Presentation of the workshop on Public Procurement, e-Catalogues, held in Ankara on 10 April 2018. Presentation made by Mr. Christof Braunling, SIGMA.

1. © OECD
SIGMA Public Procurement
Workshop
E-catalogues
Mr. Christof Bräunling
Federal Procurement Agency (BBG), Austria
Ankara 10th April 2018

2. Agenda
• Federal Procurement Agency (BBG)
• Introduction – e-catalogues
• Regulatory framework
• Organisation and systems
• Demo of BBG systems
1

3. Federal Procurement Agency
(BBG)
2

4. BBG as Central Purchasing Body
• Established by law: Federal Procurement Agency
Act 2001
• Portfolio assigned by Decree (Minister of Finance)
• Awards procedures based on Federal
Procurement Act
3

5. Key facts about BBG*
• In general
 100 employees
 2.100 customer organisations + federal government
 200 tender procedures
 1.4 billion € call off volume
• About our purchasing portal e-Shop
 650 tender results
 1950 contracts and framework agreements
 900 suppliers
 580 catalogues
 2 million products
 18.000 users
 100.000 purchase orders
 500 million purchased volume
4* Approximate Figures of 2017

6. Agenda
• Federal Procurement Agency (BBG)
• Introduction – e-catalogues
• Regulatory framework
• Organisation and systems
• Demo of BBG systems
5

7. Warm up questions
• What are your objectives and goals for
the introduction of e-catalogues?
• Do you already have experience in
using e-catalogues?
6

8. Application areas of
e-catalogues
7
Electronic catalogues
Planning Tendering
Ordering / Call-
off
Collection of needs
and procurement plans
Tender specifications
Product and price
information
Pre-award Post-award

9. Why e-catalogues?
• E-catalogues provide easy and efficient means to
place orders within existing contracts and
framework agreements (Post Award)
• E-catalogues also help stream lining indirect cost
in procurement. E.g.
 No need for requisitioners to learn complex rules of
public procurement  self service
 Order process automation
 Automatic invoice matching
• Enhanced transparency
• Meaningful data for analysis
8
See also ELECTRONIC CATALOGUES IN PUBLIC PROCUREMENT PROCEDURES IN EU
The Multi-Stakeholder Expert Group on eProcurement (EXEP)

10. Who is involved?
9
Customers
Suppliers
Award procedures
Ascertainment of
requirements
Supplier X
Agency X
Order
Delivery
Invoice
MDM* / e-Shop processing
BBG
*MDM – Master Data Mgmt. / Contract Mgmt.

11. Agenda
• Federal Procurement Agency (BBG)
• Introduction – e-catalogues
• Regulatory framework
• Organisation and systems
• Demo of BBG systems
10

12. Directives, laws and authorities
11
Federal Administrative Court
Administrative Court of the 9
federal states
Remedies
• Review procedure before the contract is signed (10 – 15 days)
• Assertment procedure after the contract has been signed (max. 6 months)
Supreme administrative court
Constitutional court

13. Background
• The EU Directives call for the use of electronic
systems as means to increase the efficiency of
public procurement.
 Generation of considerable savings (e.g through
e-invoicing)
 New sources of economic growth
 More control and improved monitoring
possibilities
12

14. Regulatory framework
• Article 36 in EU Directive 2014/24/EC
 Member States may render the use of electronic catalogues
mandatory in connection with certain types of
procurement.
 E-catalogue formats must be accessible to all
 Recommendation to include all necessary information into
the tender documents about formats, electronic equipment
and specifications
 Call off from framework agreements and DPS can be based
on e-catalogues if the method is announced in the tender
and tenderers are invited to resubmit their latest offer as
updates to the e catalogue
• Tenderers may refuse the collection of information
• CAs shall allow for an adequate period before the collection of
information
• CAs shall present the collected information to the tenderer before
the award to avoid material errors
13

15. New national procurement law
in summer 2018
14
Paragraphs regarding e-catlogues (focus on pre-award):
• § 102 usage of e-catalogues as part of the offer must be part
of the tender documents. Formats and technical
specifications must be included.
• § 126 if the usage of e-catalogue is mandatory for the bidder
the whole offer must be submitted electronicaly
• § 155 if the usage was mandatory in the tender procedure it
is possible to use the catalogues in a mini tender by
informing the parties about the intention to gather the
information from the current catalogue version.
• § 161 usage of e-catalogues in a DPS as in the guideline
without the possibility to refuse the collection of information

16. Agenda
• Federal Procurement Agency (BBG)
• Introduction – e-catalogues
• Regulatory framework
• Organisation and systems
• Demo of BBG systems
15

17. Contract and catalogue management in
the BBG core business
16
• Decision on e-strategies for each tender procedure
• Support for catalogue and content management
• Know How transfer and training
• Further development of e-solutions
Coreactivity
• Demand assertment
• Definition of product
portfolio and solutions
target
• Identification with BBG
portfolio
E-procurement
• Definition of e-strategy as part
of the tender strategy
• Decision on e-catalogue
usage, type, requirements, …
• Definition of contractual
obligations in the tender and
contract documents
• Easy and automated
purchase to pay processes für
customers and suppliers
• Comprehensible search
results
• Manageable tender results
• Hand over meeting with
awarded suppliers
• Information about
supplier‘s obligations with
regards to e-catalogues,
ordering and e-invoicing
• Information about tech.
specifications, formats and
templates
• High content and service
quality from day one
• Avoidance of conflicts
• Contract, content and
supplier management
• Catalogue and content
Upload by supplier
• Check and approval of e-
catalogues
• Quality assurance
• Content optimisation
• Availability in time (time to
market)
• High content quality
• Complete Information from
tender to product
• Transparency and simplicity
 Self Service
• Providing strategic direction für e-procurement
• Enablement of efficient and integrated procurement
processes (CPB, CAs and EOs)
• Spend transparency, compliance
• Enablement of digitalisation
Coreactivity
target
Product management
Strategic
procurement
Tender management
Contract- & quality
mgmt

18. Our organisation
17
departments involved in catalogue management process
(head count in brackets)

19. Contract management beyond
e-catalogues
18
Central Contract Management System (Microsoft Dynamics CRM)
Tender
procedure
Contract
information
E-
catalogue
Purchase
order
E-invoice
Central User Management System (Microsoft Dynamics CRM)
E-tendering
tool
E-Shop
Invoice
Gateway

20. Why is managing the contract
important?
• Contract Management (CM) is basis for the
management and usage of e-catalogues
• CM is the key for automation and self service
 Easy communication to the customer. „If you see it you
can buy it.“
 Automated purchasing processes allow self service. No
need for special training or detailled knowledge of
regulations
 Easy user management
19

21. 20
Order Process
Order Process
Fully integrated in
e-Shop
(no additional interface)
Interface via OCI and
enhanced ERP interface
for order transmission
BBG
Contracts
Customer
owned
Contracts
Multi-Supplier
Catalogue
(incl. Staging Area for
Content Management)
ILLUSTRATION
Characteristics of the
e-Shop Catalogue System

22. • All of our contracts and catalogues are
available as information
• Customers can also maintain own contracts and catalogues in
the e-Shop
• Any framework agreement or contract can end up in a
catalogue for electronic ordering
• Free-text orders can be placed where no e-catalogue is
available or suitable (e.g. ascertainment of goods)
• Direct awarded products and services are also available via a
“market place”
• DPS is also available in e-Shop as information but not (yet) for
electronic ordering
• Electronic RFQ processes will be possible in the near future
21
Characteristics of BBG’s
e-Shop Catalogue System

23. Managing e-catalogues
22
Supplier BBG
Technical checks and
checks against the
contract

24. Special and important
Functionalities
• Theme worlds, product views and
templates
• Supplier templates
• Configuration of products
• PRICAT for price updates, allergenes
and nutritional values (food)
• Feature mapping
• eCl@ss mapping
23

25. Agenda
• Federal Procurement Agency (BBG)
• Introduction – e-catalogues
• Regulatory framework
• Organisation and systems
• Demo of BBG systems
24

26. Our Master Data Management
System
• Contractualy agreed e-
catalogue type
• Terms and conditions
 Order confirmation
 Payment
 Cancellation
• Other settings regarding
 Free form orders
 Mandatory attachments
25

27. Impressions of e-Shop
26

28. 27
Tender result

29. 28
Shopping
basket

30. 29
Self service approval setup

31. Catalogue examples (live demo)
• Erdgas 2018/2019 (2202.02986)
• IT-Dienstleistungen 2017 (3602.02842)
• Direktvergabeplattform Neue Schließanlagen
(2702.01642)
• Molkereiprodukte 2015 (4401.02222)
• Frei Haus Lieferungen von Treibstoffen
(2016/2017) (3002.02645)

32. Limitations to e-catalogues for
electronic orders
• Not suitable for complex and individualy
tailored products and services
 Remedies:
 Free text orders
 Punch out catalogues
 Electronic request for proposal processes
31

33. Strategic success factors
• Considering ordering procedures in the tender
strategy by involving all departments,
especially the content management and e-
procurement, into the strategic purchasing
process at a very early stage
• Detailed contractual obligations to deliver
content according to the established content
quality standards and in time
• Constant improvement through dedicated
contract and content managment teams
32

34. Automation is key
• Tender procedures and contract management are
expensive
 The benefit starts with automated call off procedures
• Reusing existing data in the process improves the
automation of the purchasing process end to end.
From „Purchase requisition“ to „invoice“
• Saves time and resources
 Manual purchase to pay process = 115 € vs. 65 € with
e-procurement tools
• Improves data quality
33

35. Content is KING & search is QUEEN
in every e-Procurement tool
• Establishing a dedicated content management
team was a big step forward
• Clean databases are an important foundation
• Defining what content quality means and
establishing standards
• Full classification in deepest level of one
classification system
• Standardised presentation of information

36. Technical success factors
• Modern and intelligent search engine
• Catalogue engine capable to process large
catalogues (> 500.000 products)
• Flexible systems with can be customized and
developed inexpensively  TCO
• Prototyping ideas before development e.g. with
rapid prototyping software
• Integrated catalogue and contract management
functionality. Interfaces to external systems is a
plus

37. APPENDIX
• EXEP - The Multi-Stakeholder Expert Group on eProcurement
 The Multi-Stakeholder Expert Group on eProcurement was
established in 2014 by the Commission with task to assist and
advise the Member States and the Commission in implementing
the provisions of the 2014 public procurement Directives relating
to electronic procurement. The group is also envisaged to
contribute to monitoring the uptake of e-Procurement across the
EU, sharing best practices and following new developments in the
field. With a view to further promoting the uptake of end-to-end
eProcurement across the EU, including in the post-award phase,
EXEP liaises closely with the European Multi-Stakeholder Forum
on e-Invoicing (EMSFEI) and with national forums. The group is
responsible for ensuring the coherence between the
recommendations arising from the EMSFEI and broader policies
on end-to-end eProcurement.
36

38. Backup
37

39. ProductProduct
Product
Product
Product
CA L BO
Data model of an awarded
tender
38
T
LCA BO
eCat
Product
Quota
• General Information
• category
• Terms and conditions
• Contracting authorities
• Business operators
• Total contract value
• Sub suppliers
• Order
management
• Contacts
• Regional settings
• Conditions
• Price
• Delivery
• Features
• Classification
• Pictures
• Permission
to call off
• Reservation
of demand