Σσνολική Λύση για Ηλεκτρονικές Δημόσιες Σσμβάσεις στην Κύπρο Παροσσίαση στοσς υοιτητές ΔΔΕ τοσ Πανεπιστημίοσ Κύπροσ Φίλιππος Καηράνης Λογιζηής, Διεύθσνζη Δημοζίων Σσμβάζεων Γενικό Λογιζηήριο ηης Δημοκραηίας 2 Φεβροσαρίοσ 2011 Χρημαηοδόηηζη TF 2006, 1
Public Procurement environment Public Procurement Directorate Approach to project design Project implementation Presentation outline The Cyprus eprocurement System Results of use Benefits of using eprocurement The way forward Lessons learned Χρημαηοδόηηζη TF 2006, 2
Public Procurement environment - 1 Law No. 12(I)/2006 providing for the coordination of the procedures for the award of public works, public supply and public service contracts and for related matters. In force as of Law No. 11(I)/2006 providing for the coordination of the procedures for the award of public contracts for supplies, works and services in the sectors of water, energy, transport and postal services and for related matters; Law No. 104(I)/2010 providing for the set up of the Tenders Review Authority and for the application of Review procedures Relevant regulations necessary to facilitate the application of laws Χρημαηοδόηηζη TF 2006, 3
It is applied by the: - State. Public Procurement environment - 2 - Local Authorities and any associations of them. - Bodies Governed by Public Law and any associations of them. It applies to the award of all public contracts (as a general rule) having as their subject matter: - Works - Supplies - Services Is partly applied for works concession contracts and for service contracts listed in Annex II B of the Law. Χρημαηοδόηηζη TF 2006, 4
Decentralized public procurement Public Procurement environment - 3 Central government 78 11 Ministries 52 Departments 15 Independent Authorities Municipalities - 53 Local Authorities 353 Bodies Governed by Public Law 44 Utilities Sector 5 Major part of the procurement volume is carried out by mainly 15 contracting authorities Χρημαηοδόηηζη TF 2006, 5
Public Procurement environment - 4 open procedure - whereby any interested economic operator may submit a tender Restricted procedure - where any economic operator may request to participate and whereby only those economic operators invited by the contracting authority may submit a tender negotiated procedure - whereby the contracting authorities consult the economic operators of their choice and negotiate the terms of contract with one or more of these competitive dialogue - where any economic operator may request to participate and whereby the contracting authority conducts a dialogue with the candidates admitted to that procedure, with the aim of developing one or more suitable alternatives capable of meeting its requirements, and on the basis of which the candidates chosen are invited to tender Simplified procedures available for contracts with values up to 50.000. Χρημαηοδόηηζη TF 2006, 6
Notices are published to the: Public Procurement environment - 5 the Official Journal of the European Community, the Official Gazette of the Republic, and the e-procurement platform. A Contract can be awarded either to the tender offering the lower price or to the one which is the most economically advantageous. Principles governing Public Procurement stemming from the Treaty Transparency Equal Treatment Non-discrimination on the basis of Nationality Mutual recognition Proportionality Χρημαηοδόηηζη TF 2006, 7
Public Procurement environment - 6 STATISTICS 2008 2009 Number of Contracts Number of Contracts Central Government 13,315 608,862,154 14,729 996,591,133 Bodies governed by public law 4,242 258,679,583 4,289 190,362,815 Municipalities 1,131 39,433,851 1,359 73,565,204 Utilities 1,936 230,799,297 1,732 374,891,818 Communities 139 4,141,221 354 22,629,545 TOTAL 20,763 1,141,916,106 22,463 1,658,040,515 Χρημαηοδόηηζη TF 2006, 8
Public Procurement Directorate -1 The Public Procurement Directorate of the Treasury has been assigned the role of the Competent Authority for Public Procurement in Cyprus Mission of Competent Authority The Public Procurement Directorate is the centre of excellence within the Treasury of the Republic, which in collaboration with all government Ministries / Departments secures the timely execution of procedures for the procurement of goods, services and works in accordance with all relevant Laws and Regulations of the Republic and the applicable best practices. The Public Procurement Directorate within the Treasury of the Republic is also responsible for providing the ex-ante control for all tenders financed by EU Funds. Χρημαηοδόηηζη TF 2006, 9
Public Procurement Directorate - 2 Maximizing economy and efficiency in procurement, Fostering and encouraging participation in procurement proceedings by suppliers and contractors in order to promote the EU internal market, Promoting competition among suppliers and contractors for the supply of the goods, works or services to be procured, Providing for the fair and equitable treatment of all suppliers and contractors, Promoting the integrity of, and fairness and public confidence in, the procurement process and Achieving transparency in the procedures relating to procurement. Achieving the above enhances the concept of value for money in procurement. Public procurement is extremely significant for the Cyprus Economy as the annual spending through procurement is just below 10% of the GDP. Χρημαηοδόηηζη TF 2006, 10
Public Procurement Directorate - 3 Public Procurement Directorate Monitoring and Control Unit Policy and Development Unit Collaborative and e- Procurement Unit Χρημαηοδόηηζη TF 2006, 11
Approach to project design - 1 At the time the idea was generated, there was practically no use of electronic means in the process of Public Procurement in Cyprus. The spark for the introduction of e- procurement was given by the EU Action Plan included it the Lisbon Strategy and the developments in the e-governance and Better Regulation. The Directives of 2004 that basically levelled the use of electronic means with the traditional manual procedures were also a driving factor for the introduction of e-procurement. In the question whether to go for an Open Source or an ERP solution, we have decided to let the market offer what is considered to be best suitable for our needs. We allowed for both solutions but have inserted strict criteria for Prequalification of Economic Operators and Functional and non-functional Requirements Χρημαηοδόηηζη TF 2006, 12
Approach to project design - 2 We have opted for a Centralised approach due to Size specificities (many small CAs) Lack of capacity and financial viability of more than one e-procurement system and Uniformity in application of e-procurement throughout Cyprus. However, the procurement and management of competitions remains decentralised as each CA is responsible for its own procurements. In Cyprus there is currently only one e-procurement System, serving all Contracting Authorities for free, for all types of Competitions and for all types of procedures. Χρημαηοδόηηζη TF 2006, 13
Approach to project design - 3 Treasury of the Republic Conceived the idea and implemented the project throughout its design, development and deployment Department of Information Technology Services assisting on technical aspects and providing the internet gateway for the system Attorney General and Auditor General Offices not directly involved but were consulted on drafting the regulations governing the use of the system and during the system design Contracting Authorities in Cyprus were directly involved during the design phase of the system to assist us pinpoint the purchaser s side Economic Operators and their Organised representatives were directly involved during the design phase of the system to assist us understand the sellers side. General Public forms the general perception on how solid the system is and how effective the implementation is carried out approached through publications. Χρημαηοδόηηζη TF 2006, 14
Project Implementation Strategy Approach to project design - 4 Requested for an already running e-procurement System Requested for people familiar with EU Public Procurement Rules Requested for customisation according to Cyprus Procurement Specificities Avoided any strict policy or decision making actions to be transferred to the system in order to fit all Contracting Authority needs Allowed Contracting Authorities to use the system in as much depth as they feel appropriate in order to work on change management. Publication of notices is however mandatory to secure at least the initial system utilisation Extended system functionalities with e-catalogues and e-ordering modules with the development of five operational electronic catalogues using the system Emphasised promotion and change management activities via a Promotion Contract Χρημαηοδόηηζη TF 2006, Funded by 15Transition Facility 2006
Approach to project design - 5 Concept generation for electronic procurement e-governance and Better Regulation Directives 2004 Implementation Strategy Strategy Study Action Plan Developed the Terms of Reference for e-procurement total solution Components of the project Implementation study, Provision of hardware and system development Training and promotion activities Change management activities and risk management ecatalogues development and introduction framework agreements Χρημαηοδόηηζη TF 2006, Funded by 16Transition Facility 2006
Project implementation - 1 Implementation Study: definition and documentation of requirements, specifications, testing plan, etc. System implementation: customization of Contractor s open source epps platform in line with the results of the previous phase User training: training of end-users and administrators to the operation and maintenance of the system Pilot operation: sub-phase I of fictitious CfTs, sub-phase II of real CfTs in a controlled environment System adoption: activities for the adoption of the system in an organisational, social, legal and operational level Χρημαηοδόηηζη TF 2006, 17
Project implementation - 2 Χρημαηοδόηηζη TF 2006, 18
The Cyprus eprocurement System - 1 One-off procurement procedures: Open procedure Restricted and accelerated restricted procedures Competitive dialogue Negotiated and accelerated negotiated procedures (with and without publication) Simplified procedures (below threshold procurements in line with national law) Repetitive procurement through Framework Agreements with e-catalogues support without e-catalogues support Electronic Ordering specific orders can be concluded either by direct ordering (through ecatalogues or not) or by reopening competitions (through selecting specific products of supplier catalogues and requesting better prices) Χρημαηοδόηηζη TF 2006, 19
The Cyprus eprocurement System - 2 e-registration: Free registration of Economic Operators Need to be verified by the Administrators Controlled registration of Contracting Authorities by the Administrators e-notification: electronic preparation of CfTs and Notices OJEU, OG, publication of tender docs, define tender structure Questions and Answers, Clarifications, Addenda, automated notifications Upon Publication of a Tender, all EOs are notified if it is in their line of business e-tendering: electronic preparation and submission of tenders online/offline tender preparation tools, tender verification with immediate EO feedback tender encryption, tender time stamping two-phased tender submission for large tenders Χρημαηοδόηηζη TF 2006, 20
The Cyprus eprocurement System - 3 e-evaluation / e-awarding secure electronic tender opening, automated evaluation using Lowest Price or MEAT, contract awarding process handling and communications, support for lots e-auction - used as extension to the tender evaluation process Support for three auction types, user s connection monitoring tool, chat-based communication for online support ecatalogues / eordering support under FAs or for below threshold procurements UBL support, FA mini competitions (reopening), eauction on ecatalogue products e-statistics: statistical analysis and reporting regulatory reporting on annual procurement activity, regulatory reporting per CfT Χρημαηοδόηηζη TF 2006, 21
The Cyprus eprocurement System - 4 e-registration e-notification e-auctions e-catalogues e-ordering e-evaluation/ e-awarding e-tendering Χρημαηοδόηηζη TF 2006, 22
The Cyprus eprocurement System - 5 Χρημαηοδόηηζη TF 2006, 23 System records for every action: What Who When and audit reports can be generated for general and specific events Security against harmful software and malicious users Software / hardware architecture Antivirus software Specialized intrusion prevention systems Specialized intrusion detection systems Specialized hardware for monitoring and analysis of network/system events and automated completion of respective protection actions High performance Provision of service through several clustered servers High availability 99.9% uptime of service
The Cyprus eprocurement System - 6 Budget Actual Cost 2.000.000 1.847.700 300.000 268.700 Total Budget 2.300.000 Total Project Cost 2.116.400 92% utilisation of 2006 EU Transition Facility Funds Χρημαηοδόηηζη TF 2006, 24
The Cyprus eprocurement System - 7 Project Commencement Project Completion 31/1/2007 30/8/2007 15/10/2007 15/11/2009 Completion of whole project within 25 months including 8-months of pilot operation and all the training courses and promotion activities Χρημαηοδόηηζη TF 2006, 25
Results of use - 1 Total Number of users from Contracting Authorities 1.173 (329 CAs) Total number of users from Economic Operators 2.707 (2.598 EOs) Total number of published competitions 3.800 ( 2,1 billion) Total number of electronic catalogues published 29 Over 500 products and electronic orders exceeding 1000 in number and 8m in value were placed Χρημαηοδόηηζη TF 2006, 26
Results of use - 2 System operation in compliance with European and National public procurement laws and regulations, within the timeframe specified by the EU Action Plan EU Publications Office accreditation as an OJS e-sender Training of CA users through dedicated training courses and training of EOs through online tutorials and several one-day events Promotional activities primarily aimed at EOs Generalized adoption of the system Successful completion of several electronic competitions during pilot operation Establishment of Framework Agreements with the use of e-catalogues Provision of a secure, available and well-performing system Χρημαηοδόηηζη TF 2006, 27
Results of use/achievements - 3 Acknowledged at EU level that Cyprus has a model all in one electronic procurement system. Was awarded the Best Practice Label in the context of the European e- Government Awards. Ranked 1 st in the area of pre-awarding electronically, amongst the 27 EU Member states in accordance to the 8 th Benchmark Measurement study conducted on behalf of the European Commission (Smarter, Faster, Better e-government, November 2009). Χρημαηοδόηηζη TF 2006, Funded by 28Transition Facility 2006
Benefits of using eprocurement - 1 Faster procurement procedures reducing the lead time from the identification of need until the need satisfaction Saving time for the officers involved in public procurement Better and more productive use of the people by the Contracting Authorities More competitive environment for public procurement via the increase of the number of interested Economic Operators and enhanced participation in competitions More efficient use of human resources by Economic Operators resulting in better prices (EU estimates in the area of 5%) Savings in transactional costs for public procurement procedures of 50%-70% Strengthening the credibility of public procurement procedures and improvement of the general public perception regarding the area of procurement Χρημαηοδόηηζη TF 2006, 29
Benefits of using eprocurement - 2 Maintaining information and statistics that are more reliable and of better quality Timely statistical data Real time availability Easily accessible in a user friendly format Opportunity is given to utilise the power of concentrate information as all parties involved are given data regarding public procurement Enhancement of the principles that govern public procurement Transparency i.e. via timestamping and electronic opening of tenders (recording all actions) Equal treatment i.e. via the automatic and simultaneous notification to all tenderers Non-discrimination i.e. via the free access granted to all interested parties Proportionality i.e. via the simplification of low value purchasing Χρημαηοδόηηζη TF 2006, 30
The way forward - 1 Identification of Needs Management of FA ecat Specification of Need Development of e- Catalogues Framework Agreements Χρημαηοδόηηζη TF 2006, Funded by 31Transition Facility 2006
ΤΜΦΩΝΙΑ ΠΛΑΙΙΟ The way forward - 2 ΤΝΟΛΙΚΗ ΑΞΙΑ ΑΡΙΘΜΟ ΠΑΡΑΓΓΕΛΙΩΝ ΥΑΡΣΙ ΚΑΙ ΔΙΓΗ ΒΙΒΛΙΟΠΩΛΔΙΟΤ 1,741,554.35 207 ΔΞΟΠΛΙΜΟ ΓΡΑΦΔΙΟΤ 417,121.10 96 ΟΝΟΜΑ ΟΜΑΔΑ ΤΠΗΡΕΙΕ ΚΑΙ ΠΡΟΪΟΝΣΑ ΠΛΗΡΟΦΟΡΙΚΗ ΤΝΟΛΙΚΗ ΑΞΙΑ ΑΡΙΘΜΟ ΠΑΡΑΓΓΕΛΙΩΝ Βαζικό λογιζμικό - 715,225.60 184 Δκηςπωηέρ βαπιάρ σπήζηρ - 189 75,951.75 29 Δκηςπωηέρ κανονικήρ σπήζηρ 226, 1158 323,047.65 160 Δξωηεπικόρ ζκληπόρ δίζκορ 11,186.28 43 Μνήμερ 12,801.69 57 Τπολογιζηέρ Γπαθείος και πεπιθεπειακά - 5500 3,112,981.00 184 Φοπηηοί Τπολογιζηέρ 15.6" και πεπιθεπειακά - 2343 1,526,508.93 64 Φοπηηοί Τπολογιζηέρ 17.3" και πεπιθεπειακά - 375 234,954.66 41 Χρημαηοδόηηζη TF 2006, ΤΝΟΛΟ 6,012,657.55 762 32
Lessons learned 1. The technical specifications for the e-procurement project of the Republic of Cyprus have been based to a large extend to the Functional Requirements on Public Procurement documents disseminated by the EC in 2004. As such, these documents have not only provided a good starting point for the specifications of the e-procurement system in Cyprus, but also proved that when in need, if you search assistance and/or guidance you will avoid the costs and pitfalls associated to the effort to reinvent the wheel. 2. When there is a will there is a way. Dedication to the end task. 3. Change management, promotion and dissemination of results needs to be carefully planned in order to build trust and get the end-users familiarized and open up to the concepts of something new (such as electronic public procurement). 4. Recognise key stakeholders in the market and involve at early stages. 5. Know your weaknesses and try making strengths out of them (i.e. procurement of notices) 6. Identify the market forces and use them to your advantage. 7. Knowledge is power so keep up the good work.. Χρημαηοδόηηζη TF 2006, Funded by 33Transition Facility 2006
Thank you for the opportunity to be here today www.eprocurement.gov.cy PUBLIC PROCUREMENT DIRECTORATE TREASURY OF THE REPUBLIC OF CYPRUS Χρημαηοδόηηζη TF 2006, 34