Publications on Public Procurement

Public Procurement Review of the State's Employees' Social Security and Social Services Institute in Mexico

In series:OECD Public Governance Reviewsview more titles

Published on November 14, 2013

Also available in: Spanish

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How can citizens’ health and well-being be improved when public resources are limited? What practices allow hospitals and health clinics to get state of art medical equipment and medicine at the right price?

The OECD Procurement Review of the Mexican State’s Employees’ Social Security and Social Services Institute (ISSSTE) looks at the public entity responsible for providing medical and social services to Mexican civil servants. It provides a comprehensive assessment of its procurement function and how to improve it in order to enhance the overall efficiency and transparency of the organisation and the quality of the services it provides.

The review builds on the OECD Principles for Enhancing Integrity in Public Procurement, good practices of other health organisations as well as comparative data on public procurement in OECD countries.

TABLE OF CONTENTS

Foreword and Acknowledgements
Acronyms and abbreviations
Executive summary
Overview of the Mexican health system system: The role of the State's Employees' Social Security and Social Services Institute
Strengthening the structure and co-ordination of ISSSTE's procurement function
Ensuring high quality regulations for ISSSTE's procurement processes
Fostering effective risk-based internal control in ISSSTE's procurement activities
Managing for results: Implementing an organisational procurement strategy and evidence-based performance management in ISSSTE
Achieving better procurement results through sound sourcing methods
Addressing deficiencies in ISSSTE's procurement processes
Enhancing procurement capability in ISSSTE
E-procurement: Implementing a strong IT environment to support ISSSTE's procurement activities
Towards open government: Promoting transparency in public procurement in ISSSTE
Ensuring integrity throughout ISSSTE's procurement cycle
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Good governance in health procurement is necessary to deliver quality health care services to citizens.

 

The State’s Employees’ Social Security and Social Services Institute in Mexico (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, ISSSTE) requested the OECD to assess the efficiency and integrity of its procurement systems and identify opportunities for improvement.

 


REPORT

The OECD Public Procurement Review of ISSSTE (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado) was launched in Mexico City on 14 November 2013.

The review presents an in-depth analysis of Mexico's health procurement strategies and benchmarks them with good practices of OECD countries in five areas:

Public Procurement Review of the States Employees Social Security and Social Services Institute in Mexico

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  • Management, coordination and communication
  • Workforce organisation and capability
  • Relationship with the marketplace
  • Tender processes
  • Transparency and integrity


The review presents an in-depth analysis of Mexico's health procurement strategies and benchmarks them with good practices of OECD countries in five areas:

  • Management, coordination and communication
  • Workforce organisation and capability
  • Relationship with the marketplace
  • Tender processes
  • Transparency and integrity


ISSSTE procurement strengths:

  • Strong central procurement area with significant experience and expertise
  • On-going initiatives to improve the stock management of medicines
  • Dedicated procurement officials willing to improve the procurement process


ISSSTE areas for improvement:

  • Coordination of the decentralised procurement units through an organisation-wide procurement plan;
  • Strengthening the electronic procurement system to collect data and statistics for evidence-based decision making;
  • Development of the skills of the procurement personnel through regular and structured training;
  • Reducing direct awards and opening more procurement opportunities to foreign bidders to increase competition; and
  • A state-of-the-art market studies unit to improve price and quality of procured goods and services.


ISSSTE has taken concrete measures to implement OECD’s recommendations by:

  • Strengthening the stock management of its medicines and medical products through a comprehensive database tracking inventory levels, procurement processes, suppliers, prices and non-delivery issues
  • Centralising purchases of goods and services, which has resulted in important savings
  • Pursuing consolidation opportunities with IMSS and other public purchasers

 

The OECD continues to support ISSSTE through a new project run in 2014, which focuses on:

  • Improving market research in ISSSTE
  • Coordinating procurement activities across the organisation
  • Outsourcing of medical services
  • Providing a comparative analysis of ISSSTE’s direct awards
 
 
 

Procurement - SG Mexico

 

EVENT

On 14 November 2013 Angel Gurría, Secretary-General of the OECD launched the OECD Public Procurement Review of ISSSTE in Mexico City.


"ISSSTE has entered a new era, taking courageous measures to provide better health services. I want to congratulate the management of this institution for opening their public procurement processes to international scrutiny and for immediately implementing the recommendations of the OECD"
Angel Gurría, OECD Secretary-General.

 

More than 500 participants attended the launch including Sebastián Lerdo de Tejada, General Director of ISSSTE, Luis Godina, General Secretary of ISSSTE, Alejandra Palacios, President of the Mexico Federal Economic Competition Commission, Ambassador of Mexico to the OECD Dionisio Pérez-Jácome Friscione, trade union leaders, senior officials from ministries and the Senate, university professors as well as representatives from the media and civil society.

 

This review is part of the series of OECD public procurement peer reviews that help countries assess their procurement systems against the 2008 OECD Principles for Enhancing Integrity in Public Procurement. The Principles, agreed by all OECD member countries, were developed to help policy makers reform the whole procurement cycle, from needs assessment to contract management and payment.


A second report by the OECD, Fighting Bid Rigging in Public Procurement in Mexico was also launched on the same occasion in Mexico.