Annalisa De Paoli Public Procurement Division Consip Spa Santiago, 14th September 2011 Strenghtening the government’s acquisition workforce

1 Public Administration employees in Italy: 3.7 mln Public employment is perceived as a “great value” in Italy (e.g. people who become part of the Government’s workforce remain usually till the retirement) Meanwhile, Public procurement employment is non perceived as a “great value”, mainly because the profile of “the procurer” does not exist “To procure” in Italy is, first of all, to comply with legal instructions “to the letter” and, in many case, it represents just a “secondary activity” of a public officer Government’s workforce in Italy HOW THE CAPABILITIES MAY BE FOSTERED?

2 The main idea to foster capabilities: PROCUREMENT CENTRALIZATION FOR EFFICIENCY FOR EFFICIENCY Italian figures…. The main idea Inhabitants: ca 60 mln people Public Admin. employees: 3.7 mln Consip Ordering points: Expenditure on G&S: €120 bln Ministries: 21 Central PA Authorities: >100 Regions: 20 Provinces: 110 Municipalities: School system: Universities: 94 Public schools: > Health Sector: Hospitals, Local Health Agencies, Public Clinics: >300 Contracting authorities: >

3 CENTRALIZATION FOR EFFICIENCY The Program for the Rationalization of Public Expenditure in Goods and Services was launched with the 2000 Budget Law Consip became a “competence centre” with the aim of optimizing public purchases of goods and services through the use of information technology and innovative purchasing tools Centralization…. Consip as first… CONSIP PUBLIC PROCUREMENT TODAY… Employees: ca 200 Average age: 40 Our driving values: INNOVATION, TEAMWORK, EXCELLENCE, RESPONSABILITY “A partner supporting the Italian Public Administration in its drive towards modernization”

4 Consip’ skills together in the process Contract and competitive tendering design Tendering process Demand analysis Supply market analysis Feasibility StudyTender Strategy Tender Documents Category manager R&D unit Legal division Planning & monitoring division Account managers GPP unit Category manager R&D unit Legal division GPP unit Category manager Legal division R&D unit GPP unit Tender evaluation and contract award Contract management Tender Documents Category manager Legal division Different skills and capabilities work together in a defined process to give to the public administrations decreased unitary costs’ products and services, while maintaining a high quality standard in supplies, with savings on processes

5 CENTRALIZATION FOR EFFICIENCY Recently, other centralized purchasing agencies have been created in order to gain efficiency in public procurement processes, primarily the Regional Procurement Agencies (e.g. Lombardia, Emilia Romagna, etc.) The 2007 Budget Law launched the “Procurement Network” among Consip and the other Procurement Agencies, with the aim to collect skills, capabilities and experiences, with special reference to eProcurement Meanwhile, other centralized purchasing agencies, locally based, were lunched. Some examples: Local autorithies (e.g. Rome municipality), local authorities of specific areas (e.g. public hospitals of different Areas of the Region of Tuscany) Centralization…. beyond Consip…

6 CAPABILITIES - CIRCULATED WAY TO WORK - GOAL ORIENTED CAPABILITIES - CENTRALIZED People High and different skills and capabilities centralized in a unique organizazion (skills coming from the market and the small contracting authorities) WAY TO WORK - DEFINED PROCESSES Capabilities and business integration Strategy Technology People Process High and different skills and capabilities play together in a well- defined process, with procedures and technologies defined and known inside the organization Skills and capabilities are made available outside the organization (through web-site, account‘s activity, class-room training, informational material, etc.) In a more complex public procurement scenario, the most important elements are “goal oriented work“, international relationships, and the feeling to “be part of a project” … challenging objectives… eProc