Angela Russo, International Cooperation Projects, Consip SpA “General Presentation on Consip” Angela Russo, International Cooperation Projects, Consip SpA Santiago, December 12, 2016

Establishment, Mission and Role Establishment: Consip SpA is a public stock company set up in 1997 and entirely owned by the Italian Ministry of Economy and Finance (MEF), its sole shareholder Mission: make the use of public resources more efficient and transparent, by providing tools and skills, to public administrations, in order to allow them to perform public purchases and at the same time stimulate a competitive participation of enterprises to public tenders Role: Consip acts according to an “in house ” model; it is a public company in house to all central state administrations and, consequently, it can act as central purchasing body for these administrations, as an essential part of its activities. The remaining part of its activities consists in providing specific services to other and specific public entities. 344 N° of employees 43 Average age 84% Graduated 51% Women Consip: mission, role, activities

Support to individual administrations Consip’s Core Activities Implementation of the “Program for the rationalization of public spending on G&S” Support to individual administrations Respond to specific tasks assigned by law such as support the Digital Administration CENTRAL PROCUREMENT VERTICAL PROCUREMENT OTHER AREAS FOCUS PUBLIC FINANCE TOOL (impact on prices) EFFICIENCY AND INNOVATION TOOL (impact on processes) Aim Consip: mission, role, activities

Financing model Central procurement - Program for the rationalizations of public spending on G&S Consip is still mainly funded through the budget of the central government, on the basis of a specific agreement between Consip and the MEF Since January 2014, the adoption of “transaction fees” from the suppliers’ turnover is undergoing (in 2015 ca. 4% of Consip’s financing source derived from the fee) Vertical procurement In addition - according to art. 29 of law by decree 201/2011 and of other provisions that allow Consip to perform in its quality of CPB - Consip stipulates agreements, on a cost-recovery basis, with specific public entities, and acts as a contracting authority on their behalf Consip: mission, role, activities

The Italian Public Administration: a complex scenario ITALY Population: ca 60 mln PA employees: 3.400.000 Contracting Authorities: 32.000 ca. € 130 bln expenditure on G&S in 2014 CENTRAL GOVERNMENT Ministries: 13 LOCAL GOVERNMENT Regions: 20 Provinces: 110 Municipalities: 8.101 Tutorial system: Universities: 94 Schools: >10.000 Health Sector: >300 INDUSTRY > 4.000.000 Enterprises 98% are SMEs Public Spending Optimization through EPROCUREMENT Where We Started From: public procurement system

Consip’s Organization BOARD President CEO MEMBER Internal Audit Transparency Unit Secretariat Board Administration and Control Human Resources and Organization Internal Monitoring Body Legal Operations Support ICT Sourcing Service and Utility Sourcing Program for the Rationalization of public spending PA Project Consip: mission, role, activities

SUPPORT FROM OTHER DIVISIONS Consip Public Procurement & Sourcing Divisions – CPB - PUBLIC PROCUREMENT SOURCING Promotion vs CAs Staff IT G&S Healthcare G&S GPP eProcurement Solutions Real Estate & Services to the territory Planning and Monitoring TLC G&S and Solutions Services Strategies & Management ENERGY & UTILITY SUPPORT FROM OTHER DIVISIONS International Cooperation Legal Department R&D Unit Public Procurement & Sourcing Divisions

Introduction to the Program for the Rationalization of public spending Launched with the 2000 Budget Law with the aim of optimizing public purchases of goods and services and developing provisioning models based on new processes and technologies Public purchasing bodies structured according to private sector models / governance of MEF Use of mechanisms capable to aggregate demand and enhance efficiency (Framework Contracts, Electronic Marketplace and Framework Agreements, Dynamic Purchasing System) COMPETITION TRANSPARENCY INNOVATION PROGRAM FOR THE RATIONALIZATION OF PUBLIC SPENDING Where We Started From: public procurement system

The Program for the Rationalization of public spending: the framework MEF plays a policymaking and coordinating role and defines the Program’s guidelines Consip analyzes the demand and supply markets, develops purchasing initiatives and provides purchasing know-how and consultancy services Public Bodies and Enterprises benefit from the use of the tools provided and cooperate in the identification of quantity and quality requirements the Oversight Authorities (AGCM, AGCOM, etc.) ensure, within their specific responsibilities, the compliance of purchasing initiatives with the principles of transparency and competition. Where We Started From: public procurement system

2015 Main KPIs 40,1 Bln/€ 7,0 Bln/€ ca 17% (ISTAT) 55.000 66.000 Covered expenditure 7,0 Bln/€ ca 17% (ISTAT) Total value of orders issued (around 60% is for SMEs) Direct savings Number of business firms (SMEs 52000) 55.000 Public Buyers 66.000 Electronic invoices 450.000 Contracts 714.000

Main National Public Procurement KPIs Consip Program for the Rationalization National Public Procurement 15.000 CONTRACTING AUTHORITIES 36.000 CONTRACTING AUTHORITIES Centralizing purchasing 55.000 FIRMS 3 MLN FIRMS Unified governance 7 MIO/€ EXPENDITURE FOR GOODS AND SERVICES 94 MIO/€ EXPENDITURE FOR GOODS AND SERVICES Digitalization 714.000 CONTRACTS FOR GOODS AND SERVICES 4,5 MLN CONTRACTS FOR GOODS AND SERVICES

Consip’s Public User (mandatory or voluntary regime) More or less 36,000 contracting authorities (ANAC 2014 Report) Central Government organisations Health Sector Regional /Local organisations Schools Framework Contracts Framework Agreements MEPA Dynamic Purchasing system The mandatory use of purchasing tools* Central Administrations Mandatory Mandatory Mandatory Faculty Health Sector PAs Mandatory Mandatory Mandatory Mandatory Region/Local PAs Faculty Faculty Mandatory Faculty Schools Mandatory Faculty Mandatory Faculty *For specific categories, such as ICT, Energy , ect- established by Law- use of CPB’s purchasing tools are however mandatory

Main product/service categories available Goods & Services Energy & Utilities Healthcare Territory ICT TLC Beni e Servizi Energia e Utilities Sanità Territorio IT TLC Transport/ Mobility services Vehicles Furniture Events Catering & Food Services Stationery Press Review Consultancy Insurance Training Postal Services Fuels Electricity Energy Efficiency Gas Heating oil Needles & Syringes Medical Equipment Goods & Services for Healthcare Drugs Cleaning Services for the NHS Medical Gloves Facility management Waste Management Electrical Equipment Maintenance Services Cleaning Services Transportation Services Street lighting Maintenance works Printers Photocopiers SW licenses Pc & tablets Servers Application Services IT Systems Services Cloud services Enterprise IP Telephony Contact center Telephony Video Surveillance Connectivity NEW Where We Started From: public procurement system

Framework Contracts (FC) eshops Above/Below EU Threshold Our National Approach… National eProcurement Platform: a Comprehensive Set of Purchasing Tools Eprocurement portal - www.acquistinretepa.it 2000 2002 2004 2010/2012 Framework Contracts (FC) eshops On line FC e-Marketplace -MEPA FA and DPS Purchases within frame contracts Large volumes Demand aggregation Standardized goods Low price volatility Direct order or RFQ Low cost goods Spot purchasing Highly fragmented offer ecatalogue On-line tenders in a structured and managed environment (two-stage procedures) Standardised procedures for commonly used goods & services with customisation Above/Below EU Threshold Below EU threshold Above/Below EU Where We Started From: public procurement system

Where we started from FIRST: Implementing the Program for the Rationalization of Public Spending CONSIP’S focus Upstream Services Procurement Process Downstream Services Design, management and program management of tender Conditions Analysis Development Practice Needs Tender strategy Tender Documentation Publication Bids evaluation Award Activation Management Promotion (initiative promotion, CRM) Litigation management IT business, e-procurement platform Coordination and Governance Collecting Requirements and demand qualification -Improvement of suppliers contract management -Support to CAs Process and timing simplification

How We Moved Ahead… Choosing the appropriate eProcurement tool MePA Dynamic Purchasing System Customised Framework Agreements Buy side Framework contracts Standard Concentrated Standardized Supply side Fragmented Specialised The adoption of different tools is related to the market (buy and supply side) characteristics How We Moved Ahead

How We Moved Ahead… Evolution of Consip’s role – Mature stage MePA Consip role Dynamic Purchasing System «Market Maker» Framework Agreements Framework contracts «Awarding Authority» Greater autonomy for the buyer Greater participation of SMEs The adoption of new eProcurement tools calls for a strategic change in Consip’s role and capacity How We Moved Ahead

How We Moved Ahead… …matching between tools and roles Consip as a CPB plays two different roles: contracting authority and Market Maker Contracting Authority (CA) Market Maker - Manager Dynamic Purchasing System (DPS) Framework Contracts (FCs) Framework Agreements (FAs) e-Marketplace (MEPA) Below OJEU Threshold Above/Below OJEU Threshold Above/ Below OJEU Threshold How We Moved Ahead

How We Moved Ahead… …matching tools, roles and services provided… Several and different e-Tools are available on the platform «Acquistinrete» to purchase goods and services Consip – Contracting Authority Consip – Market Maker eTenders MEPA DPS Framework Agreements Framework Contracts E-Invoicing CRM services PA Asp Tender Call for competition Direct Order Direct order Request for quotation Call for competition Catalogue How We Moved Ahead

How We Are Moving Further Ahead… In Italy purchases can be made at different levels of aggregation There exists: Approx. 36,000 contracting authorities (ANAC 2014 report) 21 Central Purchasing bodies at the regional level A single Central Purchasing Body (CPB) at the national level: Consip S.p.A. Law 66/2014 established a permanent group of “public procurement aggregators” to be populated by a plurality of subjects: Consip, the regional CPBs, selected buyers (f.e. metropolitan cities)

Law 66/2014, Art. 9 – Steps undertaken How We Are Moving Further Ahead… Law 66/2014, Art. 9 – Steps undertaken 1 The institution of a list of max 35 procurement aggregators composed by (nowadays 32 aggregators): Consip S.p.a. Central Purchasing bodies at the regional level Selected buyers (f.e. metropolitan cities) Updates DEFINITION OF THE LIST OF THE PROCUREMENT AGGREGATORS The Determination of ANAC’s Board of the 22nd of July 2015 defined the list of the procurement aggregators. The Deliberation of ANAC n. 784 of the 20th of July 2016 revised the list DEFINITION OF THE CRITERIA AND ALLOCATION OF THE FUND FOR THE PROCUREMENT AGGREGATORS Decree of the 16th of December 2015 and Resolution of the 26th of February 2016

Law 66/2014, Art. 9 – Steps undertaken (2/3) The institution of a permanent technical working table (TWT) composed by the procurement aggregators. Updates The Table has been working since July 2015. The role: Assure coordinated planning activities Strengthen the capacity of needs forecast Gather data on the needs expressed by public administrations Definition of common methodologies and languages Construction of a common and complete database in order to provide information to policy makers Monitoring of the effects of demand aggregation Definition and circulation of best practices Promotion of eprocurement

How We Are Moving Further Ahead… Procurement aggregators

Qualification system of CAs (art. 38 of the new PP code) ANAC sets up the list of the qualified CAs, herein automatically including Consip and regional CPBs. CAs qualified on the basis of basic and additional requirements: -Basic: organization, internal structure, skills of employees, training of employees, respect of terms of payment etc. -Additional: quality certifications , number of complaints, use of electronic means of communications, use of social and environmental criteria etc. Qualification mandatory requested for purchases above 40.000. Recourse to CPBs, procurement aggregators or joint procurement for non-qualified CAs.

QUALIFIED USERS BY SEGMENT REGION (HEADQUARTERS) Support and Assistance USERS QUALFIIED TO THE SYSTEM P.A. 66.000 PUBLIC BUYERS 2012 2013 2014 2015 2011 2010 QUALIFIED USERS BY SEGMENT LOCAL AUTHORITIES UNIVERSITIES STATE HEALTH TOTAL 41.057 3.509 19.957 2.155 66.678 55.000 BUSINESS USERS (MOSTLY SMEs) FIRMS & PROFESSIONALS 2012 2013 2014 2015 2011 2010 REGION (HEADQUARTERS) NORTH-EAST NORTH-WEST ISLANDS CENTER SOUTH TOTAL 12.766 13.592 5.526 12.689 10.545 55.118 HOW TO REACH OUT TO PUBLIC USERS

Support and Assistance Structured relationship activities with the users (Customer Relationship Management) PROMOTION On the services offered by the Program TRAINING On e-procurement processes and tools SUPPORT at all stages of the procurement process CUSTOMER CARE: in order to attract and “KEEP” the user and increase its satisfaction HOW TO REACH OUT TO PUBLIC USERS

(Central Public Administration) Support and Assistance Relationship model: activities are diversified according to the target and to the goals to achieve SEGMENT ALL P.A. SUPPORTED P.A. CPA (Central Public Administration) ~ 250 PA Almost total coverage of the central structure LOCAL AUTHORITIES ~ 14.000 P-A. ~ 11.000 Schools ~ 250 Strategic P.A. (Direct coverage) HEALTH ~ 280 health units SSR UNIVERSITY ~ 70 Universities + consortia ACCOUNT MANAGEMENT 20 ALL P.A. Relationship management and direct contacts with the most important PA SUPPORTED P.A. MASS MARKETING 10 Communication to all users with mass marketing channels HOW TO REACH OUT TO PUBLIC USERS

Training&Support Points Support and Assistance With the aim of increasing territorial support, ad hoc collaborations have been set up with Institutions willing to support the communication activity on the Program (like ANCI, Federsanità, etc .. ). As part of a wider strategy, aimed at providing effective support and assistance at a local level both on the use of public procurement initiatives and on the use of the eprocurement platform, Consip has already opened the first 3 Training&Support Points and plans to further increase their number. CONSIP POINTS MILAN TURIN PALERMO ----- “PUNTO PA” Training&Support Points HOW TO REACH OUT TO PUBLIC USERS

CUSTOMER CARE: Customer Satisfaction Survey, claims analysis Support and Assistance ONGOING ACTIVITIES PROMOTION TRAINING SUPPORT Account Mang. activities Local events Meetings Newsletter E-mail marketing Portal tools Local Training events Training Events at Consip Online Training events Specialized Support meetings Contact Center Portal tools (videos, guides, FAQs, Help contextual) YOUTUBE SUPPORTED PA ALL PA CUSTOMER CARE: Customer Satisfaction Survey, claims analysis HOW TO REACH OUT TO PUBLIC USERS

CUSTOMER CARE: Customer Satisfaction Survey, claims analysis Support and Assistance ONGOING ACTIVITIES PROMOTION TRAINING SUPPORT Project «Sportelli in Rete» Local events at Chambers of Commerce or PA premises Local press campaigns Visibility on web sites of suppliers associations Newsletter Portal tools Local Training events at Trade associations and Chambers of Commerce Training «Sportelli in Rete» (Training to trainers) On line Training events Local Training events Training events at Consip Working tables with suppliers Associations Problem solving Support to businesses through «Sportelli in rete» Specialized Support to the through «Sportelli in Rete» from Consip Contact Center Portal tools MULTIPLIERS MASS MARKETING CUSTOMER CARE: Customer Satisfaction Survey, claims analysis HOW TO REACH OUT TO PUBLIC USERS

How to Support Businesses: Supplier Training Desks 2 2 13 19 19 18 Today all main Enterprises Associations are involved 280 desks are operating across the Italian territory and in every Region 3 19 31 11 5 5 6 2 5 6 1 18 8 19