Titolo della presentazione

1
The Italian system for centralised purchasing and
electronic procurement
Gabriella Grippaudo Consip S.p.A.
2
Consip Task and structure

• Consip is a joint-stock company totally and
  directly owned by the Italian Ministry of Economy
  and Finance (MEF), and it operates exclusively to
  serve Public Administrations
• Consips operations are carried out through two
  Divisions
• the DSIT (Treasury Information System Division),
  with about 300 employees, is in charge of
  managing the Information System of the Ministry
  of Economy and Finance
• the DARPA (PA On-line Procurement Division), with
  about 160 employees, is in charge of implementing
  the Rationalization Program on Public Spending
  for goods and services.

3
Rationalization Program on Public Spending the
aim of the Program

• Define purchasing strategies
• Draw up competitive frame contracts for Public
  Administrations
• Deliver innovative e-procurement tools
• Promote the use of e-procurement with Public
  Administrations

Service efficiency and quality
Cost saving
Processsimplification

• Focus on quality
• Wide range of options of goods/services

• Easier access to goods and services
• Transparency

• Scale economies
• - demand aggregation
• - purchasing standardization

• Competitiveness

4
Rationalization Program on Public Spending
background (1/3)
The financial act 2000 (December 23, 1999 n.488)
laid down the foundations for the
Rationalization Program for Public Spending on
Goods and Services. Article 26 says
The Ministry of Economy and Finance (MEF),
according to the regulations currently available
regarding suppliers selection, draws up frame
contracts with suppliers. Within the frame
contract, the selected suppliers have to accept
any order coming from public administrations.
By means of 2 Ministerial Decrees (February 2000,
May 2001), the Ministry entrusted Consip S.p.A.
with the development and management of the
Program.
5
Rationalization Program on Public Spending
background (2/3)

• In year 2002, the Italian Government regulated
  the use of digital procedures for public
  procurement (DPR 101/2002). Italy was the first
  EU Country to have an e-procurement regulation
  allowing purchases above the EU threshold limit.
• Two different digital procedures for goods
  services purchasing are introduced
• on-line auctions
• e-Marketplace
• DPR 101/2002 introduces the Public
  Administration marketplace, managed by the
  Ministry of Economy and Finance and the
  Department of Innovation and Technologies through
  Consip

6
Rationalization Program on Public Spending
background (3/3)

• Today, according to current legal framework
• For purchases above the EU threshold, all Public
  Administrations (e.g. central government,
  municipalities, hospitals, etc.) may purchase
  from frame contracts, when available.
  Alternatively, they can run their own tenders,
  taking price and quality of the frame contracts
  as a benchmark. Consequently, the saving effect
  of frame contracts is reflected on all Public
  Administrations.
• For purchases below the EU threshold, in addition
  to the frame contacts, the e-marketplace is
  available for a variety of goods and services.
  Given the nature of the tool, marketplace prices
  are not a reference, but savings results from
  process simplification.

7
Rationalization Program on Public Spending -
Relationship with Administrations and Market
The Program is constantly committed to ensure the
best matching between the PAs needs and the
market features
SUPPLY
DEMAND

• Detailed Analysis
• of the PAs needs
• Interview
• Data bases
• Identification of
• standardizable
• goods and services

• Supply analysis
• Market analysis
• Detailed analysis of goods and services that
  satisfy PAs needs.

Suppliers
PAs
Consip

• Marketing to promote the rationalization program
  on public spending to public administrations
• Training program on initiatives and uses of new
  purchasing tools
• Cooperation with main industry/trade associations
  to explain and promote the program with suppliers.

8
E-Procurement Portal www.acquistinretepa.it
Informations Users can access to first and second
level info on the program and e-proc
informations

• Interactive area
• Reports info on added value activities

Purchasing area
Purchasing area It is the direct access to goods
and services available in e-shops and
e-marketplace
Interactive area
9
E-Procurement tools
Electronic Shops
e-Marketplace

• Direct Purchases from catalogues or Request for
  Quotation (RFQ)
• Purchase Scope
• Low cost
• Highly fragmented
• Many to Many approach
• Supplier defined eCatalog

Direct Purchases within frame contracts (through
traditional tender or on-line auctions process)

• Purchase scope
• Large volumes
• Standardized
• Demand aggregation

• Many to one approach

Whenever applicable (i.e. goods with rapid
obsolescence, automatic awarding criteria) Consip
uses ONLINE AUCTIONS to develop frame contracts -
Automatic technical and economic offer evaluation
Below EU Threshold ()
Above and Below EU Threshold ()
() 154,000 or 236,000
10
Electronic shops operational model
E-shops represent an open window on the web in
which goods and services selected through tenders
and frame contracts are available to PA
procurement offices registered to the Program
Traditional and electronic tenders
Product selection and online ordering
11
Frame contracts strategy
Objectives
Strategies

• Focus on state of the art in supply market
• Wide range of goods and services
• Constant assessment of service levels

To guarantee quality standards in P.A. purchases

• Direct costs, through
• demand aggregation (economies of scale)
• competition among suppliers
• product standardization
• Indirect costs, through
• on-line bidding and ordering
• process simplification
• centralization of litigation

while reducing
impact
Change Management in the Public Administration
Industry dynamics
12
Frame contracts operational model
Frame Contracts (public tender) and e-shops
opening
Consip
Suppliers
Contracts reporting
Needs Feedback
Monitoring tools
On-line/fax order
Public Administrations
Delivery
Payments
13
Frame contracts process simplification
From the traditional.
to the new process of goods and services
procurement
Public Administration activities
Goods/ Services delivery
Payment
Needs analysis
Supplier selection
Possible litigation with suppliers
Contract and tender documentation
Contract signing
Fax / on-line Order
... achieving, in addition, administrative
procedures reductions for suppliers
14
Frame Contracts main goods/services categories

• Photocopiers
• PC Desktop/Laptop
• Office furniture
• Software
• Cars
• Ecotomography Equipment
• Projectors
• Printers
• Fax Machines
• Stationery
• Meal tickets
• Victuals
• Pharmaceutical products

Goods
60 signed frame contracts and 31 product
categories by 31/12/04
Performed Orders (Aug 2000 Dec 2004) gt 350000
Registered Administrations 45000
Utilities

• Facility Management
• Fuels for heating and vehicles (oil, biodiesel,
  gasoline, etc.)
• Lubricants
• Electric power

20 average saving from a research managed by
MEF/ISTAT in 2003/2004
TLC

• Fixed and mobile telephony services
• Switching ethernet networks
• Video communication systems
• Local networks

15
Innovative e-procurement tools Public
Administrations Marketplace

• The Marketplace is a virtual market in which any
  P.A. can select goods and services offered by
  several suppliers, for purchases below EU
  threshold
• The Marketplace is open to qualified suppliers
  (and goods) according to non restrictive
  selection criteria
• The entire process is digital, using digital
  signature in order to ensure legal compliance and
  overall trasparency of process

Qualification notice (public announcement)
Buying administrations
Suppliers
Qualified suppliers selected through a
qualification process, starting from the date of
publication of the qualification notice
Public Administration Marketplace

• Central Government
• Universities
• Local Government
• Health sector

Market
16
Marketplace buying options

• Public users may buy in 2 different ways
• making a direct purchase selecting goods and
  services from the catalogue
• negotiating the product quality and service
  levels with qualified suppliers (Request for
  Quotation), handling on-line the entire
  purchasing process and digitally signing the order

17
Marketplace the catalogue
Item name
technical specifications (standardized catalogue)
Suppliers name
Price
18
Public Administrations MarketplaceA snapshot
(May 05)
Product categories available
Number of Items gt 137.000

• Electric material
• Office equipment
• IT (SW/HW)
• IT aid for disabled (HW/SW)
• Individual protection devices
• Small laboratory equipment
• Products and accessories for venous and arterial
  catheter
• Stationery and printing supplies
• Office furnishings
• Air Conditioning supplies
• Surgical instruments
• Phone products and accessories
• Facility Mgmt Services

Registered Users gt2.700 Active Users 2005 600
Performed Transactions (Jan 2004 May
2005) 6500 (15 Mio Euro)
Registered Suppliers 528
19
Public Administrations Marketplace - Key
advantages

• To Public Administrations
• costs and length of process reduction
• potential broadening of suppliers base
• easy access to selected goods (pre-defined
  quality standards)
• information transparency and ease of comparison
  among goods
• purchases logging and subsequent expenditure
  monitoring

• To Suppliers
• higher visibility and broadening of potential
  customers base
• selling cost reduction (due to lower
  intermediation cost)
• possibility to exploit competitive advantages in
  local markets (for small and medium sized
  enterprises)
• B2G introduction, especially for large sized
  enterprises, in addition to existing B2B and B2C

20
Consip international network the EU public
procurement learning lab
In November 2003 Consip started, with the
sponsorship of Italian Institutions, the EU
Public Procurement Learning Lab initiative, that
gathers European Countries exchanging their
experience on procurement topics. As of today,
24 Countries participated to EU lab meetings
Austria, Belgium, Cyprus, Czech Republic,
Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Kosova,
Lithuania, Netherlands, Poland, Romania, Serbia,
Slovakia, Slovenia, Spain, Sweden, Turkey, United
Kingdom. Others are joining now (Portugal,
Serbia, Kosova, Luxembourg) or are acting as
corresponding members (e.g. Norway, Malta). In
2004 the EU lab carried out surveys on three
themes, (1) auction design and competitive
issues, (2) framework agreements and SMEs, (3)
technical issues on procurement. The results are
available on www.consip.it/sc/uff_studi_ini_eu_ing
.htm. New researches and case studies are in
process for 2005.