract cost overrun from initial contract amount shall be calculated in percentage of average cost overrun. Individual contract cost overrun [ETB] = Final contract amount paid – contract award price Individual contracts cost overrun percentage [%] = Individual contract cost over run (ETB) * 100 contracts award price

33. Reduction in contracts time overrun The average contract time overrun from initial contract time shall be calculated in percentage of average time overrun Original Contract Time [Days] = original contract completion date – actual commencement date Actual Contract completion Time [Days] = actual contract completion date – actual commencement date Time Overrun [Days] = Actual Contract completion Time [Days] - Original Contract Time [Days] Individual contracts Time overrun percentage [%] = Individual time over run (days) * 100 original contracts time

34. Reduction in poor quality of contract deliverable The percentage of poor quality contract deliverables shall be calculated for each procurement category of Goods, Works, Non-Consultancy Services, and Consultancy for each procuring public body Poor Quality Deliverables [%] = number of contracts count as poor * 100 total number of contracts

35. Conversion of analyzed data into measurable KPIs Using the different calculated figures in the preceding analysis, FPPA will then convert the calculated figures in measurable indicators

36. THANK YOU