1. TAIEX-REGIO Workshop on Public Procurement and Applicable Rules Ivančica Franjković Boyana Residence, Sofia 9-10 December 2015

2. Content Areas of development for the current framework for cooperative procurement in Bulgaria – an example of the concept of the the CPO Lesson learned – things to consider when planning centralized procurement

3. Establishment of the CPO Estab lished in 2010 by the Regulation on CPO Mission: setting up an effective system of central public procurement with responsibilities towards taxpayers, the State Budget, clients, and all economic operators involved in the environment of public procurement with a view to creating savings in public consumption, while bearing in mind an optimum relationship between quality and the price of procured supplies, works and services, respect of ecological and socially acceptable principles, sustainable procurement and the eencouragement of small and medium enterprises –N° of clients: 34 (ministries, Gov.offices, Parliament) –N° of clients under the Reform measures 2014: (in 5 cat.): 520

4. Tasks of the CPO –planning the implementation of procurement procedure; –establishing procurement requirements for products and services; –coordinating the activities among the clients; –market research; –implementing procurement procedures; –contracting; –setting up and managing the database of awarded contracts and FA –monitoring the execution of contracts and FA; –analysing the efficiency of central procurement through continuous monitoring of savings made; –drawing up proposals of decisions, specifying products and services purchased through central procurement.

5. Internal organization

6. 1.Office furniture 2.Office supplies 3.Expendable materials 4.Printing solutions 5.Computers and computer equipment 6.Telecom. services –mobile 7.Telecom.services –landline 8.Vehicles 9.Vehicle maintenance services 10.Car tyres 11.Fuel 12.Electricity 13.Postal services 14.Insurance services 15.Software licences 16.Cleaning services 17.Maintenance of objects in the ownership of the HR In addition, Government may appoint the CPO for a specific procurement category, or specific users  Under the intervention measures of fiscal consolidation in 2014, the Government adopted Decisions related to CPO clients/mandate (additional 600 users for 5 categories) Procurement Categories

7. Lesson learned – Croatian experience Advantages: known list of mandatory clients and a list of categories (they used to purchase on their own) Disadvantages: variety of items, brands, requirements; some data about the value but without quantities 1) Meeting with all CAs was held and each category presented 2) Designated contact person within each institution with all contact info 3) Planned dynamics of procedures presented 4) Old data about contract and procurement plans were required IMPORTANT: CPB is the contacting authority, CAs are Clients who are signing separate contracts

8. Share of FA colncluded by the CPO

9. Additional remarks –Tender documents of the CPO is used as a template by many CA –Model of technical consultations –For most of 500+ new beneficiaries of central public procurement this is the first time to use framework agreements concluded through the central procurement procedure. –Help desk at the CPO - Support for clients/sharing of experience

10. How to procure smartly – good practice examples from CPO Croatia 10

11. Procurement category Estimated value of procurement in HRK Estimated savings in HRK % of estimated value Toners and inks50,000,000.00 10,200,000.0020.40 Office supplies43,000,000.00 8,200,000.0019.07 Vehicles180,000,000.00 39,000,000.0021.67 Fuel640,000,000.00 22,500,000.003.52 Telecom. services (mobile)47,000,000.00 35,400,000.0075.32 Cleaning services57,880,000.00 12,500,000.0021.60 First wave of FAs in Croatia - Start with categories that bring qiuck results

12. First wave of FAs in Croatia Procurement category Planning and conducting of the procedure Demand agregation sent Consolida tion Prepare TS Prepare TD Publish CN Tender opening decision FA concluded Toners and inks 2010/2012 2/20103 /2010 4/2010 28/514/7 9/2010 Office supplies 2011 /2013 2/2011 3/2011 4/2011 3/5 14/612/2011 - Plan on time

13. What is the need? Great number of items, described in different ways Difficult to decide standard technical specifications What is available? Check current contracts in Croatia - 30 state bodies -10 different suppliers) Catalogues available on the market Use experience of large CA Demand aggregation – example of the office supply

14. consists of various types of information-gathering activities (interviews with public procurement officials, questionnaires disseminated to government departments, etc.). supply market analysis - information gathered through interviews with suppliers and with various associations and organizations representing companies and suppliers. could be carried out by a project group within the CPB and results in a pre-study report. The project group, could be composed of technical and procurement experts from among the customers, especially the large customers. The success of a FA is highly dependent on the involvement of the large customers early on in the procurement process. Demand analysis

15. Office supply 3 lots –A - Copy paper – FSC certificate & statement of the producer / Graphic faculty as a proof of technical specification –B - Office supplies –paper-based: filling folders, material for archiving and envelops –C - Office supplies – stationery (pencils, etc…) Toners & inks – separate procedure with 5 lots Office equipment binding machines, projector screens etc – separate procedure Remarks on tender documents - subject matter of procurement

16. Technical description in terms of required characteristics: dimensions, weight, unit of measure, packaging, color, etc. Description of material defect –replacement according to the Consumer protection Law and Law on Obligatory relations Written complain directly to provider – replacement of an item More than 5 times – client may activate tender guarantee Remarks on tender documents - subject matter of procurement

17. COPY PAPER proving the technical specifications by technical descriptions of the manufacturer or reports by the authorized, independent institution; General characteristics of the paper: Weight ISO 536 (min, max) Thickness ISO 534 (min, max); optical sizes: Opacity ISO 2471 (min) Whiteness ISO 11475 (min).

18. Places of delivery were listed in TD, estimation of quantity per each county was given in % for example – city of Zagreb = 49% splitska county = 7% primorska county = 6% …etc…. Date of delivery Maximum 72 hours since receiving of an order Quantities and place of delivery

19. Q: What to do in a meantime (before conclusion of Framework agreements)? Instruction by CPA to all CA’s  you can buy on your own (estimate if you need to run your own procedure) Contract clause: „contract is valid until the end of procedure /conclusion of the contract run by the CPA If CA owns a valid contract at the time of conclusion of FA –estimate what is the most suitable for CA to run it until expiration or cancel and switch to FA Questions raised by CAs

20. Example of the tender for mobile telephony services 3 providers: HT, VIPnet, Tele2 Open procedure prepared in 2010, published in 2011, contracting period : 2 years Problems: estimate dynamics of entering VPN due to previous contracts

21. Example of the tender for mobile telephony services Package of service or price per each service ? 3 categories of GSM phones (5 models, at least 3 different producers) before starting the central procurement, the average monthly expenditure per subscriber number was around 300 kn excluding VAT During the contract period 2011-2013 reduced to 75 kn without VAT, including the price of the device during the contract period 2011-2013 reduced to 55 kn without VAT, including the price of the device.

22. Example of the tender for mobile telephony services Fixed costs + variable costs per one average subscriber number consists of –the sum of all one-time costs of activation / deactivation in mobile network of the bidder –the sum of all fixed, monthly costs, fees and / or charges for one subscriber number; –the sum of all fixed, monthly expenses and / or fees for the inclusion of subscriber number in the VPN –averaged sum of all the monthly costs for voice services; –averaged sum of all the monthly costs for the services of text messages; –averaged sum of all the monthly costs for data services; –Average prices of all the GSM phones

23. PREPARATION might take longer time (depends on the quality of input data, way how is it organized etc) demand aggregation – needs preparation as well “Neutralization” of demand of all clients good communication with clients / bidders necessary Knowing the market / needs of clients Specialized knowledge connected to subject matter of procurement / PPA Simple FA to use, guidelines for clients Flexibility of FA Lesson learned – Croatian experience

24. Include external civil servants (from the ministries) to consolidate requirements and participate in preparation of TD Increase the involvement of external experts and consultants in order to compensate the lack of necessary knowledge; Involve different relevant institutions (Audit office, regulatory agencies etc.) and academic institutions (Graphic Faculty) Regular meetings with representatives of individual clients Internal /continuous education Adopt/Revise Strategy; Code of conduct IT infrastructure - condition for monitoring of expenditure and also indirectly impact on individual clients in terms of establishing processes and standards Lesson learned – Croatian experience