ASSESSMENT SYSTEM OF THE PUBLIC PROCUREMENT EFFICIENCY

Abstract

The purpose of the paper is to set out the in-depth study of how the public procurement performance can be determined through a system that considers the criteria for determining the best (ideal) supplier and the main elements of the assessment of tenders. In order to achieve the goals of the article the following tasks were set: 1) to analyze the development of scientific opinion in the field of public procurement performance assessment; 2) to provide the author’s methodology for determining the criteria of the best (ideal) supplier; 3) to structure the elements of the public procurement procedures assessment system based on the criteria for selecting the best supplier. The paper addresses the need to achieve public spending efficiency by improving the public procurement assessment procedures to determine the best (ideal) provider. Methodology. The study is based on a careful analysis of the criteria for assessing the public procurement effectiveness under the evolution of scientific thought and practice of their implementation. Scientific literature expresses different and opposite views on the criteria, methods of assessment of the public procurement effectiveness by the functioning of customers. Limited research has been identified in the assessment of the procurement proposals at the stage of tendering and determining the best supplier. Results. The paper proposes a system for assessment of the most economically advantageous public procurement offer, taking into account the criterion of selecting the best supplier. This approach involves the unity of five stages of the procurement performance assessment. The characteristics of sequential execution of the assessment in five stages are given as follows: establishment of criteria for the ideal participant of public procurement, development of observations matrices for characteristics of the public procurement participants offers, determination of the vector-standard characteristics of the most economically advantageous proposal, calculation of distances between the characteristics values of the individual participants’ offers and the ideal public procurement offer, the ranking of public procurement bidders, the economic advantage of the offer and the choice of its greatest advantage. The paper provides an opportunity to focus on a systematic approach to determining the public procurement effectiveness. This valuation approach provides a deeper justification for the choice of the procurement vendor, which allows expecting higher procurement performance. Practical implications. The assessment system for public procurement offers, including five stages of the use of procurement performance criteria, can be used by experts to determine the best supplier, regardless of the procurement regulation terms, as its elements provide a comprehensive description of the price and non-price criteria to achieve the effectiveness of procurement procedures. Value/originality. The paper suggests that the selection of public procurement performance indicators to be made within a criteria system based on the selection of the best (ideal) procurement provider. The authors presented their own vision of the components of the public procurement performance assessment system.