1 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Federal Procurement Agency in Austria - Chances and risks of central public procurement THE AUSTRIAN FEDERAL PROCUREMENT COMPANY LTD BUNDESBESCHAFFUNG GMBH - BBG Dr. Kathrin Hornbanger, MBL-HSG

2 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Dezentralisation of Public Procurement leads to: Differing Methods, Procedures & Standards Differing Methods, Procedures & Standards Loss of Synergies Loss of Synergies Market Power of Public Demand used inadequately Market Power of Public Demand used inadequately Substantial Loss of Public Ressources Rationale For Central Purchasing of Public Authorities

3 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Aggregation of Public Demand Aggregation of Public Demand Optimization of Procurement Methods through Spezialisation Optimization of Procurement Methods through Spezialisation & Significant Reduction of Tendering Procedures Establishment of Austrian Federal Procurement Company Ltd. Establishment of Austrian Federal Procurement Company Ltd. by June, 2001 by June, 2001 Centralisation of Public Procurement Solution

4 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Demand Aggregation Demand Aggregation Standardisation Standardisation Optimization of Purchasing Conditions Optimization of Purchasing Conditions Process Simplification Process Simplification Transparency Transparency Broaden Competition Broaden Competition Improve Efficiency of Public Procurement & Reduce Public Expenditure Objectives

5 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Needs Analysis Needs Analysis Document Draft for Tender Document Draft for Tender Supplier Selection Supplier Selection Conclusion of Contract Conclusion of Contract Provision of Catalogues Provision of Catalogues Market Survey & Analysis Market Survey & Analysis Standardisation Standardisation Controlling Controlling Contract Management Contract Management Tendering Procedure & Controlling Contract Management? BBG Operations

6 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Supplies & Services Contracts Supplies & Services Contracts Defintion of Goods of Services by Regulation Defintion of Goods of Services by Regulation Economically Reasonable Aggregation of Demand BBG Operations

7 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Compulsory Compulsory Non Compulsory Non Compulsory Federal Administrations Must/May Use BBG Contrats BBG Operations

8 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG IT Hard- and Software IT Hard- and Software Photocopiers, Printers, Desktop PC´s & Maintenance Photocopiers, Printers, Desktop PC´s & Maintenance Paper & Stationary Paper & Stationary Utilities Utilities Telephone Telephone Transport Transport Cars Cars Meal Coupons Meal Coupons IT Hard- and Software IT Hard- and Software Facility Management Facility Management Office Equipement Office Equipement Postal Services Postal Services Fields of Activities

9 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Pharma Pharma Labaratory Equipment Labaratory Equipment Books, Newspapers, e-Media Books, Newspapers, e-Media Security Services Security Services Cleaning Cleaning Food Food Textiles Textiles Chemicals Chemicals Insurance Insurance Facility Management Facility Management Metallic products, Machines, Tools ect. Metallic products, Machines, Tools ect. Electronics & Maintenance Electronics & Maintenance Federal Administratin Must Use BBG Contracts Fields of Activities

10 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Training Training Project Management Project Management Public Relations Public Relations Individual Requests Individual Requests Federal Administration May Use BBG Contracts Fields of Activities

11 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG BBG Procurement agenda Orders from BBG Contracts Steigerung in % Furniture % Energy % Telecommunication % Security of buildings % Cleaning % Facility Management % Motor Pool % Hardware and machines % Fuel incl. lubricants % Electric euquipment % Transport and Traveling % Office material % IT-Hardware % Office machines % IT-Software % Pharma % Letter post % Total %

12 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG BBG Procurement volume

13 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Public Companies owned by the State Public Companies owned by the State Regional Governments, Cities, Municipalities Regional Governments, Cities, Municipalities Universities Universities Health Sector Health Sector These Entities May Use the Services of BBG Other Users

14 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Demand Aggregation Demand Aggregation Lack of Adequate Accounting & Controlling System Lack of Adequate Accounting & Controlling System Technical Specifications Technical Specifications Cooperation & Communication with Clients = Ministries Cooperation & Communication with Clients = Ministries Establishment of New Internal Procedures New Coordination Efforts Hidden Costs Lessons Learned I

15 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Changing of Public Demand Changing of Public Demand Impossiblity of Knowing the Exact Need Impossiblity of Knowing the Exact Need Limits of Standardisation Limits of Standardisation Open Contracts & Catalogues Open Contracts & Catalogues Product Developements Product Developements Length of Tendering Procedures Length of Tendering Procedures Need for More Flexible Purchasing Techniques Framework Agreements E-shop Lessons Learned II

16 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Formal Requirements May be on the Detriment of Competition Formal Requirements May be on the Detriment of Competition List of Qualified Suppliers? List of Qualified Suppliers? Obscure Provisions Obscure Provisions Increasing Need of Specialists Increasing Need of Specialists Cost of Bidding Cost of Bidding Multiplicity of Tresholds Multiplicity of Tresholds Litigation Litigation Need for Simplification of Existing Legal Framework Need for Simplification of Existing Legal Framework Lessons Learned III

17 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Closed Markets Closed Markets SMME SMME Better Value for Money Can Only be Achieved through Competition Better Value for Money Can Only be Achieved through Competition Lessons Learned IV

18 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Standard Terms and Conditions Standard Terms and Conditions rarley provide the most efficient solution Intellectual Property Rights Intellectual Property Rights Liability Provisions Liability Provisions Individual Solutions as Best Practice Need to Create Comparable Conditions Reduce Risks for Bidders and Save Money Lessons Learned V

19 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Electronic Tender Notice Electronic Tender Notice Information Platform – Information Platform – Electronic Provision of Tendering Documents Electronic Provision of Tendering Documents Clear & Defined Procedures Clear & Defined Procedures Transparency of Public Demand E-procurement

20 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG Key Succes Factors Objectivity Objectivity Professionalism Professionalism Innovation Innovation Speede-tendering, e-shop Speede-tendering, e-shop Process Simplificatione-tendering, e-shop Process Simplificatione-tendering, e-shop Transparency e-tendering, e-shop Transparency e-tendering, e-shop Controllinge-shop Controllinge-shop Information Platforme-tendering Information Platforme-tendering Broaden Competitione-tendering? Broaden Competitione-tendering? Achieve High Acceptance by Clients & Suppliers Reduce Public Spending

21 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG E-shop.gv.at Pilot System Pilot System Improve contract information Improve contract information Security through process definition Security through process definition Time saving Time saving Reduction of coordination efforts Reduction of coordination efforts Transparency Transparency Implementation of strategic controlling Implementation of strategic controlling Creating Acceptance of the System through Maximum Benefits for the Users

22 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG For more information please contact our web-side: Legal Aspects: Kathrin Hornbanger E-shop:eGov & eProcurement Johannes Wimmer Paul Humann

23 EU Public Procurement Lab Meeting - London (c) Kathrin Hornbanger, MBL-HSG THANK YOU