Presentation by Uwe Flach, Bundesbeschaffung (Austrian Federal Procurement Agency, BBG), on centralised purchasing and modern IT tools for optimising public procurement, at the third regional conference on public procurement for ENP East countries, Tbilisi, 6-7 November 2019.
3. Public procurement is
increasingly expected to…
2
demonstrate best
value for public
money in ever-
constricting
budgetary
environments
use the
opportunities of
digitization
and evolving
markets
make a strategic
contribution to policy
objectives and societal
values such as
innovation, social
inclusion and economic
and environmental
sustainability
maximize
accessibility to
markets and for
SMEs
show
accountability for
minimizing:
•Inefficiencies
•Waste
•Irregularities
•fraud and
corruption
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017H1805&from=EN
4. Public procurement is
developing towards..
3
… a strategic function
and a strategic partner
which requires
professionalization
CPBs as key a element of Public
Procurement enable and support
this transformation
5. CPBs in the Interplay Between...
4
CPB
Contracting
Authorities
Owner /
Stakeholders
Economic
Operators
6. Success factors for
implementing a CPB
• Strong political will
all Ministries had to cooperate
• Powerful project management
Goals, costs, milestones, project team
• Focus on change management
Organisational & legal aspects
• Comprehensive stakeholder management
Early involvement and collaboration
• Professionalization and e-procurement
Highly skilled and experienced staff / support
Tools and harmonized data for automation and transparency
• Phased process instead of “big bang”
Show-Case the benefits with suitable categories
Gain trust
5
7. Some BBG Key Facts
6
1.51 billion € annual call off volume via BBG contracts
and agreements (2018)
2,367 customer organisations + federal government
Ca. 1,800 suppliers – 72% are SMEs
Ca. 1,400 FAs (ca. 90% with one supplier)
Ca. 400 contracts
More then 2.7m products and services available via e-
Shop
9. New DNA for Public
Procurement
8
expenditureoftime
foraddingvalue
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation Tender
Contract & Quality
Management
target
before
source: see Crown Commercial Service – New DNA of PP
Developing
requirements and
strategies (incl.
social values) that
shape markets and
the supply base
Transparency,
Simplifying
processes and
reducing turnaround
times & supplier bid
costs
Improving contract,
quality and supplier
management capability
through application of
new standards & tools
10. Tender
Implication on processes &
IT solutions
9
expenditureoftime
foraddingvalue
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation Tender
Contract & Quality
Management
source: see Crown Commercial Service – New DNA of PP
Focus of
EU Directives &
E-Procurement
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation
Contract & Quality
Management
Additional areas to
focus on
•IT Tools
•Digitalisation
•AI / Big Data
•Robotics etc.
Additional areas to
focus on
•IT Tools
•Digitalisation
•AI / Big Data
•Robotics etc.
11. Where procurement software &
tools are needed?
10
Contract
Management
Supplier Risk
Management
Purchasing
Payments
Spend
analysis
Supplier
information
Mgmt.
Strategic
Sourcing
17. System integration &
process automation
16
Central Contract Management System (Microsoft Dynamics CRM)
Tender
procedure
Contract
information
E-catalogue
Purchase
order
E-invoice
Central User Management System (Microsoft Dynamics CRM)
E-tendering
tool
e-Shop
Invoice
Gateway