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Measuring Performance of Public Procurement in Turkey. Public Procurement Authority Department of International Relations. Agenda. Introduction. Public Procurement accounts for a significant share of gross domestic product of countries (EU average is %19 of the GDP).
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Measuring Performance of Public Procurement in Turkey PublicProcurementAuthorityDepartmentofInternational Relations
Introduction • Public Procurement accounts for a significant share of gross domestic product of countries (EU average is %19 of the GDP). • Therefore, effective, transparent and competitive public procurement system is of paramountimportancein terms of effective use of public resources. • Performance of publicprocurementshould be measuredtoseewhethertheprocurementsystemworksefficiently in accordancewiththe objectives set.
Introduction • Value formoney (VFM) is definedbybusinessdictionary;‘A utilityderivedfromeverypurchaseoreverysum of moneyspent.’ • On theotherhand, valueformoney is based not only on the minimum purchaseprice (economy) but also on themaximumefficiencyandeffectiveness of thepurchase. • Sothat VFM is crucialforthemeasurement of performance of publicprocurement.
TurkishPublicProcurementSystem (TPPS) • TurkishPublicProcurementSytem has fourhistoricalcornerstones: • 1)Auction, Contestand Tender Lawno 661 dated 22 April 1925 • 2)Auctionand Tender Actno 2490 dated10 December1934 • 3) State Tender Lawno 2886 dated 08 September 1983 • 4)PublicProcurementLaw (PPL) no4734 dated 04 January 2002 PPL has created an advanced model of internationalprocurementregulations.
TurkishPublicProcurementSystem (TPPS) • Currently, Publicprocurement is regulatedbyPublicProcurementLawNo. 4734whichentered into force on January 1, 2003. • One of theobjectives of preparing a newlaw on publicprocurementwasadaptationtointernationalinstruments on publicprocurement(EU ProcurementDirectives, UNCITRAL Model Law on Procurement, World Bank ProcurementGuidelines, etc.). PublicProcurementLaw no. 4734
MeasuringPerformance Number of AdvicesProvidedbythe PPA RegulationDepartmentattended 63 meetings in ordertoguidetheimplementation of publicprocurementlegislation in 2013. Average time periodforresolvingdisputesaftersubmission of complaints
MeasuringPerformance Macro Level
E-Procurement • Electronic PublicProcurement Platform (EPPP) becameoperational on 1 September 2010. • Alltransactionsrelatingtopublicprocurementarecarriedoutthroughorregistered on EPPP. • Operations that can be performed in EPPP includepublication of contractnotices, preparation of contractdocument, downloadingthe contractdocument, verification of tax liability, balance sheet and income statement information, socialsecuritypremiumdebtinformation of theeconomicoperators.
MeasuringPerformance • Savingsachievedbyusing Electronic PublicProcurement Platform:
MeasuringPerformance • Savingsachievedbyusing Electronic PublicProcurement Platform:
Business Intelligence • A businessintelligenceapplicationwas put intouse on Electronic PublicProcurement Platform in orderto: • gather statistical data about public procurement for business processes analysis, • standardize analysis of public procurement data and development of public procurement reports, • fasterretrieveuptodateandinstant data, • moreeffectivelyprovide procurement data to the other units of PPA, • provide statistical information within the scope of «The Law of Info Access Rights No. 4982», • provide information to contracting entities, economic operators and public in a visually rich and dynamic way, • improve public procurement processes by employing data mining.
MeasuringPerformance Use of CompetitiveProcedures Competitiveprocedures should be used as much as possible for competition and transparency. In 2013, 93,28% of allpubliccontractssubjecttothe PPL areawardedusingcompetitiveprocedures.
MeasuringPerformance Savings Average percentage of savings should be as highas possible to achieve best value for money. In 2013, estimatedcost / contractvalueratiowas 76%. The graphshows that through using competitive procedures how muchsavingwas achieved based on estimated cost / contract value comparison.
MeasuringPerformance Use of EPPP byEconomicOperatorstoObtain Tender Document Use of electronic tools must be encouraged for the efficiency of the procurement system. The graphshows that the use of EPPP is very common among economic operators.
MeasuringPerformance AverageParticipation Rate Average participation rate topublicprocurementshould be high as much as possible to ensure competition. In 2013 average number of tendersper public contract was 4,21.
MeasuringPerformance Number of Complaintstothe PPA An efficient review and remedies system should be established to ensure compliance by the contracting authorities. In 2013, 95,64% of publiccontractswereawardedwithoutanydispute. Total number of complaintswas 5.093, whichconstitutes4,36% of allcontractsthat can be appealed in 2013.
MeasuringPerformance Decisions of the PPA Thegraphshows the decisionsof the PPA uponcomplaints. The PPA reviewsandconcludesthecomplaintswithin 20 daysafterallthenecessarydocumentsarereceived. In 2012 and 2013, morethanhalf of thecomplaintswererejected.
MeasuringPerformance Performance of Reviewbythe PPA Thegraphshows the number of decisions of the PPA challengedbeforethecourtsandtheresults of the legal proceedings. In 2013, 84,66% of decisions of the PPA wasnot challengedbeforethecourtswhichshowsthat a largemajority of stakeholdersaresatisfiedwiththereviewbythe PPA.
MeasuringPerformance Micro Level FormerlegislationdenotesStateProcurementLawno. 2886 andnewlegilationdenotesPublicProcurementLawno. 4734 which is mostly in linewithinternationalregulations.
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