SMART PUBLIC PROCUREMENT:

The OECD work

White Paper Conferences: Public Procurement 2017

Paulo MaginaHead of the Public Procurement Unit

Public Sector Integrity Division, Public Governance Directorate

17 November 2017

The OECD…

• …is the global organisation that drives better policies for

better lives:

• The OECD provides a forum where countries compare

and exchange policy experiences, identify good practices,

discuss emerging challenges and adopt

recommendations for better policies.

• The OECD’s mission is to promote policies that improve

economic and social well-being of people around the

world.

www.oecd.org

2

35 member countries, 4 accession

5 Key partners

3

OECD - Fast Facts

4

35

€370 Million

Part of a global community

5

PUBLIC PROCUREMENT MATTERS

6

MEXIRLCHEUSAPRTITAESPTURGRC

OECDLUXLVAPOLKORAUSSVNCANAUTGBRISL

NORESTDNKISRBELCZEFRANZLDEUSWEHUNJPNSVKFINNLD

CRIRUSLTUZAFCOL

in terms of GDP in terms of general government expenditure

29.1

0 5 10 15 20 25 30 35 40 45

2015

2009

2007

(%)

11.9

05101520(%)

Government procurement as share of GDP and of total govt. expenditures

Source: OECD National Accounts Statistics. (2017)

Public Procurement Matters

6.4 trillion EUR spending in OECD

7

…managed at all levels of government

General government procurement by level of government (2015)

36.8

63.2

0

20

40

60

80

100

NZL IR

L

GR

C

ISR

PR

T

SVK

TU

R

HU

N

LUX

EST

SVN

LVA

GB

R

ISL

NO

R

CZE

KO

R

PO

L

AU

T

FRA

NLD

OEC

D

DN

K

ME

X

USA

SWE

JPN

FIN

CH

E

DE

U

ITA

ESP

BE

L

CA

N

CR

I

LTU

CO

L

Central government (2015) Sub-central government (2015)

General government procurement by levels of government

Source: OECD National Accounts Statistics. (2017) 8

Public procurement has high implications

for public service delivery

Health30%

Economic affairs17%

Education12%

Defence10%Social

protection10%

General public services

9%

Public order and safety

4%

Environmental protection

3%

Recreation, culture and religion

3%

Housing and community amenities

2%

Structure of general government procurement spending in OECD countries (2015)

Source: OECD National Accounts Statistics. (2017) 9

Public procurement has high implications

for public service delivery (cont’d)

Structure of general government procurement spending (2015)

Source: OECD National Accounts Statistics. (2017)

10

THE OECD WORK ON PP

11

For over a decade the OECD has supported governments in

reforming their public procurement systems to ensure long-

term sustainable and inclusive growth and trust in government

by:

1) Providing international standards on public procurement;

2) Undertaking hands-on peer reviews that provide

assessment of public procurement systems, either

national or sectorial, and tailored proposals to address

implementation gaps in specific context;

3) Bringing together a community of practice on

procurement to shape directions for future reforms: the

Leading Practitioners;

The OECD work on Public Procurement

12

4) Organising policy dialogue on the co-operation between

government and the private sector also in the

framework of the G8 and G20;

5) Collecting analytical, useful and reliable evidence

across OECD countries on the performance of public

procurement operations as well as the impact of

procurement on broader public policy objectives: Green,

Innovation, SMEs;

6) Coordinating the MAPS revision through leading a

diversified working group composed of many MDBs,

IOs, developing partners and countries.

The OECD work on Public Procurement

13

The OECD’s experience in working with public procurement

shows that a sound procurement system includes:

a) procurement rules and procedures that are simple, clear

and ensure access to procurement opportunities;

b) effective institutions to conduct procurement procedures

and conclude, manage and monitor public contracts;

c) appropriate electronic tools;

d) suitable, in numbers and skills, human resources to plan

and carry out procurement processes; and

e) competent contract management.

Main findings from the OECD work

14

• The 2008 OECD Recommendation on Enhancing

Integrity in Public Procurement focused on integrity,

transparency, accountability, good management, risk

prevention and control.

• Interest in governance of public procurement to achieve

efficiency and advance public policy objectives has

significantly increased.

• The 2015 OECD Recommendation on Public

Procurement promotes a strategic and holistic use of

public procurement, modernises procurement systems,

and is to be applied across all levels of government and

SOE.

A standard for Public Procurement in

the XXI century

15

16

The 2015 Recommendation on Public

Procurement: 12 integrated principles

Assessment tools, MAPS

Key performance

indicators

Strategic use:

• Green

• SME

• Innovation

Professionalisation

G@G:

Government at a Glance

eProcurement

Supporting countries by

building evidence

17

Toolbox - innovative, practical, collaborative solutions

SUSTAINABILITY &STRATEGIC PUBLIC

PROCUREMENT

18

Development of PP Strategy/ Policy to support

secondary policy objectives (2016)

4%

24%

52%

20%

96%

Green Public ProcurementNever been developed

Has been rescinded

Developed by someprocuring entities

Developed at the centrallevel

Developed at the centrallevel and by someprocuring entities

4%

27%

61%

8%

96%

Support to SMEs

19

4%

24%

55%

17%

96%

Green Public ProcurementNever been developed

Developed at the central

Developed at the central

3%

24%

66%

7%

97%

Support to SMEs

45%

7%

38%

10%

55%

Support to responsible business conduct

17%

24%

48%

11%

83%

Support to procure innovative goods and services

Countries increasingly use procurement to

achieve broader policy objectives

20

Support to procure innovative goods and services

Mandatory Use of Public Procurement for Secondary Policy Objectives

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Green publicprocurement

Support to Smalland Medium

Enterprises

Support toprocure

innovativegoods and

services

No, it is not mandatory andtargets are not in place

No but it Is subject todefined targets

Yes, it is mandatory buttargets are not defined

Yes, it is mandatory andtargets are defined

45%

21%

<2016>

51.5%

30.3%

12.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Green publicprocurement

Support toSmall and

MediumEnterprises

Support toprocure

innovativegoods and

services

Yes, it ismandatory

<2012>

59%

% of countries that measure the results of

their public procurement to boost…

Measuring results:

Strategic procurement

21

…Green Objectives …SMEs…Innovative Goods &

Services Innovation RBC

Austria

Japan

Korea

Sweden

Turkey

Australia

Belgium

Canada

DenmarkEstonia

Finland

Germany

Ireland

Latvia

Mexico

Netherlands

New Zealand

Norway

Spain

Yes:26%

No:74%

SMEs

AustraliaChile

Germany

Hungary

Ireland

Israel

Japan

Korea

Mexico

NetherlandsSlovak

Republic

SwedenTurkeyAustria

Belgium

Canada

Denmark

Estonia

Finland

Greece

Latvia

New Zealand

Norway

Portugal

SloveniaSpain

Yes:50%

No:50%

AustriaChile

Denmark

Finland

Germany

Hungary

Iceland

Israel

Japan

Korea

Latvia

PolandPortugal

Slovak RepublicSlovenia

Spain

Sweden

Turkey

Belgium

Canada

Estonia

Greece

Ireland

Mexico

Netherlands

New ZealandNorway

Yes:67%

No:33%

MAPS: METHODOLOGY FOR ASSESSING

PROCUREMENT SYSTEMS

22

End of a two-year journey

23

Spring 2015 Revision launched

July 2016 First draft of the revised tool

Summer 2016 Consultation: public feedback

Winter 2016/17 Testing in Chile, Norway, Senegal

Fall 2017 Revised core MAPS finalised

Spring 2018 Global launch of the final tool

2018 MAPS Secretariat

What is the new MAPS?

Methodology for Assessing Procurement Systems

• Ambitious, universal tool for all countries to

evaluate how well their public procurement

systems work

• Used in the past 10 years in developing countries

(over 90 assessments)

• Revision process in place since April 2015, linked

to international standards, e.g. OECD Public

Procurement Recommendation also aligned with

the UN Sustainable Development Goals (SDGs)24

• SDG Target 12.7

– “Promote public procurement practices that are

sustainable, in accordance with national policies and

priorities”

MAPS Indicator 3(a): Sustainable Public Procurement

+ Optional Module

• SDG Target 16.6

– “Develop effective, accountable and transparent

institutions at all levels”

MAPS Indicators 5, 6, 8, 12, 13

MAPS and the SDGs

25

• Harmonized tool

…to conduct an assessment of PP systems

• Universal tool, mutually reliable

…for all countries: Considers country context and political environment

• Reform tool…to develop systems: Initiate improvements, encourage dialogue, monitor progress

Characteristics of the new MAPS

26

The MAPS Analytical Framework

27

MAPS

Pillar I

Legal, Regulatory and Policy Framework

3 indicators, 18 sub-indicators

Pillar II

Institutional Framework

and Management

Capacity

5 indicators, 14 sub-indicators

Pillar III

Procurement Operations and Market Practices

2 indicators, 6 sub-indicators

Pillar IV

Accountability, Integrity and Transparency

4 indicators, 17 sub-indicators

An

aly

sis

of

Co

un

try C

on

tex

t

User'

s G

uid

e

Glo

ss

ary

Su

pp

lem

en

tary

Mo

du

les

For more information on OECD work on public

procurement

http://www.oecd.org/gov/public-procurement/