Presentation by Peder Blomberg, SIGMA expert (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

1. © OECD
SECOND SIGMA REGIONAL ENP EAST CONFERENCE ON PUBLIC PROCUREMENT
Conditions for a successful centralized purchasing
Peder Blomberg, Senior Adviser, Sweden
Kyiv, Ukraine 30 May 2018

2. Content of Presentation
• EU policy framework on centralised
purchasing;
• The role of CPBs;
• Why establish a CPB?;
• Strategic choices;
• Success factors?;
• The way forward?
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3. EU Policy Framework on CPBs
(Art 37 and 38)
• Act as wholesaler, stocking and reselling;
• Act as intermediary by awarding contracts, framework
agreements and operate DPS on behalf of contracting
authorities;
• Provision of ancillary services to CAs without those being
subject to normal awarding procedures;
• A CPB is a contracting authority;
• Distinction between institutionalised CPBs and occasional
joint procurement;
• Distribution of responsibilities between the CPB and CAs
clarified;
• Operations must be managed on e-procurement platforms;
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4. The Role of a CPB
• Represent often less than 10% of the total
national public procurement value;
• However, an important player in its segments;
• Most member states have established CPBs;
• A CPB EU network is established;
• The CPB is a professional service provider of
FAs;
• The CPB could be seen and used as a market
organiser and policy implementer;
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5. Why establish a CPB?
Better prices through aggregation effects;
Lower transaction costs;
Certainty (legal, technical, economic and
contractual);
Simplicity & usability;
Capacity and expertise (professionalisation);
Standardisation & administrative efficiency;
Support for policy goals (green, social, SMEs
and innovation);
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6. Why NOT establish a CPB?
• Market concentration- lock-in effects;
• Monopolisation;
• Uniformity and low adaptability to CAs
individual needs;
• Loss of procurement competence at CA levels;
• Unresponsiveness to technical and market
developments;
• SME- opportunities?
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7. Strategic Choices
• Legal status and mandate of the CPB;
• Organisational and management model;
• Coverage (central, regional, local and sectors);
• Scope of products and services (common
interest policy);
• Compulsory or voluntary use of CPB services;
• Maximisation or not of FA values;
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8. Strategic Choices
• Financing model (budget, service fees or
both);
• Type and duration of FAs and call-off
mechanisms;
• How to build effective external relationships
(clients, suppliers and other key stakeholders);
• Performance measurement and
benchmarking;
• How to ensure integrity risks mitigation;
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9. Success Factors?
• An efficient and well- resourced organisation
with excellent management and staff capacity
and capabilities;
• Competitive and attractive FAs in all aspects;
• User-friendly and low-risk call-off systems;
• Effective processes with appropriate
identification of contract scope and values;
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10. Success Factors?
• Excellent and sustainable relationships with key
stakeholders (clients, suppliers, and owners);
• Adopt a client perspective and act as a
professional service provider;
• Control of the flow of business transactions;
• Access to effective IT- infrastructures and e-
procurement systems;
• That the CPB can verify the “the added value” of
its operations to the stakeholders;
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11. The Way Forward?
• Develop and adopt a strategy and action plan
for centralised purchasing;
• Take a step- by- step approach;
• Develop a centre of excellence;
• Support development and implementation of
important public procurement policy;
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12. Thank you!
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