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Public Procurement in Chile

Policy Options for Efficient and Inclusive Framework Agreements

image of Public Procurement in Chile

Public procurement is a critical element of sound governance and countries implement diverse tools and strategies to increase its efficiency and cost effectiveness. Framework agreements, in particular, aggregating public demand and streamlining procurement processes are increasingly used by central purchasing bodies in OECD countries. This report examines the use of framework agreements and their developments in Chile, benchmarked against the practices in other OECD countries. Implementation of framework agreements in Chile have provided business opportunities to a growing number of suppliers and a wide variety of goods and services to public entities. Yet, the steady increase of the number of suppliers and contract management activities now question the sustainability and the effeciency of the system. This report analyses different policy options that ChileCompra could consider and suggests ways to streamline processes, improve the effectiveness of the system and increase efficiencies while promoting inclusiveness.

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Italy: Call for tender structure

Founded in 1997, Consip is the Italian central purchasing body, it is 100% owned by the Ministry of Economy and Finance (MEF). Since 2000, Consip has been tasked with the implementation of the Programme for the Rationalisation of Public Spending on Goods and Services, which includes the use of tools such as framework agreements. Energy is one of the product/service categories that Consip provides to public administrations. In 2005, Consip’s energy unit realised, by means of analysis and market research, that there was room for designing a framework agreement, for the first time, in the procurement of heating services. This area absorbed 34% of the national energy expenditure (about EUR 3.4 billion annually) and accounted for approximately 5% of the Italian energy market. The expected target was to achieve economical savings of 5-10% and equivalent energy savings.

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