austrian experience in using procurement data and...
TRANSCRIPT
Austrian Experience in Using
Procurement Data and Tools to
Benchmark Public Spending
December 1st, 2015
Dipl.Kfm. Uwe Flach
Head of Marketing & Consulting
Content
Overview Public Procurement in Austria
Federal Procurement Agency (BBG)
Our e-Procurement Solutions
Relevant KPI‘s and Benchmarking
Austria – Federal System
Federation: 3 levels of Government
– Federal Government
– 9 State Governments (Länder)
– 2,357 Municipalities
The legal system in the area of
Public Procurement
National legislation was adopted to transpose EU Dir.
(Directives 2004/18 and 2004/17, Remedies Directives)
There is one law, the Public Procurement Act , which
deals with PP in general and the review on federal level;
There are 9 different laws, which deal with PP review on
municipal and state level.
There are several accompanying regulations
Institutional System-
Main Stakeholders
Federal Chancellery: drafting legislation, information functions
Federal Procurement Agency (BBG): central purchasing
body for the Federal State of Austria to execute procurement
(bundle, standardize etc.)
The Court of Audit: controls the necessity (as such) and the
concrete conduct of public procurement procedures
Federal Administrative Court: review body for entities at
federal level
Regional Administrative Courts: review body for entities at
regional level (one for each of the nine Austrian provinces).
Supreme Administrative Court: second instance
Content
Overview Public Procurement in Austria
Federal Procurement Agency (BBG)
Our e-Procurement Solutions
Relevant KPI‘s and Benchmarking
Federal Procurement Agency act as
Central Procurement Body
Established by law: Federal Procurement Agency Act 2001
Portfolio assigned by Decree (Minister of Finance)
Awards procedures based on Federal Procurement Act
Federal entities are obliged by law to procure defined goods
and services1) through the Federal Procurement Agency
(BBG).
Other public entities2) can use the services of the BBG but
can also procure by themselves.
When purchasing, all public entities are bound to the rules
set in the Austrian Public Procurement Act.
1) procurement of non-military goods and services, (except construction)
2) Other public entities: Municipal or federal state authorities as well as entities financed by such authorities or being
governed by or under the supervision of these authorities
Impact on Austrian Public
Procurement Sector
Our Objectives & Goals
Optimizing purchasing conditions & getting best value for
money
Reducing legal risks
Contributing to a effect-oriented, efficient and transparent
administration
Optimizing procurement processes by means advanced IT
Allow Ministries to concentrate on their core businesses
Improve efficiency of public procurement
& reduce public expenditure
Our Solutions
Bundling public demand & joint tenders for framework
agreements
Standardisation of goods and services
Making framework agreements available to the entire
public sector
Optimizing public purchasing procedures by providing
comprehensive e-Procurement solutions
Establishing an organization with procurement specialists
(professionalization of staff) & consulting capabilities
The Federal Procurement Agency was set
up as a shared service provider
Areas of our Business
Procurement
about 960,000 products are ready to be bought by all
government authorities and cover 12 product-families
– such as IT, office equipment or cleaning services etc.
Consulting
Projects on particular order by customers („PibA“)
Consulting services in the fields of public procurement,
procurement-organisation and in special product-ranges
e-Procurement Solutions
Provision of comprehensive and integrated solutions
covering the entire procurement processes
(„e-Shop“ and „e-Reisen“ and e-Invoicing gateway)
Advantages for all public authorities
Participation at a huge procurement market
(volume ca. 1.2 Billion Euro)
Optimal conditions (17.7% savings)
24/7 availability of goods and services
No own tendering procedures
Reduction of process-costs
Legal certainty
No risk allocation
Standardized, periodic processes
BBG: Procurement Service Provider
Customers
Suppliers
Award procedures
Ascertainment of requirements
Supplier X
Agency X
Order
Delivery
Invoice
e-Shop processing
BBG
EU regulations impacting
e-Procurement in public sector
e-Tendering - Directive 2014/24/EU
– 18. Apr 2016: Incorporation into national law
– 18. Apr 2017: Central Purchasing Bodies will move to full
electronic means of communication including electronic bid
submission
– 18. Oct 2018: e-submission should be made mandatory for all
Public Contracting Authorities and all procurement procedures
e-Invoicing - Directive 2014/55/EU
– 27. Nov 2018: Public Contracting Authorities need to accept e-
Invoices from suppliers
Content
Overview Public Procurement in Austria
Federal Procurement Agency (BBG)
Our e-Procurement Solutions
Relevant KPI‘s and Benchmarking
e-Procurement Process Landscape
planningelectronic
publication
electronic
tender
electronic
invoice
electronic
orderelectronic
catalogue
Other applications
(Contract Mgmt., CRM, Electronic signature, Electronic archive, Electronic act, etc.…)
Organisational aspects und conditions
(SLA, human factor, legal certainty and clarity, etc.…)
aw
ard
pre-award post-award
Illustrative
BBG e-Procurement Landscape
„pre award“ Solutions „post award“ Solutions
e-Tendering
Solution1)
e-Shop
Multi-Supplier
Catalogue /
Staging
eInvoicing Service
Portal
e-Reisen(Travel booking
tool)
Other Applications
Contract
Management
(MDM)
Document
Management
System
Special Data
BaseBBG Portal CRM
Survey of Demand
(partially Survey
Monkey)
Shopping
tool /
WF Mgmt
Contract
Information
Platform
Monitoring
1) Due to change in EU regulation (Directive 2014/24/EU) potential future solutions are currently under evaluation
Pre-Award in Austria – Target
Clearing Center
Business operator
Contracting authority
Workflow application Workflow application Workflow application
interfaces
Post-Award
BBG Electronic Ordering Platforms
e-Shop
The e-Shop is the central purchasing portal of BBG.
More than 1 Mio products & services can be ordered
electronically. With a differentiated privilege-system all
acceptance sequences are visible for the customers.
e-Reisen
The travel online-booking-tool „e-Reisen“ allows direct
electronic booking of business trips. Flights, hotels and
rental cars can be compared and booked online.
e-Shop as Central Purchasing Portal
The BBG e-Shop offers a central web based information and
purchasing portal. It can be used as the single point of entry for
all your buying related activities.
Central Invoice processing incl.
e-Invoicing
BBG Customers
BBG Suppliers
e-Shope-Invoice
Gateway
USP
CRM
Variant 1:
Form based invoice
generation
Variant 2:
Structured invoice
transmission
Federal clients: :
Transmission via
USP
Non-federal clients:
Different transmission types (PDF,
XML) or download via e-Shop
Master data sync.
e-Reisen
Our Online Travel Booking Tool
Highlights Cytric
Professional tool customized for public authorities
Comprehensive user and right management
Reporting tools
24 hours support hotline
Reduced process costs for procurement
prices according BBG and cytric agreements
Planning and booking for all travel purposes
– hotels, flights and cars
– ordering according defined travel policies
– approval workflow optional
– connecting with travel agency
– personal travel information
– automatic billing and ticketing
Content
Overview Public Procurement in Austria
Federal Procurement Agency (BBG)
Our e-Procurement Solutions
Relevant KPI‘s and Benchmarking
Important KPI‘s for BBG - overall
KPI Short Description BBG Value (2014)
Total procurement volume
via CPB
Total amount in Mio. EUR of the purchases processed through
contracts and framework agreements established by the CPB.
1,183 Mio. EUR
(see also graphics)
Savings Total savings per year measured in procurement volume and/or
Percent (based on bundling effects); No common formula existing
for CPB’s
17,7%
(see also graphics)
Share of the relevant public
procurement volume in the
CPB's country
Based on ca. 6 Billion EUR public procurement potential in the
fields in which BBG is allowed to purchase.
The figure is an estimation by BBG (potential does not include
construction/real estate procurement and military procurement)
Ca. 20%
Procurement volume per
customer group of the CPB
Customer groups defined for BBG (Federal, Universities, Health,
Province/Municipalities, Public owned enterprises (Spin-offs)
See graphics
Procurement volume per
purchasing area of the CPB
Purchasing areas / product groups used by BBG (usually more
they will differ per CPB)
See graphics
No. of successful award
procedures per year
Number of procedures executed by BBG 150
(see also graphics)
No. of unsuccessful award
procedures
Number of procedures where an objection was sustained 1
(see also graphics)
Number of customers Total number of public contracting authorities using CPB’s
agreements
2129
Total Number of employees Number of employees in full time equivalents (FTE) within CPB 97 (see also graphics)
Important KPI‘s for BBG – eProc.
KPI Short Description BBG Value (2014)
e-Procurement volume Total amount in EUR of purchases processed via electronic
tools, such as electronic shops, electronic Marketplaces etc.
Ca. 305 Mio EUR
(see also graphics)
e-Invoice Reporting % of CPB contracts which are part of automated procurement
reporting based on e-Invoicing
43%
Contracts available via
procurement portal
% of BBG concluded agreements which are accessible for
contracted customers via web based procurement portal
100%
(currently ca. 1,900
contracts)
Number of electronic
catalogues
Total Number of e-Catalogues available via e-procurement
shopping tool
2200
Number of articles in
catalogues
Listed articles which can be found via search engine in the
shopping tool
Ca. 1.4 Mio
Number of electronic PO’s Number of created purchase orders via shopping tool (per year) Ca. 90,000
Number of active users Number of active users within the e-Procurment solution Ca. 18,000
Important KPI‘s for the public sector
(which we cannot measure)KPI Short Description
Total spend of Public Procurement in
AT
Total amount in EUR of all organizations within public sector and which are subject
to Public Procurement Act
Maverick Buying How many orders or what volume of an organisation was ordered outside of
defined and given buying channels / buying processes
Public Procurement volume per
public sector group
public sector groups such as Federal, Universities, Health, Province/Municipalities,
Public owned enterprises (Spin-offs)
Public Procurement volume per
purchasing area
Purchasing areas / product groups defined on national product classification
system
Procurement ROI Cost effectiveness of procurement department comparing implemented cost
savings with procurement department’s operating budget
Costs per Purchase Order Calculation of costs to process an order (e.g. fixed overheads + variable costs)
% of Spend managed by professional
purchase department
Managed spend by professional purchase department as % of total spend (spend
which is managed via professional sourcing processes & procedures)
Total Procurement Volume &
Savings
Procurement volume 2014:
• 1,2 Billion Euro
Savings 2014:
• 17,7% (253 Mil. Euro)
Mill
ion
Eu
ro
Procurement Volume per Customer
Group of BBG
Procurement volume 2014:
1,2 Billion Euro
Mill
ion
Eu
ro
Award Procedures per Year
Reflects legal certainty:
Since its incorporation, the
BBG has concluded 1802
award procedures. Only 92
cases were appealed –
with only 23 of these
complaints being
successful for the plaintiff.
The constant growing number of customers, contracts and services
is reflected in the growing number of employees. 2014: Out of 101
employees there are 97 full time equivalent. The ratio between men
and women is well balanced.
Number of BBG Employees
e-Procurement Volume via e-Shop
Total Volume
Volume e-Shop relevant
Volume via e-Shop
Mill
ion
Eu
ro
34
Challenges for us as CPB
We are part of a complex public procurement landscape
We are Shared Service provider
– for heterogenic customer and supplier structure
– without direct impact / influence on customer‘s organizational
procurement procedures, guidelines and governance
Our Customers have typically own e-Procurement
landscape which needs to be integrated or adapted
Benchmarking in public sector is challenging
Limited transparency in public procurement sector
…