3 rd Global Procurement Conference

1. “Central Purchasing in Italy” 3rd Global Procurement Conference Rome, 3 July, 2018

2. Agenda • Who is Who in the Italian Public Procurement Ecosystem • CSF in Public Procurement and Centralization: Collaboration and Competences • The Added Value of a CPB: Metamorphosis and Changing Roles • Future Goals

3. Who is Who The Italian Public Administration in a Snapshot: a ComplexScenario 3.5 Mln public employees 36.000 Contracting Authorities ca 60 Mln Population 95 Bln € G&S spending 3.000.000 Suppliers (99% MSMEs) • 32 CPB’s: • 1 National • 20 Regional • 11 Sub Regional National Public Procurement System 4.500.000 Contracts (90% <40k €) • 13 Ministries • 20 Regions • 110 Provinces • > 8000 Municipalities • 94 Universities • > 10000 Schools • > 300 Health Sector Public Spending Optimization through EPROCUREMENT

4. Who is Who: The Program for the Rationalization of Public Spending Supplier’s & Public Body’s Institutional Representatives Oversight Authorities Procurement Aggregators MEFplays a policymaking and coordinating role and defines the Program’s guidelines Consipanalyzes the demand and supply markets, develops purchasing procedures 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 Launched with the year 2000 Budget Law with the aim of optimizing public purchases of goods and services and developing procurement models based on new processes and technologies Introducing demand aggregation and efficiency (using different procedures such as: Single Supplier Framework Agreements, Framework Agreements, Electronic Marketplaces and Dynamic Purchasing Systems, as entirely digital processes)

5. WhoisWho: Consip SpA Implementation of the “Program for the rationalization of public spending on G&S” Procurer for individual PAs for specific tenders (Sogei) Procurer for all PAs (SPC – AGID) Implementations of Projects for PAs and of tasks assigned by law (register of statutory auditors, EU funds) VERTICAL PROCUREMENT CENTRAL PROCUREMENT OTHER AREAS FOCUS PUBLIC FINANCE TOOL (impact on costs) EFFICIENCY AND INNOVATION TOOL (impact on processes) Aim

6. Who is Who Consip: Setting up the National eProcurement Platform Eprocurement portalwww.acquistinretepa.it Comprehensive set of purchasing tools 2000 2004 2010 2012 Other types of FAs DPS Single supplier FAs eCatalogues -MEPA 2002 first digital tender Above/Below EU Threshold Below EU threshold Above/Below EU Threshold

7. Who is Who Consip: Main Services Provided CONSIP’S focus Upstream Services ProcurementProcess Downstream Services Design, management and program management of tender Conditions Analysis Development Practice Expenditure Tender strategy Tender Documentation Publication Bids evaluation AwardActivation Contract Management Promotion (of activities, CRM Litigation management IT business, e-procurementplatform Coordination and Governance Greater distinction between upstream/downstream services and procurement services Equal attention to activities and services not related to the procurement process

8. Who is Who: Expenditure Covered/not Covered by Consip Covered Uncoverable 95 * Source: ISTAT published in April 2018

9. Who is Who: Consip Main 2017 KPIs 8,6 Mln Public Spending on Goods and Services eCatalogue Items 95 Bln/€ Number of business firms (99% SMEs ) 92.400 47,4 Bln/€ Covered expenditure Managed expenditure: Total value of orders (ca 60% goes to SMEs) 80.300 Public Buyers 9,6 Bln/€ Savings 2,6 Bln/€ Ca. 14% average savings 700.000 Contracts

10. Who is Who: Procurement Aggregators DL 66/2014 Art. 9 • TITLE II –savings and efficiency in public expenditure • chapter I – Rationalization of public expenditere for G&S • Art. 9 G&S purchases by the procurement aggregators DL 66/2014 «urgent measures for competitiveness and social justice» • What does it foresee? • Setting up the procurement aggregators Technical Table, coordinated by the MEF • Identification of the Product Categories and thresholds that central and local administrations, regions, local entities and health structures purchase through Consip or the procurement aggregators • Allocation of a Fund to finance aggregated purchases (DM MEF 16 Dec. 2015 and DM MEF 20 Dec. 2016)

11. Centralization of Public Purchases: Procurement Aggregators Agenzia per i procedimenti e la vigilanza in materia di contratti pubblici di lavori, servizi e forniture (Bolzano) Città metropolitana di Milano Provincia di Brescia Agenzia provinciale per gli appalti e i contratti (Trento) ARCA S.p.A. • ANAC defines the list* of Procurement Aggregators (32), composed by: • 1 National CPB: Consip S.p.A. • 21 Regional CPBs (set up according to financial bill 2007) • 8 Metropolitan Cities + 2 Provinces (compliant to DPCM 11/11/2014 requirements) IN.VA. S.p.A Centrale Unica di Committenza – Soggetto Aggregatore Regionale SCR – Società di Committenza Regione Piemonte S.p.A. UOC – CRAV di Azienda Zero Città metropolitana di Torino Provincia di Vicenza Stazione Unica Appaltante Liguria Città metropolitana di Bologna Agenzia Regionale Intercent-ER Città metropolitana di Genova Stazione Unica Appaltante Marche Città metropolitana di Firenze CRAS – Centrale Regionale per gli Acquisti in Sanità Regione Toscana - Dir. Gen. Organizzazione Settore Contratti Consip S.p.A. Stazione Unica Appaltante Abruzzo Direzione Centrale acquisti della Regione Lazio Servizio regionale Centrale Unica di Committenza del Molise Città metropolitana di Roma Capitale Servizio della Centrale Regionale di Committenza SO.RE.SA S.p.A. InnovaPuglia S.p.A. Città metropolitana di Napoli Stazione Unica Appaltante Basilicata Stazione Unica Appaltante Calabria Centrale Unica di Committenza regionale Città metropolitana di Catania • (* New list of procurement aggregators defined by ANAC in January 2018

12. Agenda • Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) • CSF in Public Procurement and Centralization: Collaboration and Competences • The Added Value of a CPB: Metamorphosis and Changing Roles • Future Goals

13. Centralization and Tools for Aggregated Purchasing in EU Dir. 2014/24 Innovative Challenging! New Tools New Roles New Capacities for the entire PP ecosystem!!

14. Centralization and Tools for Aggregated Purchasing in EU Dir. 2014/24 Member States may provide that contracting authorities may acquire supplies and/or services from a central purchasing body offering the centralized purchasing activity referred to in point (a) of point (14) of Article 2(1)….. Directive 2014/24 Centralized purchasing and CPBs Art. 37 Wholesaler: buys, stocks and sells Intermediary: awards FAs used by other CAs

15. Centralization and Tools for Aggregated Purchasing in the Italian Code CAs can manage autonomously procurement of goods and services below 40.000 euro and public works below 150.000 euro, or buy through one of the tools made available by central purchasing bodies and procurement aggregators. For purchases above those values CAs must either use the CPBs and procurement aggregators or undergo a qualification process (art.38). Law 50/2016 Aggregation and Centralization Art. 37

16. CSF and New Challenges in Public Procurement Multi- Skilled CAs and EOs Multi- Skilled CPB

17. CSF in PP: the Evolving Italian Landscape • TREND • Centralize above the threshold, by aggregating skills • Digitalize below the threshold: by use of ecatalogues and training 2017 2016 Qualification of CAs Creation of Procurement Aggregators 2008 Set up regional CPBs (network) 2000 Set up a central CPB

18. Agenda • Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) • CSF in Public Procurement and Centralization: Collaboration and Competences • The Added Value of a CPB: Metamorphosis and Changing Roles • Future Goals

19. Added Value of a CPB: Purchasing Tools and Negotiation Tools available to CAs Purchasing tools Tools that do not require a renegotiation during second stage Single supplier FAs Other FAs without renegotiation during mini tender Direct order from the ecatalogues (MEPA) Tools that require to reopen the negotiation 1) FAs with renegotiation during mini tender 2) DPS 3) Request for quotation from the ecatalogues (MEPA) 4) other….. Negotiation tools

20. The Added Value of a CPB: Providing for the Most Suitable eProcurement Tool MePA DynamicPurchasing System Customised Framework Agreements Buy side Single Supplier FAs Standard Supply side Concentrated Standardized Fragmented Specialised The adoption of different tools is related to the market (buy and supply side) characteristics

21. The Added Value of a CPB: Changing Role and Metamorphosis MePA Consip’s role DynamicPurchasing System «MarketMaker» Framework Agreements Single Supplier FAs «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

22. Agenda • Who is Who in the Italian Public Procurement Ecosystem(Consip, end users, monitoring authorities, procurement aggregators) • CSF in Public Procurement and Centralization: Collaboration and Competences • The Added Value of a CPB: Metamorphosis and Changing Roles • Future Goals

23. Future Goals: Desiderata…. Goal 1: increase the number of public users. Many public authorities still do not make recourse to Consip, c.a. €38 bln of expenditure escape from Consip’s system. This requires to increase both the value of managed expenditures (orders), leveraging on products availability, and the involvement of public bodies using our initiatives. Goal 2: achieve savings for at least € 9-10 bln during the following 3 year term, through a greater amount of tenders managed by Consip, more frequently, with lower volumes and greater competition (more opportunities for SMEs). This requires continuous change and adaptation in the organization, process and objectives to achieve We already changed recently internal procedures, organization and production standards (i.e. more focus on contract management). Goal 3: guarantee greater transparency, rigorous checks and controls This requires working hand in hand with the oversight Authorities.

24. angela.russo@consip.it Angela Russo Head, International Cooperation Projects

25. Who is Who: Mandatory or Voluntary Regime vs Centralization • L. 244/07 • PRODUCT CATEGORIES • -MANDATORY FOR ALL PA • Energy • Fix telephony • Vehicle Fuels • Mobile telephony • Heating Fuels • Lunch coupons • Gas • Otherproductcategories • -MANDATORY FOR CENTRAL PA ICT PRODUCT CATEGORIES “strategic ICT tenders” (Agid 3 year ICT plan) -MANDATORY FOR ALL PA -FOR LOCAL PA: RECOURSE TO PROC AGG IS A PRIORITY PRODUCT CATEGORIES fixed by law for ProcAggr(Health, Facility, ecc.) -PRIORITY FOR LOCAL PA TO USE PROC AGG. -FACULTY FOR LOCAL PA TO USE CONSIP OTHER PRODUCT CATEGORIES -PRIORITY FOR LOCAL PA TO USE PROC AGG. -FACULTY FOR LOCAL PA TO USE CONSIP • Mandatory/Faculty • Mandatory • Faculty LOW VALUE PURCHASES MANDATORY ON THE MEPA FOR EVERYONE (FOR LOCAL PA PRIORITY TO USE THE MEPA OF THE PROC AGG …..IF EXISTING)