Edited Version This volume was edited by Maria Fiore, Valeria Russo, Mauro Bucci, Ottavio Janni and Aidan McCann. Under the supervision of Giuseppe Pennella Director, C.A.I.MED (Centre for Administrative Innovation in the euro-Mediterranean Region), Head of Research and Development – Formez. Final edits and formatting for English publication: OECD. 2 PRESENTATION OF THE VOLUME E-Government – of which e-procurement is an integral part – is one of the most valuable ICT-based administrative innovation reforms; it can render public policy more effective, efficient and responsive to social and political needs. The two World Summits on Information Society organised by the United Nations demonstrated how public e-procurement, as part of an e-government strategy, can play a fundamental role in achieving good governance. Through its Initiative on e-Government and ICT for Development, Italy played a crucial role in these events. Additionally, e-procurement reinforces one of the fundamental rules of information and communication technologies: technological and organisational aspects must be linked within the overall innovation process. The Seminar discussions showed that changes in public procurement management – facilitated and promoted by the use of ICT – embrace both technological innovations and organisational and cultural transformations, especially with regard to know-how and practical skills. Italian institutions like Formez (Study and Training Centre) and C.A.I.MED. (Centre for Administrative Innovation in the Euro-Mediterranean Region) have worked with local, national and international public administrations in support of public policies for cohesion and development to achieve excellent, widely published results. Projects have focused on training, experimentation/assistance, applied research, creation of Communities of Practice, diffusion/reinterpretation of best practices and benchmarking. A programme of innovation development within a vision of systemic government has been launched to facilitate dialogue among experts, public administrations and, where necessary, private partners. To achieve real innovation, it is necessary to act within a context of multi-level governance, addressing the organisation and modalities of front- and back-office work and conduct, knowledge and competences, and to continually verify the path forward. The High Level Seminar on E-Procurement, held in Naples on 30-31 January 2006 and presented in this volume, was directed at Arab and Italian public administrations; participants presented their projects and shared significant experiences. It was organised jointly by C.A.I.MED, Formez and the Presidency of the Council of Ministers (Departments of Public Administration, Innovation and Technologies, and the Technical Unit e-Government for Development), with the assistance of the Ministry of Foreign Affairs. This volume sums up the initial results of the High Level Seminar. It includes all remarks, discussions, materials, and conclusions elaborated and shared by the delegations of participating countries, with the support of experts and representatives from the OECD, the United Nations, and the World Bank. The volume is divided into seven chapters, in addition to the opening chapter which summarises the event‟s goals. The first chapter discusses the basic characteristics of e-procurement systems, their expected benefits, their weaknesses, and their normative framework: namely the organisational and regulatory changes necessary for the introduction of an e-procurement system, and successes and shortcomings of countries‟ current e-procurement programmes. The second chapter deals with organisational models (centralised/decentralised, direct/indirect) and responsibility for e-procurement oversight and management. The third chapter focuses on rationalisation and procedural simplification, and on the impact of new procurement methodologies in terms of transparency. The fourth chapter discusses technological aspects of e-procurement. The fifth chapter deals with the creation of the skills necessary to implement e-procurement systems, and the sixth with international co-operation efforts. The closing chapter sums up the goals that have been achieved and shared, setting out initial operational guidelines that will be useful for countries 3 that wish to launch and/or continue similar innovative processes; it also stresses the usefulness of holding similar meetings in the future, as well as other initiatives to promote benchmarking and critical analysis and diffusion of best practices in this area. Reading and distributing this volume will provide food for thought and opportunities for increased collaboration and sharing of best practices to actively and concretely promote good governance for development in the Arab region. Luigi Nicolais Minister for Public Administration Reform and Innovation 4 FOREWORD This publication contains the proceedings of the regional MENA High Level Seminar on E-Procurement, which took place on 30-31 January 2006, in Naples, Italy, within the framework of the OECD-UNDP Good Governance for Development (GfD) in Arab Countries initiative. This initiative, launched in February 2005 at the request of 18 Arab countries, focuses on helping participating countries to design and implement policy reforms and modernise governance structures and operations in view of enhancing the investment climate and promoting sustainable economic growth throughout the MENA region. The seminar was held at the invitation of the Government of Italy to support the activities carried out by the regional MENA Working Group on E-Government and Administrative Simplification, chaired by Dubai, United Arab Emirates, and co-chaired by Italy and Korea. The seminar was hosted by the Department of Public Administration and the Department of Innovation and Technology of the Italian Presidency of the Council of Ministers, with the sponsorship of the Italian Ministry of Foreign Affairs, and in collaboration with Formez, the Institute of the Department of Public Administration for innovation and public management training. This event would not have been realised without the strong leadership of Vincenzo Schioppa, Minister Plenipotentiary of the Italian Ministry of Foreign Affairs and Co-Chair of Working Group 2; Federico Basilica, former Head of the Department of Public Administration; and Claudia Oglialoro, Director of the e-Government for Development Program. Special thanks go to Giuseppe Pennella, Director of C.A.I.MED., who hosted the event and made this publication possible. The e-procurement seminar brought together 18 e-government and administrative simplification experts from nine Arab countries and OECD countries to share strategic advice and practical know-how on key steps and processes for implementing e-procurement; this includes regulatory and institutional settings, re-engineering and simplification of procedures, and skills development. The implementation of effective e-procurement systems was also on the agenda. The framework provided by the seminar has created a strong foundation for further work in this area and discussion of other e-government and administrative simplification issues. The seminar showed that Arab countries share common challenges for improving good governance arrangements – and that increased policy dialogue both with OECD countries and among Arab countries can help overcome these issues. The seminar also served as a model for a series of regional capacity building seminars that is one of the key components of the implementation of the GfD initiative in 2006 and 2007. The results of the seminar fed into the preparation of National Action Plans for reform in Arab countries, which were presented at the GfD Steering Group meeting in Sharm el Sheik on 19-20 May 2006. E-Procurement will continue to be a central theme in the current phase of the initiative, focusing on implementation of Arab countries‟ Action Plans. 5 TABLE OF CONTENTS PRESENTATION OF THE VOLUME ........................................................................................ 3 FOREWORD ................................................................................................................................ 5 1. INTRODUCTORY NOTES..................................................................................................... 9 2. A CONTEXT FOR E-PROCUREMENT – THE REGULATORY FRAMEWORK............ 19 An overview of e-procurement and governance ...................................................................... 19 The e-procurement regulatory framework: Italy...................................................................... 21 Topics for further discussion ................................................................................................... 27 3. A CONTEXT FOR E-PROCUREMENT – ORGANISATIONAL STRUCTURES AND ACCOUNTABILITY ...................................................................................................... 33 The Experience of Consip: Italy .............................................................................................. 33 The Lebanese Context ............................................................................................................. 35 Topics for further discussion ................................................................................................... 37 4. A CONTEXT FOR E-PROCUREMENT – THE PROCESSES OF RE-ENGINEERING, SIMPLIFICATION AND TRANSPARENCY ....................................... 41 Rationalisation and transparency in e-procurement