Presentation by Uwe Flach, Bundesbeschaffung (Austrian Federal Procurement Agency, BBG), on centralised purchasing and modern IT tools for optimising public procurement, at the third regional conference on public procurement for ENP East countries, Tbilisi, 6-7 November 2019.

1. © OECD
3rd regional conference on public
procurement for ENP East countries
Centralised purchasing and modern IT
tools for optimising public procurement
Mr. Uwe Flach, BBG Austria
Tbilisi, 6-7 November 2019

2. Agenda
1
What developments do we
see in Public Procurement?
Where do we need modern
IT solutions?

3. Public procurement is
increasingly expected to…
2
demonstrate best
value for public
money in ever-
constricting
budgetary
environments
use the
opportunities of
digitization
and evolving
markets
make a strategic
contribution to policy
objectives and societal
values such as
innovation, social
inclusion and economic
and environmental
sustainability
maximize
accessibility to
markets and for
SMEs
show
accountability for
minimizing:
•Inefficiencies
•Waste
•Irregularities
•fraud and
corruption
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017H1805&from=EN

4. Public procurement is
developing towards..
3
… a strategic function
and a strategic partner
which requires
professionalization
CPBs as key a element of Public
Procurement enable and support
this transformation

5. CPBs in the Interplay Between...
4
CPB
Contracting
Authorities
Owner /
Stakeholders
Economic
Operators

6. Success factors for
implementing a CPB
• Strong political will
 all Ministries had to cooperate
• Powerful project management
 Goals, costs, milestones, project team
• Focus on change management
 Organisational & legal aspects
• Comprehensive stakeholder management
 Early involvement and collaboration
• Professionalization and e-procurement
 Highly skilled and experienced staff / support
 Tools and harmonized data for automation and transparency
• Phased process instead of “big bang”
 Show-Case the benefits with suitable categories
 Gain trust
5

7. Some BBG Key Facts
6
1.51 billion € annual call off volume via BBG contracts
and agreements (2018)
2,367 customer organisations + federal government
Ca. 1,800 suppliers – 72% are SMEs
Ca. 1,400 FAs (ca. 90% with one supplier)
Ca. 400 contracts
More then 2.7m products and services available via e-
Shop

8. Agenda
7
What developments do we
see in Public Procurement?
Where do we need modern
IT solutions?

9. New DNA for Public
Procurement
8
expenditureoftime
foraddingvalue
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation Tender
Contract & Quality
Management
target
before
source: see Crown Commercial Service – New DNA of PP
Developing
requirements and
strategies (incl.
social values) that
shape markets and
the supply base
Transparency,
Simplifying
processes and
reducing turnaround
times & supplier bid
costs
Improving contract,
quality and supplier
management capability
through application of
new standards & tools

10. Tender
Implication on processes &
IT solutions
9
expenditureoftime
foraddingvalue
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation Tender
Contract & Quality
Management
source: see Crown Commercial Service – New DNA of PP
Focus of
EU Directives &
E-Procurement
needs
market-
analysis
strategy tender closing
contract
& QM
SRM
Creation
Contract & Quality
Management
Additional areas to
focus on
•IT Tools
•Digitalisation
•AI / Big Data
•Robotics etc.
Additional areas to
focus on
•IT Tools
•Digitalisation
•AI / Big Data
•Robotics etc.

11. Where procurement software &
tools are needed?
10
Contract
Management
Supplier Risk
Management
Purchasing
Payments
Spend
analysis
Supplier
information
Mgmt.
Strategic
Sourcing

12. BBG Procurement Solutions
11
Contract
Management
Supplier Risk
Management
Purchasing
Payments
Spend
analysis
Supplier
information
Mgmt.
Strategic
Sourcing
CRM
MDM
BI-Tool
(in implementation)

13. BBG e-Shop Integration
12

14. BBG e-Shop
13

15. BBG e-Shop
14

16. BBG e-Shop
15

17. System integration &
process automation
16
Central Contract Management System (Microsoft Dynamics CRM)
Tender
procedure
Contract
information
E-catalogue
Purchase
order
E-invoice
Central User Management System (Microsoft Dynamics CRM)
E-tendering
tool
e-Shop
Invoice
Gateway

18. Q & A
17

19. 18
Mr. Uwe Flach
BBG
Head of Consulting, E-Procurement &
International Affairs
uwe.flach@bbg.gv.at
Tel.: +43 1 24570-556
Mobile: +43 664 964 91 94