8/8/2019 ADB-SC Professional Public Procurement
1/37
Improving the Capability and Capacity ofPublic Procurement Professionals and
Government Agencies
Sarah Cotgreave, FCIPSSenior Procurement Specialist (Capacity Building and New Initiatives)
Central Operations Services OfficeAsian Development Bank
Asian Development Bank
8/8/2019 ADB-SC Professional Public Procurement
2/37
Agenda
Business Case for Professional Procurement Evolution of professional procurement
Role of Professional Associations
Professional Qualifications
Determining and Assessing Skills and Competence
Codes of Conduct
eProcurement Capacity Building
Agency Capability Reviews
8/8/2019 ADB-SC Professional Public Procurement
3/37
Many governments wish to increaseProcurement capability and capacity
The one area that has not received as much attention asit requires is in enhancing skills and professionalismin management of procurement.
how to put in place systems for sustainable skillsdevelopment and how to institute professionalism tomanage these newly reformed systems. Knowledge
exchange and technical assistance in this area would beof great benefit.
Robert R. Hunja August 2010, WBI
8/8/2019 ADB-SC Professional Public Procurement
4/37
Why should Ministers care aboutProfessional Public Procurement?
Ensure sufficient accountable and competent individualsand agencies controlling national expenditure
Public Procurement can be a tool for local, regional andnational economic development LM3
Reduce national expenditure and process costs, basedon foundation of competition, fairness and transparency: A competitive environment attractive to suppliers, lenders and donors
Value for money investment, e.g. in transport, utilities, education,health
More efficient use of tax revenues and government borrowing for publicbenefit
8/8/2019 ADB-SC Professional Public Procurement
5/37
Levels of Professionalism
National Framework Policy,
Standards and AssuranceAgency Capability Staffing,
Systems, Processes and Procedures
Individual - Qualifications andCompetence
8/8/2019 ADB-SC Professional Public Procurement
6/37
Maturity of Public Procurement: fromBuying to Commercial Directorate
RequisitionsOrdering
StoresManagement
Tendering
eProcurementNegotiations
ProfessionalProcurement
Sector andCategoryManagement
FrameworksContractManagement
SME and SupplierDevelopment
CompetencyAssessment andDevelopment
CommercialManagement ,Governance, andCompliance,
Concessions,
CapabilityAssessment
Economic
Development
CommercialPerformance
Improvement,Peer Reviews,
Efficiency,
Collaboration,
Shared Services,
Lean and SixSigma ProcessImprovement,
SuccessfulDelivery
A SEAT ON THEEXECUTIVEBOARD OFGOVERNMENT
AGENCIES
8/8/2019 ADB-SC Professional Public Procurement
7/37
How Public Procurements role has
developed
From: Buyer s Administrative Overhead
Process Manager
Procurement Police Operational
Administration
Problem Solver/Fire fighter
Risk Assessment
Procurement Manager
To: Commercial Directorates Value Add
Knowledge Managers
Commercial Acumen Tactical & Strategic Team Player
Internal Consultancy
Proactive and Innovator
Risk Management
Commercial Management
Concessions
PPP
Wider Markets
8/8/2019 ADB-SC Professional Public Procurement
8/37
Essentials of Professional PublicProcurement
Performance Improvement Successful Delivery
Effective public services
Value for money Good practice sharing
Peer review
Process Improvement Efficiency
Transparency
Standards / Benchmarks - ISO Risk Management
People and CompetencyImprovement Up-skilling
Accreditation Behavior change
Career paths
COLLABORATION WITH OTHER PROFESSIONS
8/8/2019 ADB-SC Professional Public Procurement
9/37
Elements of Professionalism
INPUT EXPECTED OUTPUT Procurement Policies, Compliance Measures
Procedures, Practices Added Value / Savings / Revenue
Codes of conduct Integrity/Ethical behavior Training Skills, Certification and Capacity
Qualifications Career Planning, Pride
Standards Quality
Measures Capability, Benchmarks
Community Networks, Sharing andCollaboration
8/8/2019 ADB-SC Professional Public Procurement
10/37
PROFESSIONAL ASSOCIATIONS
8/8/2019 ADB-SC Professional Public Procurement
11/37
Types of Professional ProcurementAssociations
International Membership Associations
National Associations Government Associations
Formal and informal Communities ofpractitioners e.g. LinkedIn
8/8/2019 ADB-SC Professional Public Procurement
12/37
What is the value of ProfessionalProcurement Associations?
National recognition of profession
in all sectors Training
Standard Qualifications
Membership communities face to face and online
Meetings and other ways of sharing good practice Access to experts
Conferences
Magazines and publications
Research
Professional codes of Conduct
Job opportunities and recruitment
Networks
e.g. for Leaders, Industry Sectors, etc.
8/8/2019 ADB-SC Professional Public Procurement
13/37
International Federation ofPurchasing and Supply Management Umbrella body for Professional Procurement
Associations
Facilitates the development and sharing of thepractice of the purchasing and supply management
profession Share knowledge on best practices, guidelines and
ethical, good practice to assist associations indelivering quality products, programs and services to
their members Supports the development and recognition of
professional purchasing and supply associations
Provides standards of qualifications
Promotes academic interest in Procurement
8/8/2019 ADB-SC Professional Public Procurement
14/37
IFPSM Member Organizations
AMERICAS EUROPE ASIA AFRICA Brazil Austria (x2) Norway Thailand South Africa
Argentina Germany France Singapore(x2)
Dominican Republic Ireland UK - CIPS* Hong Kong
Mexico Israel Croatia MalaysiaCaribbean (Forming)Spain Finland India
Colombia (Forming) Hungary Estonia S. Korea
Peru (Forming) Greece Netherlands Japan
Chile (Forming) Italy Belgium (x2) China
USA ISM*, NIGP Denmark Switzerland Sri Lanka
Canada Sweden Turkey (Forming) Philippines
Poland Slovenia PASIA*
* Organizations with international membership
8/8/2019 ADB-SC Professional Public Procurement
15/37
GOVERNMENT PROCUREMENTCOMMUNITIES
8/8/2019 ADB-SC Professional Public Procurement
16/37
UK Government Procurement Service
Owned by Central Government (Cabinet Office). Supports UK publicprocurement professionals and provides:
Supports study for professional qualifications (CIPS)
Standard for Certificate of Competence in association with National School ofGovernment - based on logbook of experience
Career options within the civil service Framework to deliver better public services and greater savings
Special interest groups (SIGs) on a cross- government basis
Skills frameworks at practitioner and leadership levels
Recruitment routes: Graduate Scheme / Civil Service Fast Stream Strategy for Building the Procurement Profession in Government
Mandatory Continuous Professional Development (CPD)
Online community for the exchange of ideas and best practice.
Program to facilitate cross department moves.
Annual national conference buyers AND suppliers
8/8/2019 ADB-SC Professional Public Procurement
17/37
Benefits of UK GPS Community Defined Salary structure + qualification uplift = 5%
Members part of a recognized profession in government
Early notification of events, workshops and seminars
Access to learning and development opportunities
GPS Online interactive links to vacancies, documents and forums
GPS Digest - monthly e-newsletter
Work closely with Charted Institute for Purchasing and Supply(CIPS) national curriculum for public procurement
GPS Council - senior body develops organizational capability Special Interest Groups drive developments in public procurement
Analysis of capacity, demand, succession planning
Share good practice and messages to a wide or targeted audience
Cohesive cross-government perspective for profession and function
8/8/2019 ADB-SC Professional Public Procurement
18/37
PROFESSIONAL QUALIFICATIONS
8/8/2019 ADB-SC Professional Public Procurement
19/37
Procurement Qualifications
Government owned qualifications e.g. US Warrant, NIGP, UK Certificate of
Competence
Professional Association qualifications
e.g. MCIPS, CPSM
Degree and Masters programs withProcurement or Supply Management
elements - Professional exemptions?
l Ch d i f
8/8/2019 ADB-SC Professional Public Procurement
20/37
Example Chartered Institute ofPurchasing and Supply
Public Sector Faculty courses designed for publicprocurement professionals
7 levels of Certification
MCIPS = Member - Bachelors degree equivalent
Level 7 = post graduate certificate
FCIPS = Fellow outstanding contribution to
procurement profession International Public Procurement
Certificates Bhutan, Bangladesh
8/8/2019 ADB-SC Professional Public Procurement
21/37
INDIVIDUAL SKILLS AND COMPETENCYFRAMEWORKS
8/8/2019 ADB-SC Professional Public Procurement
22/37
UK GPS Skills Framework 2 levels
PRACTITIONER - 9 competencies LEADER
4 competencies Public Procurement Context requirements Leadership
Strategic Awareness Systems and Processes
Finance Skills Development and Deployment
Inventory and Logistics Management Assurance, Compliance and Integrity
Procurement Processes
Contract Negotiations and Management
Relationship Management
Supply Markets
Programme / Project management
8/8/2019 ADB-SC Professional Public Procurement
23/37
GPS Skills Framework
Using the Framework identifies individual skills andknowledge needed to progress in the procurementprofession
Individual competency can be assessed by agency at 4levels via a questionnaire: Awareness able to understand key issues and their implications Developing demonstrate behaviours and outcomes above Awareness levels, but
have not had sufficient opportunity or experience to put the skill into practice Practitioner display detailed knowledge of the subject and are capable of
providing guidance and advice to others
Expert display extensive and substantial experience and applied knowledge ofthe subject. They have significant commercial experience.
8/8/2019 ADB-SC Professional Public Procurement
24/37
PROFESSIONAL CODES OF CONDUCT- DRIVING ETHICAL BEHAVIOR
8/8/2019 ADB-SC Professional Public Procurement
25/37
Codes of Conduct
Government or Professional Association: Ethics- Integrity
Reputation- Business confidence Transparency- Open communication
Trust- In relationships
Justice- Fair competition
Professionalism- Good practice
El ff i i i f bli
8/8/2019 ADB-SC Professional Public Procurement
26/37
1. Legislation and Regulations2. Governance - Monitoring, Audit and Enforcement
3. Structure - promoting accountability
4. Public Servants employment contract and ethical code
5. Conflict of Interest declarations
6. Transparency of supply opportunities and contract awards
8. Independence and Confidentiality of procurement process
9. Limits of political influence in procurement decisions
10. Whistle blowing and complaints handling
11. Co-ordination and effectiveness of anti-corruption bodies
12. Support of the private sector - integrity pacts
Elements affecting integrity of publicprocurement professionals
8/8/2019 ADB-SC Professional Public Procurement
27/37
ePROCUREMENT CAPACITY BUILDING
8/8/2019 ADB-SC Professional Public Procurement
28/37
EU - ePractice.eu
EU funded best practice sharing Case studies of eProcurement
implementation
Standards (PEPPOL)
Cross border payments and invoicing
messaging
a common eProcurementstandard for bank messaging in the SingleEconomic Payments Area
Community of practitioners and experts
Increas ng apac ty to Imp ement 5
8/8/2019 ADB-SC Professional Public Procurement
29/37
3eon
4eAo
5SpAys
1ZbMakPae
2Genme
PouemeCd
Feedback / MIBest Practice
Management Information
Collaboration
Specification / Notice
Expression of Interest
Invitation To Tender
Evaluate
Negotiate / Reverse Auction
Award
Contract Management
Content Management
Selection /Requisition
Approval
Order
Receive
Invoice / GPC
Payment
Increas ng apac ty to Imp ement 5UK eProcurement Systems
Purchasing Sourcing
The Office of Government Commerce saved$405m over a 3 years using eProcurementSource: Procurement Leaders, 25 August 2010
P Ch M
8/8/2019 ADB-SC Professional Public Procurement
30/37
Keep selling the benefits took 3 years in UK
Need to assess agency readiness and capacity for change
Process Re-engineering Best Process for certain categories, e.g.temporary staff timesheets, travel booking, etc.
Help with adjusting policy for implementation
Program Management templates
Suggestions for working with key Stakeholders, e.g. finance, audit
Re-engineering of processes and proceduresTraining of all staff using the system
Motivating affected staff
Monitoring performance and compliance
eProcurement Change Management:essential enabler for success
P C i
8/8/2019 ADB-SC Professional Public Procurement
31/37
eProcurement Capacity:Lessons Learned in UK
Extensive communication/selling required to achieveacceptance
Change Management assistance required centralProgram team
Supplier Engagement was key task and very timeconsuming dedicated communications
Risk Assessment and Security Management
Institutional Memory
8/8/2019 ADB-SC Professional Public Procurement
32/37
AGENCY CAPABILITY MEASUREMENT
8/8/2019 ADB-SC Professional Public Procurement
33/37
Agency Capability Assessment
National Audit Agencies
Government Capability Reviews Donor Agency Capability Reviews
8/8/2019 ADB-SC Professional Public Procurement
34/37
UK Procurement Capability Reviews
Cabinet Office Efficiency Unit PublicProcurement Policy Agency monitors Capacityand Capability of Ministries and Agencies
Waves of reviews Initially Peer Reviews
Now self-assessment based on benchmarks Results and performance published to
ministers AND to the public
Li ki N ti l S t ith
8/8/2019 ADB-SC Professional Public Procurement
35/37
Linking National System withAgency Practices ADB PREI
Procurement Review for Effective Implementation
ADB Review of agency procurement system:1. Does the agency have a strategy to achieve an effective
procurement program in line with national policy
2. Will organizational structure and employee capacitysupport the strategy
3. Do internal procurement processes support the strategy
4. Can the agency undertake procurement in an effective andaccountable manner
8/8/2019 ADB-SC Professional Public Procurement
36/37
EffectiveProcurement
Internal
ProcurementProcess
OrganizationStructure
STRATEGY
StaffCapacity
AccountabilityMeasures
RecordsManagement
Indicators at the Agency Level
8/8/2019 ADB-SC Professional Public Procurement
37/37
THANK YOU
+ 63 2 632 4424
mailto:[email protected]:[email protected]Top Related