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Presentation by Peder Blomberg, SIGMA expert (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Peder Blomberg, SIGMA expert (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Peder Blomberg, SIGMA expert (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

  1. 1. © OECD SECOND SIGMA REGIONAL ENP EAST CONFERENCE ON PUBLIC PROCUREMENT Conditions for a successful centralized purchasing Peder Blomberg, Senior Adviser, Sweden Kyiv, Ukraine 30 May 2018
  2. 2. Content of Presentation • EU policy framework on centralised purchasing; • The role of CPBs; • Why establish a CPB?; • Strategic choices; • Success factors?; • The way forward? 1
  3. 3. EU Policy Framework on CPBs (Art 37 and 38) • Act as wholesaler, stocking and reselling; • Act as intermediary by awarding contracts, framework agreements and operate DPS on behalf of contracting authorities; • Provision of ancillary services to CAs without those being subject to normal awarding procedures; • A CPB is a contracting authority; • Distinction between institutionalised CPBs and occasional joint procurement; • Distribution of responsibilities between the CPB and CAs clarified; • Operations must be managed on e-procurement platforms; 2
  4. 4. The Role of a CPB • Represent often less than 10% of the total national public procurement value; • However, an important player in its segments; • Most member states have established CPBs; • A CPB EU network is established; • The CPB is a professional service provider of FAs; • The CPB could be seen and used as a market organiser and policy implementer; 3
  5. 5. Why establish a CPB? Better prices through aggregation effects; Lower transaction costs; Certainty (legal, technical, economic and contractual); Simplicity & usability; Capacity and expertise (professionalisation); Standardisation & administrative efficiency; Support for policy goals (green, social, SMEs and innovation); 4
  6. 6. Why NOT establish a CPB? • Market concentration- lock-in effects; • Monopolisation; • Uniformity and low adaptability to CAs individual needs; • Loss of procurement competence at CA levels; • Unresponsiveness to technical and market developments; • SME- opportunities? 5
  7. 7. Strategic Choices • Legal status and mandate of the CPB; • Organisational and management model; • Coverage (central, regional, local and sectors); • Scope of products and services (common interest policy); • Compulsory or voluntary use of CPB services; • Maximisation or not of FA values; 6
  8. 8. Strategic Choices • Financing model (budget, service fees or both); • Type and duration of FAs and call-off mechanisms; • How to build effective external relationships (clients, suppliers and other key stakeholders); • Performance measurement and benchmarking; • How to ensure integrity risks mitigation; 7
  9. 9. Success Factors? • An efficient and well- resourced organisation with excellent management and staff capacity and capabilities; • Competitive and attractive FAs in all aspects; • User-friendly and low-risk call-off systems; • Effective processes with appropriate identification of contract scope and values; 8
  10. 10. Success Factors? • Excellent and sustainable relationships with key stakeholders (clients, suppliers, and owners); • Adopt a client perspective and act as a professional service provider; • Control of the flow of business transactions; • Access to effective IT- infrastructures and e- procurement systems; • That the CPB can verify the “the added value” of its operations to the stakeholders; 9
  11. 11. The Way Forward? • Develop and adopt a strategy and action plan for centralised purchasing; • Take a step- by- step approach; • Develop a centre of excellence; • Support development and implementation of important public procurement policy; 10
  12. 12. Thank you! 11

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