The answer to the question Using the market for better Results Mr. A.P.M. Veltman, Major Municipality Someren and Chairman of BIZOB

THE SITUATION IN THE NETHERLANDS The Netherlands: 16 million inhabitants, 467 municipalities The Province of Noord-Brabant: about 75 municipalities Region procurement cooperation's: - West-Brabant: about 17 municipalities - East-Brabant: about 14 municipalities

WHICH IS BIZOB? An organisation who performs: - (joint) procurement and tender projects for the municipalities also for infra-structure works, goods and services; - advice municipalities by Public, Private Cooperation cases with suppliers and potential partners; - advice municipalities on cases about out-or in sourcing of activities; - analyse the product development on the market for the municipalities.

ORGANISATION SCHEDULE BIZOB General Council 28 members, two members of each municipality Chairman: Mr. A.P.M. Veltman Council 5 members of the General Council Board M.A.J. Stuijts

ORGANISATION SCHEDULE BIZOB M.A.J. Stuijts Executive manager Concern Purchaser Executive manager Concern Purchaser Management Support Secretary

PROCUREMENT PROCESS IN ORGANISATIONAL VIEW Performance-parameters Contract Order Follow up Evaluation Selection Specifi- cations Organization policy Procurement policy Suppliers (market) Municipality

WHY (JOINT) PROCUREMENT COOPERATION? Procurement is badly organised (permanent) process in most municipalities; Procurement is too limited in most (small) municipalities; Professionals at work; Economics of scale; Quality of knowledge (databank); Introducing possibilities for benchmarking; Better financial results; To get the optimal relation between commercial companies and the (local government) Stronger contract partner position.

PROFITS OF PROCUREMENT COOPERATION Financial procurement costs and profits Qualitative contracts, multifunctional teamwork, European tenders Organisational transparent process, integrity, professional procurement

CRITICAL FACTORS OF SUCCES Commitment of the local authorities; Commitment of the management; Teamwork cooperation instead of competition; A drive to make the cooperation a success; Simple but effective organisational form “mean and lean”.

HOW TO START Make a group of municipalities and persons with ambitions; Business plan with step by step targets; Cooperation organisation close to the individual municipalities; Down to earth organisation with minimalised overhead and bureaucracy; Quick wins and public relations; Turn around opposition into acceptation.

POLICITAL ANGLE Political “do-it-yourself” procurement and tenders; Local suppliers; Professional European acting; Guarantee of integrity and transparency of procedures; Positive effects on town budgets.

STRUCTURAL ANGLE The authority of making decisions belongs to each individual municipality; The procurement organisation is strongly related to each individual municipality; Employees of the procurement organisation are physically working in the individual municipality; Every municipality has a facts and figures analysis; Joint procurement projects are based on budget analyses of the individual participants; Dynamic organisation structure; from and for the municipalities.

ORGANISATIONAL ANGLE Organisation of procurement process in the office; Clear responsibilities and proper authorities; One political and one management CEO (Chief Executive Officer) in each municipality; Straight agreements on the procurement results; Working together as municipalities is based on individual and collective profits.

DO’S BY CREATING SHARED SERVICES Shared vision on targets of procurement cooperation; Shared vision on strategic procurement activities; Shared vision on the approach (opposition, commitment); Shared vision on how to manage the entire process (positioning of the shared service); Shared vision on the decision making in the project; Shared vision on the architecture and content of the shared service organisation.

DONT’S BY CREATING SHARED SERVICES Many meetings, no decisions; Dealing with the whole world instead of only the real participants; Incompetent program management; Lack of procurement expertise; Inadequate change management by the introduction.

Different procurement solutions for different procurement objectives The Procurement portfolio: Impact on financial results High Leverage productsStrategic products Competitive biddingPerformance based partnership Routine productsBottleneck products Low Systems contracting + E- commerce solutions Secure suppliers + search for alternatives LowHigh Supply risk

Infrastructure projects : bridges, railway projects, hospitals a.o. Outsource the operational and finance exploitation of sport centre; Develop an ICT software programme for your (local) government; Develop, realise, maintain and exploitation. By a Strategic Product the Performance is based on Partnership A partner is defined as a company with whom your (local) government has a ongoing “buyer-seller” relationship, involving a commitment over an extended time-period, a mutual sharing of information and a sharing of risk and rewards from the relationship

PROFESSIONAL TENDERING

By using the market we go Together to a golden result!