1. Inter-American Development Bank
IDB Project Procurement – Inclusive Market Access
May 2015

2. US$800 billion Market for public procurement of LAC per year
LAC Public Procurement Market – Key Data
US$800 billion
Market for public procurement of LAC per year
15% of LAC’s GDP
Equivalent to a road that will go 48 times around the world

3. Programs for micro, small and medium-sized enterprises
LAC Public Procurement Market – Key Reforms during Past Decade
2012
Programs for micro, small and medium-sized enterprises
Implementation of e-commerce platforms
Creation of Specialized, independent procurement agencies
Business intelligence modules
New laws incorporating best practices
Professional development of public procurement officers
2002
Publication: “Efficiency and transparency in the public sector – advances in public procurement in Latin America and the Caribbean 2002 – 2012

4. LAC Public Procurement Market - Results of Reforms
Before Reforms
10 years after
Percentage of market published on the internet
<20%
70%
Amount of business opportunities available on the internet
<US$150bn
US$560bn
Annual savings through the use of inclusive procurement methods $0
US$30bn
Participation of bidders
Baseline
300%
LAC countries with SME promotion programs*
Baseline
81%
Participation of Small and Medium Size Enterprises (SME)
<10%
60%
Countries with legislation to promote participation by under-represented market segments
Baseline
42%
* 2 countries have programs supporting women participation on public procurement (Dominican Republic and Ecuador). 1 Country is implementing an inclusion policy with specific actions supporting women (Chile)

5. LAC Public Procurement Market – Future Challenges
Foster more competition in public procurement markets
Eliminate barriers to entry
Work with private sector in order to do reduce transaction cost, making enterprises more competitive
Develop strong E-GP Platforms and procedures that allow to do BI in order to take better decisions
Design a set of KPI for Public Procurement System in order to follow-up how national systems are performing
Develop a methodology that would allow to measure, in an objective manner, the impact of the inclusion of secondary objectives in Public Procurement
Establish a strong accountability policy that includes open data (in proper formats)
Mexico, Chile and Ecuador they do have BI platforms. Some other countries like Uruguay and Peru have monitoring systems. Paraguay just launched their OpenData portal. We have room to keep improving.

7. Key Public Procurement Reforms during Past Decade
Achieving strategic goals
Value for money
Contribute to achieving public sector’s goals. Public procurement is used as a mean to create jobs, strengthen the industry, support SMEs, promote regional development, innovation and sustainability
Accountability
Not only price is important (or price / quality), but that the value of goods and services acquired contribute to the substantive functions of the organization
Efficient use of resources
The main objective is to show that the work is being done well; that G&S are being acquired under the principle of best value for money and there is no waste of resources
Monitoring and Compliance
Supply and delivery of goods and services
It involves not spend more than necessary or obtain the maximum amount of G&S given a fixed amount of money
The regulatory compliance becomes the key element to prevent fraud and corruption
Obtaining the goods and services required in the quantities, time and place needed

8. Inclusive access : Foster Competition
IDB financed procurement processes - Key Principles
Efficiency
Economy
Transparency
Inclusive access : Foster Competition
Procurement processes are open to all bidders with the capacity to execute the contract:
Pass / Fail evaluation criteria levels the playing field for SMEs
All processes are widely advertised
All bidding documents are either free or affordable for potential bidders.