OECD Meeting of Leading Practitioners on Public Procurement
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1 OECD Meeting of Leading Practitioners on Public Procurement Public Procurement Review of ISSSTE Key findings and recommendations Frédéric Genest Public Procurement Performance Analyst OECD Public Governance and Territorial Development
2 Overview of the process ISSSTE s entire procurement system assessed through four pillars Structure and governance Capability to deliver Procurement process Integrity and public accountability Key findings and recommendations validated at a workshop in Mexico with ISSSTE and OECD lead-reviewers Your comments, suggestions and experience to enrich the report are welcome both in this session and in written form by 26 February
3 Key areas to strengthen the framework and capability 1. Increase coherence and results of the procurement system 2. Integrate and/or develop IT system(s) to cover the entire procurement cycle 3. Increase capabilities in the procurement workforce 4. Leverage opportunities for collaboration between buying agencies
4 1- Increase coherence and results of the procurement system Highly physically decentralised function, with almost 100 procurement units in: 4 sub-directorates at the central level 48 local units (35 delegations, 12 regional hospitals and the National Medical Centre 20 de Noviembre ) 4 entities providing non-medical services (SuperISSSTE, FOVISSSTE, TURISSSTE and PENSIONISSSTE)
5 1- Increase coherence and results of the procurement system 1. Organisational procurement plan identifying priorities and targets 2. Performance management 3. Strengthened or new communication and coordination mechanisms
6 2- Integrate and/or develop IT system(s) to cover the entire procurement cycle Inconsistent codes and formats in data collection: the example of the Aguascalientes delegation Value of the contract 1 000, $ 1,000,000,00 Art. 41 $ ART 41 $ 1,000, art.41 $ 1,000, FRACCION III $ 1, FRACCION III Y ART.41 FRACC.III $ 1,000, Y $ 2,000, ART. 41 FRACC. III $ 1,000, Y $ 2,000, ARTI. 41 FRACC. III $ 1,000, Y $ 2,000, ART. 41 FRACCION III $ 1,000, Y 2, ART. 41 FRACCION III $1,000, $2,000, $3,000, ARTICULO 41 FRACC III ABIERTO 41 FRACCION III YXIV 41 FRACCION III Y XIV LAASSP exception 41-III (circumstances potentially resulting in significant losses or additional costs quantified and justified) ART. 26 FRACCION III Direct award indicated, but no exception provided Article 41 indicated (direct award for exception other than low-value of the requirement), but no specific exception indicated Exception 41 - III indicated, but with different formats Exception 41 - III indicated in conjonction with another exception 14 different formats for values 15 different codes actually or potentially linked to one specific exception
7 2- Integrate and/or develop IT system(s) to cover the entire procurement cycle Such IT systems allow for: 1. enhanced consistency and adequacy through a common process, templates and automation 2. higher efficiency allowing time and resources for higher value-added activities 3. automatic collection of key procurement data and information 4. increased capabilities in the workforce
8 3- Increase capabilities in the procurement workforce Main challenges identified in reviews of procurement systems by OECD countries since 2008 % of responding countries 50% 40% N = 21 30% 20% 10% 48% 43% 29% 29% 24% 0% Workforce capacity Legal framework Control mechanisms Review and remedy system Use of exceptions to competitive tendering Source: 2011 OECD Survey on Reporting Back on Procurement Recommendation.
9 3- Increase capabilities in the procurement workforce 1. Base workforce planning, recruitment and promotion on merit and fair opportunity 2. Focus HR management on competencies and performance (not solely on compliance with the rules) 3. Develop expertise through training, certification, specialised units, knowledge network, etc. 4. Identify best practices in procurement and promote their adoption by all procurement units
10 4- Leverage opportunities for collaboration between buying agencies 1. Collaborations in Mexican health sector include: Joint price negotiations for patent medicines Joint procurement of medical products (e.g. non-patent medicines) and medical equipments 2. Important synergy potentials could be further explored in fields such as: market research training and development fight against supplier collusion
11 Thank you for your attention! Frédéric Genest
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