Angela Russo, International Cooperation Projects, Consip SpA

1. Santiago, December 12, 2016 “General Presentation on Consip” Angela Russo, International Cooperation Projects, Consip SpA

2. Establishment, Mission and Role Establishment:Consip SpA is a public stock company set up in 1997 and entirely owned by the Italian Ministry of Economy and Finance (MEF), its sole shareholder Mission: make the use of public resources more efficient and transparent, by providing tools and skills, to public administrations, in order to allow them to perform public purchases and at the same time stimulate a competitive participation of enterprises to public tenders Role: Consip acts according to an “in house ” model; it is a public company in house to all central state administrations and, consequently, it can act as central purchasing body for these administrations, as an essential part of its activities. The remaining part of its activities consists in providing specific services to other and specific public entities. 43 Average age 344 N° of employees 51% Women 84% Graduated • Consip: mission, role, activities

3. Consip’sCore Activities Implementation of the “Program for the rationalization of public spending on G&S” Support to individual administrations Respond to specific tasks assigned by law such as support the Digital Administration CENTRAL PROCUREMENT VERTICAL PROCUREMENT OTHER AREAS FOCUS PUBLIC FINANCE TOOL (impact on prices) EFFICIENCY AND INNOVATION TOOL (impact on processes) Aim Consip: mission, role, activities

4. Financingmodel Central procurement - Program for the rationalizations of public spending on G&S Consip is still mainly funded through the budget of the central government, on the basis of a specific agreement between Consip and the MEF Since January 2014, the adoption of “transaction fees” from the suppliers’ turnover is undergoing (in 2015 ca. 4% of Consip’s financing source derived from the fee) Vertical procurement In addition - according to art. 29 of law by decree 201/2011 and of other provisions that allow Consip to perform in its quality of CPB- Consip stipulates agreements, on a cost-recovery basis, with specific public entities, and acts as a contracting authority on their behalf • Consip: mission, role, activities

5. The Italian Public Administration: a complex scenario ITALY • Population: ca 60 mln • PA employees: 3.400.000 • Contracting Authorities: 32.000 • ca. € 130 bln expenditure on G&S in 2014 CENTRAL GOVERNMENT • Ministries: 13 LOCAL GOVERNMENT • Regions: 20 • Provinces: 110 • Municipalities: 8.101 • Tutorial system: • Universities: 94 • Schools: >10.000 • Health Sector: >300 INDUSTRY • > 4.000.000 Enterprises • 98% are SMEs Public Spending Optimization through EPROCUREMENT Where We Started From: public procurement system

6. Consip’s Organization BOARD President CEO MEMBER Internal Audit Transparency Unit Secretariat Board Internal Monitoring Body Administration and Control Human Resources and Organization Legal Operations Support ICT Sourcing Service and Utility Sourcing Program for the Rationalization of public spending PA Project Consip: mission, role, activities

7. Consip Public Procurement & Sourcing Divisions – CPB - PUBLIC PROCUREMENT SOURCING Promotion vs CAs Staff Healthcare G&S IT G&S GPP eProcurement Solutions Real Estate & Services to the territory TLC G&S and Solutions Planning and Monitoring Services Strategies & Management ENERGY & UTILITY SUPPORT FROM OTHER DIVISIONS International Cooperation Legal Department R&D Unit • Public Procurement & Sourcing Divisions

8. Introduction to the Program for the Rationalization of public spending Launched with the 2000 Budget Law with the aim of optimizing public purchases of goods and services and developing provisioning models based on new processes and technologies Public purchasing bodies structured according to private sector models / governance of MEF Use of mechanisms capable to aggregate demand and enhance efficiency (Framework Contracts, Electronic Marketplace and Framework Agreements, Dynamic Purchasing System) Where We Started From: public procurement system

9. The Program for the Rationalization of public spending: the framework MEFplays a policymaking and coordinating role and defines the Program’s guidelines Consipanalyzes the demand and supply markets, develops purchasing initiatives and provides purchasing know-how and consultancy services Public Bodies and Enterprises benefit from the use of the tools provided and cooperate in the identification of quantity and quality requirements the Oversight Authorities (AGCM, AGCOM, etc.) ensure, within their specific responsibilities, the compliance of purchasing initiatives with the principles of transparency and competition. Where We Started From: public procurement system

10. 2015 Main KPIs Number of business firms (SMEs 52000) 40,1 Bln/€ 55.000 Covered expenditure 66.000 Public Buyers Total value of orders issued (around60% is for SMEs) 7,0 Bln/€ 714.000 Contracts Electronic invoices Direct savings ca 17% (ISTAT) 450.000

11. Main National Public Procurement KPIs Consip Program for the Rationalization National Public Procurement 15.000 CONTRACTING AUTHORITIES 36.000 CONTRACTING AUTHORITIES Centralizing purchasing 55.000 FIRMS 3 MLN FIRMS Unified governance 7 MIO/€ EXPENDITURE FOR GOODS AND SERVICES 94 MIO/€ EXPENDITURE FOR GOODS AND SERVICES Digitalization 714.000 CONTRACTS FOR GOODS AND SERVICES 4,5 MLN CONTRACTS FOR GOODS AND SERVICES

12. Consip’s Public User (mandatory or voluntary regime) • More or less 36,000 contracting authorities (ANAC 2014 Report) • Central Government organisations • Health Sector • Regional /Local organisations • Schools Framework Contracts Framework Agreements MEPA Dynamic Purchasing system The mandatory use of purchasing tools* Central Administrations Mandatory Mandatory Mandatory Faculty Mandatory Mandatory Mandatory Mandatory Health Sector PAs Region/Local PAs Faculty Faculty Mandatory Faculty Schools Mandatory Faculty Mandatory Faculty *For specific categories, such as ICT, Energy , ect- established by Law- use of CPB’s purchasing tools are however mandatory

13. Main product/service categories available Goods & Services Energy & Utilities Healthcare Territory ICT TLC Beni e Servizi Energia e Utilities Sanità Territorio IT TLC • Transport/ • Mobilityservices • Vehicles • Furniture • Events • Catering & Food Services • Stationery • Press Review • Consultancy • Insurance • Training • Postal Services • Fuels • Electricity • Energy Efficiency • Gas • Heatingoil • Needles & Syringes • MedicalEquipment • Goods & Services for Healthcare • Drugs • Cleaning Services for the NHS • MedicalGloves • Facility management • Waste Management • ElectricalEquipment • Maintenance Services • Cleaning Services • Transportation Services • Street lighting • Maintenanceworks • Printers • Photocopiers • SW licenses • Pc & tablets • Servers • ApplicationServices • IT Systems Services • Cloudservices • Enterprise IP Telephony • Contact center • Telephony • Video Surveillance • Connectivity NEW Where We Started From: public procurement system

14. Our National Approach…National eProcurement Platform: a Comprehensive Set of Purchasing Tools Eprocurementportal - www.acquistinretepa.it 2000 2002 2004 2010/2012 e-Marketplace -MEPA FA and DPS Framework Contracts (FC) eshops On line FC • Purchases within frame contracts • Large volumes • Demand aggregation • Standardized goods • Low price volatility • Direct order or RFQ • Low cost goods • Spot purchasing • Highly fragmented offer • ecatalogue • On-line tenders in a structured and managed environment (two-stage procedures) • Standardised procedures for commonly used goods & services with customisation Above/Below EU Threshold Below EU threshold Above/Below EU Where We Started From: public procurement system

15. Where we started fromFIRST: Implementing the Program for the Rationalization of Public Spending CONSIP’S focus Upstream Services ProcurementProcess Downstream Services Design, management and program management of tender Conditions Analysis Development Practice Needs Tender strategy Tender Documentation Publication Bids evaluation AwardActivation Management Promotion (initiative promotion, CRM) Litigation management IT business, e-procurementplatform Coordination and Governance -Improvement of suppliers contract management -Support to CAs Collecting Requirements and demand qualification Process and timing simplification

16. How We Moved Ahead…Choosing the appropriate eProcurement tool MePA DynamicPurchasing System Customised Framework Agreements Buy side Framework contracts Standard Supply side Concentrated Standardized Fragmented Specialised The adoption of different tools is related to the market (buy and supply side) characteristics How We Moved Ahead

17. How We Moved Ahead…Evolution of Consip’s role – Mature stage MePA Consip role DynamicPurchasing System «MarketMaker» Framework Agreements Framework contracts «AwardingAuthority» Greater autonomy for the buyer Greater participation of SMEs The adoption of new eProcurement tools calls for a strategic change in Consip’s role and capacity How We Moved Ahead

18. How We Moved Ahead……matching between tools and roles Contracting Authority (CA) Market Maker - Manager Dynamic Purchasing System (DPS) e-Marketplace (MEPA) Framework Contracts (FCs) Framework Agreements (FAs) Below OJEU Threshold Above/Below OJEU Threshold Above/ Below OJEU Threshold Consip as a CPB plays two different roles: contracting authority and Market Maker How We Moved Ahead

19. How We Moved Ahead……matching tools, roles and services provided… Several and different e-Tools are available on the platform «Acquistinrete» to purchase goods and services Consip – Contracting Authority Consip – Market Maker eTenders MEPA DPS Framework Agreements Framework Contracts CRM services E-Invoicing PA Asp Tender Call for competition Direct Order Direct order Request for quotation Callfor competition Catalogue HowWeMovedAhead

20. How We Are Moving Further Ahead… In Italy purchases can be made at different levels of aggregation There exists: • Approx.36,000 contracting authorities (ANAC 2014 report) • 21 Central Purchasing bodies at the regional level • A single Central Purchasing Body (CPB) at the national level: Consip S.p.A. Law 66/2014 established a permanent group of “public procurement aggregators” to be populated by a plurality of subjects: Consip, the regional CPBs, selected buyers (f.e. metropolitan cities)

21. Law 66/2014, Art. 9 – Steps undertaken How We Are Moving Further Ahead… The institution of a list of max 35 procurement aggregators composed by (nowadays 32 aggregators): • Consip S.p.a. • Central Purchasing bodies at the regional level • Selected buyers (f.e. metropolitan cities) 1 Updates DEFINITION OF THE LIST OF THE PROCUREMENT AGGREGATORS The Determination of ANAC’s Board of the 22nd of July 2015 defined the list of the procurement aggregators. The Deliberation of ANAC n. 784 of the 20th of July 2016 revised the list DEFINITION OF THE CRITERIA AND ALLOCATION OF THE FUND FOR THE PROCUREMENT AGGREGATORS Decree of the 16th of December 2015 and Resolution of the 26th of February 2016

22. Law 66/2014, Art. 9 – Steps undertaken (2/3) The institution of a permanent technical working table (TWT) composed by the procurement aggregators. The role: Assure coordinated planning activities Strengthen the capacity of needs forecast Gather data on the needs expressed by public administrations Definition of common methodologies and languages Construction of a common and complete database in order to provide information to policy makers Monitoring of the effects of demand aggregation Definition and circulation of best practices Promotion of eprocurement 2 Updates The Table has been working since July 2015.

23. How We Are Moving Further Ahead… Procurement aggregators

24. Qualification system of CAs (art. 38 of the new PP code) ANAC sets up the list of the qualified CAs, herein automatically including Consip and regional CPBs. CAs qualified on the basis of basic and additional requirements: -Basic: organization, internal structure, skills of employees, training of employees, respect of terms of payment etc. -Additional: quality certifications , number of complaints, use of electronic means of communications, use of social and environmental criteria etc. Qualification mandatory requested for purchases above 40.000. Recourse to CPBs, procurement aggregators or joint procurement for non-qualified CAs.

25. Support and Assistance USERS QUALFIIED TO THE SYSTEM 66.000PUBLICBUYERS 55.000 BUSINESS USERS (MOSTLY SMEs) P.A. FIRMS & PROFESSIONALS 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 HOW TO REACH OUT TO PUBLIC USERS

26. Support and Assistance • Structured relationship activities with the users (Customer RelationshipManagement) CUSTOMER CARE: in order to attract and “KEEP” the user and increase its satisfaction HOW TO REACH OUT TO PUBLIC USERS

27. Support and Assistance Relationship model: activities are diversified according to the target and to the goals to achieve ACCOUNT MANAGEMENT 20 Relationship management and direct contacts with the most important PA SUPPORTED P.A. MASS MARKETING 10 Communication to all users with mass marketing channels HOW TO REACH OUT TO PUBLIC USERS

28. Support and Assistance With the aim of increasing territorialsupport, ad hoc collaborations have been set up with Institutions willing to support the communication activity on the Program (like ANCI, Federsanità, etc .. ). As part of a wider strategy, aimed at providing effective support and assistance at a local level both on the use of public procurement initiatives and on the use of the eprocurement platform, Consip has already opened the first 3 Training&Support Pointsandplans to further increase their number. “PUNTO PA” Training&Support Points HOW TO REACH OUT TO PUBLIC USERS

29. Support and Assistance ONGOING ACTIVITIES PROMOTION TRAINING SUPPORT • Account Mang. activities • Local events • Meetings • Newsletter • E-mail marketing • Portal tools • Local Training events • Training Events at Consip • Online Training events • Local Training events • Training Events at Consip • Specialized Support meetings • Contact Center • Portal tools (videos, guides, FAQs, Help contextual) • YOUTUBE SUPPORTED PA ALL PA CUSTOMER CARE: Customer Satisfaction Survey, claims analysis HOW TO REACH OUT TO PUBLIC USERS

30. Support and Assistance ONGOING ACTIVITIES PROMOTION SUPPORT TRAINING • Project «Sportelli in Rete» • Local events at Chambers of Commerce or PA premises • Local press campaigns • Visibility on web sites of suppliers associations • Newsletter • Portal tools • Local Training events at Trade associations and Chambers of Commerce • Training «Sportelli in Rete» (Training to trainers) • On line Training events • Local Training events • Training events at Consip • Working tables with suppliers Associations • Problem solving • Support to businesses through «Sportelli in rete» • Specialized Support to the through «Sportelli in Rete» from Consip • Contact Center • Portal tools MULTIPLIERS MASS MARKETING CUSTOMER CARE: Customer Satisfaction Survey, claims analysis HOW TO REACH OUT TO PUBLIC USERS

31. How to Support Businesses: Supplier Training Desks 2 13 2 19 19 18 Today all main Enterprises Associations are involved 280desks are operating across the Italian territory and in every Region 3 19 31 11 5 5 6 2 5 6 1 18 8 19