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EU Public Procurement Learning Lab “The role of the Italian Ministry of Economy and Finance in the Rationalization Program on Public Spending”. Giancarlo Del Bufalo – Head of dept. for General Administration Ministry of Economy and Finance. Rome, November 28 th 2003.
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EU Public Procurement Learning Lab “The role of the Italian Ministry of Economy and Finance in the Rationalization Program on Public Spending” Giancarlo Del Bufalo – Head of dept. for General Administration Ministry of Economy and Finance Rome, November 28th 2003
Rationalization Program on Public Spending Ministry of Economy and Finance role The Ministry of Economy and Finance (MEF) has a very important role in the framework of the Rationalization Program on Public Spending, assigned by 2 specific Government laws • Financial Act for the year 2000 (Law n. 488/1999) entitles the Ministry to stipulate frame contracts with suppliers of goods and services, selected through the procedures provided by in force regulation • Presidential Decree n. 101/2002 entrusts the Ministry with the development of the Public Administration Marketplace The Ministry entrusts Consip with the development and management of the Program, by means of 2 Ministerial Decrees (February 2000, May 2001)
Rationalization Program on Public Spending Legal evolution • The following Financial Acts (2001, 2002, 2003) have widened the Program scope and roles of involved actors • Today, according to the current legal framework: • Central Government (e.g. ministries) is obliged to purchase within frame contracts awarded under the Law n. 488/1999 • all other public administrations (e.g. municipalities, health agencies, etc.) may purchase within the frame contracts. Alternatively, whenever they run their own tenders, they have to take price and quality of the frame contracts as a reference • within the frame contracts, selected suppliers assume the commitment to accept orders coming from Public Administrations
Other P.A. 8% CentralGovernment 15% University 4% LocalGovernment 32% Health bodies 41% Rationalization Program on Public Spending Spending for Goods & Services Total amount of public expenditure for goods and services sums up to about € 97 billion, about 15% of overall public spending Public spending for goods and services, 2002 (%) Public spending for goods and services eligible for the Program , 2002 (%) Other P.A. 8% Central Government 17% University 2% Local Government 24% Health bodies 49% Total = € 96,6 billion Total = € 40,2 billion • The estimated amount of eligible expenditure for the Rationalization Program is about 40% • In 2003 the Program’s activity has been covering about € 16 billion * Report on estimated needs for the year 2002 and Consip estimate Source: Consip estimates
Public e-procurement: the aim of the Program • Define purchasing strategies • Draw up competitive frame contracts for Public Administrations • Promote the use of e-procurement within the Public Administration • Provide purchasing monitoring tools to the Public Administration • Deliver innovative e-procurement models Service efficiency and quality Processsimplification Cost saving
Public e-procurement: key success factors • Top talents, high level skills employed • New ground rules • Leading-edge technology for e-Procurement Innovation • Make-it-happen mentality • Early success fast • Evolve as you succeed Speed • Lever new regulations • Extend practices from central to local administrations • Manage the change Growth
Rationalization Program on Public Spending as catalyst of innovation The Program implementation requires to P.A. an overall effort in the adoption of new strategic and functional approaches in the procurement process TECHNOLOGICAL EVOLUTION OF PUBLIC ADMINISTRATIONS AND SUPPLY MARKETS CULTURAL EVOLUTION: INNOVATION, KNOWLEDGE SHARING ORGANIZATIONAL EVOLUTION: PROCESSES, STRUCTURES, COMPETENCES