Gian Luigi Albano, Ph.D.Head of R&DItalian Public Procurement Agency (Consip S.p.A.)Email: gianluigi.albano@tesoro.it

Rome, 10th December 2008

A brief look at Consip’s e-Procurement Strategies

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…

1997

managementand development of

ICT services for the MEF

2000

e-Procurement for Public Administrations

MEF PAs

Support to the adoption of e-procurement

tools

Consip S.p.A.

Consultancy on Technical and Organizational

Projects

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)

Public e-Procurement

2000

IT services

for MEF

Eprocurement

1997

PAs

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 SpendingOptimization

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

The main goals of the e-Proc strategies

Italian Public Procurement Portal www.acquistinretepa.it

eshopseshops eMarketplaceeMarketplace

Purchases within frame contracts Direct Purchases Many-to-one approach Need for:

Large volumes Demand aggregation Standardized goods Low price volatility Slow obsolescence

On line tendersOn line tenders

Development of Frame contracts or Auction Service Provider to other public bodies

Need for:Large volumesDemand aggregationOr Specialized goodsHigh price volatilityRapid 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

Eprocurement Platform

www.acquistinretepa.it

Frame contracts

Consip’s activities

Demand analysis*

Supplier Selection

On-line order

Litigation

Contract award

Contract and

Tender document

s

Goods services delivery

Payment

Frame contract - Process simplification

PA

Reduction of administrative procedures for both PA’s and suppliers

* Made in cooperation with the PA* Made in cooperation with the PA

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)

Marketplace

Actors on the eCatalogue

MEF/Consip

•Market maker•Support to both sides of the market

Firms Public Administrations

The eCatalogue represents Consip’s main strategy to foster participation of SME’s in the public procurement market

eMarketplace

Demand side:

• Registered users/Purchasing Units (PUs): 1.525 (Jan-Aug ‘08), 7.565 (cumulative)

• Active users (‘til Aug ‘08): 3.296

• Number of transactions (DPs + RFQs): 30.672 (Jan-Aug ‘08), 83.110 (cumulative)

• Transactions value: 83.420.000€ (Jan-Aug ‘08), 243.231.000€ (cumulative); average transaction value 2.719€ (Jan-Aug ‘08)

Supply side:

• Registered-active suppliers: 1.233

• Number of items: 158.581

• Items categories (‘til Dec ‘07): 43,5% ICT, 34,5% Office supplies, 14% Services, 1% Health Materials and 7% others.

eMarketplace: the market in a snapshot

Key Performance Indicators of the Programme

“Outward-looking” measures

KPI 1 KPI 1 KPI 2KPI 2

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 2005-

08: +50%)

2008 Each euro invested in the Programme has generated euro 66,8 of savings

(compounded average growth rate in the period 2005-08 : +12%)

“Value of purchases through NFCs per unit of investment”(€) “Savings per unit of investment” (€)

19,9

35,841,9

66,7

2005 2006 2007 2008 FCT

47,1

73,6

99,6

66,8

2005 2006 2007 2008 FCT