1. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. CENTRAL PUBLIC PROCUREMENT STRUCTURES Recent developments and the way forward Marian Lemke Piotr-Nils Gorecki Regional Conference on “Public Procurement Reform in West Balkan« Pristina 16 September 2008

2. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Ohrid to Pristina l Less administrative waivers l Separation from review function l More independence l More staff l Reform drivers

3. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Central procurement functions identified l Policy and legislative functions l International co-ordination l Monitoring and control l Advisory and operations’ support l Publication and information l Professionalisation and capacity- strengthening l Development and procurement co- ordination

4. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Functions Not To Be Addressed l Complaints Review and Remedies systems l Central Purchasing Functions

5. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Core and supplementary functions Core functions (obligations under EU membership) l Policy and legislative tasks l International coordination l Monitoring and control Supplementary functions l Support and advisory tasks l Publication and information l Capacity strengthening l Development and coordination

6. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Policy and legislative functions l Define the national strategy of pp system l Drafting/amending primary public procurement law (lead working group) l Other legislative activity relevant for public procurement l Determine the thresholds l Implementing regulations l Operational guidelines l Model tender and contract documents

7. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. International co-ordination l International regulatory activities (WTO/GPA, UNCITRAL) l EU advisory committees l European Commission – contact point for enforcement procedure l Cooperation with other PPOs

8. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Monitoring and control l Collection of statistical information (including the data required by the EU) l Annual report to the government l Authorizing function (approvals for less competitive procedures) l Management of official lists (contracting authorities, economic operators, procurement officers) l Blacklists (?)

9. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Advisory function l Helpdesk l Guidance system (internet- based) l Publication of commentaries, interpretations

10. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Publication of procurement information l Publication of contract notices (collection, processing and publication on-line) l Submission of notices to TED

11. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Capacity strengthening l Organisation of training l Elaboration of training materials l Training of trainers l Certification of trainers l Certification of procurement officers (?)

12. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Procurement co-ordination l Co-ordination of framework agreements l Co-ordination and support of concessions/PPP projects l Development and co-ordination of e- procurement l Introduction of performance measures l Development of procurement techniques (eg performance-based technical specifications) l Innovations

13. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Central procurement structures l Centralised procurement structure = high concentration of procurement functions allocated to a few central institutions: 11 MS l Semi-centralised procurement structure = mixed concentration of procurement functions allocated to a number of institutions: 9 MS l Decentralised procurement structure = dispersed concentration of procurement functions allocated to a range of bodies within the public administration: 2 MS

14. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Classification of PP structures l The group of new member states has all a centralised structure (centrally driven approach) l The group of old member states has semi- or decentralised structures (peripherally driven approach)

15. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Some Characteristics l Central PPOs usually the responsibility of the Ministry of Finance, the Ministry of Economy, or the Ministry of Works. l Legal foundation is frequently the public procurement law or administrative law. l Some MS have established public procurement offices or agencies, which are given a more independent status under parliament or directly under the government, while others act as departments within ministerial structures. l Some functions of a more operational nature are carried out by publicly or privately owned firms.

16. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. GENERIC INSTITUTIONAL MODEL CENTRAL PUBLIC PROCUREMENT STRUCTURE Management Primary Policy & Legislative Functions Local Branches Advisory Council Secondary Policy & Regulatory Functions Control & Monitoring Functions International Co-ordination Functions Professionalisation & Capacity Strengthening Advisory & Operations Support Publication & Information Development & Procurement Co- ordination Review and Remedies Central Purchasing Executive Board Government/ Parliament Supplementary Functions Non-applicable Functions Core Functions

17. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Central Institutional Capacity l The total accumulated public procurement capacity may be strong if all actors in the society are included e.g.: Associations of local and regional authorities, Large contracting entities and utilities, Training institutions, and Law firms l The number of staff in central procurement institutions varies among MS: Size of country and economy. ‘Mix’ with tasks other than procurement tasks.

18. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Thank you! SIGMA/OECD 2, rue André Pascal 75775 Paris CEDEX 16 France www.sigmaweb.org