Ivan ica franjkovi central procurement office croatia
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9 th Public Procurement Knowledge Exchange Platform Skopje 28-31 May 2013 Centralized Public Procurement in Croatia - Experiences and Challenges -. Ivančica Franjković Central Procurement Office Croatia. Content. Public procurement system in Croatia

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Ivan ica franjkovi central procurement office croatia

9th Public Procurement Knowledge Exchange PlatformSkopje 28-31 May 2013CentralizedPublicProcurementin Croatia - ExperiencesandChallenges -

Ivančica Franjković

Central Procurement Office Croatia


Content

Content

  • Publicprocurementsystemin Croatia

  • Legal backgroundandestablishmentof CPO

  • Goals, resultsandchallenges

  • PerformancemeasurementinthecontextoftheCPO

  • Lessonslearned

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Pp system in croatia legislative framework

PP system in Croatia - legislative framework

  • Public Procurement Act (OG 90/11) - enteredintoforce on 1 January 2012

  • Public Private Partnership Act (OG 78/2012)

  • Concessions Act (OG 143/2012)

  • Act on State Commission for the Supervision of Public Procurement Procedures (OG 18/2013)

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Pp system institutional framework

PP system - Institutional framework

  • Ministry of the Economy – Directorate for PP system

  • Ministry of Finance

  • Agency for Public Private Partnership

  • State Commission for Supervision of Public Procurement Procedure

  • StateOffice for the Central PublicProcurement

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


One of the key aspects of the pp system today

One ofthekeyaspectsofthe PP systemtoday

  • ContinuoustraininginthefieldofPP

  • Certificates

    • “Training Programme” of50 hours– carried out by authorities approved by ME

  • Issued to more than 2700 persons

  • Renewingofcertificates - 2012 upgradeoftrainingsystem

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


The value of public procurement in the republic of croatia

The value of public procurement in the Republic of Croatia

(Source: Directorate for Public Procurement System, www.javnanabva.hr)

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


E stablishment of the cpo

EstablishmentoftheCPO

Decision on procurementcategories , 1.st meetingwithclients

Regulation on CPO

Startingwithoperations

Plan ofactivities for Central purchasing

Gov.conclusion on impementationof central p PP

Strategyofdevelop. ofthe PP system

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Cpo in 2010 and 2011

CPOin 2010 and2011

  • Established by the Regulation on CPO (Official Gazette 138/09 and 78/10)

  • Mission: The Office shall set up an effective system of central public procurement with responsibilities towards taxpayers, the State Budget, persons subject to central procurement, and all economic operators involved in the environment of public procurement with a view to creating savings in public consumption, while bearing in mind an optimum relationship between quality and the price of procured supplies, works and services, respect of ecological and socially acceptable principles, sustainable procurement and the encouragement of SME."

Number of civil servants: 17 /42

Number of procurement categories: 17

Number of clients: 35

www.sredisnjanabava.hr

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Cpo structure internal organization

CPO structure / internalorganization

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Cpo in 2012 and 2013

CPO in 2012 and2013

  • State Office for Central PublicProcurement (OG 31/2012)

  • New structure; same goals

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


European vs croatian practice

European vs. Croatianpractice

Variousexamplesregarding to:

  • Institutional set up

    • Department withintheministry/ Gov. Office / State office

    • Agency

    • L.t.d.

  • Financing

    • Budget

    • Service fee (vendor/client)

    • Mixtureofprevious

  • Participation

    • Manadtory

    • Voluntary

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Procurement categories

Procurement categories

1. office furniture

2. office supplies

3. expendable materials

4. office equipment

5. computers and computer equipment

6. TELECOM. SERVICES -MOBILE

7. TELECOM. SERVICES -LANDLINE

8. VEHICLES

9. Repair and maintenance services of vehicles

10. CAR Tyres

11. FUEL

12. ELECTRICITY

13. POSTAL SERVICES

14. insurance SERVICES

15. software licences

16. cleaning

17.maintenance of objects in the ownership of the republic of Croatia

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Key stakeholders

Keystakeholders

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Tasks of the cpo

Tasksofthe CPO

  • planning the implementation of procurement procedure;

  • establishing procurement requirements for products and services;

  • coordinating the activities among the clients;

  • market research;

  • implementing procurement procedures;

  • contracting;

  • setting up and managing the database of awarded contracts and framework agreements;

  • monitoring the execution of contracts and framework agreements;

  • analysing the efficiency of central procurement through continuous monitoring of savings made;

  • drawing up proposals of decisions, specifying products and services purchased through central procurement.

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Results

Results

  • By the end of April of 2013, CPO has concluded FAat the amount of approx. 1.5billion HRK & savingsof 150 mil HRK in followingcategories / sub-categories:

    • Electricity,

    • Fuel,

    • Postal services (universal and courier services),

    • Cars (operational leasing of cars, purchase of vehicles for police-interceptor and operational leasing of commercial and off road vehicles),

    • Office supplies (toner and ink, paper);

    • Expandablematerial

    • Telecommunicationservices (mobile)

    • Cleaningservices

    • Internet accessservice

    • Comupterandcomputerequipment

    • Office equipment

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Value of fa concluded by the cpo in 2010 and 2011

Valueof FA concludedbythe CPO in 2010 and2011

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Key challenges

Keychallenges

  • Lackofstandardization / cataloguesofsupplies

  • SlownessinimplementationofotherStrategies (for example Internet for all centralstate)

  • Need for profesionalizationofprocurementofficers(theCPO andclients)

  • Fluctuationsof employees

  • Lackofmodern IT infrastructure for the central procurement system

  • Inabilityfor timely completion of procedures (within 50 days of the start of the procedure) due to repeated appeals

  • The legal status and financing of the CPO

  • Justification for the certain procurement categories

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Performance measurement in the context of cpb

Performancemeasurementinthecontextof CPB

  • How to measuresucessfullnesofthe CPB?

  • Potential savings based on EU experience…

Source: Actionplan for theestablishmentofthecentralpurchasingbodyandintroducing a systemofcentralprocurement; theGovernmentandtheMinistryofEconomy, 2009


Performance measurement in the context of cpb1

Performancemeasurementinthecontextof CPB

  • Measuring the Economic Efficiency – based on price

  • Measuring the Economic Efficiency – based on processes

  • Measuring the Quality of the Procurement Procedures

  • Measuring the Standard of External and Internal Relations and Collaboration

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Savings based on price

Savingsbased on price

  • Cashablesavings

  • Problem withcalculatingcashablesavings – baselineprice

  • Some of the examples of the “baseline” prices are:

    • regulated prices in some markets (in the case of fuel, electricity etc.),

    • prices paid by other authorities(need for an access to other contracts concluded in parallel procurement procedures - for example, contracts concluded on the local levels). 

    • prices of “older” contracts, (if regulations on central purchasing allow the CPB to gather information on older similar contracts, it is possible to ask for information about prices and quantity of goods /services procured earlier, together with new needs expressed toward CPB).

    • average market prices –the most common baseline price.

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Savings based on price1

Savingsbased on price

  • Unitpriceanalysis

    • Exampleofprice comparisons of office supplies – for 5 most sold items

    • The comparisons showed significant economies of scale in the central FA.

    • The savings between different individual products tested were: 8% (toner cartridges), 19% plastic folder, 29% copy paper, 33% ballpoint pen and 37% stapler.

    • If the average savings across all the products within the office supplies is assumed to be 25%, the price savings from these purchases might be calculated in the same way, based on the purchasing value of the central framework agreement for this category.

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Savings based on pr ocesses

Savingsbased on processes

  • Annualcashableefficienciesintheprocurementfunction

    • Transaction cost

    • Administrative cost

  • Utilizationrate of the existing frameworks in regard to its application /usage (typical for voluntary use)

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Measuring the quality of the procurement procedures

Measuring the Quality of the Procurement Procedures

  • Examples of possible indicators:

    • The average period for planning and preparation should not exceed X days;

    • Competitive procedures, such as the open and restricted procedures, should be used in no less than X% of the total number of procedures;

    • The average participation rate in connection with open invitations during a calendar year should not be fewer than X tenderers or applicants;

    • The number of contracts awarded to SMEs should normally not be fewer than X% of the total number of contracts awarded during a calendar year;

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Measuring the standard of external and internal relations and collaboration

Measuring the Standard of External and Internal Relations and Collaboration

  • An annual Supplier Satisfaction Survey

    • to ensure that the majority of suppliersare satisfied with the collaboration with the contracting authority.

  • An annual Internal Customer Survey

    • to ensure that the majority of internalclients are satisfied with the services of the procurement organisation.

  • Reporting tools in order to avoid additional costs/quantities

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Conclusions lessons learned

Conclusions &Lessonslearned

  • PREPARATION mighttakelonger time (depends on thequalityofinputdata, way how it is organizedetc)

  • Goodcommunicationwithclients / bidders

  • Knowingthemarket / needsofclients

  • Simple FA to use, bettercontractconditions, guidelines for clients

  • Flexibilityof FA

  • Specialisedknowledgeconnected to subjectmatterofprocurement / PPA

  • Introducingstandards & IT support

  • Stepbystepapproach

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


Ivan ica franjkovi central procurement office croatia

Thankyou for yourattention!

[email protected]

9th Public Procurement Knowledge Exchange Platform - Skopje, 29 May 2013


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