ADB-SC Professional Public Procurement

8/8/2019 ADB-SC Professional Public Procurement

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Improving the Capability and Capacity ofPublic Procurement Professionals and

Government Agencies

Sarah Cotgreave, FCIPSSenior Procurement Specialist (Capacity Building and New Initiatives)

Central Operations Services OfficeAsian Development Bank

Asian Development Bank


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Agenda

Business Case for Professional Procurement Evolution of professional procurement

Role of Professional Associations

Professional Qualifications

Determining and Assessing Skills and Competence

Codes of Conduct

eProcurement Capacity Building

Agency Capability Reviews


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Many governments wish to increaseProcurement capability and capacity

The one area that has not received as much attention asit requires is in enhancing skills and professionalismin management of procurement.

how to put in place systems for sustainable skillsdevelopment and how to institute professionalism tomanage these newly reformed systems. Knowledge

exchange and technical assistance in this area would beof great benefit.

Robert R. Hunja August 2010, WBI


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Why should Ministers care aboutProfessional Public Procurement?

Ensure sufficient accountable and competent individualsand agencies controlling national expenditure

Public Procurement can be a tool for local, regional andnational economic development LM3

Reduce national expenditure and process costs, basedon foundation of competition, fairness and transparency: A competitive environment attractive to suppliers, lenders and donors

Value for money investment, e.g. in transport, utilities, education,health

More efficient use of tax revenues and government borrowing for publicbenefit


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Levels of Professionalism

National Framework Policy,

Standards and AssuranceAgency Capability Staffing,

Systems, Processes and Procedures

Individual - Qualifications andCompetence


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Maturity of Public Procurement: fromBuying to Commercial Directorate

RequisitionsOrdering

StoresManagement

Tendering

eProcurementNegotiations

ProfessionalProcurement

Sector andCategoryManagement

FrameworksContractManagement

SME and SupplierDevelopment

CompetencyAssessment andDevelopment

CommercialManagement ,Governance, andCompliance,

Concessions,

CapabilityAssessment

Economic

Development

CommercialPerformance

Improvement,Peer Reviews,

Efficiency,

Collaboration,

Shared Services,

Lean and SixSigma ProcessImprovement,

SuccessfulDelivery

A SEAT ON THEEXECUTIVEBOARD OFGOVERNMENT

AGENCIES


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How Public Procurements role has

developed

From: Buyer s Administrative Overhead

Process Manager

Procurement Police Operational

Administration

Problem Solver/Fire fighter

Risk Assessment

Procurement Manager

To: Commercial Directorates Value Add

Knowledge Managers

Commercial Acumen Tactical & Strategic Team Player

Internal Consultancy

Proactive and Innovator

Risk Management

Commercial Management

Concessions

PPP

Wider Markets


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Essentials of Professional PublicProcurement

Performance Improvement Successful Delivery

Effective public services

Value for money Good practice sharing

Peer review

Process Improvement Efficiency

Transparency

Standards / Benchmarks - ISO Risk Management

People and CompetencyImprovement Up-skilling

Accreditation Behavior change

Career paths

COLLABORATION WITH OTHER PROFESSIONS


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Elements of Professionalism

INPUT EXPECTED OUTPUT Procurement Policies, Compliance Measures

Procedures, Practices Added Value / Savings / Revenue

Codes of conduct Integrity/Ethical behavior Training Skills, Certification and Capacity

Qualifications Career Planning, Pride

Standards Quality

Measures Capability, Benchmarks

Community Networks, Sharing andCollaboration


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PROFESSIONAL ASSOCIATIONS


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Types of Professional ProcurementAssociations

International Membership Associations

National Associations Government Associations

Formal and informal Communities ofpractitioners e.g. LinkedIn


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What is the value of ProfessionalProcurement Associations?

National recognition of profession

in all sectors Training

Standard Qualifications

Membership communities face to face and online

Meetings and other ways of sharing good practice Access to experts

Conferences

Magazines and publications

Research

Professional codes of Conduct

Job opportunities and recruitment

Networks

e.g. for Leaders, Industry Sectors, etc.


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International Federation ofPurchasing and Supply Management Umbrella body for Professional Procurement

Associations

Facilitates the development and sharing of thepractice of the purchasing and supply management

profession Share knowledge on best practices, guidelines and

ethical, good practice to assist associations indelivering quality products, programs and services to

their members Supports the development and recognition of

professional purchasing and supply associations

Provides standards of qualifications

Promotes academic interest in Procurement


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IFPSM Member Organizations

AMERICAS EUROPE ASIA AFRICA Brazil Austria (x2) Norway Thailand South Africa

Argentina Germany France Singapore(x2)

Dominican Republic Ireland UK - CIPS* Hong Kong

Mexico Israel Croatia MalaysiaCaribbean (Forming)Spain Finland India

Colombia (Forming) Hungary Estonia S. Korea

Peru (Forming) Greece Netherlands Japan

Chile (Forming) Italy Belgium (x2) China

USA ISM*, NIGP Denmark Switzerland Sri Lanka

Canada Sweden Turkey (Forming) Philippines

Poland Slovenia PASIA*

* Organizations with international membership


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GOVERNMENT PROCUREMENTCOMMUNITIES


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UK Government Procurement Service

Owned by Central Government (Cabinet Office). Supports UK publicprocurement professionals and provides:

Supports study for professional qualifications (CIPS)

Standard for Certificate of Competence in association with National School ofGovernment - based on logbook of experience

Career options within the civil service Framework to deliver better public services and greater savings

Special interest groups (SIGs) on a cross- government basis

Skills frameworks at practitioner and leadership levels

Recruitment routes: Graduate Scheme / Civil Service Fast Stream Strategy for Building the Procurement Profession in Government

Mandatory Continuous Professional Development (CPD)

Online community for the exchange of ideas and best practice.

Program to facilitate cross department moves.

Annual national conference buyers AND suppliers


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Benefits of UK GPS Community Defined Salary structure + qualification uplift = 5%

Members part of a recognized profession in government

Early notification of events, workshops and seminars

Access to learning and development opportunities

GPS Online interactive links to vacancies, documents and forums

GPS Digest - monthly e-newsletter

Work closely with Charted Institute for Purchasing and Supply(CIPS) national curriculum for public procurement

GPS Council - senior body develops organizational capability Special Interest Groups drive developments in public procurement

Analysis of capacity, demand, succession planning

Share good practice and messages to a wide or targeted audience

Cohesive cross-government perspective for profession and function


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PROFESSIONAL QUALIFICATIONS


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Procurement Qualifications

Government owned qualifications e.g. US Warrant, NIGP, UK Certificate of

Competence

Professional Association qualifications

e.g. MCIPS, CPSM

Degree and Masters programs withProcurement or Supply Management

elements - Professional exemptions?

l Ch d i f


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Example Chartered Institute ofPurchasing and Supply

Public Sector Faculty courses designed for publicprocurement professionals

7 levels of Certification

MCIPS = Member - Bachelors degree equivalent

Level 7 = post graduate certificate

FCIPS = Fellow outstanding contribution to

procurement profession International Public Procurement

Certificates Bhutan, Bangladesh


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INDIVIDUAL SKILLS AND COMPETENCYFRAMEWORKS


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UK GPS Skills Framework 2 levels

PRACTITIONER - 9 competencies LEADER

4 competencies Public Procurement Context requirements Leadership

Strategic Awareness Systems and Processes

Finance Skills Development and Deployment

Inventory and Logistics Management Assurance, Compliance and Integrity

Procurement Processes

Contract Negotiations and Management

Relationship Management

Supply Markets

Programme / Project management


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GPS Skills Framework

Using the Framework identifies individual skills andknowledge needed to progress in the procurementprofession

Individual competency can be assessed by agency at 4levels via a questionnaire: Awareness able to understand key issues and their implications Developing demonstrate behaviours and outcomes above Awareness levels, but

have not had sufficient opportunity or experience to put the skill into practice Practitioner display detailed knowledge of the subject and are capable of

providing guidance and advice to others

Expert display extensive and substantial experience and applied knowledge ofthe subject. They have significant commercial experience.


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PROFESSIONAL CODES OF CONDUCT- DRIVING ETHICAL BEHAVIOR


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Codes of Conduct

Government or Professional Association: Ethics- Integrity

Reputation- Business confidence Transparency- Open communication

Trust- In relationships

Justice- Fair competition

Professionalism- Good practice

El ff i i i f bli


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1. Legislation and Regulations2. Governance - Monitoring, Audit and Enforcement

3. Structure - promoting accountability

4. Public Servants employment contract and ethical code

5. Conflict of Interest declarations

6. Transparency of supply opportunities and contract awards

8. Independence and Confidentiality of procurement process

9. Limits of political influence in procurement decisions

10. Whistle blowing and complaints handling

11. Co-ordination and effectiveness of anti-corruption bodies

12. Support of the private sector - integrity pacts

Elements affecting integrity of publicprocurement professionals


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ePROCUREMENT CAPACITY BUILDING


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EU - ePractice.eu

EU funded best practice sharing Case studies of eProcurement

implementation

Standards (PEPPOL)

Cross border payments and invoicing

messaging

a common eProcurementstandard for bank messaging in the SingleEconomic Payments Area

Community of practitioners and experts

Increas ng apac ty to Imp ement 5


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3eon

4eAo

5SpAys

1ZbMakPae

2Genme

PouemeCd

Feedback / MIBest Practice

Management Information

Collaboration

Specification / Notice

Expression of Interest

Invitation To Tender

Evaluate

Negotiate / Reverse Auction

Award

Contract Management

Content Management

Selection /Requisition

Approval

Order

Receive

Invoice / GPC

Payment

Increas ng apac ty to Imp ement 5UK eProcurement Systems

Purchasing Sourcing

The Office of Government Commerce saved$405m over a 3 years using eProcurementSource: Procurement Leaders, 25 August 2010

P Ch M


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Keep selling the benefits took 3 years in UK

Need to assess agency readiness and capacity for change

Process Re-engineering Best Process for certain categories, e.g.temporary staff timesheets, travel booking, etc.

Help with adjusting policy for implementation

Program Management templates

Suggestions for working with key Stakeholders, e.g. finance, audit

Re-engineering of processes and proceduresTraining of all staff using the system

Motivating affected staff

Monitoring performance and compliance

eProcurement Change Management:essential enabler for success

P C i


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eProcurement Capacity:Lessons Learned in UK

Extensive communication/selling required to achieveacceptance

Change Management assistance required centralProgram team

Supplier Engagement was key task and very timeconsuming dedicated communications

Risk Assessment and Security Management

Institutional Memory


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AGENCY CAPABILITY MEASUREMENT


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Agency Capability Assessment

National Audit Agencies

Government Capability Reviews Donor Agency Capability Reviews


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UK Procurement Capability Reviews

Cabinet Office Efficiency Unit PublicProcurement Policy Agency monitors Capacityand Capability of Ministries and Agencies

Waves of reviews Initially Peer Reviews

Now self-assessment based on benchmarks Results and performance published to

ministers AND to the public

Li ki N ti l S t ith


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Linking National System withAgency Practices ADB PREI

Procurement Review for Effective Implementation

ADB Review of agency procurement system:1. Does the agency have a strategy to achieve an effective

procurement program in line with national policy

2. Will organizational structure and employee capacitysupport the strategy

3. Do internal procurement processes support the strategy

4. Can the agency undertake procurement in an effective andaccountable manner


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EffectiveProcurement

Internal

ProcurementProcess

OrganizationStructure

STRATEGY

StaffCapacity

AccountabilityMeasures

RecordsManagement

Indicators at the Agency Level


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THANK YOU

[email protected]

+ 63 2 632 4424
mailto:[email protected]:[email protected]

ADB-SC Professional Public Procurement

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