Making Procurement Work Better – An Evaluation of the World Bank’s Procurement System

An Evaluation of theWorld Bank’s ProcurementSystem © 2024 International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington, DC 20433Telephone: 202-473-1000Internet: www.worldbank.org ATTRIBUTIONPlease cite the report as: World Bank. 2024.Making Procurement Work Better: An Evaluation of the World Bank’s Procurement System. Independent Evaluation Group. Washington, DC: WorldBank. COVER PHOTOShutterstock/Andrii Yalanskyi EDITING AND PRODUCTIONAmanda O’Brien GRAPHIC DESIGNRafaela Sarinho This work is a product of the staff of The World Bank with external contributions. The findings,interpretations, and conclusions expressed in this work do not necessarily reflect the views ofThe World Bank, its Board of Executive Directors, or the governments they represent.The World Bank does not guarantee the accuracy of the data included in this work. The bound-aries, colors, denominations, and other information shown on any map in this work do not implyany judgment on the part of The World Bank concerning the legal status of any territory or theendorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONSThe material in this work is subject to copyright. Because The World Bank encourages dissem- ination of its knowledge, this work may be reproduced, in whole or in part, for noncommercialpurposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to WorldBank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax:202-522-2625; e-mail: pubrights@worldbank.org. Making ProcurementWork Better An Evaluation of the WorldBank’s Procurement System November 13, 2024 Contents Abbreviationsvii Acknowledgmentsviii Executive Overviewx Management Responsexxxvi 1.Introduction���������������������������������������������������������������������������������������������������������������1 Procurement for Development2The World Bank’s 2016 Procurement Reform4Methodology11Road Map for the Report16 2.Improving Procurement Efficiency�������������������������������������������������������������������������18 Faster Procurement since the Reform but with a Wide Array of Processing Times19Starting Procurement Late, Lack of Client Experience, and Processing IssuesThat Contribute to Delays26Procurement Efficiency Improved by Technology with Opportunitiesfor Enhancement for Clients34Trade-offs between Faster Procurement and Client Empowerment and ClientLearning36 3.Improving Procurement Economy, Integrity, Transparency, and Fairness�����������39Strengthened Market Analysis That Could Enhance Competitive Approachesand Engagement of Qualified Suppliers41Opportunities to Emphasize a Menu of Approaches That Can Enhance Quality47Emphasis Placed on Sustainable Procurement and AlternativeProcurement Approaches55Change Management That Emphasizes Coaching, Dialogue, and Incentives to FacilitateQuality and Sustainability58Technology and Transparency, Integrity, and Monitoring60Procurement Reviews and Complaint Data to Help Clients Enhance Quality62 4.Improving Procurement Fit for Purpose and Value for Money����������������������������68Application of the Procurement Principles Leading to Better Performance70Starting Procurement Early to Facilitate Project Implementation75Strategic Procurement Planning, Collaboration, and Incentives79Leveraging Advances in Data Analytics for Procurement Performance81Improvement of Procurement Risk Analysis and Mitigation83 5.Procurement Capacity Strengthening and Support����������������������������������������������87Increased Capacity Strengthening since the Reform and a Strategic ApproachThat Could Make It More Valuable89Capacity Strengthening and Procurement Issues in the Portfolio93Opportunities for Capacity Strengthening to Be More Ambitious and Better Measured95Opportunities to Optimize, Improve, and Better Recognize World Bank Staff Supportin Projects98Opportunities to Harness the Success of Hands-on Expanded ImplementationSupport and Knowledge Sharing102 6.Conclusions�����������������������������������������������������������������������������������������������������������107 Reform Strengths107Reform Opportunities108Recommendations111 Bibliography���������������������������������������������������������������������������������������������������������������117 Boxes Box 1.1. Seven Core Principles of World Bank Procurement5Box 1.2. New Areas of Procurement Introduced by the 2016 Procurement Reform7Box 1.3. Explaining the Results Logic of the Reform’s Theory of Change10Box 2.1. The Evaluation Stage of Consulting Services and Project Delays31Box 3.1. Three Practical Ways to Identify Markets for Procurement Activities47Box 3.2. Examples of Innovative Approaches Facilitating Projects50Box 3.3. Quality Considerations throughout the Procurement Life Cycle54Box 4.1. Opportunities to Enhance Procurement Analytics82 Figures Figure 1.1.The World Bank P