1. Classification: Consip public 1 Public e-Procurement Take-Up: the Italian National e-Proc platform Sofia, 9th December 2015 Luca Mastrogregori – Head of e-Procurement Strategies – Consip Spa luca.mastrogregori@consip.it

2. Classification: Consip public 22 1. The Italian Public Procurement context 2. Consip e-Procurement Services : overview and the e-Marketplace case 3. Accelerating Public e-Procurement adoption: lesson learned INDEX

3. Classification: Consip public 3 ITALIAN PUBLIC ADMINISTRATION: AN HETEROGENEOUS SCENARIO Population: ca 60 mln PA employees: 3.400.000 Contracting Authorities: 32.000 Expenditure on G&S in 2014: ca. €90 bln New tenders related to G&S launched in 2014: ca. €70 bln Overall n. contracts: ca. 4000K (95% below EU threshold) Ministries: 15 ca. 20 Central Governing Bodies Regions: 20 Provinces: 110 Municipalities: 8.101 School system: Universities: 94 Schools: >10.000 Health Sector: >300 ITALY LOCAL PA CENTRAL PA INDUSTRY Enterprises: > 4.000.000, 98% are SMEs Public Spending Optimization through A.DEMAND AGGREGATION (CONSIP and CPB NETWORK) B.EPROCUREMENT CONSIP 34 REGIONAL CPB AND LOCAL AGGREGATION BODIES CONSIP 34 REGIONAL CPB AND LOCAL AGGREGATION BODIES 1. The Italian Public Procurement context

4. Classification: Consip public 4 4 e-Shops e-Marketplace - MEPA  Purchases within frame contracts  Large volumes  Demand aggregation  Standardized goods  Low price volatility On line tenders  Frame contracts or ASP  Large volumes  Demand aggregation  Standard /Specialized goods  High price volatility  Direct order or RFQ  Low cost goods  Spot purchasing  Highly fragmented offer  ecatalogue Above and Below EU Threshold Only Below Italian eProcurement System: a Comprehensive Set of Purchasing Tools Eprocurement portal - www.acquistinretepa.it 2000 2002 2004 2014 results transaction value > ca 3.1 billion € orders num. 55.000 c.a. active buyers 15.000 c.a. Registered buyers: 125.000 c.a. 2014 results transaction value > ca 3.1 billion € orders num. 55.000 c.a. active buyers 15.000 c.a. Registered buyers: 125.000 c.a. 2014 results trans. value 1.469 mln € orders num. 523.000 active buyers > 32.000 Suppliers > 31.000 Over 5 mil items 2014 results trans. value 1.469 mln € orders num. 523.000 active buyers > 32.000 Suppliers > 31.000 Over 5 mil items 2010/2012  On-line tenders in a structured and managed environment (two-stage procedures)  Standardised procedures for commonly used goods & services with customisation FA and DPS Above and Below

5. Classification: Consip public 5 Framework Agreements Dynamic Purchasing System Supply side … Buy side FrameworkContracts Standard Customised Concentrated Standardized Fragmented Specialised The adoption of different tools is related to the market (buy and supply side) characteristics MEPA Choosing the appropriate (e-)Procurement tool 1 supplier with negotiation 1 supplier fixed condition mult. suppliers fixed conditions mult. suppliers with negotiation

6. Classification: Consip public 6 New e-Proc tools adoption called for a strategic change in Consip’s role and capabilities Greater authonomy for the buyer Greater participation of SMEs … Consip role “MARKET MAKER” “Awarding Authority “ Evolution of Consip’s role Framework Agreements Dynamic Purchasing System FrameworkContracts MEPA

7. Classification: Consip public 7 MEPA Electronic Marketplace for Public Administrations Public Buyers can select goods offered by several suppliers, for purchases below the EU threshold Suppliers (and goods) are qualified according to the selection criteria stated in the Call for Qualification Notice The entire process is digital, using digital signature in order to ensure legal compliance Electronic Marketplace Qualified suppliers selected through a qualification process, starting from the date of publication of the “qualification notice” Suppliers  Central Government  Universities  Local Government  Health Bodies Public Buyers Supply Market Qualification notice (public announcement)

8. Classification: Consip public 8 MEPA Buying options Public bodies can purchase goods and services on the MEPA by means of two alternative tools: Direct order: making a direct purchase selecting goods and services from the eCatalogue Request for Quotation (RFQ): negotiating the product quality and service levels with qualified suppliers (handling on-line the entire purchasing process) Direct purchase Request for Quotation Public user Supplier

9. Classification: Consip public 9 MEPA More than 30 available product categories Electric material and air condit. equip. Furnitures IT HW and SW Stationery Surgical instruments Individual protection devices Electric maint. svcs Training & Education svcs Elevators maint. svcs Gas providing svcs Cleaning products Print & Copy equipment Laboratory equipment TLC products Office cleaning svcs Office and road signals

10. Classification: Consip public 10 2008200920102011201220132014 Volume of transactions Total value of orders (M€) 1722302542433609071.469 Num. trans: 26,1% RfQ Val. Trans: 65,2% RfQ Average transaction value RfQ: 7.000 € DO: 1.300 € % growth vs previous year 106%34%10%-4%48%152%62% orders 63.24572.79677.13274.397104.084337.682523.383 % growth vs previous year 124%15%6%-4%40%225%55% Offer on line enterprises 2.0883.0274.5565.1307.18221.36936.051 Enterprises segmentation 70,8% micro (<10 employees) 23,3% small 4,5% mediim 1,4% large ecatalogues 3.6925.4066.6406.31210.41728.42747.726 on line items 540.0001.331.9151.490.821.190.321.165.883.015.0745.442.561 Demand Active buyers 4.2885.0705.3395.5898.78824.29532.834 Average total transaction value Active buyer 44.700 € Mepa: main results achieved

11. Classification: Consip public 11 Consip e-catalogue (1/2) To manage its eProcurement initiatives (MEPA eMarketplace, Framework Contracts and Agreement, Dynamic Purchasing System) Consip developed an e-catalogue classification structure for goods and services (no works). The e-catalogue classification structure is needed to: -Describe products/svcs to enable digital transactions (e-catalog based direct orders, RFQ) -Enable digital evaluation in e-proc procedures The classification structure is natively “eCatalogue suitable”, and has variable ‘depth’ for different sets of goods/services, according to the needs that Consip has identified from a wide set of CAs over more than a decade of activity.

12. Classification: Consip public 12 Consip e-catalogue 2/2 In Consip internal classification, the “lowest level” of goods/services (that we call “Metaproduct”) is based on CPV codes and descriptions. The difference with CPV lies in the breakdown into Division, Groups, Classes and Categories, that Consip chose to customize on the basis of its Category Managers’ experience. The Consip classification regards more than 1500 “Metaproducts”. Within the Consip Classification structure, all Metaproducts are characterized by (Consip- defined) attributes, that describe their properties. The attributes defined by Consip for Metaproducts are divided into: –‘basic attributes’, applicable for any product (typically “commercial” character), that are common to all 1.500 Metaproducts; in total there are 22 basic attributes, of which 5 “universal” and –‘specific attributes’, describing technical features, performances etc. (typically different for each Metaproduct).

13. Classification: Consip public 13 The platform functional architecture Portal Registration & user mgmt Catalogue mgmt OrdersNegotiation CONNECTED WITH CRMemailDWHDMSAdmin Users

14. Classification: Consip public 14 An evolution in the implementation approach Evolution in: - Legislation - Users needs - Technology Full outsourcing Insourcing HW & base SW Insourcing Application SW 2000 2005 2008 2011 2016 Designing a new platform

15. Classification: Consip public 15 Obligation by law resistance to change has to be pushed (“spending review”) Accelerating Public eProcurement: 2 main enablers Service Providers Consip and local CPBs acting as Providers of tools, support, processes, etc. for all end users Obligation by law is an effective accelerator for eprocurement take up, but it needs to be sustained by fundamental enabling actors

16. Classification: Consip public 16 Direct eOrdering Eshops below/above threshold MEPA Direct order below threshold eTendering DPS, FA, ASP above/below threshold MEPA RfQ below threshold Accelerating Public eProcurement: Which services CAs and EOs can get from Consip as a Service Provider User registration management Business Catalogue management Support contact center, help-online, CRM, on-line training, on-site support, etc. Dedicated Reporting Services

17. Classification: Consip public 17 CHALLENGES FOR THE EPROC SERVICE PROVIDER Changes in Skills: e-tender design and management Supplier/Buyer information, education and support Technological platform management Changes in the Organization: Need for growing efficiency to manage the growing number of users New interaction modalities : from 121 to 12Many (social CRM, user behavior monitoring, open data management) Accelerating Public eProcurement: Challenges CHALLENGES FOR PUBLIC PROCUREMENT ENVIRONMENT Digitalization of all the public proc phases Coordination among the different actors involved Buyers professionalization Qualification of CAs Intelligent use of the law (obligations) and harmonization Open data availability Public service providers financing models evolution (from central to distributed)

18. Classification: Consip public 18 Consip S.p.A. Via Isonzo 19/E – 00198 Roma T +39 0685449.1 www.consip.it www.acquistinretepa.it @Consip_bandi www.linkedin.com/company/consip/ Canale ‘’Consip’’ annalisa.depaoli@consip.it Luca Mastrogregori