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ePractice: eProcurement Workshop 25 May 2011 - Dimitrios Perperidis, EUROPEAN DYNAMICS SA


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Presentation by Dimitrios Perperidis, EUROPEAN DYNAMICS SA

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ePractice: eProcurement Workshop 25 May 2011 - Dimitrios Perperidis, EUROPEAN DYNAMICS SA

  1. 1. Reducing the barriers companies face when competing for public sector contracts: The UK NHS sid4health case Dr Dimitrios Perperidis Senior Consultant EUROPEAN DYNAMICS [email_address]
  2. 2. Improving Procurement Processes <ul><li>e-Procurement has the potential to yield important improvements in the overall administration of public procurement. However, there is a need to: </li></ul><ul><ul><li>Make all procurement opportunities more open and transparent </li></ul></ul><ul><ul><li>Make the procurement process simpler: </li></ul></ul><ul><ul><ul><li>Encourage Innovation; </li></ul></ul></ul><ul><ul><ul><li>Improve Contracting Authority Capability; </li></ul></ul></ul><ul><ul><ul><li>Ensure fair opportunities to SMEs. </li></ul></ul></ul><ul><ul><li>The timescale from advertising an opportunity to awarding a contract needs to be reduced </li></ul></ul>
  3. 3. Qualification of suppliers <ul><li>Supplier Qualification process: </li></ul><ul><ul><li>The selection of suitable suppliers is a very important task in public procurement: </li></ul></ul><ul><ul><ul><li>Any misjudgment might lead to an exclusion of a suitable supplier. </li></ul></ul></ul><ul><ul><li>The selection of suitable suppliers is based on various eligibility criteria; </li></ul></ul><ul><ul><li>It is observed that similar supplier information can be requested in numerous procurement processes: </li></ul></ul><ul><ul><ul><li>This process requires significant effort and resources; </li></ul></ul></ul><ul><ul><li>Small firms (e.g. SMEs) face substantial difficulties in supporting this process: </li></ul></ul><ul><ul><ul><li>Thus, small firms find it difficult compete on an equal basis with larger enterprises which have established collaborations with the public sector and have a much larger business development work force. </li></ul></ul></ul>
  4. 4. Qualification of suppliers <ul><li>Drawbacks related to the Contracting Authorities: </li></ul><ul><ul><li>SMEs can provide innovative and technologically advanced products and services; </li></ul></ul><ul><ul><li>SMEs can provide better value for money services; </li></ul></ul><ul><ul><li>The more suppliers, the better the competition, and hence, the better the quality (in technical and financial respects) of the proposed solutions; </li></ul></ul><ul><ul><li>The effort overhead is reflected (directly or indirectly) within the suppliers’ financial offers, increasing the cost of public procurement; </li></ul></ul>
  5. 5. Addressing the problem <ul><li>The UK government: </li></ul><ul><ul><li>In 2008, Lord Glover reported: </li></ul></ul><ul><ul><ul><li>Opportunities should be transparent; </li></ul></ul></ul><ul><ul><ul><li>The process should be as simple as possible; </li></ul></ul></ul><ul><ul><ul><li>A strategic approach is required to encourage innovation and give SMEs a fair deal. </li></ul></ul></ul><ul><ul><li>In 2011, the new coalition government: </li></ul></ul><ul><ul><ul><li>The government is working towards making procurement more transparent and accessible by SMEs. </li></ul></ul></ul><ul><ul><ul><li>Thus, an approach for eliminating/reducing the supplier pre-qualification process is required. </li></ul></ul></ul><ul><li>The European Commission: </li></ul><ul><ul><li>In 2010, the Green Paper on Expanding the Use of e-Procurement in the EU reports on the importance in making procurement more accessible to SMEs. </li></ul></ul>
  6. 6. The NHS Sid4Health Platform <ul><li>The NHS sid4health platform: </li></ul><ul><ul><li>Enables suppliers to prepare and manage profiles: </li></ul></ul><ul><ul><ul><li>Containing an agreed range of pre-qualification information </li></ul></ul></ul><ul><ul><ul><li>Make the profiles available on-line to NHS buyers </li></ul></ul></ul><ul><ul><li>Enable suppliers to re-utilise their profiles in a number of procurement processes; </li></ul></ul><ul><ul><li>Integration with Dun & Bradstreet </li></ul></ul><ul><ul><li>NHS considers this platform as a significant step in order to improve the capability to manage procurement data; </li></ul></ul><ul><ul><li>Provides NHS authorities with a common data set for pre-qualification: </li></ul></ul><ul><ul><ul><li>Driving good practices; </li></ul></ul></ul><ul><ul><ul><li>Facilitating the sharing of information between the NHS authorities; </li></ul></ul></ul><ul><ul><li>Enables the transfer of supplier data and profiles to other procurement e-Procurement systems; </li></ul></ul><ul><ul><li>Reduces processing costs for both suppliers and NHS authorities. </li></ul></ul>
  7. 7. Usage of the System <ul><li>The system operates since May 2009: </li></ul><ul><ul><li>500 NHS Contracting Authorities are registered in the platform; </li></ul></ul><ul><ul><li>80.000 suppliers are registered in the system; </li></ul></ul><ul><ul><li>The specifications of the platform were developed by representatives of NHS, various suppliers and EUROPEAN DYNAMICS; </li></ul></ul><ul><ul><li>The platform’s functionality is constantly enchased to address further user needs; </li></ul></ul>
  8. 8. Lessons Learned and Conclusions <ul><li>Lesson 1 ( Operational teams): </li></ul><ul><ul><li>It was expected that a business change with such a large scale would cause some operational issues (e.g. the allocation of the correct DUNS® numbers). </li></ul></ul><ul><ul><li>Having a joint operational team between NHS, Duns & Bradstreet and EUROPEAN DYNAMICS played an important role is resolving all theses issues effectively and quickly. </li></ul></ul><ul><li>Lesson 2 (Identification of requirements): </li></ul><ul><ul><li>The establishment of the sid4health user group (consisting from NHS authorities and suppliers) was crucial to ensure the good design and development of the platform. </li></ul></ul><ul><ul><li>A sense of ownership was enabled by both groups of users (suppliers and buyers). They are now actively involved in designing features for future releases. </li></ul></ul><ul><li>Lesson 3 (Keep some things the same): </li></ul><ul><ul><li>It was important to reassure certain NHS agencies that they will still have access to all data they previously received from Dun & Bradstreet. </li></ul></ul><ul><ul><li>The Sid4health platform included the capability to produce a Dun & Bradstreet report (in the same format that the report is produced by Dun & Bradstreet). </li></ul></ul>
  9. 9. Future <ul><li>Benefits to the NHS: </li></ul><ul><ul><li>The sid4health platform has significantly benefited all contracting authorities of NHS. </li></ul></ul><ul><li>Extension within the UK: </li></ul><ul><ul><li>A similar platform should extend the provided services beyond the limits of NHS in order to be beneficial to a wider base of contracting authorities and suppliers. </li></ul></ul><ul><ul><li>The Scottish Government has initiated the sPQQ Project which has a similar scope with sid4health and is due to launch in early 2012. </li></ul></ul><ul><li>Pan-European scope: </li></ul><ul><ul><li>This initiative should also be extended on a pan-European scope making easier for small firms to extend their market activities across the borders of their countries. </li></ul></ul><ul><ul><li>Enable contracting authorities to widen their options by taking the opportunity to capitalize on innovation (and/or better value for money services) which firms from other countries can offer. </li></ul></ul>