Language:
Search
 
The Italian Public Procurement eMarketplace for Goods and Services (MEPA)
Consip SpA
Italy

The Problem

The Italian Public Administration Electronic Marketplace (MEPA) was introduced in the Italian public procurement system at the end of the year 2002.
It is a virtual market in which any Public Administration (PA) can buy goods and services offered by suppliers, for purchases below the European threshold (approximately 200.000 euro)
It is open to qualified suppliers (and goods) according to non restrictive selection criteria
The entire process is digital, using digital signature in order to ensure legal compliance and overall transparency of the process.
It represents a dynamic and digital tool in which products and services are presented in e-catalogues according to standard formats. Into the MEPA public buyers may search for, compare between and purchase the goods and services offered by the suppliers. The rules that suppliers must observe in order to enrol and sell in the MEPA are set in specific public notices published by Consip according to different product categories.
The same product/service may be offered by various suppliers at different conditions (as in the real market) and there is no pre-negotiation on the part of Consip. Suppliers may decide the geographical area in which deliver their product/service (local, regional or national).
Public buyers can implement purchases in two ways:
Direct Order (DO): purchasing goods and services directly through e-catalogues.
Request for Quotation (RfQ): requesting to the suppliers specific and customized offers respondent to their needs. This procedure is used to obtain more than one offer from various suppliers, stimulating strong competition in order to obtain more favourable conditions than the ones offered in the e-catalogue (DO).
Before the introduction of the MEPA the Italian public procurement system was characterized by the following scenario:
Innovation: it had no digital system to manage purchases below the EU threshold with consequent significant lack of transparency, market openness and competition.
Market development: the situation was particularly disadvantageous for the SMEs.
Process efficiency: the traditional paper-based purchasing procedures were very inefficient compared to the low value of this range of transactions.
Legal framework: each PA followed its internal rules when performing purchases below the EU threshold, with different operational procedures

Solution and Key Benefits

 What is the initiative about? (the solution)
After the introduction of the MEPA the Italian public procurement system is characterized by the following new scenario:
Innovation: more and more PAs and suppliers use a fully digital purchasing procedure through the MEPA (using online negotiations, e-ordering and digital signature and electronic communications). By the end of 2008, more than 4000 public buyers and 3000 suppliers are active users of the MEPA performing, during the entire 2008, more than 50.000 transactions for a global value of 172 million euros.
Market development: the MEPA has resulted to be a system suitable to SMEs allowing them to participate to the public market at low costs obtaining, at the same time, greater visibility. More than 80% of the awarded suppliers, in 2008, were small, medium and micro enterprises.
Process efficiency: the use of the MEPA as a digital tool has enabled a wide range of suppliers and public administrations to strongly streamline the procurement process producing a complete tracking of each single purchasing procedure and order issued.
Legal framework: PAs adopted a standardized and unique purchasing procedure through the MEPA for their purchases below the threshold.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The MEPA was designed and developed by Consip SpA, a limited company entirely owned by the Italian Ministry of Economy and Finance.
The idea was supported by a legal framework, established in 2002 (DPR 101/2002), as part of the national e-government plan defined by the Ministry of Innovation and Technology.
The launch and diffusion of the MEPA was - and still is - strongly supported both by a wide range of PAs (Ministries, municipalities, universities, health care administrations…) and suppliers’ associations.
Due to the successful use of the MEPA during the first four years (2003-2006), in 2007 the Italian Government contributed to the further growth of the MEPA through the introduction of a mandatory use of the tool on behalf of central administrations (State Administrations and Ministries) for their purchases below the EU threshold.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The strategy adopted was based on the idea that the introduction and development of an electronic marketplace requires the stimulation of a “network effect”, meaning the creation of an initial usage level - by both the supply and demand side - capable of activating and supporting a virtual circle in order to foster further usage from a growing number of buyers and sellers.
The overall objective was the steady growth of the active users (PAs and SMEs) and of the number/value of the transactions so as to digitalise a wider and wider share of public procurement (below the EU threshold).

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
In order to implement the MEPA, Consip adopted a step-by-step model, starting from a testing phase in 2003 involving a limited number (50) of PAs and suppliers. Starting from 2004 the service was made available to the entire PA and Italian market involving a growing number of users. At the same time Consip’s organization evolved in order to respond to the user’s needs in terms of information, training and technical assistance.
Several partners (suppliers’ associations and key public institutions) were involved in the project, since the beginning, in order to put in place a network able to locally support SMEs.
Considering the innovative nature of the project, the approach chosen allowed to reach some significant results already in 2007. In fact, in that year, the MEPA managed:
• 84 million euros of transaction value,
• over 332.000 catalogue items offered,
• 28.173 transactions (meaning contracts processed through the system)
• 2750 active public buyers
• more than 2000 SMEs using the system

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
Among the critical factors, it is important to underline the fact that, apart from the technological obstacles, there existed other typical problems strictly connected to the complex change management program that was taking place within the PA.
More specifically:
1. the absence of a public eProcurement strategic vision clearly and effectively communicated,
2. the absence of both an adequate level of training and recognition of new professional qualifications among civil servants (e.g., the e-buyer);
3. the absence of a monitoring and assessment activity, as well as of a rewarding system for PAs and managers making use of these tools;
4. the existence of a digital divide not only as a concept, but also as a real technological barrier;
5. the fact that eProcurement platforms may not be stable and are often not really simple and user friendly;
6. the fact that the supply side was resistant to joining in, especially at the local level, fearing a greater competition;
7. the prohibitive costs for each single administration concerning the development of an eprocurement platform
As a general approach to overcome the above listed obstacles, Consip put in place a comprehensive action plan containing training, communication and support activities devoted both to suppliers and PAs. Other specific actions consisted in:
- continuous platform development and implementation with the goal of making the process more user friendly and more respondent to the needs of the users;
- legal amendments in order to increase the use eprocurement tools by PAs and suppliers (such as mandatory usage of MEPA for central administrations)
- strong cooperation with suppliers' associations through the opening of training and support desks, scattered all over the country, offering free assistance to SMEs in the use of MEPA and other eprocurement tools
- introduction of a yearly national award (“MEPA Award”) to reward suppliers and PAs that distinguished their selves through the innovative use of the MEPA. The mail goal of the award is to raise and revitalize the image of the public buyer (e-buyer) and small innovative enterprise (e-seller) and to provide examples of best practices

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The overall costs (financial, technical and human resources) for the setting up of the MEPA were – and still are – totally covered by the budget of the Ministry of Economy and Finance.
For the development and management of the MEPA Consip created a dedicated Unit composed of more than 30 experts. The annual cost to handle and develop the system corresponds to about 7 million euros.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The scenario that has been traced highlights the strategic role that the MEPA has acquired in the area of below-threshold public purchases and the investment (financial and human resources) that Consip – as the Italian central purchasing body - put in this initiative having acquired a specific expertise during the first 5 years of activity. In order to capitalize on this huge investment a dissemination and cooperation program is advisable instead of a replication of the system.
In fact, Consip is signing several agreements with other Italian territorial purchasing agencies in order to support their usage of the MEPA as the unique eprocurement system managing the entire national purchases below the EU threshold.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
One of the major results achieved is represented by a stronger attitude of the PA in the use of digital tools (thus reducing the digital divide that affected the Italian PA). At the same time the Italian supplier market too was stimulated in the use of digital tools when making businesses with the PA, thus becoming even more competitive at an international level.
The use of eprocurement and digital tools both by PA and suppliers has increased transparency and traceability in public procurement. The new, scenario in which the relationship between buyers and sellers has become entirely digital, had a great echo on the Italian media (press, internet, workshops….), creating more awareness among all stakeholders involved (media, citizens, institutions, buyers and suppliers).
Such an awareness has lead to a general greater level of accountability not only towards the eprocurement system itself, but towards the everyday practices of the Italian public administration, thus increasing trust in the practices of the Italian Government.
Indeed, the relationship between trust and good governance is circular: trust foments goods governance and good governance, in turn, engenders trust.
The main lessons learned after 5 years of experience may be summarized in:
- the need for a strong commitment from the governments who has to be the first stakeholder to believe in the usefulness of the initiative and adopt, if needed, the necessary measures to support it
- an appropriate legal framework providing clear guidance to all stakeholders
- to carry out intensive communication and training activities aiming at transferring the benefits of the initiative and the total availability in providing support to users in any kind of problem or difficulty incurred
- to establish a transparent and collaborative partnership/relationship with the major stakeholders, particularly with public buyers and SMEs
- to be able to provide a continuous and reliable service (no gaps due to discontinuity!) during the entire life-cycle of the project.
Indeed, the introduction of a revolutionary way of handling the procurement process would have been accepted only if the benefits were immediately perceived. So the sharing of as much information as possible on the positive effects of eprocurement represented and still represents one of our major areas of activity.

Contact Information

Institution Name:   Consip SpA
Institution Type:   Public-Private Partnership  
Contact Person:   Angela Russo
Title:   Head for International Relations  
Telephone/ Fax:   +390685449343
Institution's / Project's Website:   +390685449281
E-mail:   angela.russo@tesoro.it  
Address:   via Isonzo 19/E
Postal Code:   00198
City:   Rome
State/Province:  
Country:   Italy

          Go Back
Print friendly Page