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Public Procurement

                                                        A Global Management Solution




             EPROCUREMENT, Vision for the Future
                 Global Forum 2011   Brussels, Nov. 7
Mod.017.00
What European Union is saying about Public Procurement
Mod.017.00




                                                                      2
Reforming Public Procurement in Portugal – Towards a Sustainable
             Structure
                                                               Public
                                                               Entities




                                        Public                            UMC
                                        Entities




                                                               ANCP
             ANCP – “National       Agency         for   UMC
             Public Procurement”.
             Established in 2007 to implement
             and manage the SNCP – the
             National Public Procurement
             System, with the Ministerial
             Purchasing Units (UMC).
             Mission: to increase the efficiency
Mod.017.00




             and savings of the Portuguese
             Public Administration
                                                                                3
                                                                                    3
Reforming Public Procurement in Portugal – Focus on E-Tender


                                      Public budget
                                                             Aggregation                  Sourcing          Order/Invoice/Pay
                                        planning
             Public Entities




                                                                                                                                Suppliers
                                                                e-Noticing            e-Tendering            e-Awarding

                                                               Mandatory from Nov. 2009




                                                                                                     Web based tools – Report
                                                                                                     public contracts awarded




                               Public Procurement Savings
Mod.017.00




                               Management Fees
                                                                                                                                    4
Reforming Public Procurement in Portugal – Focus on E-Tender

             •   2010 | First full year of mandatory e-Public Procurement

                 The success of the adoption of e-Public Procurement in Portugal was based on the commitment of all stakeholders, namely
                 the already established Public eTendering platform operators with several years of experience in the market. All
                 platforms are required to be certified according to specific legislation.


                 Players involved:
                  •    Contracting Entities +      Economic Operators     +    Public eTendering Platform Operators
                  •    External Auditors for Platform’s compliance auditing
                  •    National Certification Office of e-tendering Platforms – CEGER
                  •    National Agency for Public Procurement - ANCP (delivering a framework agreement to contract platforms)
                  •    National Portal for Public Contracts – InCI (www.base.gov.pt)
                  •    Universities / Training Faculties

                                                                                                              Security

                                                                        Transparency               •Introduction of e- signature
                                       Process                                                     and e-registation
                                                                •Monitoring the value of           •Workflow document
                                                                contracts above and below          management
                            •Simplified the relation                                               •Improve Data Auditing
                                                                thresholds;
                            Suppliers/Public Entities in                                           processes;
                                                                •Improve auditing
                            Tendering Process;
                                                                •Processes– faster and
                            •Reduced Paper consume;
                                                                efficient.
                            •Improve standard
                            Tendering Process;
Mod.017.00




                            •Improve communication;
                            •Operational    management
                            change.
                                                                                                                                       5
Eprocurement – Set a New Trend of Public Management


                                                                  Eprocurement
             Eprocurement as support IT                            The Next Step                   Eprocurement as part of
             Tool to procurement
                                                                                                   public procurement strategy
             management
                                                                                                   Build common processes based
             Each public entity invests in                                                        on functional design, business
             technology, processes and control;                                                    process & supplier interfaces
              Investment in IT integration                                                        Create a shared value
             instead of Process Optimization;                                                      sustainable solution reducing
             Be reactive in data management                                                       investments for the Government;
             instead of pro-active;                                                                Manage Procurement as a
             Each public entity invests in their                                                  strategy area of Government
             own human and functional skills.                                                      Promote corporate Governance
                                                    Global E-Procurement Investment needs (M€)     in electronic Public Procurement.



                                      6
                                                                                                  E-Procurement as a Global
                                       4                                                          Procurement Strategy
                                                                                                  E-Procurement as Support IT
                                       2                                                          Tools


                                        0
Mod.017.00




                                                Year 1   Year 2    Year 3     Year 4     Year 5                                        6
EProcurement Interoperability Platform




                                                                                                         Public
                                                                                                      Procurement
                                                                                                        Common
                                                                                                         Model
                                                                                                          Data
                                                                                                       integration
                                                                                                                      Source-To-Pay
                                                                                                                      Solution




             Interoperability: From a Problem to a Solution

             Identify the key interoperability data from Procurement Process that             Service Oriented Architecture – Provide a Set
                                                                                      API
             needs to be exchanged (e.g. Consulting a contract, receive a order                of Services related with Public Procurement
             buy, update a e-catalogue…);                                                      Business – Innovation Market Value.
             Define Standard base solutions for IT Providers;
             Integrating effective systems.
Mod.017.00




                                         e-            e-tendering /          e-           e-            e-             e-          e-
                  e-sourcing
                                     aggregation        e-awarding         contract    catalogue      ordering       invoicing   payment
                                                                                                                                               7
Conclusions from eprocurement experience and learnings


                   Key factors to eprocurement                 Critical Success Factors and Dimensions



             EProcurement as a new approach to define
             Public Procurement Strategy and not an “IT        Governmental Top-Down
                                                               Project, transforming procurement from
             Tool support to public procurement”               tactical to strategic.
             investment.

                                                                                         Political

             Investing in a Global Shared EProcurement         Create a Corporate Governance model to
             model     optimizes    management     and         Eprocurement and adapt Legislation to the
             decreases waste and redundancy spends.            new global trend.

                                                                                         Financial
             E-Procurement success depends firstly on
             simplicity, transparence, trustable Processes     Improve a change management plan focused
             and People skills, and only then on               on Implementation.
             Technology issues.
                                                                                         Social

             EProcurement is not just “Savings”, it is also    Deliver value and service (full visibility into
             “Profits.”                                        cost, risk, performance) to the Stakeholders
Mod.017.00




                                                               and get economic and business compliance.

                                                                                                                 8

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Paulo Magina

  • 1. Public Procurement A Global Management Solution EPROCUREMENT, Vision for the Future Global Forum 2011 Brussels, Nov. 7 Mod.017.00
  • 2. What European Union is saying about Public Procurement Mod.017.00 2
  • 3. Reforming Public Procurement in Portugal – Towards a Sustainable Structure Public Entities Public UMC Entities ANCP ANCP – “National Agency for UMC Public Procurement”. Established in 2007 to implement and manage the SNCP – the National Public Procurement System, with the Ministerial Purchasing Units (UMC). Mission: to increase the efficiency Mod.017.00 and savings of the Portuguese Public Administration 3 3
  • 4. Reforming Public Procurement in Portugal – Focus on E-Tender Public budget Aggregation Sourcing Order/Invoice/Pay planning Public Entities Suppliers e-Noticing e-Tendering e-Awarding Mandatory from Nov. 2009 Web based tools – Report public contracts awarded Public Procurement Savings Mod.017.00 Management Fees 4
  • 5. Reforming Public Procurement in Portugal – Focus on E-Tender • 2010 | First full year of mandatory e-Public Procurement The success of the adoption of e-Public Procurement in Portugal was based on the commitment of all stakeholders, namely the already established Public eTendering platform operators with several years of experience in the market. All platforms are required to be certified according to specific legislation. Players involved: • Contracting Entities + Economic Operators + Public eTendering Platform Operators • External Auditors for Platform’s compliance auditing • National Certification Office of e-tendering Platforms – CEGER • National Agency for Public Procurement - ANCP (delivering a framework agreement to contract platforms) • National Portal for Public Contracts – InCI (www.base.gov.pt) • Universities / Training Faculties Security Transparency •Introduction of e- signature Process and e-registation •Monitoring the value of •Workflow document contracts above and below management •Simplified the relation •Improve Data Auditing thresholds; Suppliers/Public Entities in processes; •Improve auditing Tendering Process; •Processes– faster and •Reduced Paper consume; efficient. •Improve standard Tendering Process; Mod.017.00 •Improve communication; •Operational management change. 5
  • 6. Eprocurement – Set a New Trend of Public Management Eprocurement Eprocurement as support IT The Next Step Eprocurement as part of Tool to procurement public procurement strategy management Build common processes based Each public entity invests in on functional design, business technology, processes and control; process & supplier interfaces  Investment in IT integration Create a shared value instead of Process Optimization; sustainable solution reducing Be reactive in data management investments for the Government; instead of pro-active; Manage Procurement as a Each public entity invests in their strategy area of Government own human and functional skills. Promote corporate Governance Global E-Procurement Investment needs (M€) in electronic Public Procurement. 6 E-Procurement as a Global 4 Procurement Strategy E-Procurement as Support IT 2 Tools 0 Mod.017.00 Year 1 Year 2 Year 3 Year 4 Year 5 6
  • 7. EProcurement Interoperability Platform Public Procurement Common Model Data integration Source-To-Pay Solution Interoperability: From a Problem to a Solution Identify the key interoperability data from Procurement Process that Service Oriented Architecture – Provide a Set API needs to be exchanged (e.g. Consulting a contract, receive a order of Services related with Public Procurement buy, update a e-catalogue…); Business – Innovation Market Value. Define Standard base solutions for IT Providers; Integrating effective systems. Mod.017.00 e- e-tendering / e- e- e- e- e- e-sourcing aggregation e-awarding contract catalogue ordering invoicing payment 7
  • 8. Conclusions from eprocurement experience and learnings Key factors to eprocurement Critical Success Factors and Dimensions EProcurement as a new approach to define Public Procurement Strategy and not an “IT Governmental Top-Down Project, transforming procurement from Tool support to public procurement” tactical to strategic. investment. Political Investing in a Global Shared EProcurement Create a Corporate Governance model to model optimizes management and Eprocurement and adapt Legislation to the decreases waste and redundancy spends. new global trend. Financial E-Procurement success depends firstly on simplicity, transparence, trustable Processes Improve a change management plan focused and People skills, and only then on on Implementation. Technology issues. Social EProcurement is not just “Savings”, it is also Deliver value and service (full visibility into “Profits.” cost, risk, performance) to the Stakeholders Mod.017.00 and get economic and business compliance. 8