Gian Luigi Albano, Ph.D. Head of R & D Italian Public Procurement Agency (Consip S.p.A.)

1. A brief look at Consip’s e-Procurement Strategies Gian Luigi Albano, Ph.D. Head of R&D Italian Public Procurement Agency (Consip S.p.A.) Email: gianluigi.albano@tesoro.it Rome, 10th December 2008

2. Consip S.p.A. Consip is a joint-stock company, created in 1997 by the Ministry of Economy and Finance (MEF), its sole stockholder Consip is entrusted with two main fields of action… MEF PAs 1997 management and development of ICT services for the MEF 2000 e-Procurement for Public Administrations Consultancy on Technical and Organizational Projects Support to the adoption of e-procurement tools

3. PAs 1997 2000 IT services for MEF Eprocurement Public e-Procurement Implementation of the Program for the Rationalization of Public Spending on Goods and Services through the use of information technology and innovative tools for the purchases of the Administrations (frame contracts, web-based tenders, the Electronic Marketplace)

4. Process simplification Transparency Reduce procurement time simplifying the entire procurement process Guarantee transparency and public communication on tender procedures and awarding criteria, enhancing competition Public Spending Optimization Innovation Quality Develop innovation procurement tools encouraging change management among public officials and suppliers Improve the ratio between cost and quality of the goods and services offered to PA The main goals of the e-Proc strategies

5. Italian Public Procurement Portal www.acquistinretepa.it

6. Eprocurement Platform www.acquistinretepa.it Frame contracts eshops On line tenders eMarketplace • Purchases within frame contracts • Direct Purchases • Many-to-one approach • Need for: • Large volumes • Demand aggregation • Standardized goods • Low price volatility • Slow obsolescence • Development of Frame contracts or Auction Service Provider to other public bodies • Need for: • Large volumes • Demand aggregation • Or Specialized goods • High price volatility • Rapid obsolescence • Direct order or RFQ • Many-to-Many approach • Supplier defined e-Catalogue • Need for: • Low cost goods • Spot purchasing • Highly fragmented offer Above and Below EU Threshold Below EU Threshold

7. Frame contract - Process simplification Consip’s activities Demand analysis* Supplier Selection Goods services delivery PA Contract and Tender documents Contract award Payment Litigation On-line order Reduction of administrative procedures for both PA’s and suppliers * Made in cooperation with the PA

8. eMarketplace eCatalogue where selected suppliers “display” goods and services, and public administrations make purchases (below the EU threshold) by using two possible tools: “direct purchases from the eCatalogue” (DPs) and “requests for quotation” (RFQs) Actors on the eCatalogue MEF/Consip • Market maker • Support to both sides of the market Firms Public Administrations Marketplace The eCatalogue represents Consip’s main strategy to foster participation of SME’s in the public procurement market

9. eMarketplace: the market in a snapshot • Demand side: • Registered users/Purchasing Units (PUs): 1.525 (Jan-Aug ‘08), 7.565 (cumulative) • Active users (‘til Aug ‘08): 3.296 • Number of transactions (DPs + RFQs): 30.672 (Jan-Aug ‘08), 83.110 (cumulative) • Transactions value: 83.420.000€ (Jan-Aug ‘08), 243.231.000€ (cumulative); average transaction value 2.719€ (Jan-Aug ‘08) • Supply side: • Registered-active suppliers: 1.233 • Number of items: 158.581 • Items categories (‘til Dec ‘07): 43,5% ICT, 34,5% Office supplies, 14% Services, 1% Health Materials and 7% others.

10. Key Performance Indicators of the Programme “Outward-looking” measures KPI 1 KPI 2 “Savings per unit of investment” (€) “Value of purchases through NFCs per unit of investment”(€) 2008Each euro invested in the Programme has generated euro66,7 in transactions through the NFCs system(compounded average growth rate in the period 2005-08: +50%) 2008Each euro invested in the Programme has generated euro66,8 of savings (compounded average growth rate in the period 2005-08 : +12%)