1. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Public procurement policies and procedures and their reflection in e-procurement Daniel Ivarsson Senior Adviser OECD/SIGMA Kiev, 1 December 2011

2. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Presentation outline l Initial observations l Key functions in the public procurement process, where electronic tools can be used advantageously l Some legal and institutional issues l Examples of e-procurement tools already available for the different steps in the process l Thoughts for the future

3. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Initial observations l Electronic tools – support for good procurement, part of the public procurement system at large l Many e-procurement tools already in use! l Typical objectives of electronic tools – increase transparency, value for money, reliability, speed Reach out more widely, increase participation Facilitate monitoring and reporting Raise compliance with rules and regulations Guide procurement staff, increase efficiency l These goals can be met also by other means l A specialised system may cover most aspects of e-procurement, but might not address all needs l Do the right thing, step by step, with or without ‘e’

4. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Key steps in the public procurement process l Identify needs l Mobilise resources l Determine requirements & criteria l Notify and inform l Select and contract l Deal with complaints l Manage contracts l Monitor and evaluate; feed back

5. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Electronic tools – how and where do they fit in? Follow up statistics Execute contract Award and dissem. Evalu- ation Tender phase Announce Specify Identify needs Economic operator(s) Contract Tender Invoice Despatch advice Request to participate Contracting authority Notice Prior notice Invitation to tender Contract Notifications Delivery instruction Payment Monitoring mechanism

6. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Basic e-procurement functions l Publication l Procurement workflow support l Document exchange l Project management l Invoicing and payment l Monitoring of procurement l Specialised functions, e.g. e-catalogues evaluation, e-auctions “Dynamic Purchasing”

7. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Legal and institutional basis l Generally applicable rules: e-communication, e-signature ; document exchange standards l E-procurement regulations subordinate to general public procurement law l Law should in principle be technology-neutral l Need to address transparency/confidentiality, ICT security l Need to create audit trail l New areas of complaints/disputes? l ICT maturity, multi-disciplinary skills needed

8. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Organisation and implementation l Centralised vs. decentralised solutions l Integrated solution vs. standardised interfaces l Co-existence of paper & electronic data Step by step implementation; sequencing l Participants in e-procurement Definition of roles Pre-registration of users l Fields of application (especially initially) Standard goods Centralised purchasing

9. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Organisation and implementation (cont’d) l Standardise Terminology; forms and templates Contract clauses l Document exchange of two kinds Images (e.g. pdf, jpeg), or Formatted messages (communication in a structured format) l Classification systems, common procurement vocabulary l Use of e-catalogues

10. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Procurement planning and initiation - supporting tools for contracting authorities l Management of the procurement process Office tools with built-in procedure guidelines, workflow systems System access matching roles and responsibilities l Planning steps Budgeting tools Requirements, designs, specifications, bills of quantity l Choice of procurement method, form of contract Checklists, templates, standard contract clauses l Procurement plans and advance notices Editing and publication systems

11. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Tender documents, invitations to tender - supporting tools for CAs l Standard tender documents; adaptation and details Library of templates, standard clauses, etc Office tools l Qualification and award criteria Simulation of the effects of various criteria Preparation of evaluation l Distribution of tender documents; invitations to tender Electronic publication

12. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Tender preparation and submission - some supporting tools for enterprises l Proper procedures, form and content Standardised forms, guidelines Tendering tool with procedure guide l Queries on tender documents etc. Question and answers in a controlled environment l Business case: profitable performance l Attention to qualification, evaluation criteria Form-guided preparation Calculation tools l Submission: right time, right place Device for submission/receipt; e-signature

13. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Selection and award procedures - supporting tools for contracting authorities l Reception, safe-keeping and opening Specialised function for public e-procurement l Tender commission work Office tools, workflow tools set to specific procedure l Use of qualification, evaluation criteria e-goverment services (for certificates, annual reports, etc) Formula-based evaluation; not just lowest price! l Conformity with invitation, documents Standardised e-forms/templates l Award decision and notification Publication platform l Conclusion of contract Dependent on e-signature

14. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Electronic auctions - supporting tools A distinct process, after full evaluation  Must be planned and announced in advance  The tool cannot replace the procurement process  Automatic and formula-driven Requires set-up to match specific circumstances  Repetitive, as set out in advance Separate, specialised auction tools, vs. Modules of comprehensive e-procurement system

15. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Contract management - supporting tools for CAs and enterprises l Contracts database Current and past contracts & suppliers l Progress management tools Project management system Resource planning systems covering e.g. ordering, warehousing, delivery/receipt/acceptance l Invoicing and payment systems l Reporting and (internal) evaluation Specialised tools, or within management system Requires structure for classification and internal accounts

16. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Monitoring etc. - supporting tools l Data collection Retrieval of data from reports; surveys Data bases (compatibility; interfacing) l Data analysis Statistical tools l Data use Show how procurement is done and what it brings Improve policies, procedures, practices l Audit trail Searchable records of transactions

17. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Thoughts for the future I l Avoid distractions: make e-procurement part of public procurement strategy development l Consult widely in the process; involve all parties concerned; respect the roles established l Build capacity to understand, evaluate, decide and manage e-procurement l Critically examine other countries’ experience – much can be learned, but not all is good l Don’t expect to get everything done in one go; but you may try to get some quick wins: support wider use of existing e-tools for procurement find some champions for pilot operations

18. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Thoughts for the future II l Do not fall into the e-auction trap: it can be a useful tool, but does not solve all problems l Consider the need for an enabling environment: ICT maturity of contracting entities and enterprises E-communication rules and standards Physical infrastructure; equipment levels l E-procurement does not compensate for short- comings elsewhere: pay continued attention to Clarity and completeness of laws and regulations Value for money; quality considerations in evaluation Careful preparation; effective contract management Capacity building of staff (central, CAs, enterprises)

19. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Σ SIGMA Thank you for your attention! Daniel Ivarsson Senior Adviser OECD/SIGMA Tel.: +33 1 45 24 76 82 Mob.: +33 6 46 13 65 13 E-mail: daniel.ivarsson@oecd.org Website: www.sigmaweb.org