1. Classification: Consip public “Critical Success Factors in Establishing a CPB ” Sofia, 9 December 2015 Angela Russo Head of International Cooperation Projects, Consip S.p.A angela.russo@consip.it

2. Classification: Consip public ENABLING FACTORS Step 1: set the CPB Goals Which goals does the Government want to achieve? Step 2: define the CPB Model Legislative framework Decide on which Financing Model/ownership/ business model Task, role and mission Identify the Regime, Range of Items and Clients Users Specify If and which Eprocurement Platform to be used Target my Staff and Skills Put in place Anticorruption Measures Major Steps to Set up a National CPB EF WATCH-OUTS SUGGESTIONS WATCH-OUTS SUGGESTIONS WA S

3. Classification: Consip public Step 1: set the CPB Goals WHY am I setting up a CPB? WHAT to achieve, which is my goal? URGENT NEED FOR CORRECT COMMUNICATION Major Steps to Set up a National CPB

4. Classification: Consip public The cost-benefit analysis supports the inclusion in the Directives of a clear set of provisions regulating aggregation, generally via CPBs. These structures are emerging as key hubs in the EU Procedures run through these structures should be visible to a wide range of market participants, traceable and less prone to conflicts of interest or subjectivity that may distort traditional procurement administration. CPBs are more professional and aggregation may permit greater strategic buying power Repetitive purchasing and issues of aggregation are inevitably evoked in the context of CPBs since the reason to establish them is usually to provide smaller contracting authorities with the benefits of economies of scale CPBs would improve the professionalisation of procurement as they would have the specialised skills and expertise in running procurement transactions. Through the aggregation of demand CPBs could significantly diminish costs of procedures. ….. MS could consider a range of CPB models, adapted to their circumstances and needs, this may mean the creation of more than one CPB, to allow vertical procurement (health) as well as horizontal (national, regional or local). The impact assessment concludes in favour of actions to strengthen administrative capacity by regulating CPBs, and to require MS to identify a national authority with responsibility for oversight of aggregate national purchasing and implementation of EU legislation Step 1:DG Impact Assessment Document-Considerations on CPBs

5. Classification: Consip public Step 1: set the CPB Goal CPB Definition in EU Public Procurement Directive IMPACT ASSESSMENT made by DG Internal Market in 2012 Accompanying the document Proposal for a Directive of the European Parliament and of the Council on Public Procurement Central Purchasing Bodies-CPBs are contracting authorities which either act as: wholesalers i.e. buy, stock and sell on to other contracting authorities or as Intermediaries i.e. award contracts or conclude framework agreements that will be used by other contracting authorities SKI DENMARK CONSIP ITALY HANSEL FINLAND UGAP FRANCE BBG AUSTRIA eSPAP PORTUGAL Rikiskaup ICELAND CROWN COMMERCIAL SERVICE UK…….

6. Classification: Consip public STEP 1-Communication Strategy WE ARE IN THE MIDDLE OF A REFORM WE ARE PROVIDING A NEW GOVERNMENT SERVICE Need/Duty to communicate correct messages regarding the reform Risk of misunderstandings and incorrect interpretations Risk of generating resistance to the reform New laws and rules Changes at the subjective and objective level New institutional players Macroeconomic scenario Need to build confidence and trust towards the Government and the CPB Communication as a tool to be transparent, accountable and closer to the citizen WHY? EF

7. Classification: Consip public Key messages: Why the PP reform is being implemented New legal framework Why the centralized system was set up Which goals are expected to be achieved Which actions will be carried out Which duties and obligations for each stakeholder involved Which benefits, for each stakeholder involved, deriving from the new PP system Why is the CPB positively or negatively perceived Deciding on what to communicate ANSWERS WILL PROVIDE: - CLEAR CPB VISION - COMMUNICATION STRATEGY WITH SPECIFIC ACTIONS AND PLANNING WHAT? EF STEP 1-Communication Strategy

8. Classification: Consip public Step 2: Define the CPB Model Legislative framework Decide on which Financing Model/ownership/ business model Task, role and mission Identify the Regime, Range of Items and Clients Users Specify If and which Eprocurement Platform to be used Target my Staff and Skills Put in place Anticorruption Measures Major Steps to Set up a National CPB

9. Classification: Consip public MEF entitled Consip to carry out the implementation of the Programme (OWNERSHIP) Eprocurement for Public Administrations The Programme is part of a bigger government project, the e-Government plan, aiming at implementing the technological innovation and digitalization process within the Italian public administration Financial Act 2000 (law n.488 – Dec. 23, 1999 art. 26) laid down the foundations for the Programme for the R ationalization of Public S pending on Goods and Services. Step 2 - Public Procurement Legal Framework (ownership…) Introducing innovative procurement tools and models aimed at public spending rationalization, enhancing simplification, transparency and competition

10. Classification: Consip public Consip and Regional CPBs InnovaPuglia Ente per la gestione accentrata dei servizi condivisi IntercentER DG Organizzazione – Settore Contratti So.Re.Sa. A.R.C.A. - Azienda Regionale Centrale Acquisti Coordinamento Regionale Acquisti per la Sanità SCR Piemonte Direzione Regionale Centrale Acquisti SUA – Stazione Unica Appaltante SUAM CAT Sardegna IN.VA (Centrale Unica di Committenza) Centrale di Committenza (Bolzano) Direzione Generale Dipartimento Stazione Unica Appaltante Agenzia Provinciale per gli Appalti e i Contratti (Trento) Umbria Salute S.U.A.R. – Stazione Unica Appaltante Regionale Consip  Article 1 law 296/2006  2007 budget law: network system among national and regional CPBs In order to harmonize the procurement plans of each CPB and make synergies  D.l. 66/2014 sets up the list of Italian Procurement Aggregators, governed by a working table and a leading committee…. Step 2 - Legal Framework EF

11. Classification: Consip public activities carried out by Consip Demand analysis* Supplier Selection On-line order Litigation Contract award Contract and Tender documents Goods services delivery Payment Centralization to achieve Process Simplification, Transparency and Savings PA * Based on data/information provided by central and local authorities Service level monitoring Step 2 – Task, Role and Mission Early stage objectives……improved and integrated in a more mature stage S

12. Classification: Consip public Framework Contracts – Main Implementation Phases Open consultation with relevant market Demand analysis and market analysis Opportunity identification and Feasibility Study deliverable Economic design of the tender Procurement strategy deliverable Tender documentation deliverable Authority opinion acquisition Tender documentation publication Framework Contract signing Tracking of orders issued and remaining product/service availability Contract unit/quantity/ time extension (if necessary) Supplier selection and contract award Framework Contract management Service level inspection Surveys analysis Complaint analysis Corrective measures Support to administrations during purchasing phases Feasibility study and definition of procurement strategy Service level monitoring Multistakeholder decision process Account Management Legal Department Sourcing Research Unit (R & D) Strategic Marketing Supply Monitoring Unit GPP Eprocurement strategies Step 2: Staff, Skills, Working Methodology EF S

13. Classification: Consip public Step 2: Which Regime, Range of Items and Clients Users CSF: correct eprocurement platform EF

14. Classification: Consip public 14 Comprehensive Set of ePurchasing Tools Framework Contracts - eshops e-Marketplace -MEPA  Large volumes  Demand aggregation  Standardized goods  Low price volatility On line FC  Direct order or RFQ  Low cost goods  Spot purchasing  Highly fragmented offer  ecatalogue Eprocurement portal - www.acquistinretepa.it 2000 2002 2004 2010/2012  On-line tenders in a structured and managed environment (two-stage procedures)  Standardised procedures for commonly used goods & services with customisation FA and DPS Framework Contracts MEPA Framework Agreements Above/Below EU Threshold Below EU threshold DPS Above/Below EU Consip as MARKET MAKERConsip as CONTRACTING AUTHORITY Step 2: Eprocurement Platform EF

15. Classification: Consip public Framework Agreements Dynamic Purchasing System Supply side … Buy side FrameworkContracts Standard Customised Concentrated Standardized Fragmented Specialised -The adoption of different tools is related to the market (buy and supply side) characteristics -More business opportunities for SME’s trough e-procurement -More autonomy for public authorities MEPA Choosing the appropriate eProcurement tool Step 2: Eprocurement Platform

16. Classification: Consip public Greater autonomy for the buyer Greater participation of SMEs … Consip role “MARKET MAKER” “Awarding Authority “ Evolution of Consip’s role- mature stage Framework Agreements Dynamic Purchasing System FrameworkContracts MEPA Step 2: Eprocurement Platform Adoption of new eprocurement tools calls for a strategic change in Consip’s role and capacity S

17. Classification: Consip public Back up

18. Classification: Consip public The Italian Public Administration: a fragmented scenario Population: ca 60 mln PA employees: 3.400.000 > 4.000.000 Enterprises Contracting Authorities: 32.000 ca. €90 bln expenditure on G&S in 2013 Ministries: 15 Regions: 20 Provinces: 110 Municipalities: 8.101 School system: Universities: 94 Schools: >10.000 Health Sector: >300 ITALY Local Government Central Government INDUSTRY 98% are SMEs Public Spending Optimization through EPROCUREMENT

19. Classification: Consip public The Italian public procurement system: new subjective level Public contracts can be awarded/managed by a galaxy of actors: Approx. 35,000 contracting authorities 21 (to date) Central Purchasing Bodies at the regional level (non-uniformly distributed over the country) A single Central Purchasing Body at the national level: Consip S.p.A. Law 66/2014 established a permanent group of “public procurement aggregators” to be populated by a plurality of subjects: the regional and the national CPBs, buying consortia and metropolitan cities