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Erika Bozzay, OECD Public Governance Directorate, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019
The document discusses the implementation of the OECD's 2015 recommendation on public procurement, highlighting its significance in public service delivery and the economy, where public procurement represents a substantial portion of GDP and government expenditures. It emphasizes the increasing strategic use of procurement for broader policy objectives, the need for enhanced workforce capabilities, and the essential role of digitalization and performance measurement in achieving these goals. The document concludes with recommendations for strengthening government capabilities and assessing the multifaceted impacts of public procurement on well-being and sustainability.
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Erika Bozzay, OECD Public Governance Directorate, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019
- 1. IMPLEMENTING THE 2015 OECDRECOMMENDATION ON PUBLIC PROCUREMENT Erika Bozzay OECD Public Governance Directorate 3rd Regional Public Procurement Conference for ENP East Countries Tbilisi, Georgia, 6-7 November 2019
- 2.
- 3. 3 The OECD… Better policiesfor better lives
- 4. Spanning a varietyof policy areas 4
- 5. 5 37 member countries 1accession country 5 Key partners
- 6. OECD work onpublic procurement 6
- 7. Public procurement mattersfor effective public service delivery • 12% of GDP in OECD countries • 30% of general government expenditures • 63% spent at the sub- national level Public procurement - a large share of the economy: 7
- 8. 8 In 2015, recognisingthe strategic dimensions, the OECD designed a holistic framework that became a international reference tool The OECD Recommendation on Public Procurement (OECD, 2015)
- 9. Public Procurement Sustainability Gender Responsible Business Conduct Infrastructure GapSocial cohesion Digital transformation Wellbeing 9 Public procurementis a key enabler for a governments’ strategic policy agenda
- 10. State of play:Public procurement is increasingly used to pursue broader policy objectives 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2018 2014 2018 2014 2018 2016 2018 2016 2018 Green public procurement Innovative goods & services Support to SMEs Responsible business conduct Women-owned businesses Only some procuring entities have developed an internal strategy/policy A strategy/policy has been developed at a central level 24%24% 52% 69% 90 % 93% 83% 83% 90% 100% 10 Sources: OECD 2018, 2016 and 2014 Public procurement Surveys
- 11. A preferred topic…SMEs Measures to support SMEs in public procurement 11 Sources: 2017 OECD Survey on strategic use of Public Procurement to support SMEs
- 12. Countries that measurethe results of their public procurement to boost… Still uneven follow-up and monitoring for measuring results against strategic goals 12 …Green Objectives …SMEs AUT BEL CHL DNK EST FIN FRA DEU HUN ISL ISR ITA JPN KOR LVALTUNLD POL PRT SVK SVN ESP SWE AUS CAN GRC IRL MEX NZL NOR TUR No: 26% Yes 74% AUS AUT BEL CHL DNK EST FRA DEU HUN IRL ISR ITA JPN KOR LTUMEXNLD POL SVK SVN SWE CAN FIN GRC ISL LVA NZL NOR PRT ESP TUR No: 32% Yes 68% Sources: 2018 Public procurement Survey
- 13. Countries that measurethe results of their public procurement to boost… Follow-up and monitoring: less and less measurement as goals are increasingly complex (Innovation, RBC) 13 …Innovative Goods & Services …Responsible business conduct BEL CHL FRA KOR NLD POL PRT SVK SVN SWE AUS AUT CAN DNK ESTFINDEU GRC HUN ISL IRL ISR ITA JPN LVA LTU MEX NZL NOR ESP TUR No: 32% No: 68% Sources: 2018 Public procurement Survey AUTBEL EST FRA KOR LTU NLD POL SVK SWE AUS CAN CHL DNK FINDEUGRC HUN ISL IRL ISR ITA JPN LVA MEX NZL NOR PRT SVN ESP TUR Yes 32% No: 68%
- 14. 14 Performance management systemlacking in most countries
- 15. State-of-play of digitalisationof procurement systems in OECD countries 15
- 16. Increasing complexity &expectations require workforce with adequate capabilities & skills • Many procurement professionals work in strategic roles that demand high-level strategic, tactical as well as operational skills. • There are not many entry requirements into PP. Some of the existing ones are linked to a competency model or certification frameworks. • Countries are investing to bridge this gap in many cases with collaborative initiatives 16
- 17. 17 Measures in placeto ensure adequate capacity of procurement workforce
- 18. Other findings onprogress made by countries show the real contributions of public procurement • Digitalisation is here to stay and can bring unprecedented evidence for policy-making: Digital technologies are increasingly being used to gather meaningful data for measuring the multi- dimensional impact of public procurement (economic, strategic and well-being). • Measuring the improvements in economic results through procurement: procurement data is being used to boost consumption of desirable products and promote real improvements in strategic policy areas 18
- 19. • Transparency andintegrity are central to sound public procurement practices: it levels the playing field and encourages supplier’s participation • Infrastructure public procurement risk is in focus: with many large projects underway or yet to be started across countries the complex risk environment requires both superior capability and methodologies. 19 Other findings on progress made by countries show the real contributions of public procurement
- 20. 20 The 2015 Recommendation: Publicprocurement is taking an increasingly strategic direction in supporting global economic, social and environmental opportunities for governments. The Recommendation remains highly relevant in the current policy context. - 22 OECD peer reviews of public procurement systems - Presented at more than 50 international conferences and more than 100 OECD workshops - OECD Public Procurement Toolbox is an important knowledge sharing tool which contains more than 180 case studies and a checklist for countries to use for implementation The Recommendation – supporting governments as a benchmark for public procurement systems
- 21. 21 To fully deliveron strategic procurement policies enabling factors need to be further strengthened Continuous development of civil servants through competency models and training Harnessing the benefits of digital transformation brought by e-Procurement Develop frameworks to measure performance and progress
- 22. The future: assessingthe impact of policies beyond economic performance Natural capital Economic capital Social capital Human capital Sustainability of well-being over time Sustainability of well- being over time Inspired by the OECD Well-Being Framework
- 23. Multidimensional impacts ofprocurement: towards better understanding Natural capital Economic capital Social capital Human capital Sustainability of well-being over time PP Sustainability of well-being over time 23
- 24. LINKS TO OECDWORK ON PP HTTP://WWW.OECD.ORG/GOV/PUBLIC-PROCUREMENT/PUBLICATIONS 24 TOOLSTHEMATIC REVIEWS
- 25. Thank you verymuch for your attention! erika.bozzay@oecd.org 25