By Martin Leverington Office of Government Commerce UK Electronic Public Procurement in the UK PEPPOL Reference Group

Page 2 Office of Government Commerce – Who we are, what we do … OGC is an office of HM Treasury. Our main functions are:  Delivering value from third-party spend  Improving delivery of Government projects  Getting the best from the Government estate  Delivering sustainable procurement and operations  Guidance and advice to support delivery of government policy  Improving central Government capability  OGCbuying.solutions – OGC’s trading arm, one of the largest public sector professional buying organisations  Offers e-procurement solutions to the public sector

Page 3 ePP in the United Kingdom Electronic procurement is recognised as having an important role in enhancing public procurement Improve information about government procurement expenditure Enables purchasing trends to be identified Improves link between purchasing and financial data Speeds the procurement process Modernisation Efficiency improvements (the way people work) Improved commercial relationships with suppliers

Page 4 ePP benefits cont’d Reduce costs for suppliers dealing with government Opens up the government marketplace Improve departments' ability to manage their supply chain more efficiently  There is no single national UK ePP solution  Public bodies choose to use solutions depending on their situation

Page 5 OGC Role in ePP  Responsible for implementing public procurement Directives (2004/18/EC, 2004/17/EC, 2007/66/EC)  Attendance at EU and international fora (eg DG Markt ACPC, ePWG, IDABC)  Advice and Guidance on use of ePP  Responsible for the development of the OGC Interoperability Requirements model and development of proof of concept schemas  Fed into UBL  Liaison with contracting authorities and devolved administrations  Leads other topics with potential relevance to ePP, eg collection of statistical data, SME access to public contracts

Page 6 Legal situation and challenges  UK has implemented relevant legislation, for example:  2004/18/EC (transposed in Jan 2006)  1999/93/EC on a Community framework for electronic signatures (transposed in 2002)  2006/112/EC on the common system of VAT  Legal issues are not seen as a major impediment to adoption of e-procurement  Need to ensure that e-procurement solutions meet the requirements of Articles 42 and 54 of 2004/18/EC – typically a contractual requirement  Advanced and qualified digital signatures allowed under UK law, but not generally required (but there is some use, eg IDeA Marketplace)  (note English and Scots law differ, but implementation substantially similar)

Page 7 Approach to e-procurement services  Public bodies do not typically develop e-procurement solutions or services themselves  Usual approach is to implement an ePP solution supplied by a software or services company, perhaps as a managed service  May be part of or added to existing ERP / finance solution  Eg:  OGCbuying.solutions has put in place frameworks with service providers for e- auction and e-sourcing services, which can be accessed by OGCbuying.solutions customers  “Zanzibar” is also provided by an external services provider (“ProcServe”), IDeA marketplace by “EGS”

Page 8 Key stakeholders in UK ePP No single solution  OGC  Central government departments and agencies  Local government (over 400 bodies)  National Health Service bodies  Central purchasing bodies (over 40) OGCbuying.solutions NHS PASA Local Authority consortia etc

Page 9 Key stakeholders in UK ePP (cont’d)  ePP marketplaces, eg IDeA Zanzibar Devolved administrations (eg eProcurement Scotland)  E-procurement solution providers  Suppliers  Complex landscape  No simple “one size fits all” solution or mandated approach  Allows flexibility, solutions for specific needs  Potential duplication and fragmentation, reduces central data

Page 10 Departmental use of ePP  Complete and comprehensive figures not current collected  Snapshot analysis earlier this year covering 14 departments and agencies – not a complete picture  Payment Cards – 11 high or medium / high level of usage, 3 medium  eTendering / eProcurement - 7 high or medium / high degree of exploitation, 7 medium or medium / low  eAuctions - 6 high level of exploitation, 3 medium, 5 low usage  eCatalogues – 2 high exploitation, 10 medium usage, 2 low

Page 11 Savings from ePP  How “cashable”?  One major department calculated “pre-award” process savings ( eTendering and eEvaluation) of 28%. Breakdown between eTendering and eEvaluation depends on size and complexity of procurement  Post-award transaction savings calculated £41 (approx €48) per transaction for wholly electronic process  Savings on eAuctions variable but some of up to 40% have been reported

Page 12 OGCbuying.solutions offerings  OGCbuying.solutions puts in place competitively procured framework agreements with service providers  Its customers may use these frameworks  OGCbuying.solutions offers frameworks for managed services covering eAuctions eSourcing “Zanzibar” purchase to pay and e-marketplace Payment cards GPC Spend analysis

Page 13 NHS Procurement eEnablement Programme  Recognises that e-procurement has potential for significant benefits  But benefits have not been fully realised yet  Programme aims to put in place “enablers” to assist use and benefits from e- procurement in the health sector  Programme includes understanding existing landscape of e-procurement in NHS, and engagement with stakeholders  Helping procurement practitioners identify, understand, and measure potential benefits  Identify and promote appropriate procurement data and messaging standards

Page 14 NHS Procurement eEnablement Programme cont’d  Interoperability standards (data and messaging)  NHS Datapool  Pre-qualification data (VCD equivalence?)