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“Central Purchasing in Italy”
3rd Global Procurement Conference Rome, 3 July, 2018
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Agenda Who is Who in the Italian Public Procurement Ecosystem
CSF in Public Procurement and Centralization: Collaboration and Competences The Added Value of a CPB: Metamorphosis and Changing Roles Future Goals
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National Public Procurement System Who is Who
The Italian Public Administration in a Snapshot: a Complex Scenario 95 Bln € G&S spending 32 CPB’s: 1 National 20 Regional 11 Sub Regional National Public Procurement System ca 60 Mln Population 3.5 Mln public employees 36.000 Contracting Authorities 13 Ministries 20 Regions 110 Provinces > 8000 Municipalities 94 Universities > Schools > 300 Health Sector Suppliers (99% MSMEs) Contracts (90% <40k €) Public Spending Optimization through EPROCUREMENT
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Who is Who: The Program for the Rationalization of Public Spending
Launched with the year 2000 Budget Law with the aim of optimizing public purchases of goods and services and developing procurement models based on new processes and technologies Introducing demand aggregation and efficiency (using different procedures such as: Single Supplier Framework Agreements, Framework Agreements, Electronic Marketplaces and Dynamic Purchasing Systems, as entirely digital processes) MEF plays a policymaking and coordinating role and defines the Program’s guidelines Consip analyzes the demand and supply markets, develops purchasing procedures and provides purchasing know-how and consultancy services Public Bodies and Enterprises benefit from the use of the tools provided and cooperate in the identification of quantity and quality requirements Procurement Aggregators Oversight Authorities Supplier’s & Public Body’s Institutional Representatives
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Procurer for individual PAs for specific tenders (Sogei)
Who is Who: Consip SpA Implementation of the “Program for the rationalization of public spending on G&S” Procurer for individual PAs for specific tenders (Sogei) Procurer for all PAs (SPC – AGID) Implementations of Projects for PAs and of tasks assigned by law (register of statutory auditors, EU funds) CENTRAL PROCUREMENT VERTICAL PROCUREMENT OTHER AREAS FOCUS PUBLIC FINANCE TOOL (impact on costs) EFFICIENCY AND INNOVATION TOOL (impact on processes) Aim
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Who is Who Consip: Setting up the National eProcurement Platform
Eprocurement portal Comprehensive set of purchasing tools 2000 2004 2010 2012 Single supplier FAs eCatalogues -MEPA Other types of FAs DPS 2002 first digital tender Above/Below EU Threshold Below EU threshold Above/Below EU Threshold
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Who is Who Consip: Main Services Provided
CONSIP’S focus Upstream Services Procurement Process Downstream Services Design, management and program management of tender Conditions Analysis Development Practice Expenditure Tender strategy Tender Documentation Publication Bids evaluation Award Activation Contract Management Promotion (of activities, CRM Litigation management IT business, e-procurement platform Coordination and Governance Greater distinction between upstream/downstream services and procurement services Equal attention to activities and services not related to the procurement process
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Who is Who: Expenditure Covered/not Covered by Consip
Uncoverable 95 * Source: ISTAT published in April 2018
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Who is Who: Consip Main 2017 KPIs
8,6 Mln Public Spending on Goods and Services 95 Bln/€ eCatalogue Items 92.400 Number of business firms (99% SMEs ) 47,4 Bln/€ Covered expenditure Managed expenditure: Total value of orders (ca 60% goes to SMEs) 80.300 9,6 Bln/€ Public Buyers Savings 2,6 Bln/€ Ca. 14% average savings Contracts
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«urgent measures for competitiveness and social justice»
Who is Who: Procurement Aggregators DL 66/2014 Art. 9 DL 66/2014 «urgent measures for competitiveness and social justice» TITLE II –savings and efficiency in public expenditure chapter I – Rationalization of public expenditere for G&S Art G&S purchases by the procurement aggregators What does it foresee? Setting up the procurement aggregators Technical Table, coordinated by the MEF Identification of the Product Categories and thresholds that central and local administrations, regions, local entities and health structures purchase through Consip or the procurement aggregators Allocation of a Fund to finance aggregated purchases (DM MEF 16 Dec and DM MEF 20 Dec. 2016)
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Centralization of Public Purchases: Procurement Aggregators
Servizio della Centrale Regionale di Committenza Stazione Unica Appaltante Calabria InnovaPuglia S.p.A. Città metropolitana di Napoli SO.RE.SA S.p.A. Direzione Centrale acquisti della Regione Lazio Città metropolitana di Roma Capitale Agenzia Regionale Intercent-ER CRAS – Centrale Regionale per gli Acquisti in Sanità Stazione Unica Appaltante Marche Centrale Unica di Committenza – Soggetto Aggregatore Regionale ARCA S.p.A. IN.VA. S.p.A SCR – Società di Committenza Regione Piemonte S.p.A. Città metropolitana di Torino Città metropolitana di Milano Agenzia per i procedimenti e la vigilanza in materia di contratti pubblici di lavori, servizi e forniture (Bolzano) Città metropolitana di Genova Stazione Unica Appaltante Liguria Regione Toscana - Dir. Gen. Organizzazione Settore Contratti Città metropolitana di Firenze Centrale Unica di Committenza regionale Stazione Unica Appaltante Basilicata Provincia di Brescia Servizio regionale Centrale Unica di Committenza del Molise Stazione Unica Appaltante Abruzzo Città metropolitana di Bologna UOC – CRAV di Azienda Zero Città metropolitana di Catania Provincia di Vicenza Agenzia provinciale per gli appalti e i contratti (Trento) Consip S.p.A. ANAC defines the list* of Procurement Aggregators (32), composed by: 1 National CPB: Consip S.p.A. 21 Regional CPBs (set up according to financial bill ) 8 Metropolitan Cities Provinces (compliant to DPCM 11/11/ requirements) (* New list of procurement aggregators defined by ANAC in January 2018
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Agenda Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) CSF in Public Procurement and Centralization: Collaboration and Competences The Added Value of a CPB: Metamorphosis and Changing Roles Future Goals
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for the entire PP ecosystem!!
Centralization and Tools for Aggregated Purchasing in EU Dir. 2014/24 Innovative Challenging! New Tools New Roles New Capacities for the entire PP ecosystem!!
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Centralization and Tools for Aggregated Purchasing in EU Dir. 2014/24
Member States may provide that contracting authorities may acquire supplies and/or services from a central purchasing body offering the centralized purchasing activity referred to in point (a) of point (14) of Article 2(1)….. Directive 2014/24 Centralized purchasing and CPBs Art. 37 Wholesaler: buys, stocks and sells Intermediary: awards FAs used by other CAs
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undergo a qualification process (art.38).
Centralization and Tools for Aggregated Purchasing in the Italian Code CAs can manage autonomously procurement of goods and services below euro and public works below euro, or buy through one of the tools made available by central purchasing bodies and procurement aggregators. For purchases above those values CAs must either use the CPBs and procurement aggregators undergo a qualification process (art.38). Law 50/2016 Aggregation and Centralization Art. 37
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CSF and New Challenges in Public Procurement
Multi- Skilled CPB Multi- Skilled CAs and EOs
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CSF in PP: the Evolving Italian Landscape
Set up a central CPB Set up regional CPBs (network) Creation of Procurement Aggregators Qualification of CAs TREND Centralize above the threshold, by aggregating skills Digitalize below the threshold: by use of ecatalogues and training 2017 2016 2008 2000
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Agenda Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) CSF in Public Procurement and Centralization: Collaboration and Competences The Added Value of a CPB: Metamorphosis and Changing Roles Future Goals
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Added Value of a CPB: Purchasing Tools and Negotiation Tools available to CAs
Tools that do not require a renegotiation during second stage Single supplier FAs Other FAs without renegotiation during mini tender Direct order from the ecatalogues (MEPA) Tools that require to reopen the negotiation 1) FAs with renegotiation during mini tender 2) DPS 3) Request for quotation from the ecatalogues (MEPA) 4) other….. Negotiation tools
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Dynamic Purchasing System
The Added Value of a CPB: Providing for the Most Suitable eProcurement Tool MePA Dynamic Purchasing System Customised Framework Agreements Buy side Single Supplier FAs Standard Concentrated Standardized Supply side Fragmented Specialised The adoption of different tools is related to the market (buy and supply side) characteristics
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The Added Value of a CPB: Changing Role and Metamorphosis
MePA Consip’s role Dynamic Purchasing System «Market Maker» Framework Agreements Single Supplier FAs «Awarding Authority» Greater autonomy for the buyer Greater participation of SMEs The adoption of new eProcurement tools calls for a strategic change in Consip’s role and capacity
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Agenda Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) CSF in Public Procurement and Centralization: Collaboration and Competences The Added Value of a CPB: Metamorphosis and Changing Roles Future Goals
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Future Goals: Desiderata….
Goal 1: increase the number of public users. Many public authorities still do not make recourse to Consip, c.a. €38 bln of expenditure escape from Consip’s system. This requires to increase both the value of managed expenditures (orders), leveraging on products availability, and the involvement of public bodies using our initiatives. Goal 2: achieve savings for at least € 9-10 bln during the following 3 year term, through a greater amount of tenders managed by Consip, more frequently, with lower volumes and greater competition (more opportunities for SMEs). This requires continuous change and adaptation in the organization, process and objectives to achieve We already changed recently internal procedures, organization and production standards (i.e. more focus on contract management). Goal 3: guarantee greater transparency, rigorous checks and controls This requires working hand in hand with the oversight Authorities.
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Head, International Cooperation Projects
Angela Russo Head, International Cooperation Projects
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Who is Who: Mandatory or Voluntary Regime vs Centralization
PRODUCT CATEGORIES -MANDATORY FOR ALL PA Energy Fix telephony Vehicle Fuels Mobile telephony Heating Fuels Lunch coupons Gas Other product categories -MANDATORY FOR CENTRAL PA ICT PRODUCT CATEGORIES “strategic ICT tenders” (Agid 3 year ICT plan) -MANDATORY FOR ALL PA -FOR LOCAL PA: RECOURSE TO PROC AGG IS A PRIORITY PRODUCT CATEGORIES fixed by law for Proc Aggr (Health, Facility, ecc.) -PRIORITY FOR LOCAL PA TO USE PROC AGG. -FACULTY FOR LOCAL PA TO USE CONSIP OTHER PRODUCT CATEGORIES -PRIORITY FOR LOCAL PA TO USE PROC AGG. -FACULTY FOR LOCAL PA TO USE CONSIP Faculty Mandatory/Faculty Mandatory LOW VALUE PURCHASES MANDATORY ON THE MEPA FOR EVERYONE (FOR LOCAL PA PRIORITY TO USE THE MEPA OF THE PROC AGG …..IF EXISTING)
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