Analysis of Economy in Procurement for Public Needs Based on a System and Risk-Based Approaches

Abstract

The efficiency of public procurement today is considered all over the world as a complex of effects that ensure sustainable socio-economic development of the country. Among these effects, a special role is played by budget savings obtained as a result of tenders. In this case, the average number of submitted bids for one purchase is considered as the main criterion for competition in purchases and a condition for the growth of financial savings. We assume that this criterion is not sufficient for a qualitative analysis of such savings and balanced management of all the beneficial effects of public procurement. Using a systematic and risk-based approach, we have formulated an extended list of indicators that allow us to identify opportunities for increasing savings and risks of deterioration of other characteristics of procurement. The study of the proposed indicators by statistical methods was carried out on the example of purchases by the Kaliningrad customs. A differentiated analysis of the savings obtained as a result of auctions with different numbers of bids submitted showed a relationship between the initial contract price, the level of competition in procurement and the amount of saved financial resources. At the same time, it was revealed that a significant share of auctions in value terms is held without competition, and among those held with high competition, the share of the risk zone is too high, where the winner of the auction reduces the initial contract price by 25% or more. Further testing of the approaches we have formulated to a multidimensional assessment of the budget savings will reveal patterns in ensuring the efficiency of procurement for government organizations of various territorial and departmental affiliations.