Pr07 4 3 , Ippc 2010 Presentation John Konijn

“Towards new frontiers in public procurement”

Fight those last minute decisions

John Konijn Provincie Zuid - Holland

IPPC 2010 Seoel, august 27th, 2010

Introduction

• PZH: One of 12 Dutch regional Government organisations • 2300 personnel, Procurement under EU directives

• Legal counsel IT department (180 plus consultancy),• Geo IT, functional & documentary information services• Yearly budget 15 Million Euro• Multiple public tender procedures per year

Today’s goals: a. Outlines of a practitioner’s contributionb. peer attention and reactions from you

Seoel, August 27th, 2010 2

Today’s agenda

1. The central issue: “by the coffee machine”2. EU Procurement rules / principles3. A product life cycle 4. Purchase: the procurement project5. Contract management process6. Contract management tool 7. Standardised decision making8. Wrap up / Lessons learned


1. “By the coffee machine”

Sir, the contract for our enterprise content management software expires next month.

Yes? So let’s discuss renewal. Invite these people over.

Contract value exceeds Euro 193.000. We have to follow EU procurement rules. We need resources and 6 months to write specifications, publish our tender and evaluate proposals.

Couldn’t you tell me this earlier? Who and how much will you need? Did we plan this expense and contract value in our budget? What is our position between old and new contract?


2. EU Procurement rules / principles

Directives EU 2004 /18 and 19

Purchasing of all products / services, where theaward exceeds a contract value of Euro 193.000:- Mandatory public announcement of award procedures- Equal opportunity for all EU enterprises- Published objective, non discriminatory and

proportionate award criteria - Guaranteed minimum time period to prepare a proposal- Award decisions based upon published criteria- Enterprises have access to legal proceedings

In principle: No freedom to negotiate

Seoel, August 27th, 2010

3. A product life cycle

Different phases:

Specification: - All requirements for phases 3 to 5

(functional, performance, capacity, roles and responsibilities, risk)

- Including prognosis of foreseeable future changes- Realistic timeline, including decision making


Specify Purchase Implement UseEnd or renew

4. Purchase: the procurement project


Market orientation

Scoping, scaling,Business Case

Writing documents

procedure execution

objection period

Project transfer

Primary consultation with market representatives (if necessary)

Duration, organisational structures, Implementationand exit strategies, performance indicators, contractconditions, ‘out of scope’, price & payment model

Demand specifications > selection - and award criteriaFull set of documents (incl. model contract / SLA)

Announcement Answering questions Evaluation ofOffers Correspondence on outcome

Additional rejection explanation Contract creation

Procurement result handed over to ‘implementation’

5. Contract management process

During implementation and use phases

Contract management process:- Monitoring performance against agreed indicators, time, budget, risk- Generating input for contract management tool - Communication with provider on tactical/strategic issues- Controlled change process, keeping functional req’s ‘up to date’- Executing exit strategy

Contract administration process:- Keeping contract documentation complete and valid- Monitoring of - and signalling on indicators- Quality check on contract management activities and deliverables

Roles and Responsibilities!


6. Contract management tool

ompany wide database of contracts and mgmt info

entralised access to validated documents

egistration and reporting tool on agreed indicators

ystem for timely warnings on failing performances,

udget decrease, time lapse, new cycles etc

olling forecast of contracts that have to be renewed

ithin specified time periods


Contract management tooling


A wide variety of suitable or customisable solutions…

7. Standardised decision making

Single and coherent structure of decision making:• Concerning the product life cycle• During the procurement project• In contract management

Leads to significant added value:• Standardised approach to procurement and renewal• Timely start of new procurement projects• Control over agreed indicators/ quality of service• Transparency and awareness: management & provider• No awkward surprises in the planning and control cycle


8. Wrap up / lessons Learned

Synchronise your processes, projects, decisions around public procurement

Contract mgmt tool to timely trigger new initiatives

Start with the end (total life cycle) in mind

Include all relevant expertise in procurement projects

Avoid loss of knowledge / controll between phases

Monitor and document contract performance and changes


Questions and/or remarks?


John Konijn, llm

[email protected]

+31 6 28 877 878

http://nl.linkedin.com/in/johnkonijn

mailto:[email protected]

http://nl.linkedin.com/in/johnkonijn

Pr07 4 3 , Ippc 2010 Presentation John Konijn

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