To develop these indicators, the Datanomix team analyzed current best practices from leading institutions such as the World Bank, OECD, EBRD, OCP, and adapted relevant risk indicators to the public procurement system of Kazakhstan. They then added indicators inspired by the methods of law enforcement agencies in Kazakhstan.
From this, Datanomix created a list of 43 individual risk indicators
that could be calculated automatically, reaching across all stages from planning to contract execution — a smaller list than the 100 indicators that were developed for the financial police since this system more narrowly focuses solely on procurement.
One risk indicator is short delivery times. Vitaly explains that there were many cases where government procuring entities would announce a tender to supply, for instance, thousands of computers in just two weeks. In such cases, the affiliated supplier likely knew about the procurement in advance, giving them an unfair advantage over potential competitors. For the first time, oversight authorities could now quickly identify and respond to these potentially fraudulent contracts in real time.
While there’s nothing stopping other countries from emulating the Datanomix approach, many countries lack the necessary data to calculate, for instance, median prices and pricing anomalies. Vitaly Trenkenshu applauds the Center for Electronic Finance of Kazakhstan for making their data available in a machine-readable format, without which the Datanomix system wouldn’t be able to function.
“In addition, there is a Unified Directory of Goods, Works and Services in Kazakhstan. It is much more detailed than the Common Procurement Vocabulary of the European Union, and helps to build reasonably accurate price analysis in the system,” he says.