1 of 24

Open Contracting for

Open Government

2 of 24

Open contracting: an OGP global norm

3 of 24

189

OC commitments in OGP NAPs

>70

OGP members have made at least one OC commitment

55%

OC commitments substantially completed

4 of 24

More than two of every five open contracting commitments have “significantly opened up government”. This is more than double the rate of successful commitments overall! (OGP Global Report 1^st edition)

5 of 24

What is�Open Contracting?

6 of 24

Our mission

Transforming public contracting so it is open-by-design, fair and efficient.

We build a global community for change and support powerful examples of what is possible when governments, businesses and citizens work together. We measure and share results from open contracting, including increased competition, better value for money, and improved efficiency, integrity and trust in public markets.

7 of 24

U

US$9,500,000,000,000

Every year, governments spend over US$9.5 trillion on public contracts, covering everything from pencils and paper to building major infrastructure projects such as airports.

8 of 24

#1

Procurement is government’s #1 corruption risk

57%

OECD foreign bribery cases involve bribes for public contracts

30%

Companies say corruption prevented them from winning contracts in EU

9 of 24

10 of 24

Our global, non-proprietary data standards structured to reflect the complete contracting cycle (OCDS) and/or both the project and contracting cycle (OC4IDS) enable users and partners around the world to publish shareable, reusable, machine readable data, to join that data with their own information, and to create tools to analyze or share that data.

11 of 24

The procurement process�Open Contracting Data Standard (OCDS)

11

Planning

Bidding

Award

Implementation

Contract

Unique identifier

to track the full process

12 of 24

The procurement process�Open Contracting Data Standard (OCDS)

12

Planning

Bidding

Award

Implementation

Contract

Unique identifier

to track the full process

13 of 24

Open Contracting for Infrastructure Data Standard (OC4IDS)

Procurement

Implementation

Identification

Preparation

Implementation

Completion

Level 1:

Project

Level 2:

Contracting process summary

Design

Level 3:�

Contracting�process detail

Construction

Supervision

Procurement

Implementation

Procurement

Implementation

What is it?

OC4IDS builds on the OCDS to enable a tailored approach for regular disclosure of structured, standardised data on infrastructure projects and contracts.

Infra projects are very complex as we all know, so the OC4IDS connects projects and contracts to enable more effective monitoring of projects as a whole.

How does the schema work in practice?

It describes data at three levels:

• The project level, which moves through identification, preparation, implementation and completion phases - with important items to disclose at each point;

• The contracting summary level - which captures key information about the contracts the deliver design, construction and supervision;

• The contract process detail level - where each update and variation to a contract can be monitored, and justifications and explanations for change sought;

This model can be implemented ‘project down’ - starting from a list of projects, finding the contracts, and setting up monitoring of each one.

Or it can be implemented ‘contract up’ discovering projects from the data in a procurement system, and monitoring changes.

What does this all mean?

14 of 24

15 of 24

To THIS….. State of the art, award-winning procurement system: Prozorro

OC commitment in OGP NAP 2016 – 2018
Savings <$1bn+
1000s of new suppliers (+45%)
Corruption perception halved
Embedded CSO monitoring as part of the reforms,

Dozorro platform was launched to enable effective citizen feedback & monitoring. In 2018, this was awarded star status (OGP star reform).

Since launch in 2016, More than 700,000 users have flagged nearly 74,000 concerns

of which 20,000 were found to relate to actual violations.
50% fix rate so far

https://www.opengovpartnership.org/wp-content/uploads/2001/01/OGP_Star-Reforms_2018.pdf

*what is star status?

commitments from OGP action plans that the OGP Independent Reporting Mechanism (IRM) awarded “star” status because they have shown evidence of early results, representing major steps forward in relevant policy areas and transforming “business as usual.”

NB: In Ukraine, government, business, and civil society have already built a world class, transparent procurement system called Prozorro to rebuild trust with both citizens and local businesses. Prozorro has now run over 26,000 tenders for $240 million in goods.

It has helped:
Saved an average of 13% on budgeted spending too
New business participate in the procurement process and win contracts

- Supplier diversification grew by 45%
- Tenders with 3+ bidders save up to 20% (9.7% for all tenders)

A clear correlation between responsiveness & success of tenders
Corruption perception dropped from 54% to 29%

16 of 24

Exposed price-fixing scheme that increased costs by 45%
Increased 14 suppliers to 46
700,000 meals served per day

Fixing school meals in Colombia

Colombia inc. OC & OCDS in 2 OGP NAPs 2-15-2016, 2017-2019

Bogota’s school lunch program made the full contracting process to deliver 700,000 meals publicly available and fully transparent. This process and the analysis of this data led to exposure of a price fixing scheme for fruit and vegetables to local schools with a group of firms colluding to drive up the prices by 45%. But it also increased competition: Previously, the program relied on 14 suppliers for foods and now uses 46 companies while. At the same time the quality of the food has increased.

In Colombia, the Secretary for Education in Bogotá used open contracting data, together with the national public procurement agency, to open up the contracting process of fruit and vegetable prices for school meals and bust a $40 million price fixing scheme.

Complete transparency of the procurement process
Improvement of food quality
Better value chain
Increase from 14 to 46 providers at the same or better level of service
Uncovering of price fixing scheme
Revision of menus for early education children

17 of 24

HONDURAS

Evaluate climate-risk

Honduras inc. OC & OCDS in its 2018-2020 OGP NAP (https://www.opengovpartnership.org/wp-content/uploads/2018/08/Honduras_Action-Plan_2018-2020_EN_1.pdf)

https://www.open-contracting.org/2019/08/28/build-better-build-right-a-new-tool-for-sustainable-climate-resilient-infrastructure/

Honduras’ INFRAS prototype is a user-friendly tool that helps the government avoid deforestation and build in climate resilience into infrastructure projects. It comes with a visual analytics dashboard including an interactive ‘red flags’ map. In the concept phase, INFRAS shows:

Approved infrastructure projects and corresponding environmental licenses (or lack thereof);
Discrepancies between approved projects and environmental regulatory requirements;
Approved projects without environmental impact assessments (EIAs) or failures to disclose EIAs.

18 of 24

What makes effective�Open Contracting�commitments?

19 of 24

Open Contracting commitments should include:

Implement the Open Contracting Data Standard (OCDS) and/or the Open Contracting for Infrastructure Data Standard (OC4IDS) for the full public procurement process, including the planning, tender, award, contract and implementation phases

Make all contracts ‘open-by-design’ and publish them in a single, online registry

Develop and implement mechanisms for consultation and independent monitoring by citizens and civil society to ensure affected communities are consulted throughout the full public procurement process

20 of 24

MALAYSIA

Red flags for better competition

21 of 24

MALAYSIA

Recommended locations for schools based on capacity gap (<10,000) and capacity:population ratio (0.7)

Infrastructure planning

22 of 24

Open Contracting for Open Recovery (covid-19):

Policy: Make emergency procedures public and open.

Coordination: Set clear goals & priorities and consolidate emergency committees for quick decision-making.

Data: Use and share open procurement data to predict and manage critical supply chains.

Innovative partnerships: Build innovative partnerships with business and civil society.

Civic monitoring: Trust and support civil society to monitor spending and delivery of goods and services.

Optional Depending on time: can just reference it.

Policy: Make emergency procedures public and open. This includes coordinating and centralizing procurement, setting a clear test and a written justification for emergency procedures, publishing open data, targeting price gouging, and requiring timely reporting.
Coordination: Set clear goals & priorities and consolidate emergency committees for quick decision-making.
Data: Use and share open procurement data to analyze and share information to predict and manage critical supply chains. Collect and tag all contracting processes and budget lines with “COVID-19” to ensure high-quality, open and complete data, disclose technical comments from suppliers, and publish all contract awards under the emergency framework.
Innovative partnerships: Build innovative partnerships with business and civil society. Issue a list of essential medicines and devices so markets can react accordingly and encourage startups and data-driven civil tech projects.
Civic monitoring: Trust and support civil society to play an important role in monitoring efficient spending and delivery of goods and services. Governments should create digital portals that are easy to access and use, which can allow citizens to track all Coronavirus-related purchases.

https://www.opengovpartnership.org/documents/a-guide-to-open-government-and-the-coronavirus-public-procurement/

23 of 24

OGP Open Contracting Factsheet

OGP Global Report on Open Contracting

Recommendations for OC Commitments in NAPs

Sample OC commitments in NAPs

Ecuador
Honduras
Portugal
United Kingdom

OGP Guide to Coronavirus and Public Procurement

Get in touch: write to us at info@open-contracting.org

GETTING STARTED!

24 of 24

www.open-contracting.org

@opencontracting

info@open-contracting.org