1 Framework Agreements for centralized procurement: Consip’s experience South Asia Region Public Procurement Conference e-GP in South Asia: Achievements, Opportunities, Challenges Colombo-Kandy, Sri Lanka, 20-23 February 2017 Classificazione: Consip public
2 2 Roadmap 1. Consip’s profile and mission 2. Consip’s e-procurement tools 3. Basic rationales of Framework Agreements 4. Framework Agreements: Facts and figures 5. E-procurement solutions for micro, small, and medium enterprises: the MePA (the Public Administrations’ e -Marketplace) Classificazione: Consip public
3 Establishment, Mission and Role Establishment : Consip S.p.A. is a public stock company set up in 1997 and entirely owned by the Italian Ministry of Economy and Finance (MEF), its sole shareholder Mission : To make the use of public resources more efficient and transparent, by providing tools and know how to public administrations, in order to carry out public procurement procedures Role : Consip operates according to an “ in-house ” model. it is a public company in house to all central government bodies and, consequently, it can act as central purchasing body ( CPB ) for these administrations. The remaining part of its activities consists in providing specific services to other public entities 43 344 51% 84% Average age N ° of Women Graduated employees Consip: Profile and Mission Classificazione: Consip public
4 Corporate profile Consip SpA is a public stock company set up in 1997 and owned by the Italian Ministry of Economy and Finance (MEF), its sole shareholder. Consip’s mission is to make the use of public resources more efficient and transparent, by providing tools and skills, to public administrations, in order to allow them to perform public purchases and at the same time stimulate a competitive participation of enterprises to public tenders. Consip: Profile and Mission Classificazione: Consip public
5 Consip’s Core Activities Three main areas: Implementation of the Program for the rationalization of public spending on goods and services through the use of ICT and innovative procurement tools: framework contracts, e-marketplace for public administrations, (closed and open) framework agreements, ASP tenders Support to individual administrations along the entire procurement value chain , also in its role as central purchasing body, according to specific bilateral agreements (Vertical Procurement Area). Implementation of specific tasks assigned by law or by ad hoc administrative acts (Other Initiatives Area). Consip: Profile and Mission Classificazione: Consip public
6 Consip’s Core Activities CENTRAL VERTICAL OTHER AREAS PROCUREMENT PROCUREMENT Implementation of the Respond to specific tasks “ Program for the Support to individual assigned by law such as rationalization of public administrations support the Digital spending on G&S ” Administration PUBLIC FINANCE TOOL EFFICIENCY AND INNOVATION TOOL Aim (impact on prices) (impact on processes) Consip: Profile and Mission Classificazione: Consip public
7 Consip’s organizational chart BOARD President CEO MEMBER Internal Audit Transparency Unit Administration and Human Resources and Secretariat Board Control Organization Internal Monitoring Body Legal Support to Operations Research Unit Program for the ICT Service and Utility Specific Projects for Rationalization of Sourcing Sourcing public bodies public spending Consip: Profile and Mission Classificazione: Consip public
8 The Research Unit Insourced economics consulting Unit (5 persons), with the mission of ensuring the consistency - from a modern economics perspective – of Consip’s demand-aggregation procurement strategies What we do: Applied research on (law &) economics of public procurement - Support and advise to Sourcing Unit colleagues, managing specific procurement projects in - competitive tendering and contract design …focusing on all the elements of procurement projects that have a direct impact on competition, such as the design of: Tools for demand aggregation - Lots structure - Award criteria and scoring rules - Contract incentives - … - The Research Unit Classificazione: Consip public
9 9 Roadmap 1. Consip’s profile and mission 2. Consip’s e-procurement tools 3. Basic rationales of Framework Agreements 4. Framework Agreements: Facts and figures 5. E-procurement solutions for micro, small, and medium enterprises: the MePA (the Public Administrations’ e -Marketplace) Classificazione: Consip public
10 Consip’s procurement tools MePA (Public SpecificTenders Framework Administrations ’ e - awarded on behalf of Agreements Marketplace) Public Bodies High-value procurement Low-value transactions Tailored projects Consip’s e-proc tools Classificazione: Consip public
11 Consip’s role when using different procurement solutions Central Purchasing Body’s role MARKET MAKER MePA OPEN FRAMEWORK AGREEMENTS In the EU defined as Dynamic CLOSED FRAMEWORK AGREEMENTS Purchasing Systems CONTRACTING FRAME CONTRACTS AUTHORITY 1 AWARDEES ALL CONDITIONS LAID DOWN Final users ’ degree of autonomy LOW HIGH Consip’s e-proc tools Classificazione: Consip public
12 Families of Framework Agreements (FAs) also known as Frame Contracts Figure 2.1 borrowed from G. L. Albano and C. Nicholas, The Law and Economics of Framework Agreements – Designing Flexible Solutions for Public Procurement , Cambridge University Press, 2016 Different families of FAs Classificazione: Consip public
13 13 Roadmap 1. Consip’s profile and mission 2. Consip’s e-procurement tools 3. Basic rationales of Framework Agreements 4. Framework Agreements: Facts and figures 5. E-procurement solutions for micro, small, and medium enterprises: the MePA (the Public Administrations’ e -Marketplace) Classificazione: Consip public
14 Main reference http://www.cambridge.org/lr/academic/subjects/law/international-trade-law/law-and-economics-framework-agreements-designing-flexible-solutions-public-procurement?format=HB Why FAs? Classificazione: Consip public
15 The problem of repeated purchases A competitive tendering can yield better value for money. But running competitive tendering has a cost. How to streamline the procurement process for repeated purchases of the same/similar supplies/services, so as to control the process costs? Basic idea: A two-stage procedure first stage, where all or part of the terms of the contracts to be awarded are defined ( master - contract ) second stage, where the actual contracts are awarded ( specific contracts , orders, call-off - contracts … ) This idea may result useful in two kinds of situations: repeated purchases by one single buyer purchases by many different buyers (centralized procurement; joint procurement, buyers consortia) Why FAs? Classificazione: Consip public
16 The basic idea: the two-stage process suppliers in the market Buyers concluding the FA 1st stage selection suppliers in the FA Buyers awarding the specific contracts 2nd stage selection Buyer Buyer awardees (call-off contracts) What terms of the contract are laid down in the “master” contract (1st stage)? Different classes of FAs How many operators are selected at the 1st stage? Different problems How do the two different selection processes take place? Why FAs? Classificazione: Consip public
17 Main advantages Although different types of FAs exhibit different features, advantages and problems, they all share common pros compared to “simple” contract award: Administrative efficiency (process cost savings) Enhanced competition (possible better value for money) Why FAs? Classificazione: Consip public
18 Main advantages In particular, at the call-off stage procuring entities can benefit from: • streamlined processes for repeated purchases • better risk management (protection against risk of: limited productive capacity of contractors, bankruptcy, high transaction cost from awarding a new contract in the case the one awarded at the first place fails) • reduced inventory costs from greater flexibility in scheduling requirements, both in terms of timing and quantity • increased competition in the case of sizeable demand aggregation (under some other assumptions) Why FAs? Classificazione: Consip public
19 Main drawbacks Although different types of FAs exhibit different features, advantages and problems, they all share similar drawbacks compared to “simple” (i.e. personalised ) contracts: The FA may not perfectly meet procuring entities’ needs (lack of tailoring) Increased total value of the overall procurement process Why FAs? Classificazione: Consip public
20 Main drawbacks In particular, when concluding the FA (that is, at the 1 st stage): • The procuring entity awarding the FA may be imperfectly informed about final users’ needs: ✘ uncertainty borne by competing firms ✘ transaction costs from collation of information on the total demand ✘ risk of misalignment between estimated and actual demand • In case of sizeable demand aggregation, possible barriers to entry for SMEs Why FAs? Classificazione: Consip public
Recommend
More recommend
