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The Smart e-Procurement - Gijon City Hall 2015

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How the implementation of e-Procurement globally improved the City of Gijon. - Presentation by Fernando Álvarez, Chief of Planning and Modernization at Gijon City Hall.

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The Smart e-Procurement - Gijon City Hall 2015

  1. 1. THE SMART E-PROCUREMENT Gijon City Hall 2015 1 Fernando Álvarez Chief of Planning and Modernization at Gijon City Hall
  2. 2. I INTRODUCE YOU MARY - Owner of an SME located in Gijon - We've asked Mary to tell us how would she like her city to look like. Her answers revolve around three main areas: Economics, Government and People. 2Gijon City Hall 2015
  3. 3. PEOPLE AND COMPANIES "I want a city to live, work and enjoy. A city that offers quality services, that promote social integration and participation in public life of citizens and companies" ECONOMICSGOVERNMENT "I want an economic sector that generates employment and wealth , where innovation and productivity is promoted" "I want a rigorous government, open and accessible , dynamic and seeking continuous services improvement" 3 WHAT DOES MARY WANT? Gijon City Hall 2015
  4. 4. 4 CAN E-PROCUREMENT RESPOND TO THESE NEEDS? PEOPLE Revitalization of local business creating a true business ecosystem where all companies compete with the same rules. The improvement of the “economy” and the “government” influence the quality of life of people and the competitiveness of businesses: creating jobs and improving the services available. Greater transparency in public procurement processes , optimizing available resources for the acquisition of goods and services. Gijon City Hall 2015 ECONOMICSGOVERNMENT
  5. 5. 5 From City Hall we got down to work ... CAN E-PROCUREMENT RESPOND THESE NEEDS? Gijon City Hall 2015
  6. 6. 6 MAY 2013 Objective : Implementation of eProcurement for minor contracts in the City and public companies PLANNING AND IMPLEMENTATION FIRST IN SPAIN Gijon City Hall 2015
  7. 7. FIRST HALF 2015 PICTURE 7 HAVE WE ACHIEVED IT? NUMBER OF TENDERS MANAGED PERCENTAGE OF SAVINGS AFFILIATED ENTITIES 416 179 Tenders 1st semester 2014 Tenders 1st semester 2015 - 26% 8/10 SUPPLIERS NETWORK 978 Gijon City Hall 2015
  8. 8. 8 LET’S SEE THE RESULTS BY AXES… NOTE : The data shown in the following slides correspond to the first half of 2015 GOVERNMENT 01 ECONOMY 02 PEOPLE 03 HAVE WE ACHIEVED IT? Gijon City Hall 2015
  9. 9. 9 01. GOVERNMENT How eProcurement has helped to increase efficiency ... ? It gave more visibility and publicity to the procurement opportunities. Thanks to this, new suppliers have access to public tenders and we get more competitive bids. SENDING PROPOSALS CURRENT SUPPLIERS VS. NEW SUPPLIERS SAVINGS TAKING INTO CONSIDERATION MAXIMUM AWARD PRIZE 69,60% 30,40% Current Suppliers New Suppliers 552.972 € 349.357 € 1st semester 2014 1st semester 2015 Gijon City Hall 2015
  10. 10. 10 Ha dado más visibilidad y publicidad a los procesos de contratación. Gracias a ello nuevos proveedores tienen acceso a los concursos públicos y se reciben ofertas más competitivas. ENVÍO DE OFERTAS PROVEEDORES HABITUALES VS. NO HABITUALES ADJUDICACACIONES PROVEEDORES HABITUALES VS. NO HABITUALES 69,60% 30,40% Proveedores habituales Proveedores no habituales 67% 33% Proveedores habituales Proveedores no habituales THE ENTRY OF NEW SUPPLIERS HAS ALLOWED A 26% REDUCTION OF THE ACQUISITION COSTS How eProcurement has helped to increase efficiency ... ? 01. GOVERNMENT Gijon City Hall 2015
  11. 11. 11 …and the transparency? eProcurement has allowed us to give visibility to all actions through a greater control and a fully traceable and auditable process. ADVERTISING FOR ALL MINOR CONTRACTS TURNOVER RATIO SEMESTRAL REPORTS ACCESSIBLE FOR EVERYBODY 52% Published in the site 01. GOVERNMENT Gijon City Hall 2015
  12. 12. 12 02. ECONOMICS How eProcurement benefits the companies and the region? E-procurement can stimulate local and regional business communities. We have demonstrated that minor contracts are awarded mostly to local companies. All of them, local and not local, know the rules and the evaluation criteria. AWARDS LOCAL/REGIONAL COMPANIES VS. OTHER AWARDS CURRENT SUPPLIERS VS. NEW SUPPLIERS 67% 33% Current suppliers New suppliers 86% 14% Proveedores asturianos Provedores no asturianos Gijon City Hall 2015
  13. 13. 13 AMOUNT OF THE AWARDS CURRENT SUPPLIERS VS. NEW SUPPLIERS Current suppliers New suppliers 2.744.201 € 598.279 € New suppliers have been the winners of the 82%of the awards according to their money value. 02. ECONOMICS How eProcurement benefits the companies and the region? Gijon City Hall 2015
  14. 14. 14 What does it mean? 2.744.201 € THE LOCAL AND REGONIAL COMPANIES ARE VERY COMPETITIVE, EVEN MORE TAKING INTO CONSIDERATION THAT THE EVALUATION OF THE BIDS ARE MADE THANKS TO OBJECTIVE CRITERIA. 2.744.201 € A GREATER ADVERTISING AND TRANSPARENCY FACILITATE THE ENTRY OF NEW COMPANIES, OPENING THE PUBLIC SECTOR TO THE LOCAL ECONOMY. 02. ECONOMICS Gijon City Hall 2015
  15. 15. 15 Was it easy or has it required effort? Training and continuous support are the true pillars of this project. In the first half of 2015 have been made 8 sessionsTraining more than 160 attendees ASSESSMENT OF THEIR INTEREST IN THE E- PROCUREMENT Interested Very Interested 51,90% € 48,10% 02. ECONOMICS Gijon City Hall 2015
  16. 16. 16 Was it easy or has it required effort? The support service has been available throughout all this time . A dedicated support team for helping mainly suppliers in their usage of the platform. Also this team is in charge of the market creation, bringing new companies to the ecosystem. CALL CENTER EMAIL CLICK TO CALL ONLINE HELP 02. ECONOMICS Gijon City Hall 2015
  17. 17. Acting appropriately in the axes of Economics and Government ... Do you believe that we have fulfilled Mary’s wishes? 17 03. PEOPLE Gijon City Hall 2015
  18. 18. WE MUST NOT LOSE MORE TIME 18 We have to be ready for the coming into force of the New Public Procurement Directives. 14 January 2014 Formal approval of the new Public Procurement Directives 17 April 2014 Publication of the Directives in the OJEU (Enter into force) Beginning of the transition period 18 April 2016 Mandatory adoption: e-Noticing + e- Access Mandatory in all EU Member States and applicable immediately after the transposition. 18 October 2018 e-Tendering becomes mandatory in all EU Member States Deadline for the transposition to the national legislations 2 years after the publication 18 April 2017 e-Submission mandatory for Central Purchasing Bodies (CPBs) Action Required Gijon City Hall 2015
  19. 19. THANKS! 19 Fernando Álvarez Chief of Planning and Modernization at Gijon City Hall fagarcia@gijon.es @fagarcia linkedin.com/in/fernandoalvarezg Gijon City Hall 2015

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