Presentation by Kenza Khachani, OECD (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

1. Kenza Khachani
Public Sector Integrity Division
Public Governance Directorate
Kyiev, 30th of May 2018
Centralisation of Public
Procurement

2. The OECD…
• …is the global organisation that drives better policies for
better lives:
• The OECD provides a forum where countries compare and
exchange policy experiences, identify good practices, discuss
emerging challenges and adopt recommendations for better
policies.
• The OECD’s mission is to promote policies that improve
economic and social well-being of people around the world.
www.oecd.org
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3. 35 member countries, 4 accession
5 Key partners
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4. Part of a global community
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5. FOR A SOUD PUBLIC
PROCUREMENT SYSTEM
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6. Public procurement is:
• a major economic and government activity. It involves
significant funds and is used to deliver public services
to citizens as well as achieve policy goals
• a crucial pillar of strategic governance for public
bodies and services delivery for any government
• high-risk area due to the close interaction between
private and public sectors
Public procurement matters

7. 7
Public Procurement really matters
Government procurement as share of GDP and of total govt. expenditures
Source: OECD National Accounts Statistics. (2013)

8. OECD Recommendation of the Council
on Public Procurement (2015)

9. Efficiency
• Streamline the System and Institutions
Streamline the public procurement system and its institutional
frameworks
• Implement Sound Technical Processes
to satisfy customer needs efficiently
• Develop Improved Tools
 Reduce duplication
 Better value for money
(including centralised purchasing, framework agreements, e-
catalogues, dynamic purchasing, e-auctions, joint procurements and
contracts with options).

10. CENTRALISATION OF
PROCUREMENT
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11. Different tools, involving different
levels of aggregation of demand
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Single
procurement
Joint
procurement
Centralisation
Aggregation of Demand

12. i) acquires goods or services intended for one or
more contracting authorities;
ii) awards public contracts for works, goods or
services intended for one or more contracting
authorities;
iii) concludes framework agreements for works,
goods or services intended for one or more
contracting authorities.
Definition of Centralisation

13. Leveraging the demand aggregation
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14. • Better prices (economies of scale)
• Lower transaction costs (tender preparation, contract
management)
 CAs
 and Suppliers
Benefits

15. • Improved capacity and expertise
• Certainty of the procurement process
• Simplicity
• Fast implementation of national strategies
and policies ( access of SMEs, green
procurement, innovation…)
• Preventing corruption /Control of Public
spending
Benefits

16. • Homogeneous needs (a certain degree)
• P entity >P centralisation
Success conditions

17. Factors that motivated the
implementation of CPBs
OECD 2014

18. CPBs in OECD countries
CPBs can exist at the:
• Central level
• Regional level
• Sectorial level ( Health, defence, etc)

19. CPBs in OECD countries
OECD 2017

20. Legal Status of CPBs
OECD 2017

21. Different financing models
Government
subsidies
Contracting
authorities
Suppliers

22. Institutionalising Centralisation …
the role of CPBs in OECD countries
OECD 2017
0% 20% 40% 60% 80% 100%
CPBs act as manager of the national system
awarding framework agreements or other
consolidated instruments
CPBs act as a contracting authority
aggregating demand and purchasing
CPBs establish policies for contracting
authorities
CPBs coordinate training for public officials in
charge of public procurement
97%
66%
31%
34%
79%
79%
29%
36%
2016 2014

23. • Framework agreements
• Dynamic Purchasing systems
Main procurement tools used to
enhance the efficency of centralisation

24. Use of CPBs per procurement category
0%
20%
40%
60%
80%
100%
PC, Printers Stationery and
Paper
Medical goods
and services
Fuel Telephony Travel Software Energy Cleaning
services
Public works
and
constructions
Surveillance
services
Canteens Consulting
Central purchasing is used Framework agreements are used in central purchasing
OECD 2017

25. Voluntary vs Mandatory use of CPBs
OECD 2017
Australia
Austria
Canada
Chile
Denmark
Estonia
Finland
Hungary
Iceland
Israel
Italy
Latvia
MexicoNew ZealandNorway
Poland
Portugal
Slovenia
Spain
Korea
Slovak Republic
France
Germany
Greece
Ireland
Sweden
United Kingdom
Mandatory use
by all CAs (7%)
Voluntary use (22%)
Mandatory use by CAs at the
central level (70%)

26. Using CPBs to enhance strategic
procurement

27. THANK YOU!
Kenza Khachani
Kenza.KHACHANI@oecd.org
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28. LINKS TO OECD WORK ON PP
WWW.OECD.ORG/GOV/ETHICS/PUBLIC-PROCUREMENT.HTM
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Instruments
Reviews
Tools