How the implementation of e-Procurement globally improved the City of Gijon. - Presentation by Fernando Álvarez, Chief of Planning and Modernization at Gijon City Hall.

1. THE SMART E-PROCUREMENT
Gijon City Hall 2015 1
Fernando Álvarez
Chief of Planning and Modernization at Gijon City Hall

2. I INTRODUCE YOU
MARY
- Owner of an SME located in Gijon -
We've asked Mary to tell us how would she like her
city to look like. Her answers revolve around three
main areas: Economics, Government and People.
2Gijon City Hall 2015

3. PEOPLE AND COMPANIES
"I want a city to live, work
and enjoy. A city that offers
quality services, that promote
social integration and
participation in public life of
citizens and companies"
ECONOMICSGOVERNMENT
"I want an economic sector
that generates employment
and wealth , where
innovation and
productivity is promoted"
"I want a rigorous government,
open and accessible , dynamic
and seeking continuous
services improvement"
3
WHAT DOES MARY WANT?
Gijon City Hall 2015

4. 4
CAN E-PROCUREMENT RESPOND TO THESE NEEDS?
PEOPLE
Revitalization of local
business creating a
true business ecosystem
where all companies
compete with the same
rules.
The improvement of the
“economy” and the
“government” influence
the quality of life of
people and the
competitiveness of
businesses: creating
jobs and improving
the services
available.
Greater transparency
in public procurement
processes , optimizing
available resources for
the acquisition of goods
and services.
Gijon City Hall 2015
ECONOMICSGOVERNMENT

5. 5
From City Hall
we got down to
work ...
CAN E-PROCUREMENT RESPOND THESE NEEDS?
Gijon City Hall 2015

6. 6
MAY 2013
Objective : Implementation of eProcurement for
minor contracts in the City and public companies
PLANNING AND IMPLEMENTATION
FIRST IN
SPAIN
Gijon City Hall 2015

7. FIRST HALF 2015 PICTURE
7
HAVE WE ACHIEVED IT?
NUMBER OF TENDERS MANAGED PERCENTAGE OF SAVINGS
AFFILIATED ENTITIES
416
179
Tenders 1st semester
2014
Tenders 1st semester
2015
- 26%
8/10
SUPPLIERS NETWORK
978
Gijon City Hall 2015

8. 8
LET’S SEE THE RESULTS BY
AXES…
NOTE : The data shown in the following slides correspond to the first half of 2015
GOVERNMENT
01
ECONOMY
02
PEOPLE
03
HAVE WE ACHIEVED IT?
Gijon City Hall 2015

9. 9
01. GOVERNMENT
How eProcurement has helped to increase efficiency ... ?
It gave more visibility and publicity to the procurement opportunities. Thanks to this, new
suppliers have access to public tenders and we get more competitive bids.
SENDING PROPOSALS
CURRENT SUPPLIERS VS. NEW SUPPLIERS
SAVINGS TAKING INTO CONSIDERATION
MAXIMUM AWARD PRIZE
69,60%
30,40%
Current Suppliers New Suppliers
552.972 €
349.357 €
1st semester 2014 1st semester 2015
Gijon City Hall 2015

10. 10
Ha dado más visibilidad y publicidad a los procesos de contratación. Gracias a ello nuevos
proveedores tienen acceso a los concursos públicos y se reciben ofertas más competitivas.
ENVÍO DE OFERTAS
PROVEEDORES HABITUALES VS. NO HABITUALES
ADJUDICACACIONES
PROVEEDORES HABITUALES VS. NO HABITUALES
69,60%
30,40%
Proveedores
habituales
Proveedores no
habituales
67%
33%
Proveedores
habituales
Proveedores no
habituales
THE ENTRY OF NEW SUPPLIERS HAS ALLOWED A 26% REDUCTION
OF THE ACQUISITION COSTS
How eProcurement has helped to increase efficiency ... ?
01. GOVERNMENT
Gijon City Hall 2015

11. 11
…and the transparency?
eProcurement has allowed us to give visibility to all actions through a greater control and a
fully traceable and auditable process.
ADVERTISING FOR ALL MINOR
CONTRACTS
TURNOVER RATIO SEMESTRAL REPORTS ACCESSIBLE
FOR EVERYBODY
52%
Published in the site
01. GOVERNMENT
Gijon City Hall 2015

12. 12
02. ECONOMICS
How eProcurement benefits the companies and the region?
E-procurement can stimulate local and regional business communities. We have demonstrated
that minor contracts are awarded mostly to local companies. All of them, local and not local,
know the rules and the evaluation criteria.
AWARDS
LOCAL/REGIONAL COMPANIES VS. OTHER
AWARDS CURRENT SUPPLIERS VS. NEW
SUPPLIERS
67%
33%
Current suppliers New suppliers
86%
14%
Proveedores
asturianos
Provedores no
asturianos
Gijon City Hall 2015

13. 13
AMOUNT OF THE AWARDS
CURRENT SUPPLIERS VS. NEW SUPPLIERS
Current suppliers New suppliers
2.744.201
€
598.279 €
New suppliers have been the winners of the
82%of the awards according to their money value.
02. ECONOMICS
How eProcurement benefits the companies and the region?
Gijon City Hall 2015

14. 14
What does it mean?
2.744.201
€
THE LOCAL AND REGONIAL COMPANIES ARE VERY COMPETITIVE,
EVEN MORE TAKING INTO CONSIDERATION THAT THE EVALUATION
OF THE BIDS ARE MADE THANKS TO OBJECTIVE CRITERIA.
2.744.201
€
A GREATER ADVERTISING AND TRANSPARENCY FACILITATE THE
ENTRY OF NEW COMPANIES, OPENING THE PUBLIC SECTOR TO
THE LOCAL ECONOMY.
02. ECONOMICS
Gijon City Hall 2015

15. 15
Was it easy or has it required effort?
Training and continuous support are the true pillars of this project.
In the first half of 2015 have been made
8 sessionsTraining more than
160 attendees
ASSESSMENT OF THEIR INTEREST IN THE E-
PROCUREMENT
Interested Very Interested
51,90% €
48,10%
02. ECONOMICS
Gijon City Hall 2015

16. 16
Was it easy or has it required effort?
The support service has been available throughout all this time .
A dedicated support team for helping mainly suppliers in their usage of the platform. Also this
team is in charge of the market creation, bringing new companies to the ecosystem.
CALL CENTER EMAIL CLICK TO CALL ONLINE HELP
02. ECONOMICS
Gijon City Hall 2015

17. Acting appropriately in the axes
of Economics and Government
... Do you believe that we have
fulfilled Mary’s wishes?
17
03. PEOPLE
Gijon City Hall 2015

18. WE MUST NOT LOSE MORE TIME
18
We have to be ready for the coming into force of the New Public
Procurement Directives.
14 January 2014
Formal approval of the
new Public
Procurement Directives
17 April 2014
Publication of the
Directives in the
OJEU
(Enter into force)
Beginning of the
transition period
18 April 2016
Mandatory adoption:
e-Noticing + e-
Access
Mandatory in all EU
Member States and
applicable immediately
after the transposition.
18 October 2018
e-Tendering
becomes mandatory
in all EU Member
States
Deadline for the transposition
to the national legislations
2 years after the publication
18 April 2017
e-Submission
mandatory for
Central Purchasing
Bodies (CPBs)
Action
Required
Gijon City Hall 2015

19. THANKS!
19
Fernando Álvarez
Chief of Planning and Modernization at Gijon City Hall
fagarcia@gijon.es
@fagarcia
linkedin.com/in/fernandoalvarezg
Gijon City Hall 2015