benefits of modernized european public procurement !_eu_procuremen… · benefits of european...

Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker

12018-07-10Prof. Dr. Dr. h.c. Dr. h.c. Jörg Becker 2018-07-10

BENEFITS OF MODERNIZED EUROPEAN PUBLIC PROCUREMENT

Presentation prepared for Policy Department A on request of the Committee on the Internal Market and Consumer Protection


22018-07-10

DEFINITION, GOALS AND GAPS

PUBLIC PROCUREMENT


32018-07-10

“[Public] Procurement is the purchase of goods and services by public (…) enterprises.” Smith and Lilico (2014)

DEFINITION AND RELATION TO SINGLE MARKET

PUBLIC PROCUREMENTG

oods

Labo

ur

Serv

ices

Capi

tal

Single Market

PPPPPP PP

PP

16 % of the EU GDP

(Smith and Lilico 2014), (Maciejewski 2017)


42018-07-10

GOALS AND GAPS

PUBLIC PROCUREMENT

Objectives for improvement

Efficiency in PP

Easy access for SME

E-procurement

Cross-border contracts

Legal framework

Improving PP Further developmentof the Single Market

(Cecchini et al. 1988), (Smith and Lilico 2014), (EC 2011), (EC 2018)


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TRENDS AND CHALLENGES


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DATA CLEANSING

TED DATA

NAMiscoded

data

Possibly correct but unused

Analysed data

Raw data Completedata entries

NA

Cleaned data

Above € 200 M

Below € 1,000

Analysis

AWARD_VALUE_EURO

554,802,004.17

211,627.47

275,444.40

NA

95,285.82

1.00

9501.48

AWARD_VALUE_EURO

554,802,004.17

211,627.47

275,444.40

NA

95,285.82

1.00

9501.48

AWARD_VALUE_EURO

554,802,004.17

211,627.47

275,444.40

NA

95,285.82

1.00

9501.48

(Kutlina-Dimitrova and Lakatos 2016)


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TOTAL AWARD VALUES IN EURO

PROCUREMENT IN THE EU

(TED 2018)


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TOTAL AWARD VALUES OF CROSS-BORDER CONTRACTS


(TED 2018)


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SHARE OF CROSS-BORDER AWARD VALUES


(TED 2018)


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A COMPETITION INDICATOR FOR 2017

Quartiles

< 13,5 %

13,5 % < x > 17,4 %

17,4 % < x > 25,0 %

> 25,0 %

SHARE OF TENDERS WITH ONE BIDDER

(TED 2018), (EC 2017)


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0

25000

50000

75000

100000

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

25000

50000

75000

No. of Tenders

BETWEEN 2009-2017

SHARE OF SME IN TOTAL TENDERS


122018-07-10

FOR 2015 / 2016 / 2017


0

20000

40000

60000

80000

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

20000

40000

60000

80000No. of Tenders

0

3

6

9

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

0.0

2.5

5.0

7.5

10.0

No. of Tenders

0

5000

10000

15000

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

5000

10000

15000No. of Tenders

2015

2016

2017


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Awards with no SME Tender Awards with 100% SME Tenders

Min.: 1,001 EUR 1,000 EUR

1st Quart.: 7,326 EUR 7,082 EUR

Median: 38,602 EUR 36,004 EUR

Mean: 1,097,544 EUR 664,393 EUR

3rd Quart.: 252,676 EUR 200,141 EUR

Max.: 197,444,061 EUR 192,653,481 EUR

SME = SMALL AND MEDIUM AWARDS?



142018-07-10

0

250000

500000

750000

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

2e+05

4e+05

6e+05

8e+05

No. of Tenders

BETWEEN 2009-2017 (NA REINTERPRETED)



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FOR 2015 / 2016 / 2017 (NA REINTERPRETED)


0e+00

1e+05

2e+05

3e+05

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

1e+05

2e+05

3e+05

No. of Tenders

0e+00

1e+05

2e+05

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

0

50000

100000

150000

200000

250000No. of Tenders

0e+00

1e+05

2e+05

0.00 0.25 0.50 0.75 1.00Share SME

No.

of T

ende

rs

1e+05

2e+05

No. of Tenders

2015

2016

2017


162018-07-10

Awards with no SME Tender Awards with 100% SME Tenders

Min.: 1000 EUR 1,000 EUR

1st Quart.: 11,910 EUR 7,082 EUR

Median: 68,755 EUR 36,004 EUR

Mean: 1,149,032 EUR 664,393 EUR

3rd Quart.: 325,099 EUR 200,141 EUR

Max.: 199,912,768 EUR 192,653,481 EUR

SME = SMALL AND MEDIUM AWARDS? (NA REINTERPRETED)



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PATHWAYS FOR A FUTURE LEGISLATIVE ACTION

FUTURE OF PUBLIC PROCUREMENT IN THE EU


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STREAMLINE AND DIGITALIZE PROCUREMENT PROCESSES

DIGITAL END-TO-END

(Becker 2018), (PwC 2018a), (Vaidya et al. 2006)

Receive Offer viaProcurement Portal

Print Offer on DIN A4 Paper

Assess Tender

Conduct FormalAssessment

Send Notification viaProcurement Portal

Enter Results inProcurement Portal

Receive Offer viaProcurement Portal

Assess Tender

Conduct FormalAssessment

Send Notification viaProcurement Portal

! Approach

1. Leave out2. Simplify3. Automate

! Effects

Less time Less burdensome

Improved DQ

! Example


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EMBEDDING PROCUREMENT SYSTEMS IN EXISTING LANDSCAPE

INTEROPERABILITY

(Anthes 2015), (PwC 2018c)

linking existing DBs

common interface (XML)

collect data from registries

consistent data across theprocurement process


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SINGLE GATEWAY PROCUREMENT

ONE-STOP SHOP PROCUREMENT PORTAL

(PwC 2018b), (Wimmer 2002), (Wimmer and Tambouris 2002)

Authority 1

Authority 2

Authority 1

Authority 2

No

One

-Sto

pSh

opO

ne-S

top

Shop


212018-07-10

no evaluation without data small databasis analysedpoor data → poor decisions

INTRODUCING QM FOR TED DATA

THE NEED OF GOOD DATA

(Otto et al. 2011), (Pettey 2012), (Wang 1998)

Data Quality Dimensions

Accuracy

Consistency

Timeliness

Completeness

Believability

...

“Information is the oil of the 21st century, and analytics is the combustion engine”

Peter Sondergaard, Gartner

apply strategies to improve Data Quality (e.g., TDQM)


222018-07-10

REFERENCES AND CREDITS


232018-07-10

Anthes, G. 2015. “Estonia: A Model for e-Government,” Communications of the ACM (58:6), pp. 18–20. (https://doi.org/10.1145/2754951).

Becker, J. 2018. “Systems and E-Procurement - Improving Access and Transparency of Public Procurement,” Brussels, Belgium. (https://doi.org/10.2861/828878).

Otto, B., Lee, Y. W., and Caballero, I. 2011. “Information and Data Quality in Business Networking: A Key Concept for Enterprises in Its Early Stages of Development,” Electronic Markets (21:2), pp. 83–97. (https://doi.org/10.1007/s12525-011-0063-1).

Pettey, C. 2012. “Gartner Says Worldwide Enterprise IT Spending to Reach $2.7 Trillion in 2012,” Gartner.Com. (https://www.gartner.com/newsroom/id/1824919, accessed July 2, 2018).

PwC. 2018a. “Streamline Public Procurement Procedures,” E-Library of Public Procurement Good Practices, Brussels, Belgium.

PwC. 2018b. “One-Stop Shop Procurement Portal,” E-Library of Public Procurement Good Practices, Brussels, Belgium.

PwC. 2018c. “Interoperability between E-Procurement Systems and Other Government Databases,” E-Library of Public Procurement Good Practices, Brussels, Belgium.

Vaidya, K., Sajeev, A. S. M., and Callender, G. 2006. “Critical Factors That Influence E-Procurement Implementation Success in the Public Sector,” Journal of Public Procurement (6:1/2), pp. 70–99.

Wang, R. Y. 1998. “A Product Perspective on Total Data Quality Management,” Communications of the ACM (41:2), pp. 58–65. (https://doi.org/10.1145/269012.269022).

Wimmer, M. A. 2002. “A European Perspective Towards Online One-Stop Government: The EGOV Project,” Electronic Commerce Research and Applications (1:1), pp. 92–103. (https://doi.org/10.1016/S1567-4223(02)00008-X).

Wimmer, M. A., and Tambouris, E. 2002. “Online One-Stop Government,” in IFIP WCC TC8 2002, R. Traunmüller (ed.), Boston, MA, USA: Springer, pp. 117–130. (https://doi.org/10.1007/978-0-387-35604-4_9).

REFERENCES

https://doi.org/10.1145/2754951

https://doi.org/10.2861/828878

https://doi.org/10.1007/s12525-011-0063-1

https://www.gartner.com/newsroom/id/1824919

https://doi.org/10.1145/269012.269022

https://doi.org/10.1016/S1567-4223(02)00008-X

https://doi.org/10.1007/978-0-387-35604-4_9


242018-07-10

Kutlina-Dimitrova, Z., and Lakatos, C. 2016. “Determinants of direct cross-border public procurement in EU Member States,” Review of World Economics (152:3), pp. 501-528. (https://doi.org/10.1007/s10290-016-0251-3).

Tenders Electronic Daily. 2018. “TED - Contract award notices 2009-2017,” EU Open Data Portal. (http://data.europa.eu/euodp/repository/ec/dg-grow/mapps/TED_CAN_2009_2017.csv, accessed June 19, 2018).

Smith, C., and Lilico, A. 2014. “The Cost of Non-Europe in the Single Market,” European Added Value Unit, Brussels, Belgium. (https://doi.org/10.2861/57815).

Cecchini, P., Catinat, M., and Jacquemin, A. 1988. “The European Challenge. 1992. The Benefits of a Single Market,” Aldershot, United Kingdom.

European Commission. 2018. “Public Procurement Guidance for Practitioners,” Brussels, Belgium. (http://ec.europa.eu/regional_policy/sources/docgener/guides/public_procurement/2018/guidance_public_procurement_2018_en.pdf, accessed June 25, 2018).

European Commission. 2017. “Performance per Policy Area. Public Procurement,” Single Market Scoreboard, Brussels, Belgium. (http://ec.europa.eu/internal_market/scoreboard/_docs/2017/public-procurement/2017-scoreboard-public-procurement_en.pdf, accessed June 24, 2018).

European Commission. 2011. “Executive Summary of the Impact Assessment,” Brussels, Belgium. (http://www.europarl.europa.eu/document/activities/cont/201202/20120214ATT38071/20120214ATT38071EN.pdf, accessed June 19, 2018)

Maciejewski, M. 2017. “Public procurement contracts,” Fact Sheets on the European Union. (http://www.europarl.europa.eu/factsheets/en/sheet/34/public-procurement-contracts, accessed June 24, 2018).

REFERENCES

https://doi.org/10.1007/s10290-016-0251-3

http://data.europa.eu/euodp/repository/ec/dg-grow/mapps/TED_CAN_2009_2017.csv

https://doi.org/10.2861/57815

http://ec.europa.eu/regional_policy/sources/docgener/guides/public_procurement/2018/guidance_public_procurement_2018_en.pdf

http://ec.europa.eu/internal_market/scoreboard/_docs/2017/public-procurement/2017-scoreboard-public-procurement_en.pdf

http://www.europarl.europa.eu/document/activities/cont/201202/20120214ATT38071/20120214ATT38071EN.pdf

http://www.europarl.europa.eu/factsheets/en/sheet/34/public-procurement-contracts


252018-07-10

https://www.gartner.com/ngw/eventassets/common/speaker/sondergaard-peter.jpg

IMAGE SOURCES


262018-07-10

PROF. DR. DR. H.C. DR. H.C. JÖRG [email protected]+49 251 83-38100

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