Public Procurement Analysis: Methodological and Practical Aspects

  • Iryna Parasiy-Vergunenko
Keywords: public procurement, state procurement, budget funds efficiency, analysis, control, tender


The purpose of this article is the development of the analysis methodology for the public procurement in Ukraine at macro and micro levels in the context of the implementation of the Transparent Electronic Procurement system (Prozorro) in order to strengthen the control over the budget funds use.

The article clarifies the economic essence of the "public procurement" and "state procurement" concepts, defines their relationship and reveals their role in the implementation of the priority national projects.

The main directions of the analysis were offered, in particular: the public procurement dynamics analysis; the public procurement structure analysis; the dynamic analysis of the public procurement in the country's GDP level; the competition level in the procurement process; the public procurement efficiency analysis, which can be characterized by absolute and relative public funds savings. The studying necessity of the public procurement structure in the context of individual customers, or their groups, procurement items, financing sources, types of tenders, types of procurement procedures, etc. has been proved. The system of indicators for the each analytical stage has been developed and algorithms for their calculation were specified. To assess the significance of state procurement for the country's economy, it is recommended to study the dynamics of the "share of public procurement in GDP of the country" indicator, which is proposed to be considered as an indicator of the state of the country’s economic development.

Digital examples illustrate author's public procurement analysis technique and demonstrates its advantages in order to increase control over the budget funds spending. The calculation algorithm of the absolute and relative budget funds savings during public procurement at both macro and micro levels has been specified. Using the proposed methodology made it possible to investigate comprehensively the dynamics and the structure of public procurement for the Ukraine's defense needs in 2016, to determine the competition level in the individual agreements concluding and to evaluate the effectiveness procurement for the different participants in this process.

In the effectiveness evaluation of the individual transactions in addition to the monetary savings of budget funds, the need to take into account the qualitative parameters of the purchased products (received works and services) has been proved, in particular such as: compliance of functional characteristics and consumer properties; operational cost savings, maintenance, repair and utilization; increase in useful life; ecological compatibility and ergonomics of products improvement, etc.

 The necessity of the certain transactions risk analysis, which emerges in the compliance with the current legislation, the discipline of compliance with the terms of the contract, the justification of the definition of the initial price, observance of the terms of the contract performance, the social significance of the contract, has been substantiated.

The proposed public (state) procurement analysis method gives a comprehensive approach the problem of the implementation effectiveness evaluation and forms the methodological basis for substantiating the main directions of improving the public procurement procedures and identifying reserves for the budget funds saving.