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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
22018-07-10
DEFINITION, GOALS AND GAPS
PUBLIC PROCUREMENT
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
52018-07-10
TRENDS AND CHALLENGES
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
62018-07-10
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)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
72018-07-10
TOTAL AWARD VALUES IN EURO
PROCUREMENT IN THE EU
(TED 2018)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
82018-07-10
TOTAL AWARD VALUES OF CROSS-BORDER CONTRACTS
PROCUREMENT IN THE EU
(TED 2018)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
92018-07-10
SHARE OF CROSS-BORDER AWARD VALUES
PROCUREMENT IN THE EU
(TED 2018)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
102018-07-10
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)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
112018-07-10
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
122018-07-10
FOR 2015 / 2016 / 2017
SHARE OF SME IN TOTAL TENDERS
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
132018-07-10
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?
SHARE OF SME IN TOTAL TENDERS
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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)
SHARE OF SME IN TOTAL TENDERS
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
152018-07-10
FOR 2015 / 2016 / 2017 (NA REINTERPRETED)
SHARE OF SME IN TOTAL TENDERS
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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)
SHARE OF SME IN TOTAL TENDERS
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
172018-07-10
PATHWAYS FOR A FUTURE LEGISLATIVE ACTION
FUTURE OF PUBLIC PROCUREMENT IN THE EU
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
182018-07-10
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
192018-07-10
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
202018-07-10
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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)
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
222018-07-10
REFERENCES AND CREDITS
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
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
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
252018-07-10
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IMAGE SOURCES
Benefits of European Public ProcurementProf. Dr. Dr. h.c. Dr. h.c. Jörg Becker
262018-07-10
PROF. DR. DR. H.C. DR. H.C. JÖRG [email protected]+49 251 83-38100