Federal Procurement Agency in Austria - Chances and risks of central public procurement

11EU Public Procurement Lab Meeting - LoEU Public Procurement Lab Meeting - Londonndon (c) Kathrin Hornbanger, MBL-HSG(c) Kathrin Hornbanger, MBL-HSG

Federal Procurement Agency in Austria - Chances and risks of central public procurement

THE AUSTRIAN FEDERAL PROCUREMENT COMPANY LTD BUNDESBESCHAFFUNG GMBH - BBG

Dr. Kathrin Hornbanger, MBL-HSG


Dezentralisation of Public Procurement leads to: Dezentralisation of Public Procurement leads to:

Differing Methods, Procedures & StandardsDiffering Methods, Procedures & Standards Loss of SynergiesLoss of Synergies

Market Power of Public Demand used inadequatelyMarket Power of Public Demand used inadequately

Substantial Loss of Public Ressources

Rationale For Central Purchasing of Public Authorities


Aggregation of Public Demand Aggregation of Public Demand Optimization of Procurement Methods through Spezialisation Optimization of Procurement Methods through Spezialisation

& Significant Reduction of Tendering Procedures& Significant Reduction of Tendering Procedures Establishment of Austrian Federal Procurement Company Ltd. Establishment of Austrian Federal Procurement Company Ltd.

by June, 2001by June, 2001

Centralisation of Public ProcurementCentralisation of Public Procurement

Solution


Demand AggregationDemand Aggregation StandardisationStandardisation Optimization of Purchasing Conditions Optimization of Purchasing Conditions Process SimplificationProcess Simplification TransparencyTransparency Broaden CompetitionBroaden Competition

Improve Efficiency of Public Procurement & Reduce Improve Efficiency of Public Procurement & Reduce Public ExpenditurePublic Expenditure

Objectives


Needs AnalysisNeeds Analysis Document Draft for TenderDocument Draft for Tender Supplier SelectionSupplier Selection Conclusion of ContractConclusion of Contract Provision of CataloguesProvision of Catalogues Market Survey & Analysis Market Survey & Analysis StandardisationStandardisation ControllingControlling Contract ManagementContract Management

Tendering Procedure & ControllingTendering Procedure & Controlling

Contract Management?Contract Management?

BBG Operations


Supplies & Services ContractsSupplies & Services Contracts Defintion of Goods of Services by Regulation Defintion of Goods of Services by Regulation

Economically Reasonable AggregationEconomically Reasonable Aggregation of Demandof Demand

BBG Operations


CompulsoryCompulsory Non CompulsoryNon Compulsory

Federal Administrations Must/May Use BBG ContratsFederal Administrations Must/May Use BBG Contrats

BBG Operations


IT Hard- and SoftwareIT Hard- and Software Photocopiers, Printers, Desktop PC´s & Maintenance Photocopiers, Printers, Desktop PC´s & Maintenance Paper & StationaryPaper & Stationary Utilities Utilities TelephoneTelephone TransportTransport Cars Cars Meal CouponsMeal Coupons IT Hard- and SoftwareIT Hard- and Software Facility ManagementFacility Management Office EquipementOffice Equipement Postal ServicesPostal Services

Fields of Activities


Pharma Pharma Labaratory EquipmentLabaratory Equipment Books, Newspapers, e-Media Books, Newspapers, e-Media Security ServicesSecurity Services Cleaning Cleaning FoodFood TextilesTextiles ChemicalsChemicals Insurance Insurance Facility Management Facility Management Metallic products, Machines, Tools ect.Metallic products, Machines, Tools ect. Electronics & MaintenanceElectronics & Maintenance

Federal Administratin Must Use BBG ContractsFederal Administratin Must Use BBG Contracts



TrainingTraining Project ManagementProject Management Public RelationsPublic Relations Individual RequestsIndividual Requests

Federal Administration May Use BBG ContractsFederal Administration May Use BBG Contracts



BBG Procurement agendaBBG Procurement agenda Orders from BBG ContractsOrders from BBG Contracts

20022002 20032003 Steigerung in %Steigerung in %

FurnitureFurniture 4.8774.877 100%100%

EnergyEnergy 72.03572.035 101.431101.431 41%41%

TelecommunicationTelecommunication 47.25047.250 35.93735.937 -24%-24%

Security of buildingsSecurity of buildings 1.5571.557 100%100%

CleaningCleaning 3.7273.727 20.84820.848 459%459%

Facility ManagementFacility Management 281281 100%100%

Motor PoolMotor Pool 44.22444.224 14.34314.343 -68%-68%

Hardware and machinesHardware and machines 1.3301.330 100%100%

Fuel incl. lubricantsFuel incl. lubricants 22.50322.503 35.99635.996 60%60%

Electric euquipmentElectric euquipment 1.6171.617 100%100%

Transport and TravelingTransport and Traveling 15.12915.129 22.85922.859 51%51%

Office materialOffice material 3.3333.333 100%100%

IT-HardwareIT-Hardware 26.74526.745 45.94045.940 72%72%

Office machinesOffice machines 524524 100%100%

IT-SoftwareIT-Software 14.52814.528 30.54430.544 110%110%

PharmaPharma 2.4982.498 100%100%

Letter postLetter post 49.16449.164 51.98951.989 6%6%

TotalTotal 295.305295.305 377.737377.737 28%28%


Total Volume 2003

Federal dedicated to ministries€ 215.265

Not dedicated to federal

administration€ 39.041

Federal not dedicated to

ministries€ 123.432

Orders € 377,7 million

BBG Procurement volumeBBG Procurement volume


Public Companies owned by the StatePublic Companies owned by the State Regional Governments, Cities, MunicipalitiesRegional Governments, Cities, Municipalities UniversitiesUniversities Health SectorHealth Sector

These Entities May Use the Services of BBGThese Entities May Use the Services of BBG

Other Users


Demand Aggregation Demand Aggregation Lack of Adequate Accounting & Controlling SystemLack of Adequate Accounting & Controlling System Technical SpecificationsTechnical Specifications Cooperation & Communication with Clients = MinistriesCooperation & Communication with Clients = Ministries

Establishment of New Internal ProceduresEstablishment of New Internal Procedures

New Coordination EffortsNew Coordination Efforts

Hidden CostsHidden Costs

Lessons Learned I


Changing of Public Demand Changing of Public Demand Impossiblity of Knowing the Exact Need Impossiblity of Knowing the Exact Need Limits of Standardisation Limits of Standardisation Open Contracts & CataloguesOpen Contracts & Catalogues Product DevelopementsProduct Developements Length of Tendering ProceduresLength of Tendering Procedures

Need for More Flexible Purchasing TechniquesNeed for More Flexible Purchasing Techniques

Framework AgreementsFramework Agreements

E-shopE-shop

Lessons Learned II


Formal Requirements May be on the Detriment of CompetitionFormal Requirements May be on the Detriment of Competition List of Qualified Suppliers?List of Qualified Suppliers? Obscure ProvisionsObscure Provisions Increasing Need of SpecialistsIncreasing Need of Specialists Cost of BiddingCost of Bidding Multiplicity of TresholdsMultiplicity of Tresholds LitigationLitigation

Need for Simplification of Existing Legal FrameworkNeed for Simplification of Existing Legal Framework

Lessons Learned III


Closed MarketsClosed Markets SMMESMME

Better Value for Money Can Only be Achieved Better Value for Money Can Only be Achieved through Competitionthrough Competition

Lessons Learned IV


Standard Terms and Conditions Standard Terms and Conditions

rarley provide the most efficient solutionrarley provide the most efficient solution Intellectual Property RightsIntellectual Property Rights Liability ProvisionsLiability Provisions

Individual Solutions as Best PracticeIndividual Solutions as Best Practice

Need to Create Comparable ConditionsNeed to Create Comparable Conditions

Reduce Risks for Bidders and Save MoneyReduce Risks for Bidders and Save Money

Lessons Learned V


Electronic Tender Notice Electronic Tender Notice Information Platform – Information Platform – www.bbg.gv.atwww.bbg.gv.at; www.auftrag.at; www.auftrag.at Electronic Provision of Tendering DocumentsElectronic Provision of Tendering Documents Clear & Defined ProceduresClear & Defined Procedures

Transparency of Public DemandTransparency of Public Demand

E-procurement


Key Succes FactorsKey Succes Factors

ObjectivityObjectivity ProfessionalismProfessionalism InnovationInnovation SpeedSpeed e-tendering, e-shope-tendering, e-shop Process SimplificationProcess Simplification e-tendering, e-shope-tendering, e-shop Transparency Transparency e-tendering, e-shope-tendering, e-shop ControllingControlling e-shope-shop Information PlatformInformation Platform e-tenderinge-tendering Broaden CompetitionBroaden Competition e-tendering?e-tendering?

Achieve High Acceptance by Clients & SuppliersAchieve High Acceptance by Clients & SuppliersReduce Public SpendingReduce Public Spending


E-shop.gv.atE-shop.gv.at

Pilot SystemPilot System Improve contract information Improve contract information Security through process definitionSecurity through process definition Time savingTime saving Reduction of coordination effortsReduction of coordination efforts TransparencyTransparency Implementation of strategic controllingImplementation of strategic controlling

Creating Acceptance of the System through Creating Acceptance of the System through Maximum Benefits for the UsersMaximum Benefits for the Users


For more information please contact our For more information please contact our web-side:web-side:

www.bbg.gv.atwww.bbg.gv.at

Legal Aspects:Legal Aspects:

Kathrin HornbangerKathrin Hornbanger

0043 1 245 70 320043 1 245 70 32

[email protected]@bbg.gv.at

E-shop:E-shop: eGov & eProcurement eGov & eProcurement

Johannes WimmerJohannes Wimmer Paul Humann Paul Humann

0043 1 245 70 420043 1 245 70 42 0043 1 245 70 14 0043 1 245 70 14




THANK YOUTHANK YOU

Federal Procurement Agency in Austria - Chances and risks of central public procurement

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