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he Procurement Organisation of the French State

Learn about the strategic governance and operational efficiency of the Directorate for State Procurement in France, including its missions, targets, and efforts to increase savings, support SMEs, and enhance procurement processes.

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he Procurement Organisation of the French State

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  1. T heProcurement Organisation of the French State Michel Grévoul, Director for State Procurement, Ministry of Action and Public Accounts 3RD Global ProcurementConference Roma 2-3 July 2018

  2. Missions of the DAE • A real challenge for public finances: • The amount of State procurement, excluding defense and security procurement, is €31 billion per year (€16 billion for Government services and €15 billion for State agencies). • The decree of 3 March 2016 creating the DAE gives it an inter-ministerial field of action and defines its four main missions: • Inter-ministerialtenders to deliversavings and quality; • Procurementorganization; • Professionalization of buyers; • Implementation of a procurement information system

  3. 3 Strategic governance of the DAE and scope of action (DAE = Direction des Achats de l’Etat = Directorate for State Procurement) The DAE defines the procurement policy of the State under the authority of the Prime minister. • . • At the strategic level, the State procurement conferencemeets three times a year under the chairmanship of the Secretary General of the Government. These conferences bring together the Secretaries General of the Ministries and the DAEwho debate on the main strategic issues and opportunities for the State procurement policy. Following these exchanges, the DAE decide the State procurement policy to be implemented. • The perimeter of DAE’s action includes buyers of Ministries and their regional departments as well as State agencies but excludes local authorities, hospitals and defense-specific procurement contracts.

  4. 4 Operationalgovernance of the  DAE  • . • A State procurement committee (Ministries) chaired by the “DAE” (quarterly meetings) bringing together ministerial procurement managers and regional procurement platform managers on the implementation of the State procurement policy; • A purchasing committee of the State’s agencies under the presidency of the “DAE” (quarterly meetings) bringing together the 70 biggest entities having more than 40 M€ of purchases spend by year.

  5. 5 Strategic orientations and targets 2016-2018 • Increase procurement savings: • For Ministries: 325 M€ in 2016, 375 M€ in 2017, 400 M€ in 2018; • For State agencies: 250 M€ in 2016, 275 M€ in 2017, 300 M€ in 2018. • Achieve social and environmental objectives through the introduction of contractual clauses or criteriaanalysis of bids • Increase the share of State procurement from SMEs • Increase the volume of procurement including an innovative solution • Make procurement more efficient through the professionalization of buyers The DAE submits an annual report to the Prime Minister and the Minister in charge of Action and Public Accounts describing the actions implemented (Ministries & State agencies) and their outcomes.

  6. To ensure better implementation of the State procurement policy • By relying more heavily on the Secretaries General of each ministry, and by strengthening the role of ministerial purchasing managers and ministerial missions for procurement. • By strengthening the capacity to pool purchases at a regional level (which is good for SME) thanks to the implementation of 13 regional procurement platforms (“PFRA”) under the authority of each Prime minister regional representative (the “Prefect”) 6

  7. 7 How to make procurement more efficient? • Enhance the role of State buyers by giving them a strong advisory role from the very start of projects, thus leading to more recognition of their expertise both by Government services and by companies’ sales teams • Create a comprehensive procurement training program offering either end-to-end training or specialized training units • Foster direct communication and exchange of lessons learned/best practices between buyers through a professional social network dedicated specifically to buyers of the State and its agencies (called “RespAE”) • Improve career management by creating a unified career path for more mobility across entities (Ministries and State’s agencies)

  8. The multi-annual procurement program of the State • The programming, drawn up annually for the next four years by each ministry and consolidated by the “DAE”, covers all purchases above 90k€. • Itsobjectives are: • To identify new opportunities for the definition of inter-ministerial strategies at national or regional level; • To identify the most efficient purchasing levers to be implemented contract by contract in order to achieve the objectives of the five fields of procurement performance: procurement savings, increasing the share of State procurement from SME’s, sustainable development, social clauses, innovative solutions; • To plan the intervention in support, if necessary, of a "task force" composed of expert purchasers from other Ministries or State agencies; • To build for each Ministry an annual savings target; 8

  9. Prior agreement of the ministerial procurement manager • Concerns all procurement projects of its ministry above 1 M€ (works contracts) or 144 K€ (supplies and services). • The aim is to secure an economically efficient procurement and to set up a dialogue to advance the maturity of purchasers . • It ensures or covers: • Proper consideration of the purchasing objectives of the State in the public procurement project; • Compliance with existing inter-ministerial or ministerial procurement strategies; • Relevance of the sourcing with regard to the stakes of the purchase project; • Attention paid to drawing up the specifications in order to encourage as many companies as possible to submit a competitive and innovative bids; • Allotment approach; • Relevance of the public procurement procedure considered; • Relevance of the award criteria (in particular the weight of the price criterion); • Forecasting of a negotiation (where permitted by regulation) 9

  10. 3 main objectives for regional procurement platforms under the authority of the regional Prefect • Local support for the implementation of the State procurement policy • To increase regional inter-ministerial tenders from €1 to €2 billion in 3 years (making them more accessible to SMEs than when launched at national level), by developing the pooling of purchases of the State’s regional services. • To offer methodological advice to each ministry’s regional procurement services : • Procurement techniques and buyer's skills; • Allow companies to includes in their bids : • innovative solutions, • social and environmental solutions; 10

  11. Local support for the implementation of the State procurement policy • To lead the network of State’s buyers in the region. • To participate in the regional implementation of the State training policy. • To undertake activities towards local companies (supplier information meetings, direct sourcing), in coordination with the chambers of commerce and industry (CCI). • To participate in the procurement component of the State property policy in the regions. • To contribute to the downsizing of the number of representatives of contracting authorities (people allowed to sign public contracts). 11

  12. Training program Professionnal social network Public procurement manuals Procurement information system Dedicatedcareerpath Which are the 5 pillars of the Procurement professionalization? Procurement professionalisation the development of public procurement skills is essential for efficient procurement The 5 pillars of buyer’sprofessionalisation 12

  13. Training strategy for State buyers Each ministry's procurement training plan must be consistent with the framework defined and labeled by the DAE. All procurement trainings are inter-ministerial in nature and can be attended by buyers from all ministries. Ministry of Defense Ministry of the Economy and Finance Ministry of the Interior Ministry of European and Foreign Affairs …. Trainings are carried out in eachministry 13

  14. Building a single reference framework for procurement training Expert buyerspecialisation course Buying manager curriculum Evaluation and definition of needs - L1 Specialisation in worksprocurement * Specialization in IT equipment and services procurement Specialization in supplies and services procurement Specialization inintellectual services procurement Procurementstrategy Buyer Senior buyer curriculum Junior buyer curriculum Introduction to the procurement managing role Introduction to the procurement role Negotiation - L1 Evaluation and definition of needs - L2 Procurement performance Procurementstrategy for managers Sourcing - L1 Sourcing - L2 Bids analysis Management of buyers Negotiation - L2 Procurement marketing Sustainable procurement Suppliers relationship management - L1 Procurement performance for managers Suppliers relationship management- L2 * e-learning training available Cross-functional skills Corporateorganization Legal basics training for public procurement * Managing projects SME access to public procurement Innovative procurement Procurement information system * 14

  15. Develop a real buyer’s career path Implement and monitor the procurement policy according to their performance objectives Make sure that procurement meets the qualitative and quantitative needs of services and ensure the performance of procurement Buyers Advise and bring expertise to the buyers on expert issues ( sourcing, negotiation, social and environmental responsibility etc.) Procurement managers Procurement expert advisors Purchasing managers Public procurementwriters Implement public procurement procedures and advise buyers on the legal risks and / or benefits of the public contract Managing the orders of goods and services 15

  16. Overall Scheme MINISTERIES INTER-MINISTERIAL Procurement Policy Procurement Strategies Procurement Objectives Secretary General Ministerial procurement manager Procurementprogramming Prior agreement of the ministerial procurement manager Procurement policy Procurement Strategies Procurement Objectives National Ministerial Procurement Regional Ministerial Procurement Regional Procurement Platforms which deliver regional interministerial contracts Information if > 25 K€ 16

  17. 2016 Procurement outcomes For the Government services • For the State’s agencies EP 17

  18. 2017 Procurement outcomes For the Government services • For the State’s agencies EP 18

  19. http://www.economie.gouv.fr/dae

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