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Presentation by U. Flach, Austria (ENG) Eighth SIGMA Regional IPA Conference on Public Procurement, Montenegro, June 2018.

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Presentation by U. Flach, Austria (ENG) Eighth SIGMA Regional IPA Conference on Public Procurement, Montenegro, June 2018.

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Presentation by U. Flach, Austria (ENG) Eighth SIGMA Regional IPA Conference on Public Procurement, Montenegro, June 2018.

  1. 1. © OECD 8th IPA Regional Public Procurement Conference Experiences of introducing centralised purchasing in the EU Mr Uwe Flach, BBG Bundesbeschaffung GmbH, Austria 13 – 14 June 2018 Bečići, Montenegro
  2. 2. 1 partnership vs. centralisation shared services provider
  3. 3. Why a procurement reform in AT? 2 Until 2001: Each ministry and subordinated authorities did procurement independently • Prices were higher than in the case of joint purchasing • Loss of synergies: each ministry had its own purchasing department • Challenges in professionalization of procurement • Challenges regarding transparency Comprehensive procurement reform in 2001 Improve efficiency of public procurement & reduce and optimize public expenditure
  4. 4. AT Solution: Implement a central Shared Service Organisation • Federal Act on the Foundation of the Federal Procurement Agency (BBG)  main goal: “... economically reasonable volume and demand concentration in order to optimise the prices and conditions...”  only for public supply and service contracts  observance of SMEs  mandatory for the Federal Administration, unless they get better prices elsewhere or have special urgent requests  entitles BBG to perform projects for other contracting authorities (“3rd party customers”) • BBG setup as private limited (liability) company • Owned by Republic of Austria (represented by Ministry of Finance (MoF) • Decree of MoF is defining goods and services 3
  5. 5. Role of Ministry of Finance • Supervision & Responsibility  Appointment of the Managing Directors  Supervisory Board • 4 members • Approval of the yearly working program and budget • Strategic alignment  Replies to parliamentary questions • Financing • Controlling • Legal framework 4
  6. 6. Success factors for implementing shared services • Project management  Goals, costs, milestones, project team • Change management  Organisational & legal aspects • Collaboration with stakeholders and open communication • Phased process instead of big bang 5
  7. 7. We know the market We know our customers We master public procurement law Purchase The secret of success for BBG 6

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