Electronic Markeplace for Italian Public Sector

Web address of the case:

http://www.acquistinretepa.it

Country of the case:

Italy

Posting Date:

28 February 2008

Last Edited Date:

18 September 2008

Author:

Anonymous

eProcurement | eCatalogue | eMarketplace

Type of initiative

Project or service

Case Abstract

The PA Electronic Market (MEPA) is a public eProcurement tool managed by Consip on behalf of the Italian Ministry of Economy and Finance (MEF). It is a dynamic tool in which products and services are presented in structured catalogues and described according to standard formats. The purchasers are registered Authorities that may implement purchases directly through orders from the catalogues, or by requesting preliminary offers. An identical product/service may be sold by various suppliers at different conditions (as in the real market) and there is no pre-negotiation on the part of Consip.
MEPA is part of the wider Program for the Rationalization of Public Spending on Goods and Services that was launched in 2000 by the MEF in the wake of the introduction of a new model for the optimization of public provisioning in Italy.
As is common with many innovative and relatively new projects, apart from the benefits it provides, MEPA also has some critical elements that slow its dissemination. Specifically, these have been highlighted as a) from the demand side, the problem of digital divide and the inertia of users from the point of view or organizational and cultural change management, and b) from the supply side, a reluctance, especially at the local level, to join the game and play by rules that are more competitive, with the risk of losing some traditional â€œmarket nichesâ€, as well as the aversion to investing in eCommerce without a clear vision of its long-term returns.
Among the advantages provided by the MEPA one should highlight process savings in terms of man/hours compared to traditional contracting methods and the possibility of a detailed and constant monitoring of public expenditure.

Description of the case

Domain

eGovernment

Topic

Efficiency & Effectiveness, Benchmarking | eProcurement | Services for Businesses

Sector

Procurement

Start date - End date

March 2002 (Ongoing)

Date operational

September 2003

Target Users

Business (industry) | Business (SME) | Administrative

Target Users Description

1) All public officials and Authorities, previously registered to the Italian Public Procurement Portal (www.acquistinretepa.it), are entitled to access to a web-based marketplace, where they can search, analyze, compare and buy (below the European thesholds) goods and services. The service is mandatory for Central Administrations.
2) Compliant to minimal requirements, registred suppliers can submit their offers, described through a defined set of attributes in a form of an e-catalogue.
In 2007 about 6.000 Public officials and more than 1.200 suppliers (80% SME) have used the service with more than 28.000 e-orders, choosing among more than 350.000 items.

Scope

National | Regional (sub-national) | Local (city or municipality)

Status

Operation

Language(s)

Italian

Policy Context and Legal Framework

MEPA has been implemented according to a national decree in 2002 (DPR 101/2002) ruling electronic procurement in the Public Sector, limiting the use of MEPA to purchases below the EU threshold.
In compliance with Italian Budget Law for 2007, the adoption of MEPA has become compulsory for Central Administrations, while all other Administrations are allowed to use it.
With a particular regard to digital tools, MEPA is fully compliant with the EU Directive 18/2004 CE.

Project Size and Implementation

Type of initiative

Inclusive services of general interest

Overall Implementation approach

Public administration

Technology choice

Proprietary technology | Standards-based technology | Accessibility-compliant (minimum WAI AA)

Funding source

Public funding national

Project size

Implementation: Not applicable/not available

Implementation and Management Approach

MEPA is now an effective and fully operating virtual market in which any P.A. can select goods and services offered by several suppliers, for purchases below EU threshold
The entire process is digital, using digital signature in order to ensure legal compliance and overall trasparency of process.
Public users may buy in 2 different ways:
- making a direct purchase selecting goods and services from the catalogue;
- negotiating the product quality, price and service levels with qualified suppliers (Request for Quotation), handling on-line the entire purchasing process and digitally signing the order;
An exstensive training program is developed to support Public Officials and Suppliers. In particular, in partnership with Entrepreneurs Associations more than 120 "training" desks have been set up to support SME all over Italy to join and partecipate in the MEPA

Technology solution

The approach consists in outsourcing the SW development and infrastructure management.
Core activities such as requirement definition are fully defined internally by Consip.
The platform is a market-based product, with several customizations in order to make it compliant with Italian Accessability Laws and the European Directive regarding public procurement.

Impact, innovation and results

Impact

The advantages brought by the use of the MEPA include not only cost and time savings in the provisioning cycle, but also processes and organization optimization.
Many Officials that have used the MEPA confirm the existence of an economic advantage in terms of price reduction, as well as process savings.
The full deployment and final assessment on the benefits requires a medium-long term. Nevertheless, the first years of MEPA adoption have clearly shown significant benefits in terms of transparency, change management and process savings not only for Public Administrations, but also for the enterprises participating in the program.
Undoubtedly, the supplier participations in the MEPA amounts to:
- the activation of a new channel of commercial relations with the PA;
- participation free of charge;
- nation-wide visibility of their offers;
- greater penetration in their local territory, without requiring further commercial investments.

A particular issue is related to the great transparency in tender procedures, a spontaneous self-regulation of the bids based on ecatalogues, since â€œall see and compare themselves to allâ€, making for a greater fairness in competition.
Another benefit is given by the lower marketing and sales costs, deriving from wider visibility in the entire public market.
Significant results in 2007:
- 84 million euros of transacted volume
- Over 332,000 offered goods
- 28,173 transactions, meaning contracts processed through the system.
- 2,750 active Ordering Points, meaning public buyers that have used the tool.
- 1.156 enterprises registered with the MEPA.
- 1,809 catalogues published.
- 90% of registered suppliers are small or medium-sized enterprises.

Track record of sharing

This case has been presented in several international events and workshop in order to show the lesson learned and the successful experience of implementig such a complex system in terms of organization, technology, legal framework and marketing skills.

Lessons learnt

- Eprocurement is not only a techological issue, but is based on a deep cultural and process change.
- Due to the significant required efforts, a large (almost national) scale economy is a key success factor.
- A continous and large involvement of public administrations and suppliers is necessary, by means of training, comunication and support, to reach the widest consensus.

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