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The Central Procurement Agency in Lombardy

The Central Procurement Agency in Lombardy. Laura Carpineti – Responsible of Central Procurement Unit common expenditure, ARCA. Rome, April 15 th 2014. INTRODUCTION – MY CV. My expertise LAURA CARPINETI.. Laura.carpineti@arcalombardia.it.

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The Central Procurement Agency in Lombardy

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  1. The Central Procurement Agency in Lombardy Laura Carpineti –Responsible of Central Procurement Unit common expenditure, ARCA Rome, April 15th 2014

  2. INTRODUCTION – MY CV My expertise LAURA CARPINETI.. Laura.carpineti@arcalombardia.it University degree in political economics at the University of Ancona (cum laude) 2003 2004/2007 Junior economist at the Research Unit Of Consip LTD 2007/2010 Member of the Strategy Unit at CentraleRegionaleAcquisti 2010/… Responsible of the Unit Common expenditure & Sustainable Procurement

  3. Agenda This lecture will start exploring the Italian and Lombardy context about Public Procurement, showing Arca’s set up in 2007, previously as “CentraleRegionaleAcquisti”. In particular we will talk about the key issues to be addressed in the set up of a new Central Procurement Entity (Phase 1) and about the development and consolidation of the NewCo (Phase 2), dealing with: • Context and regulatory system • Strategy and business model • Governance model of stakeholder • Organizational model • Skills, staff and expertise • Critical success factors • Results • Finally, Arca will be described as a case history with a deep focus on: • Green Public Procurement • Special projects: Arca’s first pre-commercial procurement procedure (March, 2013). 2012 Spin-off 2013 ARCA 2007 Start-up 2007-2012 Centrale Regionale Acquisti Phase 1 Phase 2

  4. The start up of a Central Procurement Agency • ARCA services and results (2013) • Question time • Focus on ARCA’s procurement process • Focus on Green Public Procurement • Focus on ARCA’s special projects: PCP • Question time April 5th 2013

  5. Central Procurement Agency According to the European legislative framework ‘Central Procurement Agency ’* is a contracting authority which: — acquires supplies and/or services intended for contracting entities or — awards public contracts or concludes framework agreements for works, supplies or services intended for contracting entities. Piedmont– S.C.R. Lombardy– ARCA Trentino Alto Adige – Informatica Trentina Friuli Venezia Giulia – Centro Servizi Condivisi Emilia Romagna – IntercentER Tuscany – ESTAV Centro, Nord-Ovest, Sud-Est Lazio – LA.it + CONSIP SpA(national) Molise - Asrem Main national/local Central Procurement Agency in Italy Campania – SO.RE.SA Apulia – EMPULIA Sardinia – C.A.T. * DIRECTIVE 2004/17/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors

  6. Central Procurement Agency (2/2) Central Purchasing Bodies in Italymay be dividedinto clusters Local Purchasing Body: awards public contractsfor local Public Bodies (Region, Municipalities, Healthcare Bodies) Local Purchasing Body specific for Healthsector A unified-regionalPurchasing Body focused on Healthsector: aimes to minimizecosts, boosting aggregate demand and maintaining high qualitystandards for localhealthservicespurchases CONSIP is the national Central Purchasing Body, managing theProgram for the Rationalization of Public Purchases.

  7. CENTRALIZATION VS CENTRALIZATION… Full Decentralization: when divisions or local administrations are delegated the power to decide how what and when to procure Full Centralization: procurement is fully centralized when all the relevant decisions to purchase are in the hands of a single headquarter Hybrid Model: wide range of intermediate procurement models where central and local purchasing units share the power on purchasing decisions

  8. Focus: hybrid model for the healthsector DG Health : collection of data regarding the planning 2012/2013 of all the hospitals procuring autonomously ARCA : involvement as a strategic partner in the strategy at different levels Level 1 Centralized procurement Level 2 Local Centralization Level 1 + level 2 = 50% expenditure Level 3 Decentralization

  9. The legalframeworkcontext In 2012 the Italian Government issued the so called «Spending Review», aimed at achieving relevant saving from the public sector by fixing strict rules on Procurement Process… RELEVANT ASPECTS…. Individual purchases if the awarding price is below the frame contracts of Consip or of the regional procurement authorities • The central public authorities are OBLIGED to procure through the National Procurement Agency CONSIP • The health sector is OBLIGED to procure trough the referring Regional Procurement Agency • The local authorities are obliged to procure trough CONSIP or trough the referring Regional Procurement Agency only for the sector: fuel, electricity, telecommunication (fixed and mobile) Individual initiatives of procuring products and services risk to nullify the effort of the centralized procurement The health sector is obliged to procure thought the central agencies even if he affords a lower price.

  10. Lombardyat-a-glance Lombardy Region* • The most populated Italian region (~10 millions) • The highest number of municipalities (1.546) • 12 provinces, with the biggest ones (Milan) • The third Italian Region for geographical extension (~23.000 km²) • The real regional GDP is the 20,9% of the Italian GDP • The regional GDP is 126,1 vs Italian value of 100 Regional Authorities Procurement System* • Lombardia Region (only headquarter)  320 mln €/year • Health sector : 50 authorities 2.600 mln € /year • Regional sector : 70 authorities  64 mln € /year • Local Entities: 1600 authorities  1.500 mln € /year • Total amount: over 4.500 mln € * Year 2011

  11. Phase 1 - Set up of the new Central Procurement Entity 2 1 3 FINANCIAL ACT 2007 REGIONAL DECREE AND START UP ESTABLISHING LAW 2006, December 2007 April - June 2007 - December Regions are allowed to set up Central Procurement Agency for local governments, municipalities and other public authorities established in the same territory • Experimental start up (three years) of the local Procurement Agency for the management of public tenders and development of • e-procurement tools • The functions of the Central Procurement Agency are carried out by Lombardia Informatica Spa; • The Central Procurement Agency starts the development and promotion of the e-tendering platform Sintel; NATIONAL AND LOCAL REGULATORY CONTEXT The Agency was set up as a Business Unit “CentraleRegionaleAcquisti” of an existing company “LombardiaInformaticaldt”, 100% owned by the Region

  12. Central Procurement model - Strategy and business model Central Procurement Agency CENTRALE REGIONALE ACQUISTI Framework Contracts e-Procurement The Regional Procurement Agency bundles public needs and manages framework contracts on goods and services in order to satisfy needs of the Public Entities The e-procurement platform (Sintel) guarantees to Public Entities the opportunity of managing autonomously the tendering procedures on a electronic basis > 1700 Public Entities involved Lombardy Region and referring entities Municipalities and local authorities Health Sector

  13. Central Procurement Agency Gara Aggregata Tendering procedure Framework Contracts Market Analysis Public Needs Monitoring Procurement Process ARCA Attention to the sustainability of products/services Green Public Procurement - GPP CSR – Corporate Social Responsibility ARCA is introducing into the framework contracts tools and criteria aimed at monitoring the transparency of suppliers in respecting the law of workers/cildrenseccc into the whole supply chain. Green Public Procurement. Introduction in the tendering documentation of criteria incentivatinggreen products and services • Travel Agency • Paper for printers • Electricity • Stationery • Workstations Arca a TorVergata, 20/2/2014

  14. Stakeholders map Demand Supply Health sector Big enterprises Local Authorities SMEs Central Procurement Agency Civil society Trade Unions Lombardy Region Research networks Consip Universities Relevant Procurement Authorities Consultants European Union Procurement network Regulationsystem

  15. Main strategic objectives • Reduction of the average prices previously paid • Product and process innovation (i.e. green public procurement) • Open procedures guarantee the participation of every interested supplier EFFECTIVENESS COMPETITIVENESS Central Procurement Agency EFFICIENCY TRANSPARENCY • Tendering documentation and awarding criteria transparent and not discriminatory • Indirect saving (Full time equivalent ) • Price reduction of products

  16. Start-up: the first Governancemodel • Engagement of Lombardia Informatica in the management of frameworkagreements for Public Entities; • Validation ofstrategicplans, goals and budget Checks the achievement of the goals defined by the strategic plan Strategic Committee OperationalCommittee Supports the implementation of the plans Business Unit Central Procurement Agency LOMBARDIA INFORMATICA Activities • Management and development of IT Services • Legal Department • Staff/HR • ERP Systems A 3-YEAR STRATEGIC PLAN

  17. Focus on the Strategic Committee and OperationalCommittee Strategic committee Operationalcommittee • President • Head of Health Direction - Lombardy Region • Components • Representatives of Healthsector • Senior staff of LombardyRegion and Lombardia Informatica • Technical secretariat • Staff of LombardyRegion and Lombardia Informatica • President • Senior staff of Lombardy Region • Components • Purchase experts from Health Sector • Staff of Lombardy Region and Lombardia Informatica • Technical secretariat • Staff of Lombardy Region and Lombardia Informatica Members Activities • Coordination on the Annual Rationalization Program on common and specific expenditures; • Sharing of the communication and promotional plans, in order to involve local authorities; • Support/sponsorship from relevantstakeholders in order to promotespreading of services and the develpment of the AnnualRationalization Program; • Definition of the technical and quality features of the expenditure categories approved by the Strategic Committee; • Supporting the detection need processes according to centralizedframeworkagreements; • Supportingmarket analysis; • Technical and legalcontribution to prepare tender notices; PERIODIC EVALUATION ON RESULTS

  18. Start-up: Mainactivities of the Central Procurement Agency • Performing centralized tendering procedures • Supporting the detection of needs and purchase prices of goods and services for Regional and Health Entities • Monitoring the quality levels of supplies in tendering procedures directly managed • Frame contracts • Developing and promoting e-Procurement tools and other e-Sourcing services • Supporting the change management for the adoption of e-tenders processes (eg. training on the job, standard documents, etc..) • E-Procurement • Providing technical and organizational support for tenders launched by Regional and Health Entities • Spreading innovative practices and tools to procure goods and services using e-procurement • Customized consultancy

  19. Start up: Organization, staff and expertise • Procurement experts cover a wide range of public procurement topics: • collection and standardization of public needs • suppliers analysis • strategic sourcing • sustainable public procurement • auction design • legal support • Drafting the tendering documentation • contract management • spend and data management Recruitment • Gradual entry of new staff; • External consultants in program management, sourcing and legal; • Technology skills and staff from LombardiaInformatica; “Centrale Regionale Acquisti” PROGRAM MANAGEMENT LEGAL/ADMINISTRATIVE UNIT TECHNOLOGY/E-PROC SERVICES SOURCING CRM/MEDIA RELATIONS ACCOUNT MANAGEMENT

  20. Phase 2, NEWCO ARCA: key drivers of the transformation Starting from 2011, the national and local regulations on public procurement gradually changed, such as theCentral Procurement Agency’s role • Obligation to use the Agency’s services • Stronger centralization of purchases • Focus on e-procurement: Regional and Health Bodies must adopt the e-tendering platform Sintel for satisfying their needs Regulatory context • Stronger support to local Entities, especially the smaller ones (< 5000 inhabitants): • Supporting local centralization of purchases • Consultancyon common expenditures product categories Local Entities • Stronger focus on HealthSector: • Focus on tenders on most relevant product categories in terms of expenditure values ​​(Drugs, Medical, Insurance, Vaccines, Electricity) • Consultancyon specific expenditures product categories, especially for autonomous group-tenders Health Sector Startingfrom October 2012, the Agency was set up as a public authority, named Agenzia Regionale Centrale Acquisti (ARCA)

  21. Phase 2, NEWCO ARCA: Strategy and business model Central Procurement Agency E-Procurement promoter Optimizing the public procurement expenditure Supports procurement management for goods and services Awards public contracts or signes framework agreements Improvingpurchasing performance Implementation and promotion of E-Procurement solutions for the management of procurement processes online ARCA Procurementconsultancy «SUA» CentralizedContracting authority Providingspecialist consultancyto the authorities in the set up of their tenders, both traditional and telematics Supporting adoption of e-Procurement tools Complete-tender management for Public Entities > 1700 Public Entitiesinvolved Lombardy Region and referring entities Municipalities and local authorities NEW Health Sector Other Authorities

  22. Phase 2, NEWCO ARCA: the spin-off • The drivers at the basis of the creation of the spin off were: • Creationof the IT, HR, Legal and Accounting staff functions previously executed by LISPA • In-house ICT and E-Procurement platform development • These factors led to increase the organizational complexity of the new entity from LISPA… …to ARCA LombardyRegion LombardyRegion LOMBARDIA INFORMATICA ARCA HR Accounting HR ICT* Legal Legal Accounting ICT Functions (entire Lombardy Region services) Business Unit Central Procurement Agency Demand management and E-procurement platforms evolution Sourcing * IT and E-procurement platforms development and management

  23. The spin-off: key data and indicators 40people involved within the organization More than 100suppliers managed 200active contracts In house logistic & ICT management ARCA E-platformsand infrastructures management & development Internal HR management Within the limited time frame of two months (August included), specific adjustment plans have been provided for each one of the following functions, further described in the next slide August September Accounting Accounting HR HR Legal and compliance Legal and compliance Logistics management Logistics management ICT & Platform development ICT & Platform development Suppliers management Suppliers management

  24. ARCA: the new activitieswithin the organizational model Specific activities previously managed by LombardiaInformaticahave been passed on to the new structure, ensuring the operational continuity of the business New Tasks Activities Accounting • Start-up of the accounting unit • Accounting regulations and accounting system set-up • Approval of the 2012 budget and 2013-2015 HR • HR management • Payroll management • Agreements with labor unions Legal and Compliance • Administrative compliance (people training, org. model set-up, Supervisory Board) • Security and prevention compliance • Privacy regulation compliance Logistics management • Work station set up ICT & Platform development • Development and management of the E-procurement platforms Sinteland NECA (electronicstore) • Technical connections and internal infrastructures Suppliers management • Agreement with Lombardia Informatica • Transfer of existing contracts • Purchasing procedures for new contracts

  25. ARCA: IT and procurement management • In a business and operational continuity perspective, certain technical services were outsourced to LISPA, thus remaining within the original organization: • In the AS WAS model specific technical services areoutsourced to LISPA in order to take advantage of LISPA centralization efficiency • In the Ongoing perspective, ARCA will source some of the mentioned technical and structural services to external market players (other from LISPA) in order to achieve economic benefits and higher quality services (>COMPETITION EFFECTS) AS WAS Ongoingperspective • Dematerialization • Contact Center • Website • Certified mail (PEC) • Single Sign-on • Pay-roll • Technical Integration Infrastructure • E-procurement infrastructure (Sintel platform and NECA electronic store) • Dematerialization • E-mail • E-procurement platforms Sintel and NECA (electronic store) development and evolution • Workstations management

  26. The start up of a Central Procurement Agency • ARCA services and results (2013) • Question time • Focus on ARCA’s procurement process • Focus on Green Public Procurement • Focus on ARCA’s special projects: PCP • Question time April 5th 2013

  27. E-Procurementvaluechain: the vision PAYMENT NEEDS DETECTION MARKET ANALYSIS TENDER MANAGEMENT ORDERING ARCHIVING E-ARCHIVING VENDORMANAGEMENT E-SURVEYING E-ORDERING E-INVOICINGE-PAYMENT E-TENDERING 2013 FOL SINTEL NECA Elenco FornitoriTelematico @ Software-As-A-Service Supporttools Enablingtools CRM ContactCenter Web-basedaudit Business intelligence Web site Digital signature Certified mail

  28. E-procurement: focus on the Regional e-tenderingplatform Sintel • e-Tendering opportunities • Open procedures • Restricted procedures • Negotiated procedures • In economy purchasing • e-Auctions • Framework agreements • Dynamic Purchasing System SINTEL • One-stop service • e-Notification • e-Validation • Supplier-base management • Events log system • Reporting system • Archiving of documents • Sintel can be used autonomously and for free by: • every Public Authority based in Lombardy • every Economic Operator (both Italian and Foreign)

  29. The importance of a Customer Care model Contracting Authorities are our “Customers” Many different ways to spread eProc • Consulting • On site support • Training on the job • Teaching rooms • eLearning • Web portal daily updated • Web knowledge base • Free Contact Center for CAs and EOs • Promotional and Marketing activities • Customer Satisfaction & Quality Assurance • Awarding: “LombardiaEfficiente Award” Subscribe bilateral “Agreement Protocol” with “Hub” Contracting Authorities

  30. ARCA: internationalprojects Arca cooperates with the most relevant international networks working on public procurement PROJECTS • UE projects on e-procurement • Cross-border public procurement • Policy making RESEARCH • e-Procurement • Change and performance management • Green Public Procurement EVENTS • Best practicesharing • Opening of localmarkets • Europeanconferences

  31. Centralized tendering procedures: results achieved 1/2 ARCA performspublic centralizedtendersenablingPublic Authoritiesto purchase goods and services directly without tendering • 2007-2012 Frame contractsmanaged • Travel Agency services • Stationery for office use • Paper • Local Police Uniforms • Electricity • Copying machines • Advertising services • Antiseptics and disinfectants • Aids for incontinence • Drugs (2 editions) • Vaccines (annual) • HealthInsuranceservices Common expenditure HealthSector expenditure • 2013 (mostrelevant) • Drugs (thirdedition) • Vaccines • Workstations • Pre-commercial procurement

  32. Mainresults 84% Healthsector 2805 lots 73 Tenderingprocedures 3,7 mld/€ Reserveprice RECENT Centralized tendering procedures Drugs (open) ed. III Drugs Biosimilar Drugs (negotiated)Ed.3 Vaccines ed. VI Health insurance ed. II Health insurance ed. II Health insurance ed. III TNT Electricity III Workstations Pre-commercial procurement Vending Machines 758 mln/€ 40% Of the expenditure on the health sector 44 mln/€ 0,1 mln/€ 0,4 mln/€ 152 mln/€ 76 mln/€ 95 mln/€ 9 mln/€ 116 mln/€ Tendering procedures for Lombardy Region 34 mln/€ • Digital Library • Call Center services • Mail services • Consultancy on sequestrated goods 0,75 mln/€ 6 mln/€ Last updating: february 2014

  33. Centralizedtenders: resultsachieved: year 2013 21% Savings (327 mill) 1,36 Bill. 1886 lots 22 tenderdingprocedures Savings of individual tender costs ~ 10.000 € each • EgVaccines: • Notificationsavings(150K€) • System reductionoftenders (15) Savings on notificationcosts • Reduction of the number of contracts • Increase of staff productivity • Centralized settlement of disputes with suppliers Economies of process • High quality standards (especially for small entities) • Monitoring of products/services quality Quality of supplies • GPP >> Request of eco-innovative products and services • CSR >> introduction of "social criteria" for procurement (especially for small entities) Promotion of Sustainable Procurement

  34. Resultsachieved: e-Procurement 206 ContractingAuthorities Numberofe-tenders 4.234 +57% +43% +40% +120% 645 418 41 Health care Regional Local OtherCAs 5373 Total e-tenderssince March 2008 € 3,8 bln Sum ofreserveprices Data update: 31/12/2012

  35. Main evidences: Sintel factsheet • Jan - May trend • (2012 vs 2011) • eTendersoverview • Key Performance Indicators • + 58% • total eTenders • +47% • Total numberofeTenders • +43% • +40% • +120% • Y2011: Health eTenders are 12% in value of the full regional amount

  36. Keyfindings • eProcurement is spreading very fast in Lombardia (+50% e-tenders per year) • The largest the end-user experience gets, The greater the eProcbenefits grow • In order to fully disclose the benefits, it is crucial to define e-procurement impacts, having a KPI framework to measure them. Since 2009, Lombardia Central Procurement Agency contributions regarding e-procurement impacts have been among the most influential in the international public procurement researchers and practitioners network (ippa.org).

  37. eTendering performance impacts - 30% procedure duration - 6 FTE employed per tender + 62% online sharing of tender documents Adoptionofstandards (fordocuments and processes) Easierto spread competencies and best practices + 7% averagesavingsincrease EFFICIENCY GOVERNANCE EFFECTIVENESS + 250 % suppliersinvitedtotenders - 72% paper per tender (1 savedtreeevery 24 eTenders) COMPETITIVENESS DEMATERIALIZATION Source: researchconducted in 2009-2010 byCentral Procurement Agency. ResearchupdateswillbereleasedAgoust 15th @ International Public Procurement Conference 2012, Seattle + 60% quantity and timeliness of information TRANSPARENCY

  38. Critical Success Factors for a Central Procurement Agency Networking Training & consultancy MBO People Governance Process re-engineering • ENVIRONMENT • Stakeholders engagement in decision making • Participation in the most important procurement networks • Communication • PROCESS • Use and promotion of commodity standard categorizations • Measuring of e-procurement impacts • Documentation standards • TECHNOLOGY • E-procurement 100% free of charge • Integration with eNotices, and other relevant DB • Centralized business intelligence • PEOPLE • Over 100 training courses per year • Consultancy for every tendering procedure if needed • Prizes for the best performers Comprehensive normative Standardization Environment Process Measuring & reporting Marketing Technology System integration State of the art e-proc tools User friendliness

  39. QUESTION TIME

  40. The start up of a Central Procurement Agency • ARCA services and results (2013) • Question time • Focus on ARCA’s procurement process • Focus on Green Public Procurement • Focus on ARCA’s special projects: PCP • Question time April 5th 2013

  41. Green Public Procurement : definition Green Public Procurement (GPP) is defined in the Communication (COM (2008) 400) “Public procurement for a better environment” as "a process whereby public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life cycle when compared to goods, services and works with the same primary function that would otherwise be procured.” GPP is a voluntary instrument, which means that Member States and public authorities can determine the extent to which they implement it.

  42. Tenderingprocedures and GPP Techincal points Minimal Requirements Products Services • e- procurementtools

  43. The green frame contracts • WORKSTATION • € 10.412.646 • PAPER FOR • PRINTERS • € 10.412.646 • 1/2/3 ED. • TRAVEL AGENCY • € 5.121.125 • ELECTRICITY 1/2/3 ED. • € 200.878.022 • UNIFORMED POLICEMAN • € 9.146.110 • STATIONERY 2/2 ED • € 7.050.000 COPYING MACHINES € 10.740.120

  44. GPP approach Approach Tools • Fixing the quality and the sustainability of products • Market analysis (meeting with suppliers) • Benchmarking best practices • Meeting with experts • Defining green minimal products requirement as entry barriers to the tendering procedures • technical points to recompense green products • Enhancing the market to offer sustainable products and services • Meetings, seminars, tranining courses • Green reports established in the contracts to improve the awareness of entities • Boosting the public entities to buying green

  45. The positive effects of centralization Payment Collection of needs Market analyss Suppliers Choice Order transport • - Tendering documentation – question from suppliers • - Tendering commission • - Signing of the frame contract Electricity TONER PAPER A centralized tendering procedure generates a unique documentation

  46. Centralizing procurement: a example of indirectsavings ASSUMPTION: each pulic entitiy buying trhought the frame contract does’nt need to publish a tendering procedure autonomously • Defining the average number of sheets wasted to publish and awarding a traditional tendering procedure 2) Multiplying this number for the total number of public entities that chosen to buy through the centralize frame contracts Almost 905 .000 sheets saved …. Last updating: March 2012

  47. …putting the sheetsalong a streettheywould cover a distance of 271 km (Bruxelles-Dortmund)

  48. Sintel: the gain about GPP • The use “in full swing” permits that all the tendering procedures of the sanitary and regional agencies and the 30% of the tendering procedures of local agencies will be managed by Sintel. • Till the 2010, 1920 tendering procedures have been managed by sintel, and they have permitted to “save” 80 trees. • The public agencies use about 33.000 reams of paper per year only for tendering procedures. • Sheets of A4 paper consumed for type of tendering procedure (traditional vs Sintel) 1 tree “saved” every 24 tendering procedure online About 1.400 trees “consumed” every year in Lombardia 750 trees “saved” per year (~55% of the total) 30 50 Traditional centralized tendering procedure In full swing Historical • Nota: i dati sono relativi ad analisi condotta da Centrale Regionale Acquisti su un campione di Enti lombardi, si riferiscono a gare svolte su Sintel dal 01/04/2008 al 01/04/2009 • Ipotesi: 5 gr./foglio ; 17 alberi di medie dimensioni per 1 tonnellata di carta. Fonte: Istituto di ricerca sull’impresa e lo sviluppo del Consiglio Nazionale delle Ricerche di Torino, CERIS-CNR, 2007

  49. The start up of a Central Procurement Agency • ARCA services and results (2013) • Question time • Focus on ARCA’s procurement process • Focus on Green Public Procurement • Focus on ARCA’s special projects: PCP • Question time April 5th 2013

  50. Brief description of the PCP procedure • PCP is a process by which public authorities can steer the development of new technologically innovative solutions which does not exist on the market (R&D) • PCP precedes commercial procurement in the product development and procurers buying process • PCP empowers public authorities to stimulate industrial product development from its early R&D stages to test series DEFINITION Competitive development in phases Sharing of risks and opportunities between contracting authorities and economic operators Separation of the R&D phase from the deployment of commercial volumes of end-products CHARACTERISTICS

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