The Portuguese Public Procurement Case€¦ · Ministers’ Resolution n.º 12/2012, of Jan.12 2012, the Portuguese Government envisages the development of a B2B platform to expand

The Portuguese Public Procurement Caseg

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’s Central AdministrationRestructuring Program of the State s 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.


h i l f bli ( )

Main features:

The National System of Public 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;Acquisition under framework agreements established by NAPP;

• e-Tendering and e-awarding are mandatory in public procurement since November 2009


Legislation 30 OCT. 2009

1 Jan. 2009

30 Jun. 2008

eProcurement Strategy – Government Commitment

DL 18/2008 (CCP)[EU Directive]

g

All public

200920092008

[EU Directive]

DL 143-A/2008

As of 1st January 2009 the electronic platforms are to becertified under the 701-G/2008 order

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

All tendering processes:•eProposals•List of tenderers


•eNotifications •eConsultation

h i l f bli ( ) k h ldThe National System of Public Procurement (NSPP) – Key Stakeholders

Government

Ministry of

Finance

Community/Society

Contractors/Suppliers

NAPP

InterministerialAdvisory

CommitteeCommittee

MPUs (15)

Contracting authorities and entities (mandatory and voluntary)


MPU: Ministerial Purchasing Units

h i l f bli h i ( )The National System of Public Purchasing (NSPP)

NAPP

• Defines, by means of regulation, the working rules of NSPP;

• Launches international public tenders in categories of goods

MPU

• Are pivotal amongst NAPP and all mandatory entities

operating under each Ministry (links / network system);

or services aiming to award framework agreements.

• Provides the required support to MPUs, mandatory and

voluntary entities in what relates to NSPP, the awarded

• Collect, validate and compile data on public purchasing from

all entities operating under their respective Ministry;

• Launch call offs under the framework agreements for they ,

framework agreements and tendering processes;

• Leads centralised call off procedures for defined categories

(vehicles and insurance);

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 f P bli P h i NAPP ill th il th d t(vehicles and insurance);

• Manages and supervises the centralised technological tools

developed to support e-procurement procedures.

Plan for Public Purchasing. NAPP will then compile the data

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)

l i li dDeveloping a New Centralised Procurement System

• Emphasis on savings and efficiency; • Mandatory constrains (to central administration);

Keystones

• Emphasis on savings and efficiency;

• Aggregation of demand on NAPP / MPU;

• Purchasing centralization on NAPP / MPU;

• Mandatory constrains (to central administration);

• Voluntary system (local and regional entities and state-owned

companies);

• Goods and services standardization/ Framework agreements. • Increase of usage of electronic tools.

Contracting Authorities

Market

Contracting Authorities FA

Contractors

MPU

1.800 1.800Contractors

NAPP

Aggregation of demand on

NAPP / MPU

Purchasing centralisation on NAPP

/ MPU

Individual Direct Awards or Public Tenders


NAPP / MPU / MPU

National Agency for Public Procurement (NAPP) / Ministerial Purchasing Unit (MPU)

li d d l k ( ) f d i i i

NAPP Ministry Purchasing Units (MPU)

Centralized Model - Framework Agreement (FA) for Contracts and Acquisitions

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)

PublicTender

Supplier Selection

Request for Proposals

Awarded Suppliers

Request for

ProposalsNegotiation Awarding

Supplier technical and financial

selection criteria

Technical and functional

requisites, contract requirements and

Contract awarded to the most

economically advantageous

tenders

Public Tender announced via OJEU notice.

Tender

Invitation for tendering to all the awarded suppliers(FA contractors)

E-auction or traditional negotiation

Best proposal (the most economically

advantageous proposal OR the

economic proposal evaluation

tenders OR to the lowest

price tenders

documentation available online

lowest price), as defined on the FA

Purchase of goods and services categories under the FAs are mandatory for the central

Framework Agreement CentralizationCentralization of acquisitions of goods and

services under the FAs

under the FAs are mandatory for the central public administration


NAPP can opt to centralize the acquisitions of goods and services covered by the FA(example: Vehicles and Vehicle Insurance)

Recent #Recent #Volunteer

Others 24

Volunteer(Total a 31Ago12: 482)482

432

400

450

500

25

30

Others 24Local State

Owned Companies70269

236

313

213250

300

350

400

15

2017

25016

15

State OwnedCompanies 82

197

61

213

100

150

200

250

5

10

15

10

4

Autonomous Regions46 Municipalities 260

6130

0

50

0

5

YTD 31Ago122011201020092008

Framework AgreementsVolunteerContracting Authorities


Today, more than 1.800 entities are in the National System of Public Procurement

Framework Agreements – 2008/2011

Spending categories

Car and Motorcycle Insurance• + 250 qualified and selected

( )

Valid as of

Feb 2011

FA Contractors

2Car and Motorcycle Insurance

Cleaning Services and Products

Electric Vehicles

Energy (incl Electricity)

Suppliers (70%+ are SME)

• Annual Public Expenditure addressed

via the Agency’s framework

Feb 2011

Aug 2010

Sep 2011

Nov 2011

2

15

10

3Energy (incl. Electricity)

E-procurement Tools

Fuel and LGP

H d

agreements:

1.000 MEUR (about 80% of total

expenditure transverse to NSPP

Nov 2011

Jun 2009

Sep 2008

A 2011

3

5

3

18Hardware

Landline Communications (voice and data)

Meals

p

entities)

• Savings 2009-2010:

Aug 2011

Jun 2010

Jul 2010

18

5

4

Mobile Communications

Paper and Stationery

Office Furniture

• Estimated: 150 MEUR

• Achieved: 168 MEUR (+12%)

Sep 2008

Apr 2011

Mar 2010

3

30

6

Printing and Copying

Security and Surveillance Services

Software Licensing

• 17 Framework AgreementsApr 2011

Apr 2010

Sep 2009

21

8

77


Travel and Accommodation

Vehicles and Motorcycles

Sep 2011

June 2012

13

14

k l

• Identification of annual expense

Framework Agreement Development

Conceptual model by NAPP • Evaluation of the public administration needs

• Market´s solutions review

Public Administration Consultation

• Concept model and technical solutions review with all ministries

• Preparation of technological solutions to include in the FA

• Term of the framework agreement, FA criteria award, ...

Technical Validation by experts • Review and validation of products and services specifications

Public Consultation • Economical operators, associations, public administration & citizens


Public Consultation Economical operators, associations, public administration & citizens

Policies supporting SME, SBA implementation

Public Procurement

The Portuguese Government adopted a transparent and competitive approach in several categories of goods


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

l bl dtransversal public expending.

Through the Portuguese e-procurement solution, SMES are able to better access public markets, either

i l d i i i i d i l I d i i h d l kisolated or in association, in order to improve scale. In designing the tenders, several measures were taken

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. E-

procurement is mandatory in Portugal, with the country reaching an utilization ratio of 91% in 2010.

Policies supporting SME, SBA implementationPolicies 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.


expenditure. Implementation will start in 2012.

Policies supporting SME, SBA implementationPolicies supporting SME, SBA implementation

Demand side innovation policies

Through the National System for Public Procurement the Government managed to improve innovative-drivenThrough the National System for Public 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 like hardware or vehicles ecological and TCO indicators were used andAlso, in several categories of goods, like hardware or vehicles, ecological and TCO indicators were used and

considered in terms of awarding criteria.



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 greenpositive, with over 56% of procedures and 60% of total value of goods and services awarded having green

criteria.

The new strategy for the period running until Dec 2013 is currently being approved by the Government and itThe new strategy for the period running until 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.


C t t /FA Lots Region Subcontracting

Contractors / SME

• PaperPaper &

Stationary

Paper• Stationary• Consumables

No Yes 30 / 26

Printing & Copying

• Scanning• Fax• Portable printers• Printers (Low,

medium high

No Yes 21 / 18

medium, high performance)

• Combine lot

North South AlentejoCleaning

Services & Products

• Services• Products

North, South, Alentejo, Lisbon, Algarve, Azores, Madeira and National Level. (NUTS II)

Yes 15 / 10

Security &Surveillance

Services

• Surveillance• Alarm Receiving

Centre & Monitoring services

Yes 8 / 0North, South, Alentejo, Lisbon, Algarve, Azores, Madeira and National


services• Combine lot Level. (NUTS II)

NUTS: Nomenclature of territorial units for statistics / NUTS II (Basic regions for the application of regional policies)

M it i th f f F k A tMonitoring the performance of Framework Agreements

Management Information System

Real Data Management Information

eCatalogueeAgregationAccounting

deCatalogueeAgregation andFinnance

eTendering Platform


Key issue: lack of integration of information along the procurement

eProcurement – What we want to achieve in future - Global Vision

y g g pprocess making difficult to control and monitor the end to end process -Control of the Payments cycle is crucial to control the contractmanagement and the aggregation needs.

Solution: develop an end-to-end technological model to ensure not onlytransparent and cost effective procurement processes, but also theconstruction of the knowledge base that is needed to support strategicdecisions towards public expenditure reduction and optimization.

e-sourcing e-aggregation e-tendering / e-awarding e-contract e-catalogue e-ordering e-

invoicinge-

payment


M it i F k A tMonitoring Framework Agreements

Identify and measure the spenditure and savings for each FA


M it i F k A tMonitoring Framework Agreements

Monitoring Contracts made between Suppliers and Public Entities


The Agency’s website Integrated Procurement SolutionThe Agency s website – Integrated Procurement Solution


N ti l P bli P t C t lNational Public Procurement eCatalogue

Supplier Good Description Price


N ti l P bli P t C t lNational Public Procurement eCatalogue

Example : Compare Products - By Two Supplier; Characterists; Price; SLA; (…)


T d i Pl tf O i

http://ancpconcursos.ancp.gov.pt

Tendering Platform Overview


T d i Pl tf O iTendering Platform Overview

Monitoring in Real Time allthe call-offs under the FAs


The Agency believes that implementation of this model will allow it to

pursue its mission along three key strategic dimensions:

eProcurement end to end integration process – Strategy benefits

pursue its mission along three key strategic dimensions:

Financial – obtaining much needed savings and public expenditurereduction both in the short and the long term;

P liti l th h l t l t t i d ffi i t Political – through completely transparent, rigorous and efficientprocurement processes;

Social – providing a better service for all stakeholders, achievingtheir buy-in and contribution alongside a fundamental culturaltheir buy-in and contribution, alongside a fundamental culturalchange in the Public Administration towards the effective use oftaxpayers’ funds.

Transforming eProcurement as part of public procurement strategyTransforming eProcurement as part of public procurement strategy

Build common processes based on functional design, business process & supplier interfaces

C t h d l t i bl l ti d i i t t fCreate a shared value sustainable solution reducing investments for the Government;

Manage Procurement as a strategy area of Government

l bl


Promote corporate Governance in electronic Public Procurement.

2012

i f h i f bli h d i fCreation of the Entity for Public Shared Services, Decree of Law 117-A/2012, 14th of June


Where to go?Where to go?• No normalization and

How?

How we organize?• Complex organization

model

same process repeated in• every public organization

Organizationand HR

BusinessProcesses

model

Technology

What do we have?• Redundancy

(in HR there is more than

What do we have?• Working like silos, not sharing

information and no integrated services


(150 solutions)

information and no integrated services

| 28

eProcurement Interoperability Platform to achieve - end to end integration process

Public

Source-To-Pay Solution

Procurement Common

Model Data

integration

Interoperability: From a Problem to a Solution

Service Oriented Architecture – Provide a Set of Services related with Public Procurement Business – Innovation Market Value.

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 e-catalogue…);Define Standard base solutions for IT Providers;Inte ratin effecti e s stems

API


Integrating effective systems.

Enterprise ArchitectureEnterprise Architecture

Compras (F-e)

Compras PVE

p

PVE (F-e)

Compras PVE


bli i l

Major challenges:

Public Procurement in Portugal

• Increase centralization and dynamics in NAPP;

I th b f titi i th N ti l P bli P t S t• Increase the number of entities in the National Public Procurement System;

• 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

QuestionsQuestions

© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados.

| 32

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Documents

The Portuguese Public Procurement Case€¦ · Ministers’ Resolution n.º 12/2012, of Jan.12 2012, the Portuguese Government envisages the development of a B2B platform to expand