Moving Forward withE-procurement in

Croatia

Berlin, December 2016

e-Procurement in Croatia

Legal framework

• Acts

• Public Procurement Act (OG 90/11, 83/13, 143/13, 13/14)

• Act on the State Commission for Supervision over Public Procurement Procedure (OG 18/13, 127/13, 74/14)

• Regulations

• Tender documents and tenders

• Implementation control

• Notices

• Defence and security

• Ordinances

• Education

• CPV

• List of entities

• Diplomatic missions and consular offices

e-Procurement in Croatia

Institutional framework

• Ministry of the Economy – DG for the Public Procurement System

• State Commission for Supervision over Public Procurement Procedure (appellate body)

• Ministry of Finance (concessions)

• Central State Office for Central Public Procurement

• Agency for Investments and Competitiveness (PPP)

• Electronic Public Procurement Classifieds (procurement notices)

e-Procurement in Croatia

Brief history of e-Proc in HR

PP Act (OG 110/07 & 125/08)

• 1.1.2008. mandatory e-Notification in the Electronic Public

Procurement Classifieds (EPPC)

• Centralized system one provider (eSender)

• e-Access was voluntary

PP Act (OG 90/11, 83/13, 143/13 & 13/14)

• 1.1.2012. mandatory e-Access in open and restricted procedue ca 80% of all PP procedures in HR on annual basis

e-Procurement in Croatia

• May 2013. Strategy on development of e-procurement in the Republic of Croatia 2013-2016 (OG 54/13)

• July 2013. Amendments to the PP Act (OG 83/13)

• e-Submission gradual implementation

• Implementation timeframe:

e-Procurement in Croatia

e-Modules

Notification Access Submission Evaluation Award Ordering Invoice Payment Archiving

e-Procurement in Croatia

Challenges

E-submission:

• fear of new (CA & EO)

• promotion & presentation – education

• IT security issues

• involvement of the State Commission – appeals issue

• interoperability with state registries - court register, tax register...

• bank guarantees

Future issues:

• European Single Procurement Document

• e-Invoice

• automatization

e-Procurement in Croatia

1. Procedure preparation

• Preparation of procedure

(subject matters, time limits, exclusion grounds, etc)

• Upload of tender documentation

• Upload of Bill of quantities

• Sending the notice for publishing

publication

• Published notice, tender

documentation, bill of quantities

List of published notices

2. Tender submission

• General tender information

• Tender price/bill of quantities upload

• Generated bid sheet

• Signing with advanced electronic signature

• Sending (submitting) the tender

3. Public opening

• Expiry of the time limit for the receipt of tender

• Keys for tender opening

• Decryption

• Opening of e-tender

• Generating minutes of thepublic opening of tenders

• E- evaluation – next step

encryption

14

20

e-Procurement in Croatia

Looking into the future

• Adoption of the new PP Law is planed by the end of 2016

• Integration od new PP notices in EPPC

• Development of new modules for DPS and e-catalogue

• Connecting EPPC with state registries - court register, tax register...

• Integration of European Single Procurement Document into EPPC

• Development of new module for appeals and integration with State Commission

• Automatization of the procedure

• Public procurement plans & contract registers - centralised in EPPC

• Development of new module for WB funded procurement ?!

e-Procurement in Croatia

Public procurement plans & contract registers

Establishment of the CPO Established in 2010 by the Regulation on CPO (Official Gazette 138/09)

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

Number of civil servants: 20Number of procurement categories: 20 Number of clients: 34Number of clients under the Reform measures (5 categories): 650

www.sredisnjanabava.hrall bidding documents, FAs - available on-line

Procurement categories

In addition, Government may appoint the CPO for a specific procurementcategory, or specific users the Government adopted Decision related toCPO clients (additional 650 users for 5 categories)

1. OFFICE FURNITURE2. OFFICE SUPPLIES3. EXPENDABLE MATERIALS 4. VEHICLES5. CAR TYRES 6. FUEL7. ELECTRICITY8. NATURAL GAS9. COMPUTERS10. LICENCES11. MOBILE TELECOMMUNICATIONS SERVICES

12. LANDLINE TELECOMMUNICATIONS SERVICES 13. PRINITING SERVICES14. POSTAL SERVISES15. INSURANCE SERVICES 16. SECURITY17. AIRPLANE TICKETS AND HOTEL ACCOMODATION18. CLEANING SERVICES19. REPAIR AND MAINTENANCE OF VEHICLES20. MAINTENANCE OF OBJECTS

Tasks of the 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 continuousmonitoring of savings made

drawing up proposals of decisions, specifying products and servicespurchased through central procurement

CPO in numbers

Total number of framework agreements or contracts 166

Currently active FA or contracts 54

Current number of active suppliers 48

Number of inactive FA or contracts 112

Total number of framework agreements or contracts with group of tenderers 45

Total amount of all Framework agreements 279.704.659 mil €

Total amount of active framework agreements without VAT 170.251.360 mil €

CPO in numbers

OFFICE SUPPLIES3%

CLEANING SUPPLIES

1% VEHICLES16%

TYRES FOR VEHICLES3%

FUEL25%

ELECTRICITY11%

COMPUTERS4%

LICENCES13%

MOBILE PHONE SERVICES

3%

PRINTING SERVICES

0%

POSTAL SERVICES18%

INSURANCE2%

CLEANING SERVICES1%

Other results of CPO

tender documents of the CPO are used as a template bymany contracting authorities

successful model of technical consultations - accepted as amodel in the new public procurement law

for most of 650 new beneficiaries of central publicprocurement this is the first time to use frameworkagreements concluded through the central procurementprocedure

help desk at the CPO - support for clients / sharing ofexperience

Challenges and further development challenges:

in a process of standardization / catalogues of supplies

fluctuations of employees

repeated appeals cause inability for timely completion ofprocedures

introducing standards & IT support

further development: MEAT criteria /GPP

further professionalization and specialization

emphasis on customer relations and communication strategy

category management

E-procurement - first steps2014 - 2015

open possibility of e-submission2014 – 6 public openings / 0 e-bids

why?

fear of changes

lack of education

VENDORS

CONTRACTING AUTORITIES

E-procurement - first steps2014 - 2015

from 1. January 2015. mandatory e-submission2015 – 2016 – 16 public openings / 94 e-bids

unknownprocedures

transparency/safety

fluencyeducation

E-procurement - process

pre-awarding

• e-sourcing

• e-noticing

• e-tendering

• e-access

• e-submission

• e-evaluation

• e-awarding

post-awarding

• e-contract

• e-ordering

• e-invoice

• e-payment

Benefits of e-procurement

26 suppliers (8 SMEs)

savings cca 9 mil €

cca 92 mil € concluded FAs

cca 9,66%

Benefits of e-procurement

CPO: greater efficiency and effectiveness

simplified and shortened process

better prices due to increased competition

greater transparency and improving the public image

greater security of data and better control mechanisms

reduces risk of litigation

easily and comfortably obtaining tender documentation

economical and environment friendly

training and support for contracting authorities

Benefits of e-procurement

economic operators: administrative simplification

constant availability for bidding

more time to prepare and fine-tune bids

reduction in potential errors linked to the preparation ofdocumentation

easier access to markets, especially SMEs, increasedopportunities and competition

greater transparency and better control mechanisms

no need to travel to present bids – reduced mail costs

can submit bid on last minute

Useful links

• PP Portal – http://www.javnanabava.hr/

• SCSPPP– http://www.dkom.hr/

• EPPC – https://eojn.nn.hr/Oglasnik/

• CPB – http://www.sredisnjanabava.hr/

• MoF – http://www.mfin.hr/

Thank you for your attention!