Gian Luigi Albano, Ph.D. Head of R & D Italian Public Procurement Agency (Consip S.p.A.) Rome, 10th December 2008 A brief look at Consip’s e- Procurement Strategies

Consip is a joint-stock company, created in 1997 by the Ministry of Economy and Finance (MEF), its sole stockholder Consip is entrusted with two main fields of action… 1997 management and development of ICT services for the MEF 2000 e-Procurement for Public Administrations MEF PAs Support to the adoption of e-procurement tools Consip S.p.A. Consultancy on Technical and Organizational Projects

Implementation of the Program for the Rationalization of Public Spending on Goods and Services through the use of information technology and innovative tools for the purchases of the Administrations (frame contracts, web-based tenders, the Electronic Marketplace) Public e-Procurement 2000 IT services for MEF Eprocurement 1997 PAs

Process simplification Quality Improve the ratio between cost and quality of the goods and services offered to PA Reduce procurement time simplifying the entire procurement process Public Spending Optimization Guarantee transparency and public communication on tender procedures and awarding criteria, enhancing competition Innovation Develop innovation procurement tools encouraging change management among public officials and suppliers Transparency The main goals of the e-Proc strategies

Italian Public Procurement Portal

eshops eMarketplace  Purchases within frame contracts  Direct Purchases  Many-to-one approach  Need for:  Large volumes  Demand aggregation  Standardized goods  Low price volatility  Slow obsolescence On line tenders  Development of Frame contracts or Auction Service Provider to other public bodies  Need for:  Large volumes  Demand aggregation  Or Specialized goods  High price volatility  Rapid obsolescence  Direct order or RFQ  Many-to-Many approach  Supplier defined e-Catalogue  Need for:  Low cost goods  Spot purchasing  Highly fragmented offer Above and Below EU Threshold Below EU Threshold Eprocurement Platform Frame contracts

Consip’s activities Demand analysis* Supplie r Selecti on On-line order Litigation Contract award Contract and Tender documents Goods services delivery Payment Frame contract - Process simplification PA Reduction of administrative procedures for both PA’s and suppliers * Made in cooperation with the PA

eCatalogue where selected suppliers “display” goods and services, and public administrations make purchases (below the EU threshold) by using two possible tools: “direct purchases from the eCatalogue” (DPs) and “requests for quotation” (RFQs) Marketplace Actors on the eCatalogue MEF/Consip Market maker Support to both sides of the market FirmsPublic Administrations The eCatalogue represents Consip’s main strategy to foster participation of SME’s in the public procurement market eMarketplace

Demand side: Registered users/Purchasing Units (PUs): (Jan-Aug ‘08), (cumulative) Active users (‘til Aug ‘08): Number of transactions (DPs + RFQs): (Jan-Aug ‘08), (cumulative) Transactions value: € (Jan-Aug ‘08), € (cumulative); average transaction value 2.719€ (Jan-Aug ‘08) Supply side: Registered-active suppliers: Number of items: Items categories (‘til Dec ‘07): 43,5% ICT, 34,5% Office supplies, 14% Services, 1% Health Materials and 7% others. eMarketplace: the market in a snapshot

Key Performance Indicators of the Programme “Outward-looking” measures KPI 1 KPI Each euro invested in the Programme has generated euro 66,7 in transactions through the NFCs system (compounded average growth rate in the period : +50%) 2008 Each euro invested in the Programme has generated euro 66,8 of savings (compounded average growth rate in the period : +12%) “Value of purchases through NFCs per unit of investment”(€) “Savings per unit of investment” (€)