How to get to… - Difi · Anskaffelseskonferansen 2015 ... Government procurement as share of GDP and of total govt. expenditures 5 Source: OECD National Accounts Statistics. (2013)

The view from outsideThe main challenges

How to get to…Well-advanced and well-functioning public procurement systems

Paulo MaginaHead of the Public Procurement Unit, OECD

Anskaffelseskonferansen 2015Difi, Oslo, 5 Nov. 2015

Contents

• Public Procurement matters….

• The 2015 OECD Recommendation on PP

• Strategic Public Procurement

• CPB’s

• The case of Portugal

PUBLIC PROCUREMENT MATTERS…

• It stands as a crucial pillar of strategic governance for any government body;

• It is also a high-risk area due to the closeinteraction between private and public spheres

• Governments face the challenge of ensuring that different objectives are clear, work together and overlaps or conflicts are avoided.

Public Procurement matters

4

Government procurement as share of GDP and of total govt. expenditures

5Source: OECD National Accounts Statistics. (2013)

% %

France

IrelandSloveniaMexico

ItalyPortugalGreece

AustriaBelgiumDenmark

SwitzerlandSpain

OECD (WA)Luxembourg

HungaryPolandNorway

United States

Slovak RepublicFinland

United KingdomSwedenIceland

EstoniaCzech Republic

AustraliaGermany

IsraelCanada

NetherlandsKoreaJapan

New Zealand

29.0

0 10 20 30 40 50as share of total government expenditure

12.1

0.05.010.015.020.025.0as percentage of GDP

Public Procurement really matters

And it matters for everyone

6

• For the private sector, public sector efficiency is the second business priority area for reform after product market regulation. And public procurement the top priority in this sector:

BIAC Economic Survey, 2014

Participation

Efficiency

Capacity

Integrity

Access

Balance

E-Procurement

Evaluation

Risk Management

Transparency

Integration

Accountability

7

The 2015 Recommendation on Public Procurement: 12 integrated principles

• Vision: An international reference for public procurement standards, good practice and forward-thinking

• Implementation of the Recommendation 2015-2018

Implementing the 2015 Recommendation:Encompassing OECD procurement activities

- Building evidence: - Assessment tools, MAPS- Key performance indicators- Strategic use of PP =>

Green, SME, innovation - Professionalisation- G@G- eProcurement

- Toolbox - innovative, practical, collaborative solutions

Data

Policy instrument

Toolbox

Reviews

Network

8

STRATEGIC PUBLIC PROCUREMENT

9.2 Strategic public procurement

Development of Procurement StrategyPolicy for Secondary Policy Objectives

Source: 2014 OECD Survey on Public Procurement10

6%3%

6%

50%

35%

91%

Green Public ProcurementNever been developed

Has been rescinded

Developed by someprocuring entities

Developed at thecentral level

Developed at thecentral level and bysome procuring entities

9%

13%

56%

22%

91%

Support to SMEs

12%

16%

56%

16%

88%

Support to procure innovative goods and services


Mandatory Use of Public Procurement for Secondary Policy Objectives (2012 vs 2014)


s and services

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Green publicprocurement

Support to Smalland MediumEnterprises

Support toprocure

innovativegoods andservices

No, it is not mandatory andtargets are not in place

No but it Is subject todefined targets

Yes, it is mandatory buttargets are not defined

Yes, it is mandatory andtargets are defined

38%

26%

<2014>

52%

30%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Green publicprocurement

Support toSmall andMedium

Enterprises

Support toprocure

innovativegoods andservices

Yes, it ismandatory

<2012>

69%

<Support for innovative goods and services>

FinlandUnited States

No : 60.7%

Yes: 39.3%


Measuring of the results

Source: 2014 OECD Survey on Public Procurement

<Support for Green public procurement> <Support for SMEs>

12

Spain

No : 31.0%

Yes: 69.0%

Spain

No : 37.9%

Yes: 62.1%

CENTRAL PURCHASING BODIES

13

9.4 Central purchasing bodies

Source: 2014 OECD Survey on Public Procurement

Legal Status of CPBs

14

Ireland

Under Ministry:28.1%

Government Agency:43.8%

No CPB:12.5%

State‐owned Enterprise:

15.6%

9.4 Central purchasing bodies

Role(s) of CPBs


79%

79%

29%

36%

0% 20% 40% 60% 80% 100%

CPBs act as manager of the national system awardingframework agreements or other consolidated

instruments, from which contracting authorities thenorder

CPBs act as a contracting authority aggregating demandand purchasing

CPBs establish policies for contracting authorities

CPBs coordinate training for public officials in charge ofpublic procurement

THE CASE OF PORTUGAL

16

electronic Public Procurement: set in the context of a broader legal and economic reform of public procurement2007/2012Pressure from the market. Lack of openness and transparencyOpportunity to improve efficiency in public administration.

17

The Public Procurement Reform

18

The Public Procurement ReformThe pillars

Three main pillars:Law + CPB + ePP

19

The winner partnership towards the big change

The success factorsReform Pillars (Modern Law, CPB, eProcurement tools, FAs)

Changing model: Legal, Economic, Social, Marketing

Setting additional objectives: Economic and Green Procurement

Confidence and Trust in the security of eProcurement platforms

Top Level Government Commitment

Private Sector Support

Public Administration Involvement (central and local)

Portugal did ITHow to get reform project right

19

20

The success of the Public Procurement reform in Portugal is by far dueto the constructive commitment of all stakeholders. All stakeholdersinvolved in PP trust the system and its tools and see it as a value addedimprovement.

Players involvedContracting Entities | Economic Operators | Public eTendering Platforms |External Auditors for Platforms’ compliance | National Certification Officefor e‐Tendering Platforms | National Agency for Public Procurement |National Portal for Public Contracts: Base – InCI | Universities | TrainingInstitutes | Lawyers | PP external consultants | Court of Auditors |Administrative Courts | Media | PR & Press | Political Institutions | EU |Citizens

Aggregation, centralization of demand and the creation of the CPB helped delivering the change towards e‐Procurement

Portugal did ITHow to get reform project right

20

21

The national public procurement system (CPB)14 Ministerial Purchasing Units, +1 800 Entities mandatory, +600 voluntary (municipalities, other public entities)

Over 30 Framework Agreements concluded

800 millions of annual public expenditure covered (80% of total)155 M€ in savings 2009‐2012, around 16%

266 contractors, +70% SME’s

The eProcurement usageMandatory since Nov.2009, 7 private eTendering platforms

In 2013, 39 776 procedures, 5 000 M€, 70% of total value

In 2013, Manchester index of 87 % (above EU thresholds)

21

Portugal did ITKey figures

ALIGNING PRIORITIES AND OBJECTIVES

22

(1)Clarity of objectives (for the system)

(2)Legislative environment

(3) Institutional context and governance

(4)Visibility and accessibility of the system to users

(5)Technical functionality/ergonomy

(6) Interoperability and links with other systems

(7)Resources available to the system owner/manager tomaintain and develop the system

(8) Information completeness and quality

How to get the project rightThe critical dimensions of an e-P system

PP LawyersPublic Procurers

Trade AssociationsPARTNERS

&MULTIPLIERS

OF INFORMATION

TRAINERS

DECISIONMAKING

+INTERNAL

COM

REFORM OWNER

Legal CommunityPublic Administration

Suppliers, SMEs

less knowledgeable

more knowledgeable

MEDIA

PUBLIC AT LARGE

Training Programmes 24

How to get the project rightCommunication matters… the megaphone

For more information on OECD work on public

procurement and integrity

www.oecd.org/gov/ethics/public-procurement.htm

[email protected] you

26

How to get to… - Difi · Anskaffelseskonferansen 2015 ... Government procurement as share of GDP and of total govt. expenditures 5 Source: OECD National Accounts Statistics. (2013)

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