austrian experience in using procurement data and...

Austrian Experience in Using

Procurement Data and Tools to

Benchmark Public Spending

December 1st, 2015

Dipl.Kfm. Uwe Flach

Head of Marketing & Consulting

Content

Overview Public Procurement in Austria

Federal Procurement Agency (BBG)

Our e-Procurement Solutions

Relevant KPI‘s and Benchmarking

Austria – Federal System

Federation: 3 levels of Government

– Federal Government

– 9 State Governments (Länder)

– 2,357 Municipalities

The legal system in the area of

Public Procurement

National legislation was adopted to transpose EU Dir.

(Directives 2004/18 and 2004/17, Remedies Directives)

There is one law, the Public Procurement Act , which

deals with PP in general and the review on federal level;

There are 9 different laws, which deal with PP review on

municipal and state level.

There are several accompanying regulations

Institutional System-

Main Stakeholders

Federal Chancellery: drafting legislation, information functions

Federal Procurement Agency (BBG): central purchasing

body for the Federal State of Austria to execute procurement

(bundle, standardize etc.)

The Court of Audit: controls the necessity (as such) and the

concrete conduct of public procurement procedures

Federal Administrative Court: review body for entities at

federal level

Regional Administrative Courts: review body for entities at

regional level (one for each of the nine Austrian provinces).

Supreme Administrative Court: second instance

Content





Federal Procurement Agency act as

Central Procurement Body

Established by law: Federal Procurement Agency Act 2001

Portfolio assigned by Decree (Minister of Finance)

Awards procedures based on Federal Procurement Act

Federal entities are obliged by law to procure defined goods

and services1) through the Federal Procurement Agency

(BBG).

Other public entities2) can use the services of the BBG but

can also procure by themselves.

When purchasing, all public entities are bound to the rules

set in the Austrian Public Procurement Act.

1) procurement of non-military goods and services, (except construction)

2) Other public entities: Municipal or federal state authorities as well as entities financed by such authorities or being

governed by or under the supervision of these authorities

Impact on Austrian Public

Procurement Sector

Our Objectives & Goals

Optimizing purchasing conditions & getting best value for

money

Reducing legal risks

Contributing to a effect-oriented, efficient and transparent

administration

Optimizing procurement processes by means advanced IT

Allow Ministries to concentrate on their core businesses

Improve efficiency of public procurement

& reduce public expenditure

Our Solutions

Bundling public demand & joint tenders for framework

agreements

Standardisation of goods and services

Making framework agreements available to the entire

public sector

Optimizing public purchasing procedures by providing

comprehensive e-Procurement solutions

Establishing an organization with procurement specialists

(professionalization of staff) & consulting capabilities

The Federal Procurement Agency was set

up as a shared service provider

Areas of our Business

Procurement

about 960,000 products are ready to be bought by all

government authorities and cover 12 product-families

– such as IT, office equipment or cleaning services etc.

Consulting

Projects on particular order by customers („PibA“)

Consulting services in the fields of public procurement,

procurement-organisation and in special product-ranges

e-Procurement Solutions

Provision of comprehensive and integrated solutions

covering the entire procurement processes

(„e-Shop“ and „e-Reisen“ and e-Invoicing gateway)

Advantages for all public authorities

Participation at a huge procurement market

(volume ca. 1.2 Billion Euro)

Optimal conditions (17.7% savings)

24/7 availability of goods and services

No own tendering procedures

Reduction of process-costs

Legal certainty

No risk allocation

Standardized, periodic processes

BBG: Procurement Service Provider

Customers

Suppliers

Award procedures

Ascertainment of requirements

Supplier X

Agency X

Order

Delivery

Invoice

e-Shop processing

BBG

EU regulations impacting

e-Procurement in public sector

e-Tendering - Directive 2014/24/EU

– 18. Apr 2016: Incorporation into national law

– 18. Apr 2017: Central Purchasing Bodies will move to full

electronic means of communication including electronic bid

submission

– 18. Oct 2018: e-submission should be made mandatory for all

Public Contracting Authorities and all procurement procedures

e-Invoicing - Directive 2014/55/EU

– 27. Nov 2018: Public Contracting Authorities need to accept e-

Invoices from suppliers

Content





e-Procurement Process Landscape

planningelectronic

publication

electronic

tender

electronic

invoice

electronic

orderelectronic

catalogue

Other applications

(Contract Mgmt., CRM, Electronic signature, Electronic archive, Electronic act, etc.…)

Organisational aspects und conditions

(SLA, human factor, legal certainty and clarity, etc.…)

aw

ard

pre-award post-award

Illustrative

BBG e-Procurement Landscape

„pre award“ Solutions „post award“ Solutions

e-Tendering

Solution1)

e-Shop

Multi-Supplier

Catalogue /

Staging

eInvoicing Service

Portal

e-Reisen(Travel booking

tool)

Other Applications

Contract

Management

(MDM)

Document

Management

System

Special Data

BaseBBG Portal CRM

Survey of Demand

(partially Survey

Monkey)

Shopping

tool /

WF Mgmt

Contract

Information

Platform

Monitoring

1) Due to change in EU regulation (Directive 2014/24/EU) potential future solutions are currently under evaluation

Pre-Award in Austria – Target

Clearing Center

Business operator

Contracting authority

Workflow application Workflow application Workflow application

interfaces

Post-Award

BBG Electronic Ordering Platforms

e-Shop

The e-Shop is the central purchasing portal of BBG.

More than 1 Mio products & services can be ordered

electronically. With a differentiated privilege-system all

acceptance sequences are visible for the customers.

e-Reisen

The travel online-booking-tool „e-Reisen“ allows direct

electronic booking of business trips. Flights, hotels and

rental cars can be compared and booked online.

e-Shop as Central Purchasing Portal

The BBG e-Shop offers a central web based information and

purchasing portal. It can be used as the single point of entry for

all your buying related activities.

e-Shop covers entire Post Award

Process

Central Invoice processing incl.

e-Invoicing

BBG Customers

BBG Suppliers

e-Shope-Invoice

Gateway

USP

CRM

Variant 1:

Form based invoice

generation

Variant 2:

Structured invoice

transmission

Federal clients: :

Transmission via

USP

Non-federal clients:

Different transmission types (PDF,

XML) or download via e-Shop

Master data sync.

e-Reisen

Our Online Travel Booking Tool

Highlights Cytric

Professional tool customized for public authorities

Comprehensive user and right management

Reporting tools

24 hours support hotline

Reduced process costs for procurement

prices according BBG and cytric agreements

Planning and booking for all travel purposes

– hotels, flights and cars

– ordering according defined travel policies

– approval workflow optional

– connecting with travel agency

– personal travel information

– automatic billing and ticketing

Content





Important KPI‘s for BBG - overall

KPI Short Description BBG Value (2014)

Total procurement volume

via CPB

Total amount in Mio. EUR of the purchases processed through

contracts and framework agreements established by the CPB.

1,183 Mio. EUR

(see also graphics)

Savings Total savings per year measured in procurement volume and/or

Percent (based on bundling effects); No common formula existing

for CPB’s

17,7%

(see also graphics)

Share of the relevant public

procurement volume in the

CPB's country

Based on ca. 6 Billion EUR public procurement potential in the

fields in which BBG is allowed to purchase.

The figure is an estimation by BBG (potential does not include

construction/real estate procurement and military procurement)

Ca. 20%

Procurement volume per

customer group of the CPB

Customer groups defined for BBG (Federal, Universities, Health,

Province/Municipalities, Public owned enterprises (Spin-offs)

See graphics

Procurement volume per

purchasing area of the CPB

Purchasing areas / product groups used by BBG (usually more

they will differ per CPB)

See graphics

No. of successful award

procedures per year

Number of procedures executed by BBG 150

(see also graphics)

No. of unsuccessful award

procedures

Number of procedures where an objection was sustained 1

(see also graphics)

Number of customers Total number of public contracting authorities using CPB’s

agreements

2129

Total Number of employees Number of employees in full time equivalents (FTE) within CPB 97 (see also graphics)

Important KPI‘s for BBG – eProc.

KPI Short Description BBG Value (2014)

e-Procurement volume Total amount in EUR of purchases processed via electronic

tools, such as electronic shops, electronic Marketplaces etc.

Ca. 305 Mio EUR

(see also graphics)

e-Invoice Reporting % of CPB contracts which are part of automated procurement

reporting based on e-Invoicing

43%

Contracts available via

procurement portal

% of BBG concluded agreements which are accessible for

contracted customers via web based procurement portal

100%

(currently ca. 1,900

contracts)

Number of electronic

catalogues

Total Number of e-Catalogues available via e-procurement

shopping tool

2200

Number of articles in

catalogues

Listed articles which can be found via search engine in the

shopping tool

Ca. 1.4 Mio

Number of electronic PO’s Number of created purchase orders via shopping tool (per year) Ca. 90,000

Number of active users Number of active users within the e-Procurment solution Ca. 18,000

Important KPI‘s for the public sector

(which we cannot measure)KPI Short Description

Total spend of Public Procurement in

AT

Total amount in EUR of all organizations within public sector and which are subject

to Public Procurement Act

Maverick Buying How many orders or what volume of an organisation was ordered outside of

defined and given buying channels / buying processes

Public Procurement volume per

public sector group

public sector groups such as Federal, Universities, Health, Province/Municipalities,

Public owned enterprises (Spin-offs)

Public Procurement volume per

purchasing area

Purchasing areas / product groups defined on national product classification

system

Procurement ROI Cost effectiveness of procurement department comparing implemented cost

savings with procurement department’s operating budget

Costs per Purchase Order Calculation of costs to process an order (e.g. fixed overheads + variable costs)

% of Spend managed by professional

purchase department

Managed spend by professional purchase department as % of total spend (spend

which is managed via professional sourcing processes & procedures)

Total Procurement Volume &

Savings

Procurement volume 2014:

• 1,2 Billion Euro

Savings 2014:

• 17,7% (253 Mil. Euro)

Mill

ion

Eu

ro

Procurement Volume per Customer

Group of BBG

Procurement volume 2014:

1,2 Billion Euro

Mill

ion

Eu

ro

Procurement Volume per Purchasing

Area of BBG

Award Procedures per Year

Reflects legal certainty:

Since its incorporation, the

BBG has concluded 1802

award procedures. Only 92

cases were appealed –

with only 23 of these

complaints being

successful for the plaintiff.

The constant growing number of customers, contracts and services

is reflected in the growing number of employees. 2014: Out of 101

employees there are 97 full time equivalent. The ratio between men

and women is well balanced.

Number of BBG Employees

e-Procurement Volume via e-Shop

Total Volume

Volume e-Shop relevant

Volume via e-Shop

Mill

ion

Eu

ro

34

Challenges for us as CPB

We are part of a complex public procurement landscape

We are Shared Service provider

– for heterogenic customer and supplier structure

– without direct impact / influence on customer‘s organizational

procurement procedures, guidelines and governance

Our Customers have typically own e-Procurement

landscape which needs to be integrated or adapted

Benchmarking in public sector is challenging

Limited transparency in public procurement sector

…

austrian experience in using procurement data and...

Documents