e Procurement policy in the EU Frascati Villa

e. Procurement policy in the EU Frascati (Villa Mondragone) 2 July 2018 Nikita Stampa Head of Unit DG GROW G 4

Agenda 1. 2. 3. 4. 5. 6. Objectives The state of play in EU The eprocurement IT infrastructure Openness & partnership Data policy Digital Transformation of Public Procurement 1. OOP 2. DT 2

1. Objectives

Eproc – key objectives ü Transparency ü Simplification of procedures ü Increasing competition ü Fight against corruption ü Savings 4

2. The state of play in EU

The eprocurement journey PP Directives in force 4/2014 ESPD 1/2016 e. Invoicing Directive 5/2014 e. Notificatio n & e. Access (all CAs) 4/2016 COM ESPD & e. Certis 2. 0 4/2016 e. Submission (CPBs) 4/2017 e. Submission (all CAs) 10/2018 COM Decision: publication e. ESPD only of reference 4/2018 to e. Invoicing standard 10/2017 Draft implem. regulation on e. Forms 12/2018 Start of implem. of e. Forms in MS 2/2020 e. Invoicing (all CAs) 4/2019 End of implem. of e. Forms in MS 2/2022 e. Invoicing (all CAs) 4/2020 if derogation 6

State of play e. Notification and e. Access: achieved e. Submission take up levels: ü High: CY, EE, EL, HR, IE, LT, MT, NL, PT, SE, FI, UK ü Medium: the rest ü Low: BG, HU, LU, PL, RO, SI 7

State of play ü ü ü ESPD: Achieved in > half MS Contract Register = 20 MS e. Auctions: generally available DPS: increasing e. Catalogues: typically at central level (CPBs) e. Signature: available almost every where 8

National business model 2017 - 2018 Single v. s. Multiple Platform Several Platforms National Platform procured or developed by the State 46% 54% e. Tendering systems 9

2. The eprocurement IT infrastructure

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EU Funding ü EU funding critical for the development of IT infrastructure (CEF, ESIF) ü CEF: 33 m euro (2014 -2017) for eproc and einvocing ü CEF (2018): € 10 m for proc and einvoicing ü e. Invocing standard (development) 12

ESPD service providers list https: //webgate. ec. europa. eu/fpfis/wikis/ display/EPROC/ESPD+service+providers 13

Tender Electronic Daily http: //TED. Europa. eu e. Certis – EU online broker of certificates – matches criteria for PP and means of proof https: //ec. europa. eu/tools/ecertis/search e. ESPD (European Single Procurement Document) – a structured self-declaration https: //ec. europa. eu/tools/espd (COM service is transitory solution. It can be used until April 2019) 14

e. Procurement life cycle TED e. Notice e. Access e. Submission e. Evaluation e. Award e. Ordering e. Invoice e. Payment ESPD e. Certis 15

3. Openness & partnership

Our working method ü Multistakeholders groups (EXEP and EMESFe. I) ü “Le tour d’Europe”: workshops in the MS ü Award on “Better governance through procurement digitalization” ü Conferences ü Open data (TED and e. Certis) ü Wiki 17

EXEP reports ü Endorsed in March 2018: "Governance of the ESPD data model" ü Endorsed in September 2017 "Contract Registers", "Electronic Catalogues" and "Certification of e. Tendering Platforms". ü Endorsed in October 2016: "Solutions and Interoperability", "Governance and capacity building" and "Regulatory Aspects and Interpretation". https: //ec. europa. eu/growth/single-market/public-procurement/e-procurement_en 18

EXEP Recommendation: Contract Registers • 10 Recommendations Build a CR that is accessible and trustworthy Cover the full life cycle for all contracts Prevent duplication of data entry Communicate the benefits to users and make it easier to use the data ü Ownership of the CR within the public sector. ü ü 19

EXEP Recommendation: Murphy's Law for e-proc systems ü Recommendations on scenarios for how to deal with situations when e-procurement systems fail (e. g. Failures with third parties like time stamping, signature validation, SMS services) ü Outline of approaches to interoperability and accreditation in a number of cases 20

EXEP paper: e. Catalogues ü Paper on benefits and implementation of e. Catalogues in public procurement ü e. Catalogues may be an important tool for facilitating the collection of needs for procurement planning and capturing the benefits of aggregation ü e. Catalogues an also be important for data collection from e. Procurement systems. 21

EXEP Paper: Certification of eproc platforms ü ü Scope of certification Legal aspects Fonctionality of platforms Security and quality aspects 22

EXEP Recommendation: Report on legal aspects It covers: - Legal obligation to establish an e. Tendering system - e. Signature - Data protection and the ESPD - Trade secrets protection - National restriction to access the platform 23

4. Data policy

Single Market Strategy (2015) Put data on the political radar Launched important actions ü ü Digiwhist. eu (Opentender. eu) project e. Forms implementing regulation Contract register report, workshops & funding Remedy data scoreboard 28

Communication: Making public procurement work in and for Europe ü PP is a strategic area for policy makers Not just an administrative process, but an opportunity to deliver value for public money (14% of GDP!). ü A partnership to improve the PP in practice Beyond 2014 legal reform, improvement needs smart implementation of the new rules. ü The Commission is ready to play its part We will develop a range of support tools, (guidelines, best practices) for authorities. 29

6 priority areas for improving PP: Boosting the digital transformation of PP ü Legal obligation in October 2018, but real benefits if all steps of PP process are digitalised ü Roll-out of e. Procurement is slow ü Continue to provide technical & financial support to MS Improving transparency, integrity, data ü Enable reporting of corruption ü protecting whistleblowers against retaliation ü More and better data, setting-up contract registers 30

Contracts Registers (CR) The context ü CR are not mandated by EU legislation ü Commitment in the Strategy for the Upgrading of the Single Market to promote them ü EXEP recommendation on how to implement a CR A governance tool ü A monitoring and controlling mechanism ü An accountability instrument of the State 31

Contracts Registers Minimal key information to be provided by the CR ü what has been announced (intention) ü what has been contracted (agreement) ü what has been done (implementation) A positive trend ü Two MS developing Open Data solutions (FR and AT) ü One solution recently implemented in six months for post -award (FI) ü One new solution in development (PL) 32

Results from 2017 survey Budget approval and BA & Rq Requisitions Number of MS with information publicly available 17 16 7 8 5 at is tic s EO & P 2 1 CA IA CC 1 St 2 CT P CM D oc 1 C SC N 1 CA T Cf CN Rq & AB 2 1 BA 4 CN Contract Notice Cf. T Call for Tenders AB Awarded Bid CAN Contract Awarded Notice SC Subcontracting C Doc Contract Doc CM Contract Modifications P Payments CT Contract Termination CC Contract Conclusion Information for Appeal Procedure IAP CAs & EOs List of registered CAs and EOs 33

5. Digital Transformation of Public Procurement

Only Once Principle ESPD e. Certi s National register s

Integration of the ESPD in the national eproc system Finnish case

Integration of the ESPD in the national eproc system Finnish case

Benefits – Finnish case Time savings to CAs and EOs • Mo. F estimate: time savings 2 - 3 million Euros / year Trusted sources of information • Information in real time • No documents, stamps and signatures Everything in the same place • Stored alongside with tendering and evaluation records • No need for separate storage 38

Digital Transformation New (emerging) technologies AI (Artificial Intelligence) and ML (Machine Learning) Big Data and Analytics Reporting Blockchain IOT (Internet of Things) AR (Augmented Reality) and VR (Virtual Reality) Voice Personal Assistants Chatbots Robots, Drones and Self-Driving Safety Features in Vehicles ü… ü ü ü ü 39

Digital Transformation Implications for public procurement ü Blockchain examples in contract management or suppliers registries or for auditing; ü AI or ML examples in automatic contract structure or forecasting needs; ü AR (Augmented Reality) and VR (Virtual Reality) examples in simulating new environments in public works; ü Voice Personal Assistants Chatbots examples in assisting both CAs and EOs during the procurement process. ü… 40

Key challenges ü Interoperability between (and within) MS ü User-friendliness ü Digital divide: Low level of digitisation of the country ü Structural ü Organisational ü Behavioural 41

2018 Annual Conference 18 October 2018 (Lisbon) GROW-Conference on Digital Transformation For info 42

Thank you! Nikita. stampa@ec. europa. eu

Open. Tenders. eu This platform allows you to search and analyse tender data from 33 jurisdictions (28 EU member states, Norway, the EU Institutions, Iceland, Switzerland, Georgia) and is also using data from TED. 44