Austrian Experience in Using Procurement Data and Tools to Benchmark Public Spending December 1 st , 2015 Dipl.Kfm. Uwe Flach Head of Marketing & Consulting
Content Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
Austria – Federal System Federation: 3 levels of Government – Federal Government – 9 State Governments (Länder) – 2,357 Municipalities
The legal system in the area of Public Procurement National legislation was adopted to transpose EU Dir. (Directives 2004/18 and 2004/17, Remedies Directives) There is one law , the Public Procurement Act , which deals with PP in general and the review on federal level ; There are 9 different laws , which deal with PP review on municipal and state level . There are several accompanying regulations
Institutional System- Main Stakeholders Federal Chancellery: drafting legislation, information functions Federal Procurement Agency (BBG): central purchasing body for the Federal State of Austria to execute procurement (bundle, standardize etc.) The Court of Audit: controls the necessity (as such) and the concrete conduct of public procurement procedures Federal Administrative Court: review body for entities at federal level Regional Administrative Courts: review body for entities at regional level (one for each of the nine Austrian provinces). Supreme Administrative Court: second instance
Content Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
Federal Procurement Agency act as Central Procurement Body Established by law: Federal Procurement Agency Act 2001 Portfolio assigned by Decree (Minister of Finance) Awards procedures based on Federal Procurement Act
Impact on Austrian Public Procurement Sector Federal entities are obliged by law to procure defined goods and services 1) through the Federal Procurement Agency (BBG). Other public entities 2) can use the services of the BBG but can also procure by themselves. When purchasing, all public entities are bound to the rules set in the Austrian Public Procurement Act. 1) procurement of non-military goods and services, (except construction) 2) Other public entities: Municipal or federal state authorities as well as entities financed by such authorities or being governed by or under the supervision of these authorities
Our Objectives & Goals Optimizing purchasing conditions & getting best value for money Reducing legal risks Contributing to a effect-oriented, efficient and transparent administration Optimizing procurement processes by means advanced IT Allow Ministries to concentrate on their core businesses Improve efficiency of public procurement & reduce public expenditure
Our Solutions Bundling public demand & joint tenders for framework agreements Standardisation of goods and services Making framework agreements available to the entire public sector Optimizing public purchasing procedures by providing comprehensive e-Procurement solutions Establishing an organization with procurement specialists (professionalization of staff) & consulting capabilities The Federal Procurement Agency was set up as a shared service provider
Areas of our Business Procurement about 960,000 products are ready to be bought by all government authorities and cover 12 product-families – such as IT, office equipment or cleaning services etc. Consulting Projects on particular order by customers („ PibA “) Consulting services in the fields of public procurement, procurement-organisation and in special product-ranges e-Procurement Solutions Provision of comprehensive and integrated solutions covering the entire procurement processes („e - Shop“ and „e -Reisen “ and e -Invoicing gateway)
Advantages for all public authorities Participation at a huge procurement market (volume ca. 1.2 Billion Euro) Optimal conditions (17.7% savings) 24/7 availability of goods and services No own tendering procedures Reduction of process-costs Legal certainty No risk allocation Standardized, periodic processes
BBG: Procurement Service Provider Customers Agency X BBG Invoice Ascertainment of requirements Order Delivery Award procedures e-Shop processing Supplier X Suppliers
EU regulations impacting e-Procurement in public sector e-Tendering - Directive 2014/24/EU – 18. Apr 2016: Incorporation into national law – 18. Apr 2017: Central Purchasing Bodies will move to full electronic means of communication including electronic bid submission – 18. Oct 2018: e-submission should be made mandatory for all Public Contracting Authorities and all procurement procedures e-Invoicing - Directive 2014/55/EU – 27. Nov 2018: Public Contracting Authorities need to accept e- Invoices from suppliers
Content Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
e-Procurement Process Landscape award Illustrative pre-award post-award electronic electronic electronic electronic electronic planning publication tender order invoice catalogue Other applications (Contract Mgmt., CRM, Electronic signature, Electronic archive, Electronic act, etc.…) Organisational aspects und conditions (SLA, human factor, legal certainty and clarity, etc.…)
BBG e-Procurement Landscape „pre award“ Solutions „post award“ Solutions e-Shop e-Tendering Solution 1) Contract Multi-Supplier Shopping Information Catalogue / tool / Monitoring Platform Staging WF Mgmt Survey of Demand e-Reisen (partially Survey eInvoicing Service (Travel booking Monkey) Portal tool) Other Applications Contract Document Special Data BBG Portal CRM Management Management Base (MDM) System 1) Due to change in EU regulation (Directive 2014/24/EU) potential future solutions are currently under evaluation
Pre-Award in Austria – Target Business operator Clearing Center interfaces Workflow application Workflow application Workflow application Contracting authority
Post-Award BBG Electronic Ordering Platforms e-Shop The e-Shop is the central purchasing portal of BBG. More than 1 Mio products & services can be ordered electronically. With a differentiated privilege-system all acceptance sequences are visible for the customers. e-Reisen The travel online-booking- tool „e -Reisen “ allows direct electronic booking of business trips. Flights, hotels and rental cars can be compared and booked online.
e-Shop as Central Purchasing Portal The BBG e-Shop offers a central web based information and purchasing portal. It can be used as the single point of entry for all your buying related activities.
e-Shop covers entire Post Award Process
Central Invoice processing incl. e-Invoicing BBG Customers Federal clients : : Non-federal clients : USP Transmission via Different transmission types (PDF, USP XML) or download via e-Shop e-Invoice e-Shop CRM Gateway Master data sync. Variant 1: Variant 2: Form based invoice Structured invoice generation transmission BBG Suppliers
e-Reisen Our Online Travel Booking Tool Highlights Cytric Professional tool customized for public authorities Planning and booking for all travel purposes – hotels, flights and cars Comprehensive user and right management – ordering according defined travel policies Reporting tools – approval workflow optional 24 hours support hotline – connecting with travel agency Reduced process costs for procurement – personal travel information prices according BBG and cytric agreements – automatic billing and ticketing
Content Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
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