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IMPLEMENTING THE 2015
OECD RECOMMENDATION ON
PUBLIC PROCUREMENT
Erika Bozzay
OECD Public Governance Directorate
3rd Region...
The OECD
2
3
The OECD…
Better policies for better lives
Spanning a variety of policy areas
4
5
37 member countries
1 accession country
5 Key partners
OECD work on public
procurement
6
Public procurement matters for effective public
service delivery
• 12% of GDP in OECD
countries
• 30% of general
governmen...
8
In 2015, recognising the strategic dimensions, the OECD
designed a holistic framework that became a international
refere...
Public
Procurement
Sustainability
Gender
Responsible
Business
Conduct
Infrastructure
GapSocial cohesion
Digital
transforma...
State of play: Public procurement is increasingly
used to pursue broader policy objectives
0%
10%
20%
30%
40%
50%
60%
70%
...
A preferred topic… SMEs
Measures to support SMEs in public procurement
11
Sources: 2017 OECD Survey on strategic use of Pu...
Countries that measure the results of their public procurement to boost…
Still uneven follow-up and monitoring for
measuri...
Countries that measure the results of their public procurement to boost…
Follow-up and monitoring: less and less measureme...
14
Performance management system lacking in most
countries
State-of-play of digitalisation of procurement
systems in OECD countries
15
Increasing complexity & expectations require
workforce with adequate capabilities & skills
• Many procurement professional...
17
Measures in place to ensure adequate capacity of
procurement workforce
Other findings on progress made by countries
show the real contributions of public procurement
• Digitalisation is here to...
• Transparency and integrity are central to sound
public procurement practices: it levels the playing field
and encourages...
20
The 2015 Recommendation:
Public procurement is taking an increasingly strategic
direction in supporting global economic...
21
To fully deliver on strategic procurement policies
enabling factors need to be further strengthened
Continuous
developm...
The future: assessing the impact of policies
beyond economic performance
Natural capital
Economic
capital
Social capital
H...
Multidimensional impacts of procurement:
towards better understanding
Natural capital
Economic
capital
Social capital
Huma...
LINKS TO OECD WORK ON PP
HTTP://WWW.OECD.ORG/GOV/PUBLIC-PROCUREMENT/PUBLICATIONS
24
TOOLSTHEMATIC REVIEWS
Thank you very much for your attention!
erika.bozzay@oecd.org
25
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Erika Bozzay, OECD Public Governance Directorate, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019

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Presentation by Erika Bozzay, OECD Public Governance Directorate, on the implementation of the 2015 OECD recommendation on public procurement, at the third regional conference on public procurement for ENP East countries, Tbilisi, 6-7 November 2019.

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Erika Bozzay, OECD Public Governance Directorate, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019

  1. 1. IMPLEMENTING THE 2015 OECD RECOMMENDATION ON PUBLIC PROCUREMENT Erika Bozzay OECD Public Governance Directorate 3rd Regional Public Procurement Conference for ENP East Countries Tbilisi, Georgia, 6-7 November 2019
  2. 2. The OECD 2
  3. 3. 3 The OECD… Better policies for better lives
  4. 4. Spanning a variety of policy areas 4
  5. 5. 5 37 member countries 1 accession country 5 Key partners
  6. 6. OECD work on public procurement 6
  7. 7. Public procurement matters for effective public service delivery • 12% of GDP in OECD countries • 30% of general government expenditures • 63% spent at the sub- national level Public procurement - a large share of the economy: 7
  8. 8. 8 In 2015, recognising the strategic dimensions, the OECD designed a holistic framework that became a international reference tool The OECD Recommendation on Public Procurement (OECD, 2015)
  9. 9. Public Procurement Sustainability Gender Responsible Business Conduct Infrastructure GapSocial cohesion Digital transformation Wellbeing 9 Public procurement is a key enabler for a governments’ strategic policy agenda
  10. 10. State of play: Public procurement is increasingly used to pursue broader policy objectives 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2018 2014 2018 2014 2018 2016 2018 2016 2018 Green public procurement Innovative goods & services Support to SMEs Responsible business conduct Women-owned businesses Only some procuring entities have developed an internal strategy/policy A strategy/policy has been developed at a central level 24%24% 52% 69% 90 % 93% 83% 83% 90% 100% 10 Sources: OECD 2018, 2016 and 2014 Public procurement Surveys
  11. 11. A preferred topic… SMEs Measures to support SMEs in public procurement 11 Sources: 2017 OECD Survey on strategic use of Public Procurement to support SMEs
  12. 12. Countries that measure the results of their public procurement to boost… Still uneven follow-up and monitoring for measuring results against strategic goals 12 …Green Objectives …SMEs AUT BEL CHL DNK EST FIN FRA DEU HUN ISL ISR ITA JPN KOR LVALTUNLD POL PRT SVK SVN ESP SWE AUS CAN GRC IRL MEX NZL NOR TUR No: 26% Yes 74% AUS AUT BEL CHL DNK EST FRA DEU HUN IRL ISR ITA JPN KOR LTUMEXNLD POL SVK SVN SWE CAN FIN GRC ISL LVA NZL NOR PRT ESP TUR No: 32% Yes 68% Sources: 2018 Public procurement Survey
  13. 13. Countries that measure the results of their public procurement to boost… Follow-up and monitoring: less and less measurement as goals are increasingly complex (Innovation, RBC) 13 …Innovative Goods & Services …Responsible business conduct BEL CHL FRA KOR NLD POL PRT SVK SVN SWE AUS AUT CAN DNK ESTFINDEU GRC HUN ISL IRL ISR ITA JPN LVA LTU MEX NZL NOR ESP TUR No: 32% No: 68% Sources: 2018 Public procurement Survey AUTBEL EST FRA KOR LTU NLD POL SVK SWE AUS CAN CHL DNK FINDEUGRC HUN ISL IRL ISR ITA JPN LVA MEX NZL NOR PRT SVN ESP TUR Yes 32% No: 68%
  14. 14. 14 Performance management system lacking in most countries
  15. 15. State-of-play of digitalisation of procurement systems in OECD countries 15
  16. 16. Increasing complexity & expectations require workforce with adequate capabilities & skills • Many procurement professionals work in strategic roles that demand high-level strategic, tactical as well as operational skills. • There are not many entry requirements into PP. Some of the existing ones are linked to a competency model or certification frameworks. • Countries are investing to bridge this gap in many cases with collaborative initiatives 16
  17. 17. 17 Measures in place to ensure adequate capacity of procurement workforce
  18. 18. Other findings on progress made by countries show the real contributions of public procurement • Digitalisation is here to stay and can bring unprecedented evidence for policy-making: Digital technologies are increasingly being used to gather meaningful data for measuring the multi- dimensional impact of public procurement (economic, strategic and well-being). • Measuring the improvements in economic results through procurement: procurement data is being used to boost consumption of desirable products and promote real improvements in strategic policy areas 18
  19. 19. • Transparency and integrity are central to sound public procurement practices: it levels the playing field and encourages supplier’s participation • Infrastructure public procurement risk is in focus: with many large projects underway or yet to be started across countries the complex risk environment requires both superior capability and methodologies. 19 Other findings on progress made by countries show the real contributions of public procurement
  20. 20. 20 The 2015 Recommendation: Public procurement is taking an increasingly strategic direction in supporting global economic, social and environmental opportunities for governments. The Recommendation remains highly relevant in the current policy context. - 22 OECD peer reviews of public procurement systems - Presented at more than 50 international conferences and more than 100 OECD workshops - OECD Public Procurement Toolbox is an important knowledge sharing tool which contains more than 180 case studies and a checklist for countries to use for implementation The Recommendation – supporting governments as a benchmark for public procurement systems
  21. 21. 21 To fully deliver on strategic procurement policies enabling factors need to be further strengthened Continuous development of civil servants through competency models and training Harnessing the benefits of digital transformation brought by e-Procurement Develop frameworks to measure performance and progress
  22. 22. The future: assessing the impact of policies beyond economic performance Natural capital Economic capital Social capital Human capital Sustainability of well-being over time Sustainability of well- being over time Inspired by the OECD Well-Being Framework
  23. 23. Multidimensional impacts of procurement: towards better understanding Natural capital Economic capital Social capital Human capital Sustainability of well-being over time PP Sustainability of well-being over time 23
  24. 24. LINKS TO OECD WORK ON PP HTTP://WWW.OECD.ORG/GOV/PUBLIC-PROCUREMENT/PUBLICATIONS 24 TOOLSTHEMATIC REVIEWS
  25. 25. Thank you very much for your attention! erika.bozzay@oecd.org 25

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