Public Procurement Action Plan and Study on administrative capacity
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1 Public Procurement Action Plan and Study on administrative capacity CoR Lunchtime briefing - Facilitating investments through efficient public procurement systems, 05/07/2016 Anna-Lena Zademach-Schwierz DG Regional and Urban Policy - Unit E1 "Competence Centre for Administrative Capacity-Building and the Solidarity Fund"
2 Content Why? What? How? Importance of PP for ESIF Funds Audit results Public Procurement Action Plan Results Public Procurement study List of good practices, case studies Recommendations for Member States and Commission Dissemination and use of results of Public Procurement Study Exchange of best practices between Member States: REGIO TAIEX PEER2PEER 2
3 Improving public procurement (PP) involving EU Funds PP is cornerstone of better functioning internal market, open competitions lead to better value for money, also for EU funded projects PP errors - single most common cause of administrative errors and financial corrections across all EU Funds Slow PP procedures delay funds implementation Better PP procedures and management systems can help limit risks related to fraud & corruption 3
4 European Court of Auditors' Report ECA Special Report 10/2015: "Efforts to address problems with public procurement in EU cohesion expenditure should be intensified" Presented to European Parliament and Council Recommendations to the European Commission, e.g. Develop a database on irregularities for PP errors Update and publish Action Plan on Public Procurement Exploit opportunities of e-procurement and IT tools 4
5 Public Procurement Action Plan Working Group in European Commission: DG REGIO (Chair), GROW, EMPL, AGRI, MARE, EIB Objective: reduction of irregularities in public procurement and add value for public money FOCUS ON PREVENTIVE ACTIONS! 1. Spread knowledge of EU PP rules at the level of all stakeholders 2. Reinforce administrative capacity 3. Better preparation of tenders and projects 4. Reduce error rate 5
6 Action Plan - Priorities 14 Actions identified by Commission Working Group, e.g. Prepare & disseminate & update PP Guidance for Practitioners on the avoidance of errors in European Structural and Investment funded projects Stock-taking study: analysis of MS lessons learned, dissemination of tools and good practices of PP capacity REGIO TAIEX PEER2PEER exchanges MS specific Country Strategies (RO, BG, IT, EL, CZ, SK, HU) 6
7 Public Procurement Guidance for Practitioners on the avoidance of common errors in ESIF Projects Target Audience is Procurement Officer managing day-to-day procurement activities Purpose support to avoid the steps that lead to errors and to adopt good practices Living document guidance and accompanying toolkit to be updated It is not a legal interpretation of the Directives! 7
8 Public Procurement Guidance for Practitioners Guidance structured around the 6 main stages of a public procurement process based on list of 25 most common errors identified in audits Toolkit of resources addressing specific topics with concrete examples on what to do and what not to do during the procurement and contract implementation 8
9 Alerts in Text Warning! This points out a step where the most common and serious mistakes arise. Alert! This highlights a risk area to be aware of so as to achieve economy, efficiency, effectiveness in the procurement process. Help! This is an area where additional resources are provided through the toolkit or via links to other documents. 9
10 Translations available 23 languages 10
11 Questions?
12 Public Procurement Study on administrative capacity: Administrative capacities of ESIF across the EU as regards: Organisational structures and governance Human resources specialized in public procurement Systems and tools available Lessons from past capacity building measures Expected results: concrete recommendations for MS and EC 12
13 Main results of study Human resources, systems and tools Strengthen skills of frequent procurers (specialised trainings) Provide support for infrequent procurers (standardised documents, ad hoc helpdesks, guidance, joint procurement) Encourage exchange of good practices Governance structures, better policy making, law enforcement Deliberate inclusive reforms, time for implementation and training Improve execution of sanction mechanisms Data collection, transparency Interoperability between systems Procurement information published on-line promptly, regularly 13
14 Methodological approach In order to assemble as complete a picture of procurement in the EU as possible, the study relied on the following data sources: Stages: 1. Desk review of all 28 MS (country profiles) 2. Field visits in 15 MS 3. Case studies of reform: PT and CZ 4. On-line survey with practitioners in all 28 MS 5. Good practices and recommendations in final report 6. Stakeholder Workshop in Brussels Field visit country No field visit 14
15 Country Profiles 1. Key facts and figures Overview Procedures applied Share of contract notices by buyer Contract type Ex ante conditionality criteria as of 2014 E-procurement adoption Perceived corruption TED indicators Other indicators Total procurement 5,300,000,000 Open 88% National Services 36% Key Facts and Figures in Croatia Restricted 1% Procurement % GDP Negociated procedure with call 1% 12% Regional/local 15% 14% EU rules Fully met E-notification Mandatory Works 3% E-access Mandatory 2% no call 10% 2013 GDP 43,561,500,000 Competitive dialogue 0% Supplies 61% Contracting authorities Direct award 1% 1,811 Body governed by public law Other 54% 17% E-submission Partially mandatory Other 0% Framework agreement Businesses Individuals At national level At local/regional level 90% 94% 64% 63% Value of tenders Received single bid 45% Transparency Fully met Corruption widespread in society 1,329,344,192 Won by foreign firms 1% Of total procurement 25% # days for decision Training Not met Price only criteria % Related to EU funds 29% Admin. capacity Not met Uptake rate N/A Corruption widespread in procurement # contract notices 1,581 Joint purchase 9% # contract awards 1,363 MEAT criteria 5% Central purchasing Yes, CPO 2. Description of features Legal Institutional Administrative capacity E-procurement Corruption Europe 2020 Irregularities Outlook 3. Analysis Strenghts Weaknesses Recommendations 15
16 Section 2 Case studies Case study: Portugal Key dates in the reform process: : Reform incubation process involving wide range of stakeholders 2008: Introduction of comprehensive Public Contracts Code Since 2008: Eight minor amendments Lessons learned: 1) Don't rush the policymaking process 2) Input from all major stakeholders! 3) Buy-in for successful implementation 4) Sufficient delay between enactment and implementation - guidance materials 16
17 Section 3 Survey Key survey results Human resources 17
18 Section 3 Survey Key survey results Barriers to participating in trainings 18
19 Section 3 Survey Key survey results Standardised template documents Topics covered by standardised template documents Use of standardised template documents 19
20 Good Practice 1. Ad hoc support Hotlines or Helpdesks provide ad hoc assistance for immediate and tailor-made responses to contracting authorities. Examples France: Call center (Ministry of Finance) Slovenia: telephone consultation service Ministry of Finance and Ministry of Public Administration Finland: one-stop helpdesk, PP Advisory Unit Netherlands: PIANOo-desk 20
21 2. Guidance and Standardisation of documents Methodological, thematic, guidance tools and Ready-to use templates to be adapted to needs are provided to the CA. Examples France: methodological manual and standardised tender specifications and contract provisions Netherlands: library of product specific green criteria Czech Republic: Online case-law library Luxembourg: Standardised tender specifications for public works 21
22 3. Professionalisation MS develop a curriculum of competences for procurement practitioners with frequent trainings, clear competencies, certification based on more than participation, to be fulfilled by education or practical experience. Examples Croatia: certifying procurement practitioners UK: Commercial Skills and Competency Framework Ireland: Go-2-Tender Training Scheme for SMEs 22
23 4. Quality execution of procurement/mediation/review By publishing planning, opening feedback channels and mediation the quality of procurement increases and offers more possibilities to participate to SMEs. Examples Latvia: Annual procurement plans France: Qualitative monitoring of public procurement France: Mediation through bidder advocates Netherlands: Commission of Tender Experts Germany/Spain: Specialised administrative tribunals/courts Slovenia: Specialised National Review Committee 23
24 5. Simplification and efficiency Reducing administrative burden for economic operators is possible through specific tools and systems or winner-only habilitation. Examples Portugal: Interoperability : Auto-fill fiscal information UK: Lean approach to procurement Spain: Registry of tenderers and contractors France: Specific Simplified Tender Portugal: Declaration of honour 24
25 6. Transparency Online publication of detailed and regularly updated PP data is key for effective monitoring and transparency. Benefit for stakeholders in public adminsitrations, economic operators, civil society. Examples Spain: Public Contracts Registry Lithuania: Data of framework agreements Slovenia : "Supervizor" transparency tool Slovakia: Single-stop online portal "Open PP" 25
26 General Recommendations (1) 1. Human Resources Harmonise compensation for high skill positions Increase specialisation of tasks and trainings Autorise outside assistance to infrequent procurers Reduce number of contracting authorities by making greater use of joint procurement 2. Systems and tools Training system for experienced and less experienced practitioners Convenient ad hoc support channels Standardised tender documents for frequently used goods, services, works and criteria Clear channels for regular information updates 26
27 General Recommendations (2) 3. Governance structures Guidance documents clear and authoritative Remedies processes Streamline appeals processes to be less disruptive 4. Better policy making Reforms process should involve all affected stakeholders Legal changes bundled to be infrequent Implementation to include lead times to prepare and promote guidance materials 5. Law enforcement Increase sanctions for violations of procurement rules Develop more interoperable e-procurement systems 27
28 General Recommendations (3) 6. Data collection Collection and digitisation of procurement-related data Expand tracking to cover other policy fields or issues Balance between collect/monitor data and administrative burden Remedy bodies to track case data to identify common issues 7. Transparency Integrate interoperability with online publication system Procurement information published online promptly, regularly, in clear and easily searchable formats, available to download in common, machine-readable formats Publish info on large, planned purchases 28
29 Website: regional_policy/en/policy /how/improvinginvestment/publicprocurement/study 29
30 How will the Commission follow up? 1. Update of PP Action Plan Conclusions of the study will feed into the PP Action Plan of EC, consisting of an analytical part and a list of 14 actions (in annex) Next update of Action Plan with references to study and the relevant recommendations for the EC 2. Dissemination activities Increase awareness on study, targeted workshop Presentations to stakeholders, EGESIF, European Parliament, etc. 30
31 How will the Commission follow up? Dissemination of good practices Foster knowledge transfer at EU level Targeted workshops and conferences Library and support to transfer of good practice cases Update guidance PP Guidance for Practitioners: update on new PP Directives and initial feedback EC to provide on-site expertise REGIO facilitates exchanges between peers Cooperation with OECD on capacity building in SK, BG 31
32 How will the Commission follow up? Rationalise EU Audit rules Update of Auditor's checklist between ESIF DG's and guidelines for PP errors for changes stemming from new Directives Data collection on irregularities in public procurement and TED Improve data collection and analysis MAPAR (Management of Audit processes, Activities and Resources) for EC audits: classification of PP errors Data collection from Member States (strengthen TED database) 32
33 Examples of exchanges on public procurement: PEER 2 PEER (1) Slovakia: Experts from Portugal and Poland on Coordination Authorities: Central Coordination Body and PP Office Coordination of public procurement Management verifications, conflict of interest, standard documents Bulgaria: Workshop with experts from IT, AT, HR, FI Authority: Public Procurement Agency Strengthening the administrative capacity of bodies, professionalism Central Purchasing Bodies (CPBs), e-proc, framework agreements Latvia: Expert mission with experts from NL sampling methods and treatment of errors 33
34 Examples of exchanges on PP (2) Croatia: 2 Study Visits to Spain and Estonia Methodology for sampling for PP control and system level verification procedures Participants went to ES for transport projects and to EE on sampling for control of environment projects Croatia: Workshop with experts from DE, GR, IT and LT Verification of PP and management of irregularities Romania: Expert mission of experts from DE, PO and LT Reform of the EU procurement rules, splitting the object of a tender, calculate the estimated value of procurement, Framework Agreements (service and supply contracts), financial corrections, modification of the initial terms of a public procurement contract, examples of systemic errors 34
35 "Improving investment" on Inforegio Public procurement study and guidance improving-investment/public-procurement/ TAIEX REGIO PEER 2 PEER: improving-investment/taiex-regio-peer-2-peer/
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