© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. Centralised purchasing: it makes sense! Saving money.

Apresentação em tema: "© 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. Centralised purchasing: it makes sense! Saving money."— Transcrição da apresentação:

1 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. Centralised purchasing: it makes sense! Saving money and becoming efficient by developing Framework Agreements 9 th Public Procurement Exchange Platform Skopje | May 2013

2 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 2 Community/ Society Community/ Society Contractors/ Suppliers Contractors/ Suppliers eSPap Interministerial Advisory Committee Government Contracting authorities and entities (mandatory and voluntary) Ministry of Finance UMC (11) 2 UMC = MPU: Ministerial Purchasing Units Key Stakeholders Portuguese Public Procurement system SNCP

3 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 3 Portuguese Public Procurement system eSPap - the new managing entity Public Procurement Planning & Organizational Development State Fleet & Logistics Legal Support Board Finance & Administration Human Resources Management General Administration Client & Service Management Process Management & Innovation Client Management & Innovation Finance Business Development Finance Shared Services Roll-Out Human Resources Business Development Human Resources Shared Services Roll- Out Human Resources Shared Services Systems Administration Security, Data Center & Communications New Products & Capacity Management Project & Product Management Business Requirements & Processes IT Architecture & Software Engineering Competence Center ERP & BI Budget & Treasury Applications Portfolio Management, SLA & Sourcing IT Architecture & System Development IT Infrastructure & Operations Service Desk, Monitoring & Support Shared Services Center Finance Shared Services

4 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 4 Framework Agreement Centralization Selecting suppliers and awarding the best proposals for each Framework Agreement (FA). 6 to 8 months. Acquisitions of goods and services categories available in the framework agreements (Call Off Stage / mini-competition) Supplier technical and financial selection criteria Technical and functional requisites, contract requirements and economic proposal evaluation Contract awarded to the most economically advantageous tenders OR to the lowest price tenders Public Tender announced via OJEU notice. Tender documentation available online Invitation for tendering to all the awarded suppliers (FA contractors). Minimum 5 days E-auction or traditional negotiation Best proposal (the most economically advantageous proposal OR the lowest price), as defined on the FA Centralization of acquisitions of goods and services under the FAs eSPap Ministry Purchasing Units (MPU) eSPap can opt to centralize the acquisitions of goods and services covered by the FA (example: Vehicles and Vehicle Insurance) Purchase of goods and services categories under the FAs are mandatory for the central public administration Centralised Model - Framework Agreement (FA) for Contracts and Acquisitions Public Tender Supplier Selection Request for Proposals Awarded Suppliers Request for Proposals NegotiationAwarding Centralised Purchasing System Portuguese model

5 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 5 Spending categories Car and Motorcycle InsuranceCleaning Services and ProductsElectric VehiclesEnergy (incl. Electricity)E-procurement ToolsFuel and LGPHardware and IT equipmentLandline Communications (voice and data)MealsMobile CommunicationsPaper and StationeryPrinting and CopyingSecurity and Surveillance ServicesOffice FurnitureSoftware LicensingTravel and AccommodationVehicles and Motorcycles Valid as of Feb 2011Aug 2010Sep 2011Nov 2011Jun 2009Sep 2012Aug 2011Jun 2010Jul 2010Oct 2012Apr 2011 Apr 2010Mar 2010Sep 2009Sep 2011June 2012 FA Contractors 2151035318543302186771314 Centralised Purchasing System Selection of Framework Agreements FA in “waves” Criteria: - Public Expenditures - Common Use - Quick wins - Strategic Sourcing The renewal rate of framework agreements in 2011/12 was 33%, stimulating competition and larger presence of SMES Waves 2 nd 1 st 3 rd 1 st 2 nd 3 rd 1 st 3 rd 2 nd

6 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 6 In the contract notice eSPap identifies that all mandatory entities (State Direct Administration Services and Public Institutes) and voluntary entities (Local Authorities (Municipalities), Local Authorities’ Owned Companies, Regional Authorities and State Owned Companies) are party to the framework agreement. Mandatory entities: + 1800 entities Voluntary entities: around 500..... framework agreements can only be used between the contracting authorities and the economic operators originally party to the framework agreement. When a framework agreement is to be used by several contracting authorities, therefore, these contracting authorities must be identified explicitly in the contract notice, either by naming them directly in the notice itself or through reference to other documents (e.g. the specifications or a list available from one of the contracting authorities [ ], etc.). Centralised Purchasing System Parties to the framework agreement

7 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 7 With a single economic operator - Framework agreements not used by eSPap Contracts based on framework agreements concluded with several economic operators may be awarded either: a) by application of the terms laid down in the framework agreement without reopening competition, or Where a framework agreement is concluded with a single economic operator, contracts based on that agreement shall be awarded within the limits of the terms laid down in the framework agreement. For the award of those contracts, contracting authorities may consult the operator party to the framework agreement in writing, requesting it to support its tender as necessary. With several economic operators b) where not all the terms are laid down in the framework agreement, when the parties are again in competition on the basis of the same and, if necessary, more precisely formulated terms, and, where appropriate, other terms referred to in the specifications of the framework agreement, in accordance with the following procedure: (a) for every contract to be awarded, contracting authorities shall consult in writing the economic operators capable of performing the contract;...... (d) contracting authorities shall award each contract to the tenderer who has submitted the best tender on the basis of the award criteria set out in the specifications of the framework agreement. eSPap Framework Agreements Centralised Purchasing System Suppliers

8 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 8 Centralised Purchasing System Major aspects of a framework agreement Duration of framework: up to 4 years ( usually 2 + 1 + 1 ) FA concluded with several economic operators For every contract to be awarded, contracting authorities shall consult the economic operators capable of performing the contract (using ePlatform) Public tenders or Public Tender (restricted procedure) Use of electronic platform (mandatory)

9 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 9 The National Public Procurement Plan Assessing needs and planning demand UMC collects and validates information Aggregation of demand according to the types of goods and services needed Integration of information from different ministries Purchasing entities identify needs and estimate budget Preparation of draft version of the National Public Procurement Plan Ministry level 9 Reception and evaluation of changes Negotiation and final settings Meeting of the CIC commission and preparation of the Final National PP Plan Version sent for validation and approval Formal approval of the Ministry of Finance Publication of the National PP Plan eSPap, UMC and CIC eSPap

10 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 10 Conceptual model by eSPap Public Administration Consultation Technical Validation by experts Public Consultation Identification of annual expense, incl. historical trends and forecasts Evaluation of the public administration needs Market´s solutions review Concept model and technical solutions review with all ministries Preparation of technological solutions to include in the FA Term of the framework agreement, FA criteria award,... Review and validation of products and services specifications Economical operators, associations, public administration & citizens Centralised Purchasing System Identification of goods/services/works to establish a FA

11 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 11 Centralised Purchasing System Calculation of contract values for the framework contract No value contract at FA level Public tender / Public Tender (restricted procedure) are advertised on OJEU There are no limit to the value of the contracts to be awarded under a framework agreement

12 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 12 Centralised Purchasing System Dividing contracts/Subcontracting Through the Portuguese e-procurement solution, SMEs are able to better access public markets, either isolated or in association, in order to improve scale. In designing the tenders, several measures were taken according to the principles of the European SBA, like creation of lots, regionally and by size, adaptation of requisites to the economic dimension of the markets, multi-access criteria or allowing subcontracting. Currently SMES account for 70% of the System’s 250 suppliers.

13 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 13 Identification of Needs (Purchasers Entities) Aggregation of Needs (UMC/eSPap) Call offs documents Invitation to all FA economical operators Conduct needs assessment of the entities Standardize the technical requirements Aggregate demand and validate expenditure/spending approvals Use of the eSPap eCatalogue Prepare tender/invitation documents (based on standard) Comply with the requirements and award criteria defined in the framework agreement Use of eSPap ePlatform Invitation to all FA economical operators Contractors obligation of responding to all calls CALL OFF under eSPap FA Centralised Purchasing System Organizing mini-competition/ call off without competition

14 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 14 CALL OFF under eSPap FA Improving Attributes of Proposals Awarding Report and Monitoring E-auction or traditional negotiation Best proposal (MEAT or the lowest price, as defined on the FA) Notify decision to other suppliers (ePlatform) Contracting authorities must: Monitor the conditions of supply / delivery Produce and submit award reports to eSPap FA contractors must: Meet the conditions agreed in contracts Report billing reports to the Agency, UMC and entities, within the time specified in the FA Centralised Purchasing System Organizing mini-competition/ call off without competition

15 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 15 Aggregation: a)Internal b)External, UMC, CPB or third party To aggregate it is necessary to: Understand available goods and services in the Catalogue Define rules: duration of contract, timeline, formularies, documentation, etc Centralised Purchasing System Identifying needs and aggregation methodologies

16 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 16 Best practices Do not include all goods and services – rationalise »Advantages: Order management Stock management Invoice management Assess and plan needs (at least one year ahead, but it is possible to adapt to each category and/or FA) Define clearly the rules, but be flexible if necessary Centralised Purchasing System Identifying needs and aggregation methodologies

17 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 17 FAs developed by eSPap allow both situations: a)MEAT b)The lowest price Individual contracting authorities, within the FAs, will fit MEAT criteria / weights to their individual situation or chose the lowest price. Centralised Purchasing System Pricing mechanisms and MEAT evaluation within the frameworks

18 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 18 FALotsRegionSubcontracting Contractors / SME Paper & Stationary Paper Stationary Consumables NoYes 30 / 26 Printing & Copying Scanning Fax Portable printers Printers (Low, medium, high performance) Combine lot No Yes 21 / 18 Cleaning Services & Products Services Products North, South, Alentejo, Lisbon, Algarve, Azores, Madeira and National Level. (NUTS II) Yes 15 / 10 Security &Surveillance Services Surveillance Alarm Receiving Centre & Monitoring services Combine lot Yes 8 / 0 North, South, Alentejo, Lisbon, Algarve, Azores, Madeira and National Level. (NUTS II) NUTS: Nomenclature of territorial units for statistics / NUTS II (Basic regions for the application of regional policies) Centralised Purchasing System Pricing mechanisms and MEAT evaluation within the frameworks

19 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 19 Centralised Purchasing System Financing structure Operations are funded by charging fees on suppliers that are part of the framework agreements. No fees are charged on public buyers. There are only fixed rates in each framework agreement that are charged to suppliers based on their invoicing amount to public entities under the framework (purchases). Rate range: from to 0.5% up to 3%. The usage of the e-procurement tools is free of charge:  Electricity: 0.5%  Software, Vehicle Insurance and Mobile communications: 3%  Vehicles: 2%  Fuel: 1 cent per litre  All other framework agreements: 1% Framework fees are calculated to support the setting up and managing costs, but also operating costs. The fees take in consideration the relevance of each category of goods and services, in terms of market size, margins and relevance. In the last two year they covered 100% of operations.

20 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 20 Centralised Purchasing System Centralisation = efficency and transparency Decide on the rules and mandatory/voluntary approach, incl. penalties Streamline processes and aggregation flows Create a sound expenditure approval model (internal and external) Design mechanisms to support procurement policies (SME, GPP) Promote integration of information, report and monitoring Assure publication of contracts awarded under the system in a portal, in order to promote transparency and trust

21 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 21 Centralised Purchasing System Results of SNCP Savings, transational and processual (M Euros) 17,5

22 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 22 IT Framework | Setting up the framework agreement model Conceptual model Public Administration Consultation Public Consultation Identification of annual expense Identification of bad practices in public sector Evaluation of the public administration needs Analysis of potential savings attached to the amount of the estimated expense Market´s solutions review and link to the public administration needs Concept model and technical solutions review with all ministries Preparation of technological solutions to include in the FA Term of the framework agreement, FA criteria award,... Review and validation of products and services specifications Submission to public consultation to collect contributions from general public and citizens, businesses associations, stakeholders,... Technical Validation by main IT entities

23 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 23 IT Framework | Products and equipments Personal Computers Desktop Rack Servers Desktop/Laptop/ Servers/Others Servers Peripherals Laptop Blade System Standard Desktop High performance Desktop Standard Laptop High performance Laptop Small Laptop Netbook Standard rack server High performance rack server Standard Blade System High performance Blade System Storage Display Others

24 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 24 IT Framework | Public Tender - Restricted procedure Technical and financial selection criteria: Experience (at least 5 customers of € 50.000 each) EBITDA Number of workers Years in the market NP EN ISO 9001:2008 e NP EN ISO 14001:2004 In this procedure: from 36 candidates, 32 passed to the 2 nd step 1st step QUALIFICATION 2nd step Invitation for bid Selection criteria: Economically most advantageous offer based on: Price Energy efficiency Manufacturer environmental certification

25 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 25 IT Framework | Proposals Desktop computer Laptop computer Keyboard + mouse + Display TFT 17” + RAM memory + OS+ technical assistance….. Mouse + RAM memory + keyboard + transport case+ security cable+ docking station + OS+ technical assistance……. + + The tenderers must identify equipments, accessories, peripherals, OS and their technical features, and also quote their maximum price. Basis equipmentAdditional products and options Example:

26 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 26 IT Framework | Lots/Competitiveness Lots Selected candidates Proposals to be awarded Competitiveness Lot 1 - Desktop computers; 2210 Lot 2 - Laptop computers; 1910 Lot 3 - Rack servers; 2610 Lot 4 - Blade servers; 1610 Lot 5 - Components, accessories and peripherals; 2810 Lot 6 - Aggregate purchase of desktop and portable computers; 2110 Lot 7 - Desktop computers and laptops renting; 610 Potentially lack of competition at FA level Lot 8 – Rack servers renting; 410 Lot 9 - Blade servers renting. 210 The competitiveness was assured in the first six lots but in the seventh, eights and ninths there was some lack of it due to the renting type of provide, quite unusual in the public sector. Lots / Number of bids

27 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 27 IT Framework | Awards criteria The award criteria for the framework agreement tender was the economically most advantageous offer based on: Price Energy efficiency Manufacturer environmental certification Additionally all the products and equipments must fulfill technical / environmental requirements as well as required SLAs In the call offs under the FA, the award criteria must be one of the following: The lowest price or: The economically most advantageous offer based on: Price and: Environmental/ Energy efficiency, and/or Time to delivery, and/or Technical and functional adequacy, and/or Warranty period FA – Award criteria (1 st phase) Call offs – Award Criteria (2 nd phase)

28 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 28 IT Framework | FA upgrade Product upgrade during FA length (usually 2 years) Can occur: By eSPap initiative or By contractors request (typically due to a product discontinuation) However, the new proposals must: Maintain or decrease price offer Maintain brand/maker Maintain or improve technical specifications

29 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 29 IT Framework | Main issues Diversity of public administration key needs Solved by constitution of lots with several package solutions which fit in the majority of requests (laptop, desktop, netbook, rack server, blade server, standard, high performance,...) Market diversity and modularity Solved by division on lots by product category attached with various possible combinations of peripherals, accessories and additional options for upgrade to ensure and optimize their adaptability FA Product upgrade/update Solved by availability of update procedure during FA length Performance assurance Solved due the use of a settled requirement benchmark rating (Sysmark 2007: scenario office productivity/ Mobilemark 2007: performance qualification / Mobilemark 2007: battery life/ SPEC CPU 2006 – CINT 2006 Baseline) Due to legal risk, eSPap did not request or refer any model /brand of processor (or other with similar performance). Instead we defined a level according to an official and accepted benchmark (Bapco and SPEC) Main issues and difficulties

30 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 30 Centralised Management Model of the State Fleet (PVE) ●Redefining the Legal Framework: ●Publication of a new legal decree law for the State Fleet (DL n.º 170/2008) ●Publication of other Regulatory Documents ●Legal Obligations of organizations and services using the State Fleet ●Providing the State Fleet Management System (SGPVE) ●Public tenders to select suppliers of motor vehicles as well as insurance services through frameworks agreements ●The acquisition of motor vehicles is an exclusive competency of eSPap ●Call-off process under the framework agreements for vehicles and insurances ●Access to the PVE Services by voluntary bodies

31 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 31 State Fleet – Some numbers Year# Vehicles∆ #∆ % 200928.793 201028.350-443-1,5% 201127.692-658-2,3% 201227.279-413-1,5% ●Since the implementation of the centralised management model of State Fleet we purchased around 1800 vehicles, with a 30% overall savings ratio.

32 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 32 Framework Agreements for Vehicles and Motorcycles (AQ-VAM), Electric Vehicles (AQ-VE) and Insurance (AQ-SA) AQ – VAM and AQ-VE Defines technical requirements: ●Displacement, capacity ranges, weight, number of wheels, doors, places, wheelbase, height, length, minimum equipment, permitted load and other specs. 103 lots grouped in 6 typologies of vehicles: 5 groups for acquisition: motorcycles, Heavy Goods Vehicles (HGV’s), Heavy Passenger Vehicles, ambulances, passenger cars and light commercial vehicles 1 group for operational leasing of passenger cars and light commercial vehicles Effective for two years, automatically renewed for one year up to a maximum of 4 years Defines obligations of suppliers and service levels to comply with before the purchasing entities and eSPap Sets penalties applicable to suppliers for failure to comply with the obligations Sets deadlines for payment Foresees management reports, which are the key to a detailed analysis and to support future decision-making process Sets the maximum prices in place during the validity period, with the possibility to improve by negotiating during the tender Defines products and suppliers

33 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 33 Call-off process under the framework agreements for vehicles and insurance eSPap validates the request Aggregation process of requests according to the types of vehicles needed Preparation of the Call-off Documents (Invitation and Specifications) Users send the request through SGPVE (purchasing entities) eSPap Board approves the Call- off State Fleet Management System (SGPVE) 33 Proposals Reception and evaluation Negotiation Preparation of the Preliminary Report Release of the Call-off Preparation of the Final Report Awarding eSPap E-Procurement Electronic Platform A Paper and electronic

34 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 34 Call-off process under the framework agreements for vehicles and insurance Bank garantee (if contract > 200K €) Signing of the contract Court of Auditors (if contract > 350K €) Qualification documents Delivery of the new vehicles, legal destruction of the old ones A Preparation of Awarding Reports eSPap E-Procurement Electronic Platform

35 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 35 Budget planning and cost control Changing variable into fixed costs: Include variable cost components in the contract price Consider maintenance costs if necessary

36 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 36 Framework agreement Bidding documents Tender program / Invitation to tender Definition of lots: 8 Definition of price: min. discount (cents per litre) over reference price (eg. Fuel) Awarding criteria for the FA – best discount offered per lot (weighted %) Tender specifications / Terms of reference Definitions, duration of the FA Obligations of the parties Auditing Acquisitions under the framework agreement Awarding criteria Duration of contracts under the FA Conditions and payment terms SLA’s, technical and functional requirements (minimum) Reporting and monitoring Fee to the managing entity Penalties

37 © 2012 eSPap | Entidade de Serviços Partilhados da Administração Pública, I.P. | Direitos reservados. | 37 FA and call-offs Invitation to tender Type of procedure, and object of the tender Contracting authority Decision to contract Registration in the e-platform Clarifications and rectifications Errors and omissions Tender documents Price proposal Variants of the proposal Minimum period validity (Duration) of the proposal E-signature Term to present proposals List of competitors and consultation of proposals Awarding criteria Electronic aution Qualification documents Possibility to group Costs of the proposal Technical support regarding the e-platform Period counting in the formation phase of the Framework Agreement

38 Juntos, partilhamos eficiência