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The Portuguese Public Procurement Case

          eProcurement for the Economic Crisis
                      Brussels, 25th May 2011
Agenda


•   ANCP, the National Agency for Public Procurement - overview

•   The e-Procurement perspective




                                                                  2
Reforming Public Procurement in Portugal: overall context



2007 -    Establishment of Agência Nacional de Compras Públicas, E.P.E.
          [the National Agency for Public Procurement (Agency)]
          Decree Law 37/2007, 19th February.


Mission
The mission of the Agency is to set up, implement and manage SNCP - the National Public
   Procurement System (for transversal goods and services only) as well as to centrally
   manage the State-owned Fleet, contributing to increase the efficiency of the Portuguese
   Public Administration.




                                                                                         3
The Agency’s Top priorities (2008 – 2010)



ublic tenders with the aim of awarding framework agreements covering categories of
goods and services that aim to fulfill common needs of the Public Administration (16
categories so far). This strategy aims at creating value, financial gains, savings and cost
reductions through framework agreements, which in turn promote synergies and economies
of scale as a result of a concentration process.



evelopment and implementation of a Technological Model able to provide full support to
framework agreement procedures and call-offs.



nhanced statistical information and reports on public procurement (goods and
services). Setup of a comprehensive Public Procurement Information System, responding to
both management control needs and EU requirements.



                                                                                          4
Agenda


•   ANCP, the National Agency for Public Procurement – overview

•   The e-Procurement perspective




                                                                  5
Procurement Process




       eProcurement components




                                         Mandatory electronic use since October 2009




Within the scope of the current technological model put in place by ANCP



                                                                                       6
2010|First year of mandatory e-Public Procurement

The success of the adoption of e-Public Procurement in Portugal was based on the commitment of all stakeholders,
namely the already established Public eTendering platform operators with several years of experience in the
market. All platforms are required to be certified according specific legislation.

Players involved:
     • Contracting Entities
     • Economic Operators
     • Public eTendering Platform Operators
     • External Auditors for Platform’s compliance auditing
     • National Certification Office of e-tendering Platforms – CEGER
     • National Agency for Public Procurement - ANCP
     • National Portal for Public Contracts – InCI (www.base.gov.pt)
     • Universities / Training Faculties

Contracting authorities belonging to the Central Administration and Public Institutes must use the Framework
Agreement awarded by ANCP to contract a public e-tendering platform.



                                                                                                              7
2010|First year of mandatory e-Public Procurement


Key figures and results after the first year:

                         E-Public Procurement in Portugal 2010

                                        Number of Procedures                          Amount

Public Procurement                                       79.739                  EUR 10.957.575.384

Electronic Public Procurement                           45.013                  EUR 8.200.992.596
                                                       Source: National Report on Public Procurement – InCI - 2010



75% of Public Procurement made Electronically

50%+ (38.563) of procedures where e-Public Procurement is not mandatory (limited tendering
bellow the thresholds) are carried out in e-tendering platforms as well.

                                                                                                                     8
eProcurement – Lessons learned and major challenges



•   Key issue: lack of integration of information along the procurement process making it impossible to control
    and monitor


•   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:




•   It is expected that full implementation will be achieved by the end of 2013.


•   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;
          Political – through completely transparent, rigorous and efficient procurement processes;
          Social – providing a better service for all stakeholders, achieving their buy-in and contribution,
          alongside a fundamental cultural change in the Public Administration towards the effective use of
          taxpayers’ funds.

                                                                                                            9

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ePractice: eProcurement Workshop 25 May 2011 - Joana Lopes de Carvalho

  • 1. The Portuguese Public Procurement Case eProcurement for the Economic Crisis Brussels, 25th May 2011
  • 2. Agenda • ANCP, the National Agency for Public Procurement - overview • The e-Procurement perspective 2
  • 3. Reforming Public Procurement in Portugal: overall context 2007 - Establishment of Agência Nacional de Compras Públicas, E.P.E. [the National Agency for Public Procurement (Agency)] Decree Law 37/2007, 19th February. Mission The mission of the Agency is to set up, implement and manage SNCP - the National Public Procurement System (for transversal goods and services only) as well as to centrally manage the State-owned Fleet, contributing to increase the efficiency of the Portuguese Public Administration. 3
  • 4. The Agency’s Top priorities (2008 – 2010) ublic tenders with the aim of awarding framework agreements covering categories of goods and services that aim to fulfill common needs of the Public Administration (16 categories so far). This strategy aims at creating value, financial gains, savings and cost reductions through framework agreements, which in turn promote synergies and economies of scale as a result of a concentration process. evelopment and implementation of a Technological Model able to provide full support to framework agreement procedures and call-offs. nhanced statistical information and reports on public procurement (goods and services). Setup of a comprehensive Public Procurement Information System, responding to both management control needs and EU requirements. 4
  • 5. Agenda • ANCP, the National Agency for Public Procurement – overview • The e-Procurement perspective 5
  • 6. Procurement Process eProcurement components Mandatory electronic use since October 2009 Within the scope of the current technological model put in place by ANCP 6
  • 7. 2010|First year of mandatory e-Public Procurement The success of the adoption of e-Public Procurement in Portugal was based on the commitment of all stakeholders, namely the already established Public eTendering platform operators with several years of experience in the market. All platforms are required to be certified according specific legislation. Players involved: • Contracting Entities • Economic Operators • Public eTendering Platform Operators • External Auditors for Platform’s compliance auditing • National Certification Office of e-tendering Platforms – CEGER • National Agency for Public Procurement - ANCP • National Portal for Public Contracts – InCI (www.base.gov.pt) • Universities / Training Faculties Contracting authorities belonging to the Central Administration and Public Institutes must use the Framework Agreement awarded by ANCP to contract a public e-tendering platform. 7
  • 8. 2010|First year of mandatory e-Public Procurement Key figures and results after the first year: E-Public Procurement in Portugal 2010 Number of Procedures Amount Public Procurement 79.739 EUR 10.957.575.384 Electronic Public Procurement 45.013 EUR 8.200.992.596 Source: National Report on Public Procurement – InCI - 2010 75% of Public Procurement made Electronically 50%+ (38.563) of procedures where e-Public Procurement is not mandatory (limited tendering bellow the thresholds) are carried out in e-tendering platforms as well. 8
  • 9. eProcurement – Lessons learned and major challenges • Key issue: lack of integration of information along the procurement process making it impossible to control and monitor • 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: • It is expected that full implementation will be achieved by the end of 2013. • 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; Political – through completely transparent, rigorous and efficient procurement processes; Social – providing a better service for all stakeholders, achieving their buy-in and contribution, alongside a fundamental cultural change in the Public Administration towards the effective use of taxpayers’ funds. 9