1. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities zIndex.cz Ranking of best practice in public procurement Jiří Skuhrovec Centre of applied economics Charles University, Prague

2. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities Motivation 2

3. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities Motivation II Some authorities overuse non-competitive procedure Criticism? So what, law allows it … Savings? No need, the budget has been set. For public entity, there is no other motivating factor besides political responsibility. 3

4. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities zIndex - Core idea EU Directive and Procurement laws give authority wide borders to operate There are guides, white papers defining „best practice“ within these borders Let’s measure the deviation from best practice! 4

5. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities zIndex – why? Point out most and least efficient authorities Motivate them to compete, do better Foster discussion: What is the best practice anyway? 5

6. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities zIndex – how we rate We rate each institution over period of time Currently we rate all cities over 2011-2013 Why 3 years? Elections time span minus one Computed over Procurement data Budget data Business registry data 10 main criteria, indicating good practice 6

7. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities Graph: Czech budget spending on goods and services 2010 Small-tenders (not published) Old contracts (before 2006) zIndex: Registered procurement volume / all purchases What we rate #1 : Budget share 7 Public procurement (single bidder) No procurement Public procurement

8. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities What we rate #2 : procurement details Procedure type (penalize negotiated without publication) Number of bidders (penalize low bidders in competitive markets) Tender cancellations, changing specification Successful law suits against authority 8

9. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities What we rate #3 : procurement results Supplier rating: Unknown owners Procurement share on total turnover Red flags (no employees, ROI 100% and higher..) Market concentration – same supplier winning over and over again Poor data quality (prices, suppliers not well identified) 9

10. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities zIndex – major issues Data – never ending job Collect, clean, merge, process.. Quality – we have better data than state, still not good enough (once you want to rate..) Comparability Institution type, size Composition of procured goods / services 10

11. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities What we currently work on Nice web application displaying results TBA 9/2014 (prior to municipal elections) Will be portable to other languages 11

12. Jiří Skuhrovec, Charles University, PraguezIndex – best practice ranking of contracting authorities Thanks for your attention (suggestions welcome, we want to make zIndex better) Jiri.Skuhrovec@zindex.cz 12