Rome, November 28 th 2003 Giancarlo Del Bufalo – Head of dept. for General Administration Ministry of Economy and Finance EU Public Procurement Learning Lab “The role of the Italian Ministry of Economy and Finance in the Rationalization Program on Public Spending”

2 Rome, November 28 th, 2003 The Ministry of Economy and Finance (MEF) has a very important role in the framework of the Rationalization Program on Public Spending, assigned by 2 specific Government laws  Financial Act for the year 2000 (Law n. 488/1999) entitles the Ministry to stipulate frame contracts with suppliers of goods and services, selected through the procedures provided by in force regulation  Presidential Decree n. 101/2002 entrusts the Ministry with the development of the Public Administration Marketplace The Ministry entrusts Consip with the development and management of the Program, by means of 2 Ministerial Decrees (February 2000, May 2001) Rationalization Program on Public Spending Ministry of Economy and Finance role

3 Rome, November 28 th, 2003 The following Financial Acts (2001, 2002, 2003) have widened the Program scope and roles of involved actors Today, according to the current legal framework:  Central Government (e.g. ministries) is obliged to purchase within frame contracts awarded under the Law n. 488/1999  all other public administrations (e.g. municipalities, health agencies, etc.) may purchase within the frame contracts. Alternatively, whenever they run their own tenders, they have to take price and quality of the frame contracts as a reference  within the frame contracts, selected suppliers assume the commitment to accept orders coming from Public Administrations Rationalization Program on Public Spending Legal evolution

4 Rome, November 28 th, 2003 Rationalization Program on Public Spending Spending for Goods & Services * Report on estimated needs for the year 2002 and Consip estimate Total amount of public expenditure for goods and services sums up to about € 97 billion, about 15% of overall public spending  The estimated amount of eligible expenditure for the Rationalization Program is about 40%  In 2003 the Program’s activity has been covering about € 16 billion Central Government 17% Health bodies 49% Local Government 24% University 2% Other P.A. 8% Public spending for goods and services, 2002 (%) Central Government 15% Health bodies 41% Local Government 32% University 4% Other P.A. 8% Source: Consip estimates Public spending for goods and services eligible for the Program, 2002 (%) Total = € 96,6 billionTotal = € 40,2 billion

5 Rome, November 28 th, 2003 Public e-procurement: the aim of the Program  Define purchasing strategies  Draw up competitive frame contracts for Public Administrations  Promote the use of e-procurement within the Public Administration  Provide purchasing monitoring tools to the Public Administration  Deliver innovative e-procurement models Service efficiency and quality Process simplification Cost saving

6 Rome, November 28 th, 2003 Public e-procurement: Public e-procurement: key success factors Top talents, high level skills employedTop talents, high level skills employed New ground rulesNew ground rules Leading-edge technology for e-ProcurementLeading-edge technology for e-Procurement Innovation Make-it-happen mentalityMake-it-happen mentality Early success fastEarly success fast Evolve as you succeedEvolve as you succeed Speed Lever new regulationsLever new regulations Extend practices from central to local administrationsExtend practices from central to local administrations Manage the changeManage the change Growth

7 Rome, November 28 th, 2003 TECHNOLOGICAL EVOLUTION OF PUBLIC ADMINISTRATIONS AND SUPPLY MARKETS ORGANIZATIONAL EVOLUTION: PROCESSES, STRUCTURES, COMPETENCES The Program implementation requires to P.A. an overall effort in the adoption of new strategic and functional approaches in the procurement process CULTURAL EVOLUTION: INNOVATION, KNOWLEDGE SHARING CULTURAL EVOLUTION: INNOVATION, KNOWLEDGE SHARING Rationalization Program on Public Spending as catalyst of innovation