The application of compliance in the assessment of efficiency of public procurement in Russia

Abstract

The article accepts a challenge to create the well-developed assessment system of state and municipal procurement based on actual compliance mechanisms; analyzes the gaps in legislation in connection with the lack of the concept of “efficiency of the procurement system” and generally used performance criteria, and especially focuses on criteria related to the business reputation both of the customer and supplier. Business reputation is considered as s commonly understood as an intangible asset of the procurement subject, based on its proven reliability — in this regard, the author has identified four main performance criteria, one way or another revealing this concept. As a result, a VLRA (violations, leverage, rules, audit) assessment system based on the coefficient method, as well as risk matrices and an improved method for assessing their level, including not only material, but also reputational damage from violations of mandatory requirements, is proposed. The results of the study may be used as the basis for the development of a more detailed system for assessing the effectiveness of public procurement, as well as adapted to the specific conditions of the territories.