EU Public Procurement Learning Lab “Proposal for a Working Plan” Rome, November 28 th 2003

2/8 Rome, September Rationale for the EU Public Procurement Learning Lab Public procurement is becoming increasingly important within the European Union because it represents a channel through which Governments try to monitor current expenditure Procurement agencies have been recently created in Europe, while they have existed for longer in the United States Procurement entities face almost similar problems and difficulties related to new technology adoption, market supply transformation and change management complexity There exist, indeed, reasons to suggest that some coordination among procurement entities might be useful The proposal is to launch benchmarking activities and knowledge sharing among European procurement agencies. To this purpose the “Informal Cooperation” has been considered as an ideal field, and a “Learning Lab” on Public Procurement individuated as the appropriate tool.

3/8 Rome, September Time frame for the EU Public Procurement Learning Lab On December 1 st the Ministers of Public Administration will approve a Medium Term Program for Informal Cooperation, containing a timescale for the EU Public Procurement Learning Lab, planning a deadline by end 2004, for a first evaluation of the draft results of the Learning Lab regarding indicators and benchmarking methods In Rome Resolutions of December 2 nd and 3 rd 2003, the DG’s will approve the launch of the “EU Public Procurement Learning Lab”

4/8 Rome, September Expected results from the the EU Public Procurement Learning Lab The expected results of the EU Public Procurement Learning Lab have to be agreed upon by the participants. They should contain at least the identification of the issues to be addressed, the benchmarking methodology (e.g.: indicators, tools). Relevant results could be: Reports that illustrate the EU situation on specific topics Studies that analyse the higher or lower efficiency of specific practices Databases Suggestions to Ministers to enhance/update EU Directives etc.

5/8 Rome, September Organization the EU Public Procurement Learning Lab activity To launch the activities of the EU Public Procurement Learning Lab it is necessary to draft a Working Plan, agreeing upon: Objectives in the long run Activities Methods (create Work Groups of Countries willing to develop specific topics; a “leading Country on e) time-frame & meeting frequency (3 or 4 months) expected results by end 2004

6/8 Rome, September Content Proposals (1) To compare, across countries, the economic performances of different auctions and/or mechanisms, while focusing on: 1. Auction rules and price dynamics 2. Dual sourcing / procedures for managing dynamic competitions 3. Optimal number and lot size while designing an auction strategy 4. Entry and the issue of small-medium firms 5. Non-competitive behaviors 6. Price and quality comparison Economic Performances

7/8 Rome, September Content Proposals (2) Peer Support on Technical Knowledge Sharing There exist various technical problems concerning the development of new e-platforms. Opportunity exists for learning by doing, through technical knowledge-sharing across different procurement entities

8/8 Rome, September Content Proposals (3) There exist suppliers like multi-national companies that compete in auctions of various e-procurement agencies. In this context, it might be useful for procurement entities to share information about their supplier to monitor performance across EU Information Sharing on Suppliers

9/8 Rome, September Content Proposals (4) Procurement entities open local markets to Europe wide competition through appropriate EU compatible tenders, while ensuring the entry of foreign firms, and shaping, in some sense, future market-structure Market Shaping and EU Market Integration