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Kenza Khachani
Public Sector Integrity Division
Public Governance Directorate
Kyiev, 30th of May 2018
Centralisation of Pu...
The OECD…
• …is the global organisation that drives better policies for
better lives:
• The OECD provides a forum where co...
35 member countries, 4 accession
5 Key partners
3
Part of a global community
4
FOR A SOUD PUBLIC
PROCUREMENT SYSTEM
5
Public procurement is:
• a major economic and government activity. It involves
significant funds and is used to deliver pu...
7
Public Procurement really matters
Government procurement as share of GDP and of total govt. expenditures
Source: OECD Na...
OECD Recommendation of the Council
on Public Procurement (2015)
Efficiency
• Streamline the System and Institutions
Streamline the public procurement system and its institutional
framewo...
CENTRALISATION OF
PROCUREMENT
10
Different tools, involving different
levels of aggregation of demand
11
Single
procurement
Joint
procurement
Centralisatio...
i) acquires goods or services intended for one or
more contracting authorities;
ii) awards public contracts for works, goo...
Leveraging the demand aggregation
13
• Better prices (economies of scale)
• Lower transaction costs (tender preparation, contract
management)
 CAs
 and Suppl...
• Improved capacity and expertise
• Certainty of the procurement process
• Simplicity
• Fast implementation of national st...
• Homogeneous needs (a certain degree)
• P entity >P centralisation
Success conditions
Factors that motivated the
implementation of CPBs
OECD 2014
CPBs in OECD countries
CPBs can exist at the:
• Central level
• Regional level
• Sectorial level ( Health, defence, etc)
CPBs in OECD countries
OECD 2017
Legal Status of CPBs
OECD 2017
Different financing models
Government
subsidies
Contracting
authorities
Suppliers
Institutionalising Centralisation …
the role of CPBs in OECD countries
OECD 2017
0% 20% 40% 60% 80% 100%
CPBs act as manag...
• Framework agreements
• Dynamic Purchasing systems
Main procurement tools used to
enhance the efficency of centralisation
Use of CPBs per procurement category
0%
20%
40%
60%
80%
100%
PC, Printers Stationery and
Paper
Medical goods
and services
...
Voluntary vs Mandatory use of CPBs
OECD 2017
Australia
Austria
Canada
Chile
Denmark
Estonia
Finland
Hungary
Iceland
Israel...
Using CPBs to enhance strategic
procurement
THANK YOU!
Kenza Khachani
Kenza.KHACHANI@oecd.org
27
LINKS TO OECD WORK ON PP
WWW.OECD.ORG/GOV/ETHICS/PUBLIC-PROCUREMENT.HTM
28
Instruments
Reviews
Tools
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Presentation by Kenza Khachani, OECD (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Kenza Khachani, OECD (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Kenza Khachani, OECD (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

  1. 1. Kenza Khachani Public Sector Integrity Division Public Governance Directorate Kyiev, 30th of May 2018 Centralisation of Public Procurement
  2. 2. The OECD… • …is the global organisation that drives better policies for better lives: • The OECD provides a forum where countries compare and exchange policy experiences, identify good practices, discuss emerging challenges and adopt recommendations for better policies. • The OECD’s mission is to promote policies that improve economic and social well-being of people around the world. www.oecd.org 2
  3. 3. 35 member countries, 4 accession 5 Key partners 3
  4. 4. Part of a global community 4
  5. 5. FOR A SOUD PUBLIC PROCUREMENT SYSTEM 5
  6. 6. Public procurement is: • a major economic and government activity. It involves significant funds and is used to deliver public services to citizens as well as achieve policy goals • a crucial pillar of strategic governance for public bodies and services delivery for any government • high-risk area due to the close interaction between private and public sectors Public procurement matters
  7. 7. 7 Public Procurement really matters Government procurement as share of GDP and of total govt. expenditures Source: OECD National Accounts Statistics. (2013)
  8. 8. OECD Recommendation of the Council on Public Procurement (2015)
  9. 9. Efficiency • Streamline the System and Institutions Streamline the public procurement system and its institutional frameworks • Implement Sound Technical Processes to satisfy customer needs efficiently • Develop Improved Tools  Reduce duplication  Better value for money (including centralised purchasing, framework agreements, e- catalogues, dynamic purchasing, e-auctions, joint procurements and contracts with options).
  10. 10. CENTRALISATION OF PROCUREMENT 10
  11. 11. Different tools, involving different levels of aggregation of demand 11 Single procurement Joint procurement Centralisation Aggregation of Demand
  12. 12. i) acquires goods or services intended for one or more contracting authorities; ii) awards public contracts for works, goods or services intended for one or more contracting authorities; iii) concludes framework agreements for works, goods or services intended for one or more contracting authorities. Definition of Centralisation
  13. 13. Leveraging the demand aggregation 13
  14. 14. • Better prices (economies of scale) • Lower transaction costs (tender preparation, contract management)  CAs  and Suppliers Benefits
  15. 15. • Improved capacity and expertise • Certainty of the procurement process • Simplicity • Fast implementation of national strategies and policies ( access of SMEs, green procurement, innovation…) • Preventing corruption /Control of Public spending Benefits
  16. 16. • Homogeneous needs (a certain degree) • P entity >P centralisation Success conditions
  17. 17. Factors that motivated the implementation of CPBs OECD 2014
  18. 18. CPBs in OECD countries CPBs can exist at the: • Central level • Regional level • Sectorial level ( Health, defence, etc)
  19. 19. CPBs in OECD countries OECD 2017
  20. 20. Legal Status of CPBs OECD 2017
  21. 21. Different financing models Government subsidies Contracting authorities Suppliers
  22. 22. Institutionalising Centralisation … the role of CPBs in OECD countries OECD 2017 0% 20% 40% 60% 80% 100% CPBs act as manager of the national system awarding framework agreements or other consolidated instruments CPBs act as a contracting authority aggregating demand and purchasing CPBs establish policies for contracting authorities CPBs coordinate training for public officials in charge of public procurement 97% 66% 31% 34% 79% 79% 29% 36% 2016 2014
  23. 23. • Framework agreements • Dynamic Purchasing systems Main procurement tools used to enhance the efficency of centralisation
  24. 24. Use of CPBs per procurement category 0% 20% 40% 60% 80% 100% PC, Printers Stationery and Paper Medical goods and services Fuel Telephony Travel Software Energy Cleaning services Public works and constructions Surveillance services Canteens Consulting Central purchasing is used Framework agreements are used in central purchasing OECD 2017
  25. 25. Voluntary vs Mandatory use of CPBs OECD 2017 Australia Austria Canada Chile Denmark Estonia Finland Hungary Iceland Israel Italy Latvia MexicoNew ZealandNorway Poland Portugal Slovenia Spain Korea Slovak Republic France Germany Greece Ireland Sweden United Kingdom Mandatory use by all CAs (7%) Voluntary use (22%) Mandatory use by CAs at the central level (70%)
  26. 26. Using CPBs to enhance strategic procurement
  27. 27. THANK YOU! Kenza Khachani Kenza.KHACHANI@oecd.org 27
  28. 28. LINKS TO OECD WORK ON PP WWW.OECD.ORG/GOV/ETHICS/PUBLIC-PROCUREMENT.HTM 28 Instruments Reviews Tools

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