1. 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.)
Rome, 10th December 2008

2. 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

3. 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)

4. 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

5. Italian Public Procurement Portal

6. Above and Below EU Threshold
Eprocurement Platform
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

7. 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

8. 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

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

10. 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 : +50%)
2008 Each euro invested in the Programme has generated euro 66,8 of savings (compounded average growth rate in the period : +12%)