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Procurement Data and Tools to Benchmark Public Spending December 1 - - PowerPoint PPT Presentation
Procurement Data and Tools to Benchmark Public Spending December 1 - - PowerPoint PPT Presentation
Austrian Experience in Using Procurement Data and Tools to Benchmark Public Spending December 1 st , 2015 Dipl.Kfm. Uwe Flach Head of Marketing & Consulting Content Overview Public Procurement in Austria Federal Procurement Agency
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Austria – Federal System
Federation: 3 levels of Government
– Federal Government – 9 State Governments (Länder) – 2,357 Municipalities
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The legal system in the area of Public Procurement
National legislation was adopted to transpose EU Dir. (Directives 2004/18 and 2004/17, Remedies Directives) There is one law, the Public Procurement Act , which deals with PP in general and the review on federal level; There are 9 different laws, which deal with PP review on municipal and state level. There are several accompanying regulations
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Institutional System- Main Stakeholders
Federal Chancellery: drafting legislation, information functions Federal Procurement Agency (BBG): central purchasing body for the Federal State of Austria to execute procurement (bundle, standardize etc.) The Court of Audit: controls the necessity (as such) and the concrete conduct of public procurement procedures Federal Administrative Court: review body for entities at federal level Regional Administrative Courts: review body for entities at regional level (one for each of the nine Austrian provinces). Supreme Administrative Court: second instance
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Content
Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
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Federal Procurement Agency act as Central Procurement Body
Established by law: Federal Procurement Agency Act 2001 Portfolio assigned by Decree (Minister of Finance) Awards procedures based on Federal Procurement Act
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Federal entities are obliged by law to procure defined goods and services1) through the Federal Procurement Agency (BBG). Other public entities2) can use the services of the BBG but can also procure by themselves. When purchasing, all public entities are bound to the rules set in the Austrian Public Procurement Act.
1) procurement of non-military goods and services, (except construction) 2) Other public entities: Municipal or federal state authorities as well as entities financed by such authorities or being governed by or under the supervision of these authorities
Impact on Austrian Public Procurement Sector
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Our Objectives & Goals
Optimizing purchasing conditions & getting best value for money Reducing legal risks Contributing to a effect-oriented, efficient and transparent administration Optimizing procurement processes by means advanced IT Allow Ministries to concentrate on their core businesses Improve efficiency of public procurement & reduce public expenditure
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Our Solutions
Bundling public demand & joint tenders for framework agreements Standardisation of goods and services Making framework agreements available to the entire public sector Optimizing public purchasing procedures by providing comprehensive e-Procurement solutions Establishing an organization with procurement specialists (professionalization of staff) & consulting capabilities The Federal Procurement Agency was set up as a shared service provider
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Areas of our Business
Procurement
about 960,000 products are ready to be bought by all government authorities and cover 12 product-families – such as IT, office equipment or cleaning services etc.
Consulting
Projects on particular order by customers („PibA“) Consulting services in the fields of public procurement, procurement-organisation and in special product-ranges
e-Procurement Solutions
Provision of comprehensive and integrated solutions covering the entire procurement processes („e-Shop“ and „e-Reisen“ and e-Invoicing gateway)
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Advantages for all public authorities
Participation at a huge procurement market
(volume ca. 1.2 Billion Euro)
Optimal conditions (17.7% savings) 24/7 availability of goods and services
No own tendering procedures
Reduction of process-costs Legal certainty No risk allocation Standardized, periodic processes
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BBG: Procurement Service Provider
Customers Suppliers
Award procedures Ascertainment of requirements
Supplier X Agency X
Order Delivery Invoice e-Shop processing
BBG
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EU regulations impacting e-Procurement in public sector
e-Tendering - Directive 2014/24/EU
– 18. Apr 2016: Incorporation into national law – 18. Apr 2017: Central Purchasing Bodies will move to full electronic means of communication including electronic bid submission – 18. Oct 2018: e-submission should be made mandatory for all Public Contracting Authorities and all procurement procedures
e-Invoicing - Directive 2014/55/EU
– 27. Nov 2018: Public Contracting Authorities need to accept e- Invoices from suppliers
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Content
Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
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e-Procurement Process Landscape
planning electronic publication electronic tender electronic invoice electronic
- rder
electronic catalogue
Other applications (Contract Mgmt., CRM, Electronic signature, Electronic archive, Electronic act, etc.…) Organisational aspects und conditions (SLA, human factor, legal certainty and clarity, etc.…)
award
pre-award post-award
Illustrative
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BBG e-Procurement Landscape
„pre award“ Solutions „post award“ Solutions
e-Tendering Solution1) e-Shop
Multi-Supplier Catalogue / Staging
eInvoicing Service Portal e-Reisen
(Travel booking tool)
Other Applications
Contract Management (MDM) Document Management System Special Data Base BBG Portal CRM Survey of Demand (partially Survey Monkey)
Shopping tool / WF Mgmt Contract Information Platform Monitoring 1) Due to change in EU regulation (Directive 2014/24/EU) potential future solutions are currently under evaluation
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Pre-Award in Austria – Target
Clearing Center
Business operator Contracting authority
Workflow application Workflow application Workflow application interfaces
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Post-Award BBG Electronic Ordering Platforms
e-Shop
The e-Shop is the central purchasing portal of BBG. More than 1 Mio products & services can be ordered
- electronically. With a differentiated privilege-system all
acceptance sequences are visible for the customers. e-Reisen The travel online-booking-tool „e-Reisen“ allows direct electronic booking of business trips. Flights, hotels and rental cars can be compared and booked online.
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e-Shop as Central Purchasing Portal
The BBG e-Shop offers a central web based information and purchasing portal. It can be used as the single point of entry for all your buying related activities.
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e-Shop covers entire Post Award Process
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Central Invoice processing incl. e-Invoicing
BBG Customers BBG Suppliers e-Shop
e-Invoice Gateway
USP
CRM
Variant 1: Form based invoice generation Variant 2: Structured invoice transmission Federal clients: : Transmission via USP Non-federal clients: Different transmission types (PDF, XML) or download via e-Shop Master data sync.
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e-Reisen Our Online Travel Booking Tool
Highlights Cytric
Professional tool customized for public authorities Comprehensive user and right management Reporting tools 24 hours support hotline Reduced process costs for procurement prices according BBG and cytric agreements Planning and booking for all travel purposes – hotels, flights and cars – ordering according defined travel policies – approval workflow optional – connecting with travel agency – personal travel information – automatic billing and ticketing
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Content
Overview Public Procurement in Austria Federal Procurement Agency (BBG) Our e-Procurement Solutions Relevant KPI‘s and Benchmarking
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Important KPI‘s for BBG - overall
KPI Short Description BBG Value (2014)
Total procurement volume via CPB Total amount in Mio. EUR of the purchases processed through contracts and framework agreements established by the CPB. 1,183 Mio. EUR (see also graphics) Savings Total savings per year measured in procurement volume and/or Percent (based on bundling effects); No common formula existing for CPB’s 17,7% (see also graphics) Share of the relevant public procurement volume in the CPB's country Based on ca. 6 Billion EUR public procurement potential in the fields in which BBG is allowed to purchase. The figure is an estimation by BBG (potential does not include construction/real estate procurement and military procurement)
- Ca. 20%
Procurement volume per customer group of the CPB Customer groups defined for BBG (Federal, Universities, Health, Province/Municipalities, Public owned enterprises (Spin-offs) See graphics Procurement volume per purchasing area of the CPB Purchasing areas / product groups used by BBG (usually more they will differ per CPB) See graphics
- No. of successful award
procedures per year Number of procedures executed by BBG 150 (see also graphics)
- No. of unsuccessful award
procedures Number of procedures where an objection was sustained 1 (see also graphics) Number of customers Total number of public contracting authorities using CPB’s agreements 2129 Total Number of employees Number of employees in full time equivalents (FTE) within CPB 97 (see also graphics)
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Important KPI‘s for BBG – eProc.
KPI Short Description BBG Value (2014)
e-Procurement volume Total amount in EUR of purchases processed via electronic tools, such as electronic shops, electronic Marketplaces etc.
- Ca. 305 Mio EUR
(see also graphics) e-Invoice Reporting % of CPB contracts which are part of automated procurement reporting based on e-Invoicing 43% Contracts available via procurement portal % of BBG concluded agreements which are accessible for contracted customers via web based procurement portal 100% (currently ca. 1,900 contracts) Number of electronic catalogues Total Number of e-Catalogues available via e-procurement shopping tool 2200 Number of articles in catalogues Listed articles which can be found via search engine in the shopping tool
- Ca. 1.4 Mio
Number of electronic PO’s Number of created purchase orders via shopping tool (per year)
- Ca. 90,000
Number of active users Number of active users within the e-Procurment solution
- Ca. 18,000
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Important KPI‘s for the public sector (which we cannot measure)
KPI Short Description
Total spend of Public Procurement in AT Total amount in EUR of all organizations within public sector and which are subject to Public Procurement Act Maverick Buying How many orders or what volume of an organisation was ordered outside of defined and given buying channels / buying processes Public Procurement volume per public sector group public sector groups such as Federal, Universities, Health, Province/Municipalities, Public owned enterprises (Spin-offs) Public Procurement volume per purchasing area Purchasing areas / product groups defined on national product classification system Procurement ROI Cost effectiveness of procurement department comparing implemented cost savings with procurement department’s operating budget Costs per Purchase Order Calculation of costs to process an order (e.g. fixed overheads + variable costs) % of Spend managed by professional purchase department Managed spend by professional purchase department as % of total spend (spend which is managed via professional sourcing processes & procedures)
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Total Procurement Volume & Savings
Procurement volume 2014:
- 1,2 Billion Euro
Savings 2014:
- 17,7% (253 Mil. Euro)
Million Euro
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Procurement Volume per Customer Group of BBG
Procurement volume 2014: 1,2 Billion Euro Million Euro
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Procurement Volume per Purchasing Area of BBG
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Award Procedures per Year
Reflects legal certainty: Since its incorporation, the BBG has concluded 1802 award procedures. Only 92 cases were appealed – with only 23 of these complaints being successful for the plaintiff.
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The constant growing number of customers, contracts and services is reflected in the growing number of employees. 2014: Out of 101 employees there are 97 full time equivalent. The ratio between men and women is well balanced.
Number of BBG Employees
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e-Procurement Volume via e-Shop
Total Volume Volume e-Shop relevant Volume via e-Shop
Million Euro
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