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

1. 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 (c) Kathrin Hornbanger, MBL-HSG

2. Rationale For Central Purchasing of Public Authorities Dezentralisation of Public Procurement leads to: • Differing Methods, Procedures & Standards • Loss of Synergies • Market Power of Public Demand used inadequately Substantial Loss of Public Ressources (c) Kathrin Hornbanger, MBL-HSG

3. Solution • Aggregation of Public Demand • Optimization of Procurement Methods through Spezialisation & Significant Reduction of Tendering Procedures • Establishment of Austrian Federal Procurement Company Ltd. by June, 2001 Centralisation of Public Procurement (c) Kathrin Hornbanger, MBL-HSG

4. Objectives • Demand Aggregation • Standardisation • Optimization of Purchasing Conditions • Process Simplification • Transparency • Broaden Competition Improve Efficiency of Public Procurement & Reduce Public Expenditure (c) Kathrin Hornbanger, MBL-HSG

5. BBG Operations • Needs Analysis • Document Draft for Tender • Supplier Selection • Conclusion of Contract • Provision of Catalogues • Market Survey & Analysis • Standardisation • Controlling • Contract Management Tendering Procedure & Controlling Contract Management? (c) Kathrin Hornbanger, MBL-HSG

6. BBG Operations • Supplies & Services Contracts • Defintion of Goods of Services by Regulation Economically Reasonable Aggregationof Demand (c) Kathrin Hornbanger, MBL-HSG

7. BBG Operations • Compulsory • Non Compulsory Federal Administrations Must/May Use BBG Contrats (c) Kathrin Hornbanger, MBL-HSG

8. Fields of Activities • IT Hard- and Software • Photocopiers, Printers, Desktop PC´s & Maintenance • Paper & Stationary • Utilities • Telephone • Transport • Cars • Meal Coupons • IT Hard- and Software • Facility Management • Office Equipement • Postal Services (c) Kathrin Hornbanger, MBL-HSG

9. Fields of Activities • Pharma • Labaratory Equipment • Books, Newspapers, e-Media • Security Services • Cleaning • Food • Textiles • Chemicals • Insurance • Facility Management • Metallic products, Machines, Tools ect. • Electronics & Maintenance Federal Administratin Must Use BBG Contracts (c) Kathrin Hornbanger, MBL-HSG

10. Fields of Activities • Training • Project Management • Public Relations • Individual Requests Federal Administration May Use BBG Contracts (c) Kathrin Hornbanger, MBL-HSG

11. (c) Kathrin Hornbanger, MBL-HSG

12. BBG Procurement volume (c) Kathrin Hornbanger, MBL-HSG

13. Other Users • Public Companies owned by the State • Regional Governments, Cities, Municipalities • Universities • Health Sector These Entities May Use the Services of BBG (c) Kathrin Hornbanger, MBL-HSG

14. Lessons Learned I • Demand Aggregation • Lack of Adequate Accounting & Controlling System • Technical Specifications • Cooperation & Communication with Clients = Ministries Establishment of New Internal Procedures New Coordination Efforts Hidden Costs (c) Kathrin Hornbanger, MBL-HSG

15. Lessons Learned II • Changing of Public Demand • Impossiblity of Knowing the Exact Need • Limits of Standardisation • Open Contracts & Catalogues • Product Developements • Length of Tendering Procedures Need for More Flexible Purchasing Techniques Framework Agreements E-shop (c) Kathrin Hornbanger, MBL-HSG

16. Lessons Learned III • Formal Requirements May be on the Detriment of Competition • List of Qualified Suppliers? • Obscure Provisions • Increasing Need of Specialists • Cost of Bidding • Multiplicity of Tresholds • Litigation Need for Simplification of Existing Legal Framework (c) Kathrin Hornbanger, MBL-HSG

17. Lessons Learned IV • Closed Markets • SMME Better Value for Money Can Only be Achieved through Competition (c) Kathrin Hornbanger, MBL-HSG

18. Lessons Learned V • Standard Terms and Conditions rarley provide the most efficient solution • Intellectual Property Rights • Liability Provisions Individual Solutions as Best Practice Need to Create Comparable Conditions Reduce Risks for Bidders and Save Money (c) Kathrin Hornbanger, MBL-HSG

19. E-procurement • Electronic Tender Notice • Information Platform – www.bbg.gv.at; www.auftrag.at • Electronic Provision of Tendering Documents • Clear & Defined Procedures Transparency of Public Demand (c) Kathrin Hornbanger, MBL-HSG

20. Key Succes Factors • Objectivity • Professionalism • Innovation • Speed e-tendering, e-shop • Process Simplification e-tendering, e-shop • Transparency e-tendering, e-shop • Controlling e-shop • Information Platform e-tendering • Broaden Competition e-tendering? Achieve High Acceptance by Clients & Suppliers Reduce Public Spending (c) Kathrin Hornbanger, MBL-HSG

21. E-shop.gv.at • Pilot System • Improve contract information • Security through process definition • Time saving • Reduction of coordination efforts • Transparency • Implementation of strategic controlling Creating Acceptance of the System through Maximum Benefits for the Users (c) Kathrin Hornbanger, MBL-HSG

22. For more information please contact our web-side: www.bbg.gv.at Legal Aspects: Kathrin Hornbanger 0043 1 245 70 32 Kathrin.hornbanger@bbg.gv.at E-shop: eGov & eProcurement Johannes Wimmer Paul Humann 0043 1 245 70 42 0043 1 245 70 14 johannes.wimmer@bbg.gv.at paul.humann@bbg.gv.at (c) Kathrin Hornbanger, MBL-HSG

23. THANK YOU (c) Kathrin Hornbanger, MBL-HSG