A brief look at Consip’s e-Procurement Strategies Gian Luigi Albano, Ph.D. Head of R&D Italian Public Procurement Agency (Consip S.p.A.) Email: gianluigi.albano@tesoro.it Rome, 10th December 2008

Consip S.p.A. Consip is a joint-stock company, created in 1997 by the Ministry of Economy and Finance (MEF), its sole stockholder Consip is entrusted with two main fields of action… MEF PAs 1997 management and development of ICT services for the MEF 2000 e-Procurement for Public Administrations Consultancy on Technical and Organizational Projects Support to the adoption of e-procurement tools

PAs 1997 2000 IT services for MEF Eprocurement Public e-Procurement Implementation of the Program for the Rationalization of Public Spending on Goods and Services through the use of information technology and innovative tools for the purchases of the Administrations (frame contracts, web-based tenders, the Electronic Marketplace)

The main goals of the e-Proc strategies Process simplification Quality Improve the ratio between cost and quality of the goods and services offered to PA Reduce procurement time simplifying the entire procurement process Public Spending Optimization Guarantee transparency and public communication on tender procedures and awarding criteria, enhancing competition Innovation Develop innovation procurement tools encouraging change management among public officials and suppliers Transparency

Italian Public Procurement Portal www.acquistinretepa.it

Above and Below EU Threshold Eprocurement Platform www.acquistinretepa.it Frame contracts eshops On line tenders eMarketplace Purchases within frame contracts Direct Purchases Many-to-one approach Need for: Large volumes Demand aggregation Standardized goods Low price volatility Slow obsolescence Development of Frame contracts or Auction Service Provider to other public bodies Need for: Large volumes Demand aggregation Or Specialized goods High price volatility Rapid obsolescence Direct order or RFQ Many-to-Many approach Supplier defined e-Catalogue Need for: Low cost goods Spot purchasing Highly fragmented offer Above and Below EU Threshold Below EU Threshold

Contract and Tender documents Frame contract - Process simplification Consip’s activities Demand analysis* Supplier Selection Goods services delivery PA Contract and Tender documents Contract award Payment Litigation On-line order Reduction of administrative procedures for both PA’s and suppliers * Made in cooperation with the PA

Public Administrations eMarketplace eCatalogue where selected suppliers “display” goods and services, and public administrations make purchases (below the EU threshold) by using two possible tools: “direct purchases from the eCatalogue” (DPs) and “requests for quotation” (RFQs) Actors on the eCatalogue MEF/Consip Market maker Support to both sides of the market Firms Public Administrations Marketplace The eCatalogue represents Consip’s main strategy to foster participation of SME’s in the public procurement market

eMarketplace: the market in a snapshot Demand side: Registered users/Purchasing Units (PUs): 1.525 (Jan-Aug ‘08), 7.565 (cumulative) Active users (‘til Aug ‘08): 3.296 Number of transactions (DPs + RFQs): 30.672 (Jan-Aug ‘08), 83.110 (cumulative) Transactions value: 83.420.000€ (Jan-Aug ‘08), 243.231.000€ (cumulative); average transaction value 2.719€ (Jan-Aug ‘08) Supply side: Registered-active suppliers: 1.233 Number of items: 158.581 Items categories (‘til Dec ‘07): 43,5% ICT, 34,5% Office supplies, 14% Services, 1% Health Materials and 7% others.

Key Performance Indicators of the Programme “Outward-looking” measures KPI 1 KPI 2 “Value of purchases through NFCs per unit of investment”(€) “Savings per unit of investment” (€) 2008 Each euro invested in the Programme has generated euro 66,7 in transactions through the NFCs system (compounded average growth rate in the period 2005-08: +50%) 2008 Each euro invested in the Programme has generated euro 66,8 of savings (compounded average growth rate in the period 2005-08 : +12%)