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Germany

Making Procurement Data Complete and Interconnected (DE0052)

Overview

At-a-Glance

Action Plan: Germany Action Plan 2023-2025 (June)

Action Plan Cycle: 2023

Status:

Institutions

Lead Institution: Federal Ministry of the Interior and Community, Procurement Office of the Federal Ministry of the Interior and Community

Support Institution(s): Federal Ministry for Economic Affairs and Climate Action (Division IB6), Free Hanseatic City of Bremen (Senator for Finances, Division 45, Digitalisation of Administrative Services for Businesses), Land North Rhine-Westphalia, Land Rhineland-Palatinate, FITKO, Coordination Office for IT Standards; Bundesdruckerei GmbH, Nortal AG, adesso SE

Policy Areas

Anti-Corruption and Integrity, Open Contracting

IRM Review

IRM Report: Germany Results Report 2023-2025, Germany Action Plan Review 2023-2025

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Yes

Ambition (see definition): Low

Implementation i

Completion: Pending IRM Review

Description

What is the public problem that the commitment will address? The data contained in governmental contract notices are an essential basis for analysing the purchasing habits of Germany’s public authorities. Following the commitment in the third NAP, the public-procurement data service Datenservice öffentlicher Einkauf at http://www.oeffentlichevergabe.de/ui/de/ has been successfully made available as a system in combination with the central Publication Service and the new eForms-DE standard. However, the following challenges remain: (1) to date, only procurement procedures above the EU thresholds and EU-wide procedures are recorded, there are various channels for publishing notifications and every Land has its own powers to regulate in such matters, (2) data from contract notices constitute a singular data silo, but the answers to many relevant questions could only be found through linkage with data outside the realm of procurement, and (3) such cross-referencing is only effective if it is easily accessible and arranged in such a way as to supply answers to questions arising in day-to-day work.

What is the commitment? The notification data from EU-wide procurement procedures conducted by federal, Land or local authorities, as well as federally owned national procurement procedures below the thresholds, will be made available on the public-procurement data service platform. The Federal Ministry of the Interior and Community will encourage the Länder and local au- thorities to fully collaborate with the platform in respect of their procurement below the thresholds. The data service will be connected to the EU’s Public Procurement Data Space. In collaboration with procurement offices, business and civil society, the ministry is draw- ing up prototype questions that can be answered via dashboards using procurement data and other linked external data and will make these available in the data service.

How will the commitment contribute to solving the public problem? The availability of notification data from EU-wide and national procurement procedures from the federal, Land and local authorities on the public-procurement data service will give a complete picture of the public-procurement situation. For the first time, the data of public procurement will be available and interconnected. The prototype dashboards will serve as a basis for both tactical and strategic decisions. This will add considerable value to the data for public procurement itself, for businesses, for civil society and for policymakers.

Why is this commitment relevant to OGP values? Implementing this commitment will generate visibility and appraisability for state procurement that goes beyond statutory transparency requirements. In particular, stakeholders from business will gain access to more abundant and detailed information.

Additional information: • Location of the public-procurement data service: http://www.oeffentlichevergabe.de/ui/de/ • Link to the overarching implementation project: http://www.finanzen.bremen.de/ digitalisierung/digitalisierung-von-verwaltungsleistungen-fuer-unternehmen/ digitale-beschaffung-103422 • See also commitment 7.2 in the third National Action Plan for 2021–2023

Milestone activity with a verifiable deliverable | Start date - Implementation by

Collation of a standardised data set and publication on the public-procurement data service | January 2023 - October 2023

Expansion to receive notifications regarding national tenders | November 2023 - December 2025

Connection of the public-procurement data service to EU’s Public Procurement Data Space | January 2024 - December 2025

Dashboard prototypes for the presentation of data from procurement cycle | October 2023 - September 2024

IRM Midterm Status Summary

Action Plan Review


Commitment 9. Data-based value-added services in public procurement

  • Verifiable: Yes
  • Does it have an open government lens? Yes
  • Potential for results: Modest

    • Federal Ministry of the Interior and Community (BMI) and Procurement Office of the Federal Ministry of the Interior and Community (BeschA)

    For a complete description, see Commitment 9 in Germany’s 2023–2025 national action plan: https://www.opengovpartnership.org/wp-content/uploads/2023/08/Germany_Action-Plan_2023-2025_June_EN.pdf.

    Context and objectives

    This commitment continues a commitment from the 2021–2023 action plan [58] that established a central platform for all above-threshold tenders in a standard format. [59] Under the current commitment, the Federal Ministry of the Interior and Community (BMI) and its Procurement Office (BeschA) aim to use this platform to improve public procurement. Specifically, they will publish standardized datasets and develop prototype questions accessible on an online dashboard and in consultation with stakeholders. In addition, the BMI and BeschA will enhance the platform and the technical standard eForms-DE to include below-threshold tenders at the federal level as role model, encouraging wider uptake of the platform at subnational levels on all government levels, and connect the platform to the EU’s Public Procurement Data Space. This commitment builds on the coalition agreement’s promise to digitalize public procurement. [60]

    Germany has a complex legal framework for public procurement. [61] Since October 2023, it is mandatory for all procurement above the thresholds set by the EU to be published in the eForms standard. Germany used the previous commitment to comply with this requirement, establishing the eForms-DE data standard, developed to be compatible with the Open Contracting Data Standard (OCDS). Germany has recently initiated a reform of its procurement law (“Vergabetransformationspaket”). To this end, the Federal Ministry for Economic Affairs and Climate Action (BMWK) is currently preparing a draft law and hosted a large-scale public consultation, which received over 450 submissions. In June 2023, the BMWK organized five stakeholder discussions with roughly 200–330 participants each [62] and identified three key priorities: simplification, sustainability, and digitalization of procurement process. [63]

    Potential for results: Modest

    The use of procurement data can help administrations and businesses better understand the market and better monitor their goals e.g., sustainability or innovation targets. This commitment can enable greater public scrutiny of procurement, better strategic planning by public administrations, and increase the competitiveness of public procurement. Small and medium enterprises (SMEs) could benefit from easier access to public tenders. [64] However, the potential for results of this commitment will depend on the uptake of the eForms-DE data standard, including where it is not mandated by EU law.

    In 2021, the market value of public procurement in Germany surpassed EUR 100 billion. [65] Around 10% of all tenders are above-threshold, making up around 75% of market volume. [66] The transparency measures under this commitment would therefore provide insight to a significant portion of the market. For Länder and municipalities, transparency of below-threshold procurement is especially relevant. At federal level, the contract value of above-threshold procurement surpasses the below-threshold ones by around eight times. At municipal level, the values are roughly equal, [67] but the availability of public procurement data at remains limited [68] and procurement practices differ greatly among individual municipalities. Meanwhile, below-threshold procurement at federal level occurs through diverse processes. This data is currently integrated through an adapter which converts them to a simplified eForms-DE format, leaving room for improvement in terms of data quality. This ex-ante transparency will help prevent corruption and increase market competitiveness, [69] but limit the understanding of the below-threshold market.

    The implementing agencies commented that some municipalities perceive the new system as an added burden, as the eForms-DE standard requires more inputs than is commonly required by law. It is already integrated into laws, agencies, and cooperative forums between federal, Länder, and municipal administrations, such as the “Onlinezugangsgesetz”, federal coordination for IT, and the IT planning council (“IT-Planungsrat”). The implementing agencies noted that federal and Länder governments want to engage municipalities on the benefits of greater transparency. The providers of the procurement management systems will offer training and accompanying communication, which could help convince more administrations to adopt the standard. For municipalities, the new system could enable better market insights and help them compare their procurement needs to other municipalities. This would improve understanding of the possibilities for procurement and the market situation.34

    Opportunities, challenges, and recommendations during implementation

    The commitment is a promising follow-up from the last action plan. The new platform and the eForms-DE data standard hold great potential in increasing the competitiveness and transparency of public procurement. They could also help with strategic market planning and the coalition government’s green transition goals. The key challenge remains the diversity of practices regarding below-threshold procurement. The goal must be to promote the new transparency measures to all procurement processes to enable better planning of procurement. To reach this goal, the IRM recommends the following:

  • Expand collaboration with municipalities and Länder for wide uptake of eForms-DE. Municipalities and Länder could benefit from publishing their tenders in the eForms-DE format. Many municipalities still perceive digitalization as a burden instead of an opportunity for a more competitive and transparent procurement process. Clear procurement procedures for administrations and businesses (regardless of EU threshold) and a central digital platform to identify and apply for tenders could enable more efficient public procurement.
  • Consult stakeholders to identify priorities for data disclosure. The coalition government wants to mobilize public procurement towards strategic targets, especially regarding sustainability and innovation. Currently, only 12,7% of tenders (13% of contract volume) consider sustainability and innovation criteria. [70] In line with OCP’s recommendation to develop priorities for data collection with stakeholders, [71] the commitment currently includes consultations on prototype questions, although it might be beneficial to involve them in the creation of the standardized dataset. The consultations held by the BMWK in the context of procurement law reform could be a starting point for future collaborations. In the case of Paraguay, businesses proved to be an effective partner in developing an easy-to-use e-procurement platform that responds to the needs of SMEs. [72]
  • Enable public oversight of public procurement. At present, the project is mainly aimed at data analysis by public administration and businesses. The newly available data on public procurement could also be used to enable citizens to better scrutinize public procurement practices. To this end, the BMI and the BeschA could work with civil society to develop transparency features. One important area is the ability to track contracts awarded under single-bidder procedures over time, as these contain higher risks of corruption and inefficiencies. Chile offers a good practice example where citizens could monitor the public procurement of medicine and identify inefficiencies, which decreased the cost by around 60%, [73] by working with a civil society council to publish data based on the needs of its users. As a result, it has become significantly easier for citizens to monitor public procurement and identify inefficiencies.
  • Reform and simplify the legal framework regarding public procurement. Simplification of public procurement is a main priority of stakeholders. The procurement law reform (“Vergabetransformationspaket”) provides an opportunity to work towards a digitalized and strategic procurement process and mandatory use of eForms-DE.
    • [58] “IRM Action Plan Review: Germany 2021–2023,” Open Government Partnership, 18 February 2022, https://www.opengovpartnership.org/documents/germany-action-plan-review-2021-2023 .
    [59] For public procurement above certain thresholds, EU legislation applies. For an overview of thresholds and laws, see “Public Procurement Thresholds,” European Commission, https://single-market-economy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation/thresholds_en .
    [60] “Koalitionsvertrag zwischen SPD, Bündnis 90/Die Grünen und FDP,” Federal Press and Information Office.
    [61] “IRM Action Plan Review: Germany 2021–2023,” Open Government Partnership
    [62] “Stakeholder-Gesprächsrunden im Juni 2023” [Stakeholder roundtables in June 2023], Federal Ministry for Economic Affairs and Climate Action, June 2023, https://www.bmwk.de/Redaktion/DE/Artikel/Service/Gesetzesvorhaben/oeffentliche-konsultation-zur-transformation-des-vergaberechts.html#docce41d96c-90bd-499d-91c8-87b16a3a19cfbodyText4 .
    [63] “Präsentation Vergabetransformation Digitalisierung,” [Presentation on Digital Procurement Transformation], p. 6.
    [64] Guillermo Burr, “Vendors as partners: How Paraguay’s VIGIA provides a community to increase competitiveness and opportunity for SMEs,“ Open Contracting Partnership, 25 September 2023,https://www.open-contracting.org/2023/09/25/vendors-as-partners-how-paraguays-vigia-provides-a-community-to-increase-competitiveness-and-opportunity-for-smes .
    [65] “Vergabestatistik: Bericht für das erste Halbjahr 2021,” [Procurement Statistics: First Half of 2021], Federal Ministry for Economic Affairs and Climate Action, October 2022, https://www.bmwk.de/Redaktion/DE/Publikationen/Wirtschaft/bmwk-vergabestatistik-2021.pdf?__blob=publicationFile&v=14; “Vergabestatistik: Bericht für das zweite Halbjahr 2021,” [Procurement Statistics: Second Half of 2021], Federal Ministry for Economic Affairs and Climate Action, August 2023, https://www.bmwk.de/Redaktion/DE/Publikationen/Wirtschaft/bmwk-vergabestatistik-zweites-halbjahr-2021.pdf?__blob=publicationFile&v=4 .
    [66] “Vergabestatistik: Bericht für das erste Halbjahr 2021,” Federal Ministry for Economic Affairs and Climate Action, p. 13.
    [67] At federal level, above-threshold was at EUR 12,559.1 billion vs. EUR 1,620.0 billion. At municipal level, the threshold was EUR 6,520.3 billion vs. EUR 6,791.8 billion. See “Vergabestatistik: Bericht für das zweite Halbjahr 2021,” Federal Ministry for Economic Affairs and Climate Action, p. 17 & 21.
    [68] Mara Mendes & Jessica Voigt, “Open Government Data as a panacea against corruption and mismanagement: An analysis of Open Public Data on COVID-19-related procurement at the sub-national level,” 15th International Conference on Theory and Practice of Electronic Governance, October 2022, https://doi.org/10.1145/3560107.3560139 , p. 180–186.
    [69] Monika Bauhr, Ágnes Czibik, Jenny de Fine Licht & Mihály Fazekas, “Lights on the shadows of public procurement: Transparency as an antidote to corruption,” Governance: International Journal of Policy, Administration, and Institutions, 13 August 2019, https://onlinelibrary.wiley.com/doi/10.1111/gove.12432 , p. 495–523.
    [70] “Vergabestatistik: Bericht für das zweite Halbjahr 2021,” Federal Ministry for Economic Affairs and Climate Action, p. 38.
    [71] Lindsey Marchessault, “How to make sure open contracting data gets used: A guide to defining the use case,” Open Contracting Partnership, 18 August 2016, https://www.open-contracting.org/2016/08/18/use-case-guide .
    [72] Burr, “Vendors as partners: How Paraguay’s VIGIA provides a community to increase competitiveness and opportunity for SMEs,“ Open Contracting Partnership.
    [73] “Diagnosis open: how open contracting is bringing down the cost of medicines in Chile,” Open Contracting Partnership, 29 January 2021, https://www.open-contracting.org/2021/01/29/diagnosis-open-how-open-contracting-is-bringing-down-the-cost-of-medicines-in-chile .

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