The World Bank:
Benchmarking Public Procurement 2017 (Report)
January 26, 2017
The Benchmarking Public Procurement 2017 report presents cross-country analysis in 180 economies on issues affecting how private sector does business with the government. The report covers two thematic pillars: the procurement process and complaint review mechanisms.
Despite the importance of the public procurement market, little effort has been made to systematically and consistently collect reliable statistics on a number of critical dimensions. To date, no attempt has been made to collect comparable statistics on the size of public procurement in economies around the world.2 While data are publicly available for High-income economies, for the rest of the world, data and studies are scarce.
However, public procurement is as important in developing countries as it is in advanced economies. Governments in developing countries are significant purchasers of good and services, and these markets represent huge opportunities to enhance competition and development. Low-income countries have the highest share of public procurement in their economies, at 14.5 percent of GDP, followed by upper-middle income countries, at 13.6 percent, as data from government sources or international development institutions indicate. International statistics fall short in systematically and comparably capturing a number of other important dimensions of public procurement, including the regulatory and legal environment, risks and costs, quality and efficiency of service delivery, transparency and competition.
Benchmarking Public Procurement aims to fill some of these knowledge gaps.
The 2017 report provides a comparative evaluation of legal and regulatory environments that affect the ability of private sector companies to do business with governments in 180 economies. Benchmarking Public Procurement 2017 covers two thematic pillars: the procurement process, from needs assessment to the implementation of the procurement contract; and complaint review mechanisms. The indicators cover eight important areas:
Needs assessment, call for tender, and bid preparation: The indicators assess the quality, adequacy, and transparency of the information provided by the procuring entity to prospective bidders.
Bid submission phase: The indicators examine the requirements that suppliers must meet in order to bid effectively and avoid having their bid rejected.
Bid opening, evaluation, and contract award phase: The indicators measure the extent to which the regulatory framework and procedures provide a fair and transparent bid opening and evaluation process, as well as whether, once the best bid has been identified, the contract is awarded transparently and the losing bidders are informed of the procuring entity’s decision.
Content and management of the procurement contract: The indicators focus on several aspects during the contract execution phase related to the modification and termination of the procurement contract, and the procedure for accepting the completion of works.
Performance guarantee: The indicators examine the existence and requirements of the performance guarantee.
Payment of suppliers: The indicators focus on the time and procedure needed for suppliers to receive payment during the contract execution phase.
Complaints submitted to the second-tier review body: The indicators assess whether the complaining party can appeal a decision before a second-tier review body and, if so, the cost and time spent and characteristics for such a review.