EU Public Procurement Learning Lab

““Proposal for a Working Plan”Proposal for a Working Plan”

Rome, November 28th 2003

2/8 Rome, September 11 2003

Rationale for the EU Public Procurement Learning Lab

• Public procurement is becoming increasingly important within the European Union because it represents a channel through which Governments try to monitor current expenditure

• Procurement agencies have been recently created in Europe, while they have existed for longer in the United States

• Procurement entities face almost similar problems and difficulties related to new technology adoption, market supply transformation and change management complexity

• There exist, indeed, reasons to suggest that some coordination among procurement entities might be useful

The proposal is to launch benchmarking activities and knowledge sharing among European procurement agencies.

To this purpose the “Informal Cooperation” has been considered as an ideal field, and a “Learning Lab” on Public

Procurement individuated as the appropriate tool.

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Time frame for the EU Public Procurement Learning Lab

On December 1st the Ministers of Public Administration will approve a Medium Term Program for Informal Cooperation, containing a timescale for the EU Public Procurement Learning Lab, planning a deadline by end 2004, for a first evaluation of the draft results of the Learning Lab regarding indicators and benchmarking methods

In Rome Resolutions of December 2nd and 3rd 2003, the DG’s will approve the launch of the “EU Public Procurement Learning Lab”

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Expected results from the the EU Public Procurement Learning Lab

The expected results of the EU Public Procurement Learning Lab have to be agreed upon by the participants.

They should contain at least the identification of the issues to be addressed, the benchmarking methodology (e.g.: indicators, tools).

Relevant results could be: Reports that illustrate the EU situation on specific topics Studies that analyse the higher or lower efficiency of

specific practices Databases Suggestions to Ministers to enhance/update EU Directives etc.

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Organization the EU Public Procurement Learning Lab activity

To launch the activities of the EU Public Procurement Learning Lab it is necessary to draft a Working Plan, agreeing upon:

Objectives in the long run

Activities

Methods (create Work Groups of Countries willing to develop specific topics; a “leading Country on e)

time-frame & meeting frequency (3 or 4 months)

expected results by end 2004

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Content Proposals (1)

To compare, across countries, the economic performances of different auctions and/or mechanisms, while focusing on:

1. Auction rules and price dynamics

2. Dual sourcing / procedures for managing dynamic competitions

3. Optimal number and lot size while designing an auction strategy

4. Entry and the issue of small-medium firms

5. Non-competitive behaviors

6. Price and quality comparison

Economic Performances

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Content Proposals (2)

Peer Support on Technical Knowledge Sharing

There exist various technical problems concerning the development of new e-platforms.

Opportunity exists for learning by doing, through technical knowledge-sharing across different procurement entities

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Content Proposals (3)

There exist suppliers like multi-national companies that compete in auctions of various e-procurement agencies.

In this context, it might be useful for procurement entities to share information about their supplier to monitor performance across EU

Information Sharing on Suppliers

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Content Proposals (4)

Procurement entities open local markets to Europe wide competition through appropriate EU compatible tenders, while ensuring the entry of foreign firms, and shaping, in some sense, future market-structure

Market Shaping and EU Market Integration