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PUBLIC PROCUREMENT IN ELECTRONIC ENVIRONMENT
– THE WAY TO BUY MORE EFFECTIVELY

Rasa Noreikienė
Vice-Minister of Economy of the Republic of Lithuania

1
CONTENT
•

Volumes of public procurement in 2012

•

Transposition of public procurement into the electronic
environment

•

Centralisation of public procurement

•

Progress and benefits of e-procurement

•

Lessons learned

•

Objective of the Presidency of the EU Council

2
Volumes of public procurement in 2012
• Total value – LTL 14.6 billion (EUR 4.2 billion) or 13 % of GDP:
 contracts above and below the EU Directive thresholds
 above – LTL 8.3 billion (EUR 2.4 billion)
 below – LTL 6.3 billion (EUR 1.8 billion)

 procedures with and without publication
 with publication – LTL 12 billion (EUR 3.5 billion)
 without publication – LTL 0.6 billion (EUR 0.2 billion)
 small value public procurement – LTL 2 billion (EUR 0.5 billion)

• Number of contracting authorities – 7 508

3
Transposition of public procurement into electronic
environment: measures
• Law on Public Procurement
• Platforms for e-procurement
 e-Tendering platform - Central Public Procurement Information
System (CPP IS) administrated by the Public Procurement Office
 e-Catalogue - Electronic Catalogue CPO.lt™ administrated by the
Central Purchasing Body

4
Transposition of public procurement into electronic
environment: process
Means for e-procurement

2002
e-Notification
e-Reporting

2009

2004
e-Access

2009

2007
e-Catalogue

2009
for central CA
2014
for all CA

2009
e-Tendering

2009
e-Awarding

2014
e-Invoicing

2009
no less than 50 %

Mandatory requirements

5
Transposition of public procurement into
electronic environment: e-Tendering platform
PPM IS
e-Notices &
e-Reports

CPPP
e-Access
CPP IS
e-Submission & eAwarding

24/7 free access from anywhere
6
Centralisation of public procurement: e-Catalogue
(Electronic Catalogue CPO.lt™)

€68.9 m

€34.6 m

€14.4 m
€0.6 m

2007

€2.6 m

2008

€4.9 m

2009

2010

2011

2012

7
Progress: increased number and value of e-procurement
100%

100%
90%

83.1%

85.7%

75.5%

80%
70%

75.7%

80%
70%

64.0%

60%

75.2%

2011

2012

63.1%

60%

50%
40%

89.7%

90%

50%

36.3%

40%

30%

30%

20%
20%
10%
10%
0%

2009

2010

2011

2012

2013 I-II
quarter

Number of e-procurement

0.4%

0%

2009

2010

2013 I-II
quarter

Value of e-procurement

8
Benefits of e-procurement: increased transparency and
competition
• Number of published procurement –
increased by 22% (from 59% to 81%)
• SME participation in public procurement –
increased by 2% (from 73% to 75%)
• Number of suppliers participating in public procurement –
increased by 13% (from 7230 to 8185 suppliers)

9
Benefits of e-procurement: shortened procedures
Average duration of procurement procedures

2012

103

54

2011

108

55

64

Above the Directive threshold

66

Below the Directive threshhold

2010

118

60

2009

119

67

71

Average

79

To compare 2012 with 2009, when the procurement procedures were being carried out in the traditional
manner, the average period of procurement procedures became 15 days shorter.

10
Benefits of e-procurement: compliance with
publication requirements

The diagram provided during the meeting of the Economics and Statistics Working Group of
EC, which took place on 29 April 2013 in Brussels
Benefits of e-procurement: savings
Lithuania is supposed to save
• In 2010 - from EUR 43 to 100 million
• In 2011 - from EUR 120 to 270 million
• In 2012 - from EUR 150 to 340 million

The savings are calculated following the World Bank estimation that e-procurement
can help save from 6 to 13.5% of the total public procurement expenditure

12
Lessons learned: obstacles

Obstacles we had to overcome:
• inertia – hesitation over the possibility of changing
the rooted habits
• lack of awareness and capabilities

13
Lessons learned: our strong point

Successful results were achieved due to:
• mandatory requirements
• the existence of centralised national information
systems
• consultations and user guidance
• trainings
1818
1442

729

2009

2010

852

2011

2012

Number of users instructed by the Public Procurement Office
14
Objective of the Lithuanian Presidency of the
Council of the EU 2013
One of the main tasks of the Lithuanian Presidency of the Council of the EU 2013 –
agreement within the Council on the Directive on e-invoicing in public procurement

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Electronic public procurement: a way to buy more effective - Rasa Noreikienė @ PSE 2013 Vilnius

  • 1. PUBLIC PROCUREMENT IN ELECTRONIC ENVIRONMENT – THE WAY TO BUY MORE EFFECTIVELY Rasa Noreikienė Vice-Minister of Economy of the Republic of Lithuania 1
  • 2. CONTENT • Volumes of public procurement in 2012 • Transposition of public procurement into the electronic environment • Centralisation of public procurement • Progress and benefits of e-procurement • Lessons learned • Objective of the Presidency of the EU Council 2
  • 3. Volumes of public procurement in 2012 • Total value – LTL 14.6 billion (EUR 4.2 billion) or 13 % of GDP:  contracts above and below the EU Directive thresholds  above – LTL 8.3 billion (EUR 2.4 billion)  below – LTL 6.3 billion (EUR 1.8 billion)  procedures with and without publication  with publication – LTL 12 billion (EUR 3.5 billion)  without publication – LTL 0.6 billion (EUR 0.2 billion)  small value public procurement – LTL 2 billion (EUR 0.5 billion) • Number of contracting authorities – 7 508 3
  • 4. Transposition of public procurement into electronic environment: measures • Law on Public Procurement • Platforms for e-procurement  e-Tendering platform - Central Public Procurement Information System (CPP IS) administrated by the Public Procurement Office  e-Catalogue - Electronic Catalogue CPO.lt™ administrated by the Central Purchasing Body 4
  • 5. Transposition of public procurement into electronic environment: process Means for e-procurement 2002 e-Notification e-Reporting 2009 2004 e-Access 2009 2007 e-Catalogue 2009 for central CA 2014 for all CA 2009 e-Tendering 2009 e-Awarding 2014 e-Invoicing 2009 no less than 50 % Mandatory requirements 5
  • 6. Transposition of public procurement into electronic environment: e-Tendering platform PPM IS e-Notices & e-Reports CPPP e-Access CPP IS e-Submission & eAwarding 24/7 free access from anywhere 6
  • 7. Centralisation of public procurement: e-Catalogue (Electronic Catalogue CPO.lt™) €68.9 m €34.6 m €14.4 m €0.6 m 2007 €2.6 m 2008 €4.9 m 2009 2010 2011 2012 7
  • 8. Progress: increased number and value of e-procurement 100% 100% 90% 83.1% 85.7% 75.5% 80% 70% 75.7% 80% 70% 64.0% 60% 75.2% 2011 2012 63.1% 60% 50% 40% 89.7% 90% 50% 36.3% 40% 30% 30% 20% 20% 10% 10% 0% 2009 2010 2011 2012 2013 I-II quarter Number of e-procurement 0.4% 0% 2009 2010 2013 I-II quarter Value of e-procurement 8
  • 9. Benefits of e-procurement: increased transparency and competition • Number of published procurement – increased by 22% (from 59% to 81%) • SME participation in public procurement – increased by 2% (from 73% to 75%) • Number of suppliers participating in public procurement – increased by 13% (from 7230 to 8185 suppliers) 9
  • 10. Benefits of e-procurement: shortened procedures Average duration of procurement procedures 2012 103 54 2011 108 55 64 Above the Directive threshold 66 Below the Directive threshhold 2010 118 60 2009 119 67 71 Average 79 To compare 2012 with 2009, when the procurement procedures were being carried out in the traditional manner, the average period of procurement procedures became 15 days shorter. 10
  • 11. Benefits of e-procurement: compliance with publication requirements The diagram provided during the meeting of the Economics and Statistics Working Group of EC, which took place on 29 April 2013 in Brussels
  • 12. Benefits of e-procurement: savings Lithuania is supposed to save • In 2010 - from EUR 43 to 100 million • In 2011 - from EUR 120 to 270 million • In 2012 - from EUR 150 to 340 million The savings are calculated following the World Bank estimation that e-procurement can help save from 6 to 13.5% of the total public procurement expenditure 12
  • 13. Lessons learned: obstacles Obstacles we had to overcome: • inertia – hesitation over the possibility of changing the rooted habits • lack of awareness and capabilities 13
  • 14. Lessons learned: our strong point Successful results were achieved due to: • mandatory requirements • the existence of centralised national information systems • consultations and user guidance • trainings 1818 1442 729 2009 2010 852 2011 2012 Number of users instructed by the Public Procurement Office 14
  • 15. Objective of the Lithuanian Presidency of the Council of the EU 2013 One of the main tasks of the Lithuanian Presidency of the Council of the EU 2013 – agreement within the Council on the Directive on e-invoicing in public procurement