“Public e-Procurement in Italy: the Consip’s role”. Luca Mastrogregori –E-procurement Strategy Resp. - Consip S.p.A. San Sebastian, Aprile 11 th 2005. Italian Public Procurement Legal Framework - Purchasing above the European thresholds.
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Luca Mastrogregori –E-procurement Strategy Resp. - Consip S.p.A.
San Sebastian, Aprile 11th 2005
Italy, as member of the European Community (EU), has adopted, within its regulations (DL 157/95 and DL 358/92), the following EU directives:
Within the above frame, three different types of tenders are regulated:
In this context, tenders which appear to be abnormally low are regulated by the following articles: 25 DL 157/95 and 19 DL 358/92
When the value of the purchases is less than EU thresholds (154,014.00 € or 236,945.00 €, depending on the kind of contract and administration), the general principles of open tendering are regulated by national laws.
These national laws are specific to each Administration: RD 827/24 (for Central Administrations), DLGS 502/92 (for Health Agencies), DLGS 267/00 (for Municipalities and Provinces).
Central Administrations have also a special regulation - Law DPR 384/01 - for a particular kind of procurement, the so called “purchasing in economy” (that is for purchases up to € 130.000 and where the administration also directly provides with its own resources a part of the work/service/supply), that provides for:
The financial act 2000 (December 23, 1999 n.488) has laid down the foundations of the “Program for Public Spending Rationalization of Goods and Services”. Article 26 says:
“ The Ministry of Economy and Finance (MEF), according to the regulations currently available regarding suppliers selection, draws up national frame contracts with providers. Within the frame contract, the selected providers have to accept any order coming from public administrations.”
By means of 2 Ministerial Decrees (February 2000, May 2001), the Ministry entrusted Consip S.p.A. with the development and management of the Program.
National Frame Contract (adopted by Consip) do not fall within the category of Framework Agreement (as defined by the EU legislative Package).
It falls within the general concept of contract since it is not possible to modify or negotiate the conditions of the contract
To guarantee quality standards in P.A. purchases …
… while reducing
Rationalization Program on Public Spending - Challenges
Spending for Goods & Services
Total amount of public expenditure for goods and services sums up to about € 97 billion(*), about 15% of overall public spending and 8.8% of GDP
Public spending for goods and services, 2003 (%)
Total = € 96,6 billion
In 2003 the Program’s activity has been covering goods and services for which public expenditure amounts to approximately € 15 billion
* Report on estimated needs for the year 2003 and Consip estimate
Source: Consip estimates
Consip is a joint-stock company totally and directly owned by the Italian Ministry of Economy and Finance (MEF), and it operates exclusively to serve Public Administrations
Consip’s operations are carried out through two divisions:
Staff (Program Mgmt, Monitoring, Innovative Projects, Research Unit)
(IT Platform management)
“Marketing” Supplier side
“Marketing” Purchaser side
Development of Frame contract through electronic system
ASP towards other Administration
Above and Below EU Threshold
Below EU Threshold
Public buyer registration
Data & News
Who we are, what we do, what you can buy, how you can buy, Newsletters, Magazines…
Tender publication, supplier qualification for Public Marketplace, ....
Opportunity to buy on line using frame contracts conditions
On line access to public Marketplace
On line auctions
On line access to public auctions
Information on e-procurement models, correct way to participate to public tender, ...
Data and information on “Client market Area” (Central PA, Health bodies, Universities, Municipalities)
E-shops represent an open window on the web in which goods and services selected through tenders and frame contracts are available to PA procurement offices registered to the Program
Traditional and electronic tenders
Product selection and online ordering
From the traditional process for goods and services procurement ….
Goods/ Services delivery
Contract and tender documentation
Possible litigation with suppliers
Fax / on-line
…to the new process
... achieving reductions of transaction cost for both P.A. and suppliers…
Frame contracts and electronic catalogues Usage and break down by public sectors
Source: Consip estimates
Customer satifaction Index (1-100) by sector
Evaluation: 1= Very low 10= Very high
Advantages (vs traditional auctions)
Disadvantages (vs traditional auctions)
Possible Procurement auction formats:
% cost reduction:
N° of competing vendors: 8
Last 10 min.
Best bid at 147,500 Euro
Extension time starts
Best bid at 137,000 Euro
Winning bid at 116,000 Euro
Qualified suppliers selected through a qualification process, starting from the date of publication of the “qualification notice”
Request for Quotation
Marketplace: buying options
technical specifications (standardized catalogue)
Number of Items:
Registered Users: >2.200
Performed Transactions (Jan 2004 – March 2005):
5000 (12 Mio Euro)
To Public Administrations: