The Central Procurement Agency in Lombardy

www.arca.regione.lombardia.it

The Central Procurement Agency in Lombardy

Rome, April 15th 2014

Laura Carpineti – Responsible of Central Procurement Unit common expenditure, ARCA


INTRODUCTION – MY CV

2

My expertiseLAURA CARPINETI.. [email protected]

2003University degree in political economics at the University of Ancona (cum laude)

2004/2007 Junior economist at the Research Unit Of Consip LTD

2007/2010 Member of the Strategy Unit at Centrale Regionale Acquisti

2010/… Responsible of the Unit Common expenditure & Sustainable Procurement

mailto:[email protected]


Agenda

3

2013ARCA

2012Spin-off

Phase 2

2007Start-up

2007-2012Centrale Regionale

Acquisti

Phase 1

This lecture will start exploring the Italian and Lombardy context about Public Procurement, showing Arca’s set up in 2007, previously as “Centrale Regionale Acquisti”.

In particular we will talk about the key issues to be addressed in the set up of a new Central Procurement Entity (Phase 1) and about the development and consolidation of the NewCo (Phase 2), dealing with:

• Context and regulatory system• Strategy and business model• Governance model of stakeholder • Organizational model• Skills, staff and expertise• Critical success factors• Results

Finally, Arca will be described as a case history with a deep focus on:• Green Public Procurement• Special projects: Arca’s first pre-commercial procurement procedure (March, 2013).

I N D E X


April 5th 2013

The start up of a Central Procurement Agency

ARCA services and results (2013)

Question time

Focus on ARCA’s procurement process

Focus on Green Public Procurement

Focus on ARCA’s special projects: PCP

Question time


Central Procurement Agency

5

According to the European legislative framework ‘Central Procurement Agency ’* is a contracting

authority which:

— acquires supplies and/or services intended for contracting entities or

— awards public contracts or concludes framework agreements for works, supplies or services

intended for contracting entities.

Piedmont– S.C.R.Lombardy– ARCATrentino Alto Adige – Informatica TrentinaFriuli Venezia Giulia – Centro Servizi Condivisi

Emilia Romagna – IntercentERTuscany – ESTAV Centro, Nord-Ovest, Sud-EstLazio – LA.it + CONSIP SpA (national)Molise - Asrem

Campania – SO.RE.SAApulia – EMPULIASardinia – C.A.T.

Main national/local Central Procurement Agency in Italy

* DIRECTIVE 2004/17/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors

www.arca.regione.lombardia.it6

Central Procurement Agency (2/2)

Central Purchasing Bodies in Italy may be divided into clusters

Local Purchasing Body: awards public contracts for local Public Bodies (Region, Municipalities, Healthcare Bodies)

Local Purchasing Body specific for Health sector

A unified-regional Purchasing Body focused on Health sector: aimes to minimize costs, boosting aggregate demand and maintaining high quality standards for local health services purchases

CONSIP is the national Central Purchasing Body, managing the Program for the Rationalization of Public Purchases.


CENTRALIZATION VS CENTRALIZATION…

Full Centralization: procurement is fully centralized when all the relevant decisions to purchase are in the hands of a single headquarter

Full Decentralization: when divisions or

local administrations are delegated the

power to decide how what and when to

procureHybrid Model: wide range

of intermediate procurement models where central and local purchasing

units share the power on purchasing decisions


Focus: hybrid model for the health sector

8

ARCA/Consip

Individual hospitals

Level 1

Centralized procurement

Level 2

Local Centralization

Level 3

Decentralization

Level 1 + level 2 = 50% expenditure

DG Health : collection of data regarding the planning 2012/2013 of all the hospitals procuring autonomously

ARCA : involvement as a strategic partner in the strategy at different levels


The legal framework context

9

The central public authorities are OBLIGED to procure through the National Procurement Agency CONSIP

The health sector is OBLIGED to procure trough the referring Regional Procurement Agency

The local authorities are obliged to procure trough CONSIP or trough the referring Regional Procurement Agency only for the sector: fuel, electricity, telecommunication (fixed and mobile)

Individual purchases if the awarding price is below the frame contracts of Consip or of the regional procurement authorities

In 2012 the Italian Government issued the so called «Spending Review», aimed at achieving relevant saving from the public sector by fixing strict rules on Procurement Process…

RELEVANT ASPECTS….

The health sector is obliged to procure thought the central agencies even if he affords a lower price.

Individual initiatives of procuring products and services risk to nullify the effort of the centralized procurement


Lombardy at-a-glance

10

* Year 2011

The most populated Italian region (~10 millions) The highest number of municipalities (1.546) 12 provinces, with the biggest ones (Milan) The third Italian Region for geographical extension

(~23.000 km²) The real regional GDP is the 20,9% of the Italian GDP The regional GDP is 126,1 vs Italian value of 100

LombardyRegion*

Regional Authorities

Procurement System*

Lombardia Region (only headquarter) 320 mln €/year Health sector : 50 authorities 2.600 mln € /year Regional sector : 70 authorities 64 mln € /year Local Entities: 1600 authorities 1.500 mln € /year

Total amount: over 4.500 mln €


Phase 1 - Set up of the new Central Procurement Entity

11

FINANCIAL ACT 2007

2006, December

Regions are allowed to set up Central Procurement Agency for local governments, municipalities and other public authorities established in the same territory

1REGIONAL DECREE AND START UP

2007 April - June

• Experimental start up (three years) of the local Procurement Agency for the management of public tenders and development of e-procurement tools

2

ESTABLISHING LAW

2007 - December

• The functions of the Central Procurement Agency are carried out by Lombardia Informatica Spa;

• The Central Procurement Agency starts the development and promotion of the e-tendering platform Sintel;

3

The Agency was set up as a Business Unit “Centrale Regionale Acquisti” of an existing company “Lombardia Informatica ldt”, 100% owned by the Region

NATIONAL AND LOCAL REGULATORY CONTEXT


Central Procurement model - Strategy and business model

12

The e-procurement platform (Sintel) guarantees to Public Entities the opportunity of managing autonomously the tendering procedures on a electronic basis

e-Procurement

The Regional Procurement Agency bundles public needs

and manages framework contracts on goods and

services in order to satisfy needs of the Public Entities

Framework Contracts

CENTRALEREGIONALEACQUISTI

Lombardy Region and referring entities

Municipalities and local authorities

> 1700 Public

Entities involved

CentralProcurement

Agency

Health Sector


Attention to the sustainability of products/services


13Arca a TorVergata, 20/2/2014

Market Analysis

Public Needs

Gara Aggregata

Framework Contracts

Monitoring

Procurement Process

ARCA

Green Public Procurement. Introduction in the tendering documentation of criteria incentivating green products and services

Green Public Procurement - GPP CSR – Corporate Social Responsibility

Paper for printers

Workstations

Electricity

Travel Agency

Stationery

ARCA is introducing into the framework contracts tools and criteria aimed at monitoring the transparency of suppliers in respecting the law of workers/cildrens eccc into the whole supply chain.

Tendering procedure


Universities

Research networks

Consultants

Procurement network

Trade Unions

SMEs

Big enterprises

Supply

Civil society

Local Authorities

Health sector

Demand

14

Stakeholders map

Consip

Relevant Procurement Authorities

Regulation system

LombardyRegion

CentralProcurement

Agency

European Union


CentralProcurement

Agency

Main strategic objectives

15

EFFECTIVENESS

COMPETITIVENESS

EFFICIENCYTRANSPARENCY

Open procedures guarantee the participation of every interested supplier

Tendering documentation and awarding criteria transparent and not discriminatory

Reduction of the average prices previously paid

Product and process innovation (i.e. green public procurement)

Indirect saving (Full time equivalent )

Price reduction of products


A 3-YEAR

STRATEGIC

PLAN

Start-up: the first Governance model

16

Business Unit Central Procurement

Agency

LOMBARDIA INFORMATICA

Strategic Committee

Operational Committee

Checks the achievement of

the goals defined by the strategic plan

Supports the implementation

of the plans

Engagement of Lombardia Informatica in the management of framework agreements for Public Entities;

Validation of strategic plans, goals and budget

Management and development of IT Services

Legal Department Staff/HR ERP Systems

Activities


Focus on the Strategic Committee and Operational Committee

17

President• Head of Health Direction -

Lombardy RegionComponents• Representatives of Health sector• Senior staff of Lombardy Region

and Lombardia InformaticaTechnical secretariat• Staff of Lombardy Region and

Lombardia Informatica

• Coordination on the Annual Rationalization Program on common and specific expenditures;

• Sharing of the communication and promotional plans, in order to involve local authorities;

• Support/sponsorship from relevant stakeholders in order to promote spreading of services and the develpment of the Annual Rationalization Program;

President•Senior staff of Lombardy Region Components•Purchase experts from Health Sector•Staff of Lombardy Region and Lombardia InformaticaTechnical secretariat•Staff of Lombardy Region and Lombardia Informatica

• Definition of the technical and quality features of the expenditure categories approved by the Strategic Committee;

• Supporting the detection need processes according to centralized framework agreements;

• Supporting market analysis;• Technical and legal contribution to prepare

tender notices;

Strategic committee Operational committee

Members

Activities

PERIODIC

EVALUATION

ON RESULTS


Start-up: Main activities of the Central Procurement Agency

18

Frame contracts

Customized consultancy

Providing technical and organizational support for tenders launched by Regional and Health Entities

Spreading innovative practices and tools to procure goods and services using e-procurement

Performing centralized tendering procedures Supporting the detection of needs and purchase prices of

goods and services for Regional and Health Entities Monitoring the quality levels of supplies in tendering

procedures directly managed

E-Procurement

Developing and promoting e-Procurement tools and other e-Sourcing services

Supporting the change management for the adoption of e-tenders processes (eg. training on the job, standard documents, etc..)


Start up: Organization, staff and expertise

19

Procurement experts cover a wide range of public procurement topics:• collection and standardization of public needs• suppliers analysis• strategic sourcing• sustainable public procurement• auction design• legal support• Drafting the tendering documentation• contract management • spend and data management

“Centrale Regionale Acquisti”

PROGRAM MANAGEMENT

LEGAL/ADMINISTRATIVE UNIT

• Gradual entry of new staff;• External consultants in program

management, sourcing and legal;• Technology skills and staff from

Lombardia Informatica;

Recruitment

TECHNOLOGY/E-PROC SERVICES

SOURCING ACCOUNT MANAGEMENT CRM/MEDIA RELATIONS


Regulatory

context

Phase 2, NEWCO ARCA: key drivers of the transformation

• Obligation to use the Agency’s services• Stronger centralization of purchases

• Focus on e-procurement: Regional and Health Bodies must adopt the e-tendering platform Sintel for satisfying their needs

Local Entities

Health Sector

Stronger focus on Health Sector:

• Focus on tenders on most relevant product categories in terms of expenditure values (Drugs, Medical, Insurance, Vaccines, Electricity)

• Consultancy on specific expenditures product categories, especially for autonomous group-tenders

Stronger support to local Entities, especially the smaller ones (< 5000 inhabitants):

• Supporting local centralization of purchases

• Consultancy on common expenditures product categories

Starting from 2011, the national and local regulations on public procurement gradually changed, such as the Central Procurement Agency’s role

Starting from October 2012, the Agency was set up as a public authority, named Agenzia Regionale Centrale Acquisti (ARCA)


Phase 2, NEWCO ARCA: Strategy and business model

21

Optimizing the public procurement expenditure Supports procurement management for goods and services Awards public contracts or signes framework agreements


Improving purchasing performance

Implementation and promotion of E-Procurement solutions for the

management of procurement processes online

E-Procurement promoter

Complete-tender management for Public Entities

«SUA» Centralized Contracting authority

Providing specialist consultancyto the authorities in the set up of their tenders, both traditional and telematics Supporting adoption of e-Procurement tools

Procurement consultancy

Lombardy Region and referring

entities

Health Sector

Municipalities and local authorities

> 1700 Public Entities involved

ARCA

Other AuthoritiesNEW


Phase 2, NEWCO ARCA: the spin-off

22

The drivers at the basis of the creation of the spin off were:• Creation of the IT, HR, Legal and Accounting staff functions previously executed by LISPA• In-house ICT and E-Procurement platform developmentThese factors led to increase the organizational complexity of the new entity

* IT and E-procurement platforms development and management

Lombardy Region

ARCA

ICT* HR

Legal Accounting

Demand management and E-procurement platforms evolution

Sourcing

…to ARCA

Lombardy Region

from LISPA…

LOMBARDIA INFORMATICA

Business Unit Central Procurement

Agency

ICT Functions (entire Lombardy Region

services)

HR

Legal

Accounting


The spin-off: key data and indicators

ARCAE-platforms and infrastructures management & development

200 active contracts

40 people involved within the organization

Internal HR management

In house logistic & ICT

management

More than 100 suppliers managed

Within the limited time frame of two months (August included), specific adjustment plans have been provided for each one of the following functions, further described in the next slide

August SeptemberAccountingHRLegal and complianceLogistics managementICT & Platform developmentSuppliers management

AccountingHR

Legal and complianceLogistics management

ICT & Platform developmentSuppliers management


ARCA: the new activities within the organizational model

Specific activities previously managed by Lombardia Informatica have been passed on to the new structure, ensuring the operational continuity of the business

HR

Legal and Compliance

Logistics management

Accounting

ICT & Platform development

Suppliers management

• Start-up of the accounting unit• Accounting regulations and accounting system set-up• Approval of the 2012 budget and 2013-2015

• Agreement with Lombardia Informatica• Transfer of existing contracts• Purchasing procedures for new contracts

• Development and management of the E-procurement platforms Sintel and NECA (electronic store)

• Technical connections and internal infrastructures

• Work station set up

• Administrative compliance (people training, org. model set-up, Supervisory Board)• Security and prevention compliance• Privacy regulation compliance

• HR management• Payroll management• Agreements with labor unions

New Tasks Activities


ARCA: IT and procurement management

25

In a business and operational continuity perspective, certain technical services were outsourced to LISPA, thus remaining within the original organization:• In the AS WAS model specific technical services are outsourced to LISPA in order to take

advantage of LISPA centralization efficiency • In the Ongoing perspective, ARCA will source some of the mentioned technical and

structural services to external market players (other from LISPA) in order to achieve economic benefits and higher quality services (>COMPETITION EFFECTS)

Ongoing perspectiveAS WAS

Dematerialization E-mail E-procurement platforms Sintel and NECA

(electronic store) development and evolution

Workstations management

Dematerialization Contact Center Website Certified mail (PEC) Single Sign-on Pay-roll Technical Integration Infrastructure E-procurement infrastructure (Sintel

platform and NECA electronic store)

I N D E X


April 5th 2013



Question time




Question time


NEEDS DETECTION

@

2013

MARKET ANALYSIS

E-SURVEYING

ORDERINGTENDER MANAGEMENT

PAYMENTARCHIVING

E-ORDERINGE-TENDERINGE-INVOICINGE-PAYMENT

E-ARCHIVING

Software-As-A-Service

NECASINTEL

E-Procurement value chain: the vision

27

FOL

VENDORMANAGEMENT

Elenco Fornitori

Telematico

Web site Web-based auditCRM

Contact Center

Support tools

Business intelligence

Enabling tools

Digital signature Certified mail


E-procurement: focus on the Regional e-tendering platform Sintel

28

Open procedures Restricted procedures Negotiated procedures In economy purchasing

e-Tendering opportunities

e-Auctions Framework agreements Dynamic Purchasing System

One-stop service

e-Notification e-Validation Supplier-base management

Events log system Reporting system Archiving of documents

Sintel can be used autonomously and for free by:• every Public Authority based in Lombardy• every Economic Operator (both Italian and Foreign)

SINTEL


The importance of a Customer Care model

29

Consulting On site support Training on the job

Teaching rooms eLearning

Web portal daily updated

Web knowledge base

Free Contact Center for CAs and EOs

Customer Satisfaction & Quality Assurance

Promotional and Marketing activities

Awarding: “Lombardia Efficiente Award”

Contracting Authorities are our “Customers”

Many different ways to spread eProc

Subscribe bilateral “Agreement Protocol” with “Hub” Contracting Authorities


ARCA: international projects

30

Arca cooperates with the most relevant international networks working on public procurement

PROJECTS

RESEARCH

EVENTS

e-Procurement

Change and performance management

Green Public Procurement

UE projects on e-procurement

Cross-border public procurement

Policy making

Best practice sharing

Opening of local markets

European conferences


Centralized tendering procedures: results achieved 1/2

31

ARCA performs public centralized tenders enabling Public Authorities to purchase goods and services directly without tendering

2007-2012 Frame contracts managed

2013 (most relevant)

Drugs (third edition) Vaccines Workstations Pre-commercial procurement

Travel Agency services Stationery for office use Paper Local Police Uniforms Electricity Copying machines Advertising services

Common

expenditure Antiseptics and disinfectants Aids for incontinence Drugs (2 editions) Vaccines (annual) Health Insurance services

Health Sector

expenditure


Drugs (open) ed. IIIDrugs BiosimilarDrugs (negotiated)Ed.3Vaccines ed. VI Health insurance ed. IIHealth insurance ed. IIHealth insurance ed. IIITNTElectricity III WorkstationsPre-commercial procurementVending Machines

758 mln/€

44 mln/€

116 mln/€

0,4 mln/€

76 mln/€

95 mln/€

9 mln/€

152 mln/€

RECENT Centralized tendering procedures

0,75 mln/€

34 mln/€

6 mln/€

73Tendering

procedures

2805lots

3,7 mld/€ Reserve price

84%Health

sector

Of the expenditure on the health sector40%

• Digital Library• Call Center services• Mail services• Consultancy on sequestrated

goods

Tendering procedures for Lombardy Region

Last updating: february 2014

0,1 mln/€

Main results


21% Savings

(327 mill)

1,36 Bill.

1886 lots

Centralized tenders: results achieved: year 2013

33

22 tenderding procedures

Economies of processReduction of the number of contractsIncrease of staff productivityCentralized settlement of disputes with suppliers

Quality of suppliesHigh quality standards (especially for small entities)Monitoring of products/services quality

Promotion of Sustainable

Procurement

GPP >> Request of eco-innovative products and services

CSR >> introduction of "social criteria" for procurement (especially for small entities)

Savings on notification costs

Savings of individual tender costs ~ 10.000 € each Eg Vaccines:

- Notification savings(150K€)

- System reduction of tenders (15)


€ 1.552 mln

€ 336 mln€ 58 mln

€ 37 mln

Sanitari Regionali Locali Altre PA

Results achieved: e-Procurement

34

€ 3,8 blnSum of reserve prices

Data update: 31/12/2012

+120%

+40%

+43%

+57%

2008 2009 2010 2011 2012

306

675

942

1341

2109

5373Total e-tenders since March 2008

Num

ber o

f e-t

ende

rs

206Contracting Authorities

4.234

418645

41

Health care Regional Local Other

CAs


Main evidences: Sintel factsheet

35

Jan - May trend (2012 vs 2011)

+ 58%total eTenders

+47%

eTenders overviewKey Performance Indicators

+43%

+40%

+120%

Total number of eTenders

KPI Total Local CAs

Total number of eTenders (since 2008) 3.934 525

Sum of estimated value of eTenders € 3200 mln € 43,4 mln

Number of tenders over EU threshold 352 42

Number of CA registrated 474 372 (78%)

Number of Economic Operators registrated 8.484

Y2011: Health eTenders are 12% in value of the full regional amount


Key findings

36

eProcurement is spreading very fast in Lombardia (+50% e-tenders per year) The largest the end-user experience gets, The greater the eProc benefits grow

In order to fully disclose the benefits, it is crucial to define e-procurement impacts, having a KPI framework to measure them. Since 2009, Lombardia Central Procurement Agency contributions regarding e-procurement impacts have been among the most influential in the international public procurement researchers and practitioners network (ippa.org).


eTendering performance impacts

37

EFFICIENCY

EFFE

CTIV

EN

ES

S

DEM

ATER

IALI

ZATI

ON

TRANSPARENCY

CO

MP

ETITIV

EN

ES

S

GO

VE

RN

AN

CE

Source: research conducted in 2009-2010 by Central Procurement Agency.

Research updates will be released Agoust 15th @ International Public Procurement Conference 2012, Seattle

+ 60% quantity and timeliness of information

- 30% procedure duration- 6 FTE employed per tender

+ 7% average savings increase

+ 62% online sharing of tender documents

Adoption of standards (for documents and processes)

Easier to spread competencies and best practices

+ 250 % suppliers invited to tenders

- 72% paper per tender (1 saved tree every 24

eTenders)


Measuring & reporting

TECHNOLOGY• E-procurement 100%

free of charge• Integration with

eNotices, and other relevant DB

• Centralized business intelligence

PROCESS• Use and promotion of

commodity standard categorizations

• Measuring of e-procurement impacts

• Documentation standards

PEOPLE• Over 100 training courses

per year • Consultancy for every

tendering procedure if needed

• Prizes for the best performers

Training & consultancy

Networking

System integration

User friendliness

Marketing

Comprehensive normative

Governance

Critical Success Factors for a Central Procurement Agency

38

Standardization

State of the art e-proc tools

Technology

Process

People

Environment

Process re-engineering

MBO

ENVIRONMENT• Stakeholders

engagement in decision making

• Participation in the most important procurement networks

• Communication


QUESTION TIME

39

I N D E X


April 5th 2013



Question time




Question time


Green Public Procurement : definition

41

Green Public Procurement (GPP) is defined in the Communication (COM (2008) 400)

“Public procurement for a better environment” as "a process whereby public authorities seek

to procure goods, services and works with a reduced environmental impact throughout their

life cycle when compared to goods, services and works with the same primary function that

would otherwise be procured.”

GPP is a voluntary instrument, which means that Member States and public authorities can

determine the extent to which they implement it.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0400:FIN:EN:PDF


Tendering procedures and GPP

42

Minimal Requirements

Techincal points

Products Services

e- procurement tools


The green frame contracts

43

UNIFORMED POLICEMAN€ 9.146.110

PAPER FOR PRINTERS

€ 10.412.6461/2/3 ED.

COPYING MACHINES

€ 10.740.120

ELECTRICITY 1/2/3 ED.

€ 200.878.022

TRAVEL AGENCY € 5.121.125

STATIONERY 2/2 ED

€ 7.050.000

WORKSTATION€ 10.412.646

http://www.si-pro.it/wordpress/wp-content/uploads/2013/03/Workstation.jpg


GPP approach

44

Approach Tools

Enhancing the market to offer sustainable products and services

Fixing the quality and the sustainability of products

Market analysis (meeting with suppliers) Benchmarking best practices Meeting with experts

Meetings, seminars, tranining courses Green reports established in the contracts

to improve the awareness of entities

Defining green minimal products requirement as entry barriers to the tendering procedures

technical points to recompense green products

Boosting the public entities to buying green


The positive effects of centralization

45

Collection of needs

Market analyss

OrderSuppliers

ChoicePaymenttransport

- Tendering documentation – question from suppliers

- Tendering commission

- Signing of the frame contract

A centralized tendering procedure generates a unique documentation

PAPER

Electricity

TONER


Centralizing procurement: a example of indirect savings

46

ASSUMPTION: each pulic entitiy buying trhought the frame contract does’nt need to publish a tendering procedure autonomously

Almost 905 .000 sheets saved ….

1) Defining the average number of sheets wasted to publish and awarding a traditional tendering procedure

2) Multiplying this number for the total number of public entities that chosen to buy through the centralize frame contracts

Last updating: March 2012


…putting the sheets along a street they would cover a distance of 271 km (Bruxelles-Dortmund)

47


Sintel: the gain about GPP

48

The use “in full swing” permits that all the tendering

procedures of the sanitary and regional agencies and the 30% of the tendering procedures of local agencies will be managed

by Sintel.

50

The public agencies use about 33.000 reams of paper per year only for tendering procedures.

Till the 2010, 1920 tendering procedures have been

managed by sintel, and they have permitted to “save” 80

trees.

1 tree “saved” every 24 tendering procedure

online

750 trees “saved” per year

(~55% of the total)

About 1.400 trees “consumed” every year in Lombardia

Sheets of A4 paper consumed for type of tendering procedure (traditional vs Sintel)

Nota: i dati sono relativi ad analisi condotta da Centrale Regionale Acquisti su un campione di Enti lombardi, si riferiscono a gare svolte su Sintel dal 01/04/2008 al 01/04/2009Ipotesi: 5 gr./foglio ; 17 alberi di medie dimensioni per 1 tonnellata di carta. Fonte: Istituto di ricerca sull’impresa e lo sviluppo del Consiglio Nazionale delle Ricerche di Torino, CERIS-CNR, 2007

30

Traditional centralized tendering

procedure

Historical In full swing

I N D E X


April 5th 2013



Question time




Question time


Brief description of the PCP procedure

50

PCP is a process by which public authorities can steer the development of new technologically innovative solutions which does not exist on the market (R&D)

PCP precedes commercial procurement in the product development and procurers buying process

PCP empowers public authorities to stimulate industrial product development from its early R&D stages to test series

CHAR

ACTE

RIST

ICS

DEF

INIT

ION

Sharing of risks and opportunities

between contracting authorities and

economic operators

Separation of the R&D phase from the

deployment of commercial volumes

of end-products

Competitive development in

phases


The first PCP in Lombardy Region >> Object and characteristics

51

TENDER OBJECT

R&D in health technological domainREALIZATION OF AN UNIVERSAL «BED MOVER»TO BE USED BY HOSPITAL STAFF

ARCA published the first PCP in Lombardy Region the 8th of March 2013

Sharing of risks and opportunities

Separation of the R&D phase from the commercial

one

Competitive development in phases

Procedure is divided in 3 Phases: 1 – Feasibility Study2 – Technical Project3 – Prototyping and testing

ARCA implemented, in the commercial development

phase, a mechanism of financial compensation as

a risk-benefit sharing model.

Completely distinct phases: Phase 1+2+3 – PCP

After Phase 3 – Public Procurement for

commercial roll-out


Less strict administrative requirements to encourage small and medium sized enterprises and start-up to participate to the initiative.

The first PCP in Lombardy Region >> Compliance with procurement principles

52

The Contracting Authority, in case of PCP, is not obliged to comply with all the strict rules setting for public procurement. Nonetheless, PCP should be awarded by means of a

competitive tender process, in line with the principles which emanate from the European Community (EC) Treaty

Equal treatment

Transparency

6 offers received in Phase 1 2 RTI

4 single enterprises 3 Italian universities among the 2 RTI

The procedure has been carried out entirely through e-procurement

Non discriminati

on


The first PCP in Lombardy Region >> Towards Sustainable procurement

ARCA, in the overall process referred to sustainable purchases, introduced both social and green criteria in the PCP procedure.

… request, along the supply chain, of Social Standards,

internationally recognized, in line with Human Rights and Work Conditions through the introduction of contractual

clauses and statements, the monitoring and check of compliance with social criteria.

Social criteri

a

Introduction, as award criteria for Phase 1 and Phase 2, ofReduction of environmental impacts as a green criteria defined as: “Methods adopted to ensure the environmental sustainability of the innovation solution proposed along all

product life-cycle (production, delivery, installation, use, maintenance, management, dismiss and disposal).”

Green criteri

a

Sustainability criteria are essential in order to fight against social dumping and unfair competition within and beyond EU’s borders


The first PCP in Lombardy Region >> Procedure phases

54

Phase 1

Feasibility study* Every supplier can participate in this phase.

Phase 2

Technical projectSuppliers who presented the 4 best feasibility studies can participate.

Phase 3

Prototyping and testingSuppliers who presented the 2 best technical projects can proceed to prototype their innovations.

* Currently ARCA is evaluating the feasibility studies presented.

PCP is divided into 3 phases: each phase will be evaluated according to a set of criteria. In this way the procedure will be less complex, less uncertain, easier to set up and implement and

therefore more accessible.

The 2 best tenders will be awarded using the most economically advantageous tender criteria

www.arca.regione.lombardia.it55Data e nome documento

The first PCP in Lombardy Region >> Awarding criteria

Phase 1

Feasibility study

Phase 2

Technical

project

Phase 3

Prototyping and testing

ADMINISTR

ATIVE

Administrativequalification

requiredConfirmation of the

administrative qualification

In this phase the suppliers who presented the 2 best technical projects are effectively awarded the procedure.

They have to prototype and test their innovative solutions in the real contest located in Niguarda Hospital, in Milan.

TECHNIC

AL

Feasibility study (100 points quality score) Introduction of green criteria

Technical projectand business plan

(max 80 quality score)Introduction of green criteria

ECONOMICAL

- Economical offer(max 20 economical score)


Phase 1

The first PCP in Lombardy Region >> Value

56

Each phase has different characteristics non only with regards to administrative qualifications required and awarding criteria, but also referring to the value.

Phase 2

Amount due to each one of the suppliers who presented the 4 best feasibility studies for the

implementation of services requested in Phase 1

Starting price for the economical offer for Phase 2 referring to the

achievement of the activities requested to do in Phase 3

€ 25.000,00

€ 325.000,00€ 325.000,00

Gross amount

€ 750.000,00

max€ 100.000,00

max€ 650.000,00


Conclusions

57

Need for innovation in public sector

PCP allows Public Authority to effectively respond to the growing need of innovation in public sector which cannot be satisfy through

the market. The R&D, at the base of PCP approach, can design better solutions that can be used by Public Authorities.

Encourage innovation

The risk and benefit sharing model, as designed in Lombardy Region PCP procedure, includes 1% fee on earnings from sales of

the innovative solutions awarded. The revenue gained from the 1% financial compensation will be destined to the development of

innovation procurement initiatives in Lombardy Region.

Increase participation

Large administrative qualification requirements setting for PCP procedure permit to small and medium sized enterprise, to start-up and also to University and Research Centre to participate. The absence of financial requirements goes in the same direction of

increasing, encouraging and simplifying the submission of offers by small subjects, who usually do not participate in public tenders.


QUESTION TIME

58


Laura [email protected]@hotmail.com



Documents

The Central Procurement Agency in Lombardy