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The case of e-procurement
       in Portugal
            Isabel Rosa
    Public Contracts Portal Management
             September, 2012
E-PROCUREMENT IN PORTUGAL
                                                                             Agenda


 AGENDA
     1.      Brief History
     2.      Key Factors
     3.      The Information System
     4.      Public e-Procurement Assessment
     5.      Public Contracts Portal
     6.      Conclusions



13-09-2012                Hearing on eProcurement, EESC                       2
E-PROCUREMENT IN PORTUGAL
                                                                      Brief History

2003 - Knowledge Society Agency (UMIC)creation
2005 – Pilot projects trough all Ministries
2005 – General use of Electronic Platforms as SaaS
2007 – Creation of National System for Public Procurement
2008 – Legislation integration for goods, services and public
       works – New Public Contracts Code (NPCC)
2008 – First Framework Agreement
2008 – Transparency for Public Contracts trough the Portal BASE
       (Public Contracts Portal)
2009 – Mandatory use of electronic tools

13-09-2012             Hearing on eProcurement, EESC                          3
E-PROCUREMENT IN PORTUGAL
                                                            Key Factors



                                             • Pilot projects for
                                               aggregating
                                               purchases
                                             • Mandatory use of
                                               e-tools up until
                                               contract award
                                             • Transparency



13-09-2012   Hearing on eProcurement, EESC                         4
E-PROCUREMENT IN PORTUGAL
                                                      System Architecture


                                                        PCA – Public
                                                        Contracting Authority
                                                        EP – Electronic
                                                        Platform
                                                        OJ – Official Journal
                                                        EO – Economic
                                                        Operator
                                                        BASE – Public Contracts
                                                        Portal
                                                        OOP – Public Works
                                                        Observatory




13-09-2012   Hearing on eProcurement, EESC                               5
le
                                                    E-PROCUREMENT IN PORTUGAL
             p                                             Stakeholders Relations

  Sam




13-09-2012          Hearing on eProcurement, EESC                           6
E-PROCUREMENT IN PORTUGAL
                                                                 Latest Assessment

• Survey in October 2011 with 567 replies (277 PCA + 290 EO)

• The sample includes significant groups of entities from Public
  Administration (PA) such as: direct administration (20%),
  indirect administration (20%), the regional administration and
  local (37%) and other groups (business sector of the state,
  etc..) with 23% of responses.

• The sample of business responses received also represents
  well the Portuguese business community containing about
  87% of SMEs (according human dimension)


13-09-2012              Hearing on eProcurement, EESC                         7
E-PROCUREMENT IN PORTUGAL
                                                                       Latest Assessment

Contracting Authorities (PCA) and Economic Operators (EO)
evaluate that electronic procurement remains positive in most
major assessment dimensions:
                                                 PCA                    EO
RC – reduction procedure cost ;         Better Worst Diference Better Worst Diference
RT – reduction procedure time frame; RC 35% 24%         11%     32% 27%        5%
RB – reduction bureaucracy;          RT 39% 38%          1%     32% 27%        5%
MC – increase competitiveness;       RB 35% 41%         -6%     47% 26%        21%
MT – increase transparency;          MC 42% 16%         26%     43%    9%      34%
MV - contracts best value.           MT 68%     4%      64%     58%    6%      52%
                                     MV 39% 10%         29%     36%    8%      28%




13-09-2012                    Hearing on eProcurement, EESC                          8
E-PROCUREMENT IN PORTUGAL
                                                                          Improvements
There are some difficulties that have been pointed out among
contracting authorities and economic operators:
     • excessive requirements regarding electronic signatures
     • cost of timestamps
     • lack of coordination and interoperability between e-Platforms, Portal
     BASE and Official Journal.
It is time to evaluate and to promote initiatives or actions by a
regulatory authority responsible to stimulate innovation and
improvement of the e-platforms especially with respect to
interoperability and to avoid undesirable practices.
The legislations is under revising process in order to give clear
attributions to a single entity to promote this type of
measures.

13-09-2012                   Hearing on eProcurement, EESC                        9
E-PROCUREMENT IN PORTUGAL
                                                                         Savings

• Reports in 2011 referring public procurement accounts for
  16% of GDP.
• There were different types of savings estimated using public
  procurement data from 2010 and an overall reduction
  between 6% and 12% can be estimated for the total public
  expenditure due to e-tendering and Procurement Business
  Intelligence




13-09-2012             Hearing on eProcurement, EESC                        10
E-PROCUREMENT IN PORTUGAL
                                                    Public Contracts Portal




13-09-2012   Hearing on eProcurement, EESC                           11
E-PROCUREMENT IN PORTUGAL
                                                                    Public Contracts Portal

NATIONAL INFORMATION SYSTEM
Single repository of public contracts under the Public Contracts Code.
Accountability in procurement.
National vision of acquisition procedures.
Instrument of expenditure management




13-09-2012                   Hearing on eProcurement, EESC                           12
E-PROCUREMENT IN PORTUGAL
                                         Public Contracts Portal Numbers




13-09-2012   Hearing on eProcurement, EESC                         13
E-PROCUREMENT IN PORTUGAL
                                                                                  Conclusions
1. In all three surveys (2009, 2010 and 2011) the general
   feeling has been very constant and we can say that exists in
   Portugal a positive evaluation from contracting authorities
   and economic operators. It possible to say that the
   Procurement System introduced in Portugal has improved
   the Public Procurement.
2. The most prominent positive aspects between contracting
   authorities and tenderers are:
             a)   cost reduction,
             b)   reducing the time frame of proceedings,
             c)   reduction of bureaucracy,
             d)   transparency
             e)   simplification of processes
             f)   value for money



13-09-2012                         Hearing on eProcurement, EESC                        14
E-PROCUREMENT IN PORTUGAL
                                                                                       Conclusions
3.     The less positive aspects between contracting authorities and economic
       operators are:
             a)   excessive demands with digital certificates
             b)   cost of timestamps
             c)   interoperability between technology solutions and entities

4.     Among the measures to promote we highlight a better coordination and
       monitoring of e-Platforms which are underway for legislative changes.

5.     Public Contracts Code was revised in July 2012 with updates proposed
       by Troika.

6.     Transparency has been a constant challenge and therefore from January
       2012 all contracts for all types of procedures have become public,
       including the document itself.



13-09-2012                              Hearing on eProcurement, EESC                        15
Thank You

    Isabel.rosa@inci.pt
CIO in INCI (Real Estate and
  Construction Institute)

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The case of eProcurement in Portugal

  • 1. The case of e-procurement in Portugal Isabel Rosa Public Contracts Portal Management September, 2012
  • 2. E-PROCUREMENT IN PORTUGAL Agenda AGENDA 1. Brief History 2. Key Factors 3. The Information System 4. Public e-Procurement Assessment 5. Public Contracts Portal 6. Conclusions 13-09-2012 Hearing on eProcurement, EESC 2
  • 3. E-PROCUREMENT IN PORTUGAL Brief History 2003 - Knowledge Society Agency (UMIC)creation 2005 – Pilot projects trough all Ministries 2005 – General use of Electronic Platforms as SaaS 2007 – Creation of National System for Public Procurement 2008 – Legislation integration for goods, services and public works – New Public Contracts Code (NPCC) 2008 – First Framework Agreement 2008 – Transparency for Public Contracts trough the Portal BASE (Public Contracts Portal) 2009 – Mandatory use of electronic tools 13-09-2012 Hearing on eProcurement, EESC 3
  • 4. E-PROCUREMENT IN PORTUGAL Key Factors • Pilot projects for aggregating purchases • Mandatory use of e-tools up until contract award • Transparency 13-09-2012 Hearing on eProcurement, EESC 4
  • 5. E-PROCUREMENT IN PORTUGAL System Architecture PCA – Public Contracting Authority EP – Electronic Platform OJ – Official Journal EO – Economic Operator BASE – Public Contracts Portal OOP – Public Works Observatory 13-09-2012 Hearing on eProcurement, EESC 5
  • 6. le E-PROCUREMENT IN PORTUGAL p Stakeholders Relations Sam 13-09-2012 Hearing on eProcurement, EESC 6
  • 7. E-PROCUREMENT IN PORTUGAL Latest Assessment • Survey in October 2011 with 567 replies (277 PCA + 290 EO) • The sample includes significant groups of entities from Public Administration (PA) such as: direct administration (20%), indirect administration (20%), the regional administration and local (37%) and other groups (business sector of the state, etc..) with 23% of responses. • The sample of business responses received also represents well the Portuguese business community containing about 87% of SMEs (according human dimension) 13-09-2012 Hearing on eProcurement, EESC 7
  • 8. E-PROCUREMENT IN PORTUGAL Latest Assessment Contracting Authorities (PCA) and Economic Operators (EO) evaluate that electronic procurement remains positive in most major assessment dimensions: PCA EO RC – reduction procedure cost ; Better Worst Diference Better Worst Diference RT – reduction procedure time frame; RC 35% 24% 11% 32% 27% 5% RB – reduction bureaucracy; RT 39% 38% 1% 32% 27% 5% MC – increase competitiveness; RB 35% 41% -6% 47% 26% 21% MT – increase transparency; MC 42% 16% 26% 43% 9% 34% MV - contracts best value. MT 68% 4% 64% 58% 6% 52% MV 39% 10% 29% 36% 8% 28% 13-09-2012 Hearing on eProcurement, EESC 8
  • 9. E-PROCUREMENT IN PORTUGAL Improvements There are some difficulties that have been pointed out among contracting authorities and economic operators: • excessive requirements regarding electronic signatures • cost of timestamps • lack of coordination and interoperability between e-Platforms, Portal BASE and Official Journal. It is time to evaluate and to promote initiatives or actions by a regulatory authority responsible to stimulate innovation and improvement of the e-platforms especially with respect to interoperability and to avoid undesirable practices. The legislations is under revising process in order to give clear attributions to a single entity to promote this type of measures. 13-09-2012 Hearing on eProcurement, EESC 9
  • 10. E-PROCUREMENT IN PORTUGAL Savings • Reports in 2011 referring public procurement accounts for 16% of GDP. • There were different types of savings estimated using public procurement data from 2010 and an overall reduction between 6% and 12% can be estimated for the total public expenditure due to e-tendering and Procurement Business Intelligence 13-09-2012 Hearing on eProcurement, EESC 10
  • 11. E-PROCUREMENT IN PORTUGAL Public Contracts Portal 13-09-2012 Hearing on eProcurement, EESC 11
  • 12. E-PROCUREMENT IN PORTUGAL Public Contracts Portal NATIONAL INFORMATION SYSTEM Single repository of public contracts under the Public Contracts Code. Accountability in procurement. National vision of acquisition procedures. Instrument of expenditure management 13-09-2012 Hearing on eProcurement, EESC 12
  • 13. E-PROCUREMENT IN PORTUGAL Public Contracts Portal Numbers 13-09-2012 Hearing on eProcurement, EESC 13
  • 14. E-PROCUREMENT IN PORTUGAL Conclusions 1. In all three surveys (2009, 2010 and 2011) the general feeling has been very constant and we can say that exists in Portugal a positive evaluation from contracting authorities and economic operators. It possible to say that the Procurement System introduced in Portugal has improved the Public Procurement. 2. The most prominent positive aspects between contracting authorities and tenderers are: a) cost reduction, b) reducing the time frame of proceedings, c) reduction of bureaucracy, d) transparency e) simplification of processes f) value for money 13-09-2012 Hearing on eProcurement, EESC 14
  • 15. E-PROCUREMENT IN PORTUGAL Conclusions 3. The less positive aspects between contracting authorities and economic operators are: a) excessive demands with digital certificates b) cost of timestamps c) interoperability between technology solutions and entities 4. Among the measures to promote we highlight a better coordination and monitoring of e-Platforms which are underway for legislative changes. 5. Public Contracts Code was revised in July 2012 with updates proposed by Troika. 6. Transparency has been a constant challenge and therefore from January 2012 all contracts for all types of procedures have become public, including the document itself. 13-09-2012 Hearing on eProcurement, EESC 15
  • 16. Thank You Isabel.rosa@inci.pt CIO in INCI (Real Estate and Construction Institute)