The Portuguese
g
Public Procurement Case
PUBLIC DEMAND OF INNOVATION FOR:
Efficient Public Services and Competitive
European Industries & SMEs
Madrid, 2nd October 2012
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Restructuring Program of the State
State’ss Central Administration
2007: Decree-Law 37/2007, 19th February
• Definition of the Sistema Nacional de Compras Públicas (The National System of Public
Procurement - NSPP)
• Establishment of Agência Nacional de Compras Públicas (The National Agency for Public
Procurement - NAPP)
The National Agency for Public Procurement, established in 2007 under the Restructuring Program of
the Central State Administration (PRACE), has as main objectives the organization, professionalization
and modernization of public procurement and management of State Vehicles, the rationalization and
reduction of public spending on goods and services, in order to obtain savings, modernization of public
administration and improved competitiveness among state’s suppliers.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
The
h National
i
l System off Public
bli Procurement (NSPP)
(
)
Main features:
• Hybrid model, based on a central management entity (NAPP) articulated with ministerial
purchasing units (MPU) and purchasing entities, operating in a network;
• Integration of:
o purchasing entities by law – “Mandatory entities”
o purchasing voluntary entities;
• Centralisation of the purchasing at NAPP or MPU;
• Acquisition under framework agreements established by NAPP;
• e-Tendering and e-awarding are mandatory in public procurement since November 2009
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
eProcurement Strategy – Government Commitment
Legislation
g
1 Jan.
2009
30 Jun.
2008
DL 18/2008 (CCP)
[EU Directive]
As of 1st January 2009 the electronic platforms are to be
certified under the 701-G/2008 order
DL 143-A/2008
30 OCT.
2009
All public
procurement must
be awarded using
electronic
platforms from this
date onwards
Implementing Order n. 701-G/2008
Mandatory electronic use
Electronic tools
•eNotices
•eTendering
•eClarifications
•eQualification
•eNotifications
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
All tendering
processes:
•eProposals
•List of tenderers
•eConsultation
The
h National
i
l System off Public
bli Procurement (NSPP)
(
) – Key Stakeholders
k h ld
Government
Ministry
of
Finance
NAPP
Contractors/
Suppliers
Community/
Society
Interministerial
Advisory
Committee
MPUs (15)
Contracting authorities and entities
(mandatory and voluntary)
MPU: Ministerial Purchasing Units
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The
h National
i
l System off Public
bli Purchasing
h i (NSPP)
(
)
NAPP
MPU
• Defines, by means of regulation, the working rules of NSPP;
• Are pivotal amongst NAPP and all mandatory entities
• Launches international public tenders in categories of goods
or services aiming to award framework agreements.
• Provides the required support to MPUs, mandatory and
voluntaryy entities in what relates to NSPP,, the awarded
framework agreements and tendering processes;
• Leads centralised call off procedures for defined categories
(vehicles and insurance);
• Manages and supervises the centralised technological tools
developed to support e-procurement procedures.
operating under each Ministry (links / network system);
• Collect, validate and compile data on public purchasing from
all entities operating under their respective Ministry;
• Launch call offs under the framework agreements for the
categories, on behalf of the mandatory entities;
• Prepare and submit yearly to NAPP their Annual Ministerial
Pl for
Plan
f Public
P bli Purchasing.
P h i
NAPP will
ill then
th compile
il the
th data
d t
submitted by all MPUs, prepares and submits the National
Plan for Public Purchasing to the Minister of Finance.
National Agency for Public Procurement (NAPP) / Ministerial Purchasing Unit (MPU)
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Developing
l i a New Centralised
li d Procurement System
Keystones
• Emphasis on savings and efficiency;
• Mandatory constrains (to central administration);
• Aggregation of demand on NAPP / MPU;
• Voluntary system (local and regional entities and state-owned
companies);
• Purchasing centralization on NAPP / MPU;
• Goods and services standardization/ Framework agreements.
Contracting
Authorities
Market
1.800
Individual Direct Awards or
Public Tenders
• Increase of usage of electronic tools.
MPU
Contracting
Authorities
FA
Contractors
1.800
NAPP
Aggregation of demand
on
NAPP / MPU
Purchasing
centralisation on NAPP
/ MPU
National Agency for Public Procurement (NAPP) / Ministerial Purchasing Unit (MPU)
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Centralized
li d Model
d l - Frameworkk Agreement (FA)
( ) for
f Contracts and
d Acquisitions
i ii
NAPP
Ministry Purchasing Units (MPU)
Selecting suppliers and awarding the best proposals for each
Framework Agreement (FA)
Acquisitions of goods and services categories
available in the framework agreements
(Call Off Stage / mini-competition)
Public
Tender
Supplier
Selection
Request for
Proposals
Awarded
Suppliers
Public Tender
announced via
OJEU notice.
Tender
documentation
available online
Supplier technical
and financial
selection criteria
Technical and
functional
requisites, contract
requirements and
economic proposal
evaluation
Contract awarded to
the most
economically
advantageous
tenders
OR to the lowest
price tenders
Framework Agreement Centralization
Request
for
Proposals
Invitation for
tendering to all the
awarded suppliers
(FA contractors)
Negotiation
E-auction or
traditional
negotiation
Awarding
Best proposal (the
most economically
advantageous
proposal OR the
lowest price), as
defined on the FA
Purchase of goods and services categories
under the FAs are mandatory for the central
public administration
Centralization of acquisitions of goods and
services under the FAs
NAPP can opt to centralize the acquisitions of goods and services covered by the FA
(example: Vehicles and Vehicle Insurance)
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Recent #
482
500
25
400
350
313
300
269
250
15
17
16
250
197 213
200
236
20
Others 24
Local State
Owned Companies
70
15
10
10
150
50
30
432
450
100
Volunteer
(Total a 31Ago12: 482)
61
4
State Owned
Companies 82
5
30
0
0
2008
2009
Contracting
Authorities
2010
Volunteer
2011
YTD 31Ago12
Autonomous Regions
46
Municipalities 260
Framework Agreements
Today, more than 1.800 entities are in the National System of Public
Procurement
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Framework Agreements – 2008/2011
FA
Spending categories
Valid as of
Car and Motorcycle Insurance
Feb 2011
2
Cleaning Services and Products
Aug 2010
15
Electric Vehicles
Sep 2011
10
Energy (incl
(incl. Electricity)
Nov 2011
3
E-procurement Tools
Jun 2009
5
Fuel and LGP
Sep 2008
3
H d
Hardware
A
Aug
2011
18
Landline Communications (voice and data)
Jun 2010
5
Meals
Jul 2010
4
Mobile Communications
Sep 2008
3
Office Furniture
Mar 2010
6
Paper and Stationery
Apr 2011
30
Printing and Copying
Apr 2011
Contractors
21
Security and Surveillance Services
Apr 2010
8
Software Licensing
Sep 2009
77
Travel and Accommodation
Sep 2011
13
Vehicles and Motorcycles
June 2012
14
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
• + 250 qualified and selected
Suppliers (70%+
(
are SME))
• Annual Public Expenditure addressed
via the Agency’s framework
agreements:
1.000 MEUR (about 80% of total
expenditure
p
transverse to NSPP
entities)
• Savings 2009-2010:
• Estimated: 150 MEUR
• Achieved: 168 MEUR (+12%)
• 17 Framework Agreements
Frameworkk Agreement Development
l
• Identification of annual expense
Conceptual model by NAPP
• Evaluation of the public administration needs
• Market´s solutions review
• Concept model and technical solutions review with all ministries
Public Administration Consultation
• Preparation of technological solutions to include in the FA
• Term of the framework agreement, FA criteria award, ...
Technical Validation by experts
Public Consultation
• Review and validation of products and services specifications
• Economical operators, associations, public administration & citizens
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Policies supporting SME, SBA implementation
Public Procurement
The Portuguese Government adopted a transparent and competitive approach in several categories of goods
and services covered by framework agreements, under the National Public Procurement System, mandatory
for all central administration and public institutes (+1800 entities).
Between 2009 and 2011, ANCP, the system manager developed over 20 public tenders, dully publicized in
OJEU, in order to celebrate and renew 17 active framework agreements, covering Eur. 1.000 M, 80% of
transversall public
bl expending.
d
Through the Portuguese e-procurement solution, SMES are able to better access public markets, either
i l d or in
isolated
i association,
i i
i order
in
d to improve
i
scale.
l In
I designing
d i i the
h tenders,
d
severall measures were taken
k
according to the principles of the SBA, like creation of lots, regionally and by size, adaptation of requisites to
the economic dimension of the markets, or multi-access criteria.
Currently SMES account for 70% of the System’s 250 suppliers. The renewal rate of framework agreements in
2011 was 33%, stimulating competition and larger presence of SMES, and new categories were included
(electricity, travel and accommodation) and others are being analyzed for further development. Eprocurement is mandatory in Portugal, with the country reaching an utilization ratio of 91% in 2010.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Policies supporting SME, SBA implementation
Reduction of administrative burden
E-procurement improved dramatically the access conditions of economic operators to public markets,
regardless of size or location.
New measures are being taken in order to improve its usage and capabilities. Through the Council of
Ministers’ Resolution n.º 12/2012, of Jan.12 2012, the Portuguese Government envisages the development of
a B2B platform to expand the public procurement chain currently covered by e-procurement, allowing an
extent of the process covered by electronic means, from source to pay.
The conceptualization of the project is already concluded by ESPAP, allowing the government to identify
technical and functional specifications, costs and governance model.
A global platform of centralized monitoring of public procurement P2P (Purchase to Pay) will permit a better
understanding of public spending and will become a concrete tool to boost optimization and rationalize public
expenditure. Implementation will start in 2012.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Policies supporting SME, SBA implementation
Demand side innovation policies
Through the National System for Public Procurement,
Procurement the Government managed to improve innovative-driven
policies in specific economic sectors, and tried to stimulate demand in new markets, like electric vehicles.
Also in several categories of goods,
Also,
goods like hardware or vehicles,
vehicles ecological and TCO indicators were used and
considered in terms of awarding criteria.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Policies supporting SME, SBA implementation
Green economy, sustainable industrial policy
The assessment of the National Green Public Procurement strategy for the period ending Dec.2010 was quite
positive with over 56% of procedures and 60% of total value of goods and services awarded having green
positive,
criteria.
The new strategy for the period running until Dec.2013
Dec 2013 is currently being approved by the Government and it
is designed to improve monitoring and control, and also follows the EU recommendations in this field, with
more categories covered, including public works and waste management, and a larger use of green awarding
criteria.
It is expected that it will fix more demanding goals, with a 65% green criteria coverage in central
administration and the inclusion of regional and local entities. In the public tenders run by ESPAP in 2011,
ecological requisites, social responsibility and energy efficiency criteria were reinforced and utilized either in
the selection of suppliers, or for the awarding phase.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
FA
Paper &
Stationary
Printing &
Copying
Cleaning
Services &
Products
Security
&Surveillance
Services
Lots
Region
Subcontracting
Contractors
C
t t /
SME
• Paper
• Stationary
• Consumables
No
Yes
30 / 26
• Scanning
• Fax
• Portable printers
• Printers (Low,
medium high
medium,
performance)
• Combine lot
No
Yes
21 / 18
Yes
15 / 10
Yes
8/0
• Services
• Products
North, South
North
South, Alentejo,
Alentejo
Lisbon, Algarve, Azores,
Madeira and National
Level. (NUTS II)
• Surveillance
• Alarm Receiving
Centre & Monitoring
services
• Combine lot
North, South, Alentejo,
Lisbon, Algarve, Azores,
Madeira and National
Level. (NUTS II)
NUTS: Nomenclature of territorial units for statistics / NUTS II (Basic regions for the application of regional policies)
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
M it i the
Monitoring
th performance
f
off Framework
F
k Agreements
A
t
Management Information System
Real Data Management Information
eAgregation
eCatalogue
eTendering Platform
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Accounting
and
d
Finnance
eProcurement – What we want to achieve in future - Global Vision
 Key
y issue: lack of integration
g
of information along
g the p
procurement
process making difficult to control and monitor the end to end process Control of the Payments cycle is crucial to control the contract
management and the aggregation needs.
 Solution: develop an end-to-end technological model to ensure not only
transparent and cost effective procurement processes, but also the
construction of the knowledge base that is needed to support strategic
decisions towards public expenditure reduction and optimization.
e-sourcing
e-aggregation
e-tendering / eawarding
e-contract
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
e-catalogue
e-ordering
einvoicing
epayment
M it i Framework
Monitoring
F
k Agreements
A
t
Identify and measure the spenditure and savings for each FA
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
M it i Framework
Monitoring
F
k Agreements
A
t
Monitoring Contracts made between Suppliers and Public Entities
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The Agency
Agency’ss website – Integrated Procurement Solution
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
N ti
National
l Public
P bli Procurement
P
t eCatalogue
C t l
Supplier
Good Description
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Price
N ti
National
l Public
P bli Procurement
P
t eCatalogue
C t l
Example : Compare Products - By Two Supplier; Characterists; Price; SLA; (…)
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
T d i Platform
Tendering
Pl tf
Overview
O
i
http://ancpconcursos.ancp.gov.pt
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
T d i Platform
Tendering
Pl tf
Overview
O
i
Monitoring in
Real Time all
the call-offs
under the FAs
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
eProcurement end to end integration process – Strategy benefits
The Agency believes that implementation of this model will allow it to
pursue its mission along three key strategic dimensions:
 Financial – obtaining much needed savings and public expenditure
reduction both in the short and the long term;
 P
Political
liti l – through
th
h completely
l t l transparent,
t
t rigorous
i
and
d efficient
ffi i t
procurement processes;
 Social – providing a better service for all stakeholders, achieving
their buy-in and contribution,
contribution alongside a fundamental cultural
change in the Public Administration towards the effective use of
taxpayers’ funds.
Transforming eProcurement as part of public procurement strategy
Build common processes based on functional design, business process
& supplier interfaces
Create
C
t a shared
h
d value
l
sustainable
t i bl solution
l ti
reducing
d i
iinvestments
t
t ffor
the Government;
Manage Procurement as a strategy area of Government
Promote corporate Governance in electronic
l
Public
bl Procurement.
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
2012
Creation
i off the
h Entity
i ffor Public
bli Shared
h d Services,
i
Decree off Law
117-A/2012, 14th of June
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Where to go?
How?
• No normalization and
same process repeated in
• every public organization
How we organize?
• Complex organization
model
Organization
and HR
Business
Processes
Technology
What do we have?
• Working like silos, not sharing
information and no integrated services
What do we have?
• Redundancy
((in HR there is more than
150 solutions)
| 28
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eProcurement Interoperability Platform to achieve - end to end integration process
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 shall be
exchanged ( E.g. Consulting a contract, receive a order buy, update a ecatalogue…);
Define Standard base solutions for IT Providers;
Inte ratin effecti
e ssystems.
stems
Integrating
effective
API
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Service Oriented Architecture – Provide a Set of Services
related with Public Procurement Business – Innovation
Market Value.
Enterprise Architecture
Compras
p
(F-e)
Compras
Compras
PVE
PVE
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PVE (F-e)
Public
bli Procurement in
i Portugall
Major challenges:
• Increase centralization and dynamics in NAPP;
• Increase
I
th number
the
b off entities
titi in
i the
th National
N ti
l Public
P bli Procurement
P
t System;
S t
• New wave of framework agreements (version 2.0): create new categories and further improve the
renewal of existing framework agreements;
• Implement new Strategy for Green Public Procurement , with criteria revision and update;
• Develop the Technological Model, end-to-end, full scale and integration;
• Conducting training and awareness sessions, skills development and full usage of electronic means to
support public procurement;
• Monitoring results and performance of the framework agreements.
Maintaining sustainability and delivering value
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Questions
| 32
© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.
Thank You
[email protected]
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