1. MINISTÉRIO DO PLANEJAMENTO Tools for Efficient Public Procurement Ana Vieira Neto Brasília, 25/03/2014.

2. MINISTÉRIO DO PLANEJAMENTO I – Current Model of Public Procurement

3. MINISTÉRIO DO PLANEJAMENTO PARADIGMS IN PUBLIC PURCHASES 1 st WAVE: EQUALITY + MORALITY Creation of proceedings to give access to the State's purchasing power and to implement principles of morality and equality 2 nd WAVE: EFICIENCY + ECONOMY Buying faster and better for the lowest possible cost, using the large scale of the State's purchasing power 3 rd WAVE: THE USE OF THE STATE'S PURCHASING POWER Buying from strategic and relevant segments for the economic, social and sustainable development 4 th wave: the use of purchasing power to promote sustainabilitiy

4. MINISTÉRIO DO PLANEJAMENTO Ministério do Planejamento, Orçamento e Gestão – MP Secretaria de Logística e Tecnologia da Informação – SLTI New Paradigm of Public Procurement FASTER QUALITY COST STRATEGIC SEGMENTS SUSTAINABLE DEVELOP. Efficiency+ Purchasing Power of the State

5. MINISTÉRIO DO PLANEJAMENTO Ministério do Planejamento, Orçamento e Gestão – MP Secretaria de Logística e Tecnologia da Informação – SLTI Purchasing power Sustainable economic development Generation of job posts and income Environmental protection instrument = To influence markets Reduction of social and regional disparities Eradication of extreme poverty

6. MINISTÉRIO DO PLANEJAMENTO The use of the State's purchasing power should be directed to sustainable economic development: The social function of the bidding process; Generation of employment and income; Eradication of the extreme poverty; Optimization of the State's purchasing power. The social function of the bidding process; Generation of employment and income; Eradication of the extreme poverty; Optimization of the State's purchasing power.

7. MINISTÉRIO DO PLANEJAMENTO SMALL BUSSINESS – A CASE OF SUCCESS

8. MINISTÉRIO DO PLANEJAMENTO Ministério do Planejamento, Orçamento e Gestão – MP Secretaria de Logística e Tecnologia da Informação – SLTI An overview of the Micro and Small Business Entreprises (SMEs) in Brazil Account for about 67% of the jobs; Are responsible for about 25% of GDP; Account for 2.4% of total exports; Represent 99% of companies formally established in Brazil; From 1995 to 2000, there were 400,000 new SMEs, responsible for 1.4 million new jobs; Generate 6x more jobs than medium and large firms (jobs created/GDP share).

9. MINISTÉRIO DO PLANEJAMENTO Ministério do Planejamento, Orçamento e Gestão – MP Secretaria de Logística e Tecnologia da Informação – SLTI  Act 123/2006 Exclusive bidding from SMEs; Subcontracting in works and services; Quotas for participation in larger bidding; Differentiated qualification; Special tiebreaker

10. MINISTÉRIO DO PLANEJAMENTO II - Tools

11. MINISTÉRIO DO PLANEJAMENTO 1. Legislation

12. MINISTÉRIO DO PLANEJAMENTO 1988 Federal Constitution Set that a procurement law should be drawn up for regulating public procurement. Legal Landmarks

13. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Set that works, services, purchases of the Administration should be, as a rule, acquired or contracted by public procurement. 1993 Brazilian Procurement Law Legal Landmarks

14. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Implemented the reverse auction for the acquisition of goods and common services. 1993 Lei Geral de Licitações 2002 Act 10.520 Legal Landmarks

15. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Reverse Auction for the acquisition of goods and common services. 1993 Lei Geral de Licitações 2002 Lei 10.520 Website Comprasnet.gov.br is launched, making electronic bidding possible. Legal Landmarks

16. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Established the compulsory electronic bidding for the purchase of common goods and services. 1993 Lei Geral de Licitações 2002 Lei 10.520 2005 Decree 5.450 Legal Landmarks

17. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Established general rules relating to the establishment to domestic preference to SMEs 1993 Lei Geral de Licitações 2002 Lei 10.520 2005 Decreto 5.450 Complementary Act 123 2006 Legal Landmarks

18. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Established for acquisitions and contracts of the 2016 Olympic Games, the FIFA Confederations Cup 2013 and World Cup 2014; works and actions for health and education investments. 1993 Lei Geral de Licitações 2002 Lei 10.520 2005 Decreto 5.450 Lei Complementar nº 123 20062011 Act 12.462 - RDC Legal Landmarks

19. MINISTÉRIO DO PLANEJAMENTO 1988 Constituição Federal Established criteria, practices and guidelines for the promotion of sustainable national development through public procurement 1993 Lei Geral de Licitações 2002 Lei 10.520 2005 Decreto 5.450 Lei Complementar nº 123 20062011 Lei nº 12.462 2012 Decree 7.746 Legal Landmarks

20. MINISTÉRIO DO PLANEJAMENTO Legal Landmarks 1988 Constituição Federal The website Comprasnet starts to conduct bids respecting RDC rules. 1993 Lei Geral de Licitações 2002 Lei 10.520 2005 Decreto 5.450 Lei Complementar nº 123 20062011 Lei nº 12.462 2012 Decreto 7.746 2013

21. MINISTÉRIO DO PLANEJAMENTO 2. Electronic systems

22. MINISTÉRIO DO PLANEJAMENTO Fonte: www.comprasnet.gov.br The website comprasnet.gov.br: Allows approximately 300 sessions per day, with peaks of 580 (in December); Has about 14,500 simultaneous users, with peaks of 20,000 in December; Registers an average of 40,000 hits per day; Has over 10,000 registered procurement officers; Contains over 4,500 purchase units.

23. MINISTÉRIO DO PLANEJAMENTO Fonte: www.comprasnet.gov.br Regarding technology and information security, the site comprasnet.gov.br: - Uses digital certification; - Does not allow the identification / communication among bidders; - Extends the competitiveness (higher coverage), combining the simplification process; - Provides transparency, allowing real-time monitoring; - Has low operating cost to the supplier.

24. MINISTÉRIO DO PLANEJAMENTO Fonte: www.comprasnet.gov.br Savings from e-procurement ( billions of US$ ) 16% 24% 21% 23% 19%

25. MINISTÉRIO DO PLANEJAMENTO 3.Training

26. MINISTÉRIO DO PLANEJAMENTO 1.Beneficiaries : - Markets, public managers and partners that work with organizations linked to the market 2. Modalities: – Face to face: must always be applied to new trainees that become trainers – On distance: tutorials or non-tutorials courses; formal or informal 3. Online training via skype or via internal network

27. MINISTÉRIO DO PLANEJAMENTO 4. Communication System

28. MINISTÉRIO DO PLANEJAMENTO Good working processes need to be replicated; Exchange of information regarding the improvements, the specifications of products and services and the contract management process; Communication with the market so that is ready for meeting demands and are aware of the purchasing process.

29. MINISTÉRIO DO PLANEJAMENTO 5. Good practices that improve the processes

30. MINISTÉRIO DO PLANEJAMENTO 5.1 - Easier procurement processes, in which: a. The qualification phase comes after selecting the winner; b. Concentrates the appeals on one phase; c. Increases participation.

31. MINISTÉRIO DO PLANEJAMENTO The reverse auction, presential or eletronic, is a form of bidding, established in 2002, adopted for the purchase of common goods and services. Common goods and services are those which standards of performance and quality can be objectively defined by the bidding documents by means of the usual specifications considered by the market.

32. MINISTÉRIO DO PLANEJAMENTO 5.2 Standardization of product specifications

33. MINISTÉRIO DO PLANEJAMENTO Some advantages of the standardization of the object: - Accelerates the process; - Mitigates appeals risk; - Increases supplier's understanding of the Administration's demands; - - Allows the use of Data Warehouse's tools; - Makes easier the use of shared purchasing.

34. MINISTÉRIO DO PLANEJAMENTO Life cycles costs Life cycle costs are the ones the products causes to the purchasing unit during its useful life: Acquisition  Purchase  Delivery  Instalation… Functioning  Water, energy consumption, etc  Maintenance  Replacement, etc Final managing  Unsembling, withdrawing  Treatment costs Sales revenue

35. MINISTÉRIO DO PLANEJAMENTO Life cycle costs  Different evolution of different offers and demands cost time Purchase costs Functioning costs Final management costs

36. MINISTÉRIO DO PLANEJAMENTO 5.3 – Shared purchases lower the costs, reduce time in bidding processes

37. MINISTÉRIO DO PLANEJAMENTO Example: Shared Purchase, with standard specifiations of equipments for public schools, using e-reverse auction  4.195 schools  4.139 schools  4.199 schools  5.559 schools Territorial extent and volume of purchases require the need for standardization of the object.

38. MINISTÉRIO DO PLANEJAMENTO ANA MARIA NETO DIRECTOR OF LOGISTICS DIRECTOR OF LOGISTICS PRESIDENT OF THE INTERAMERICAN NETWORK OF PUBLIC PURCHASE FOR 2013-2014 More information: comprasnet@planejamento.gov.br Tel.: 55 (61) 2020-1321 www.comprasnet.gov.br