GPP in the new PP directives

Peter Nohrstedt

Structure of the presentation

• New PP support organisation in Sweden• GPP in the EU PP directives – what is new?• Innovation partnership – what is it about?

The new Swedish support organisation for public

procurement

The Swedish Competition Authority (SCA)

The Swedish Competition Authority is a state authority working in order to safeguard and promote competition and supervise public procurement in Sweden

"Economic welfare through effective markets"

Public Procurement – SCA’s new tasks

• SCA responsible for support and guidance to

suppliers and contracting authorities Contribute to reinforce the strategic importance of public

procurement Facilitate SMEs’ participation in public procurement Prevent corruption and combat conflicts of interest Contribute to goals about sustainable procurement and

encourage voluntary improvement of environmental considerations in public procurement

Promote innovation procurement

New public procurement directives

• Reform proposals presented by the Commission 2011

• Ordinary legislative procedure• European Parliament decision 1st reading January 2014

• Council of Ministers adopted acts February 2014

• Three new directives; “classic”, “utilities” and

“concession”

• Directives implemented in national law by spring 2016

Objectives for the reform

1. Simpler/ more flexible procedures

3. Better access (SMEs, cross-border trade)

4. Sound procedures

2. Strategic use

5. Governance, professionalization of procurement

Strategic procurement

• Freedom of choice what to buy • Subject matter link maintained but extended (production

process, fair trade) • Use of labels • Life cycle costs (including measurable external costs) • Social criteria (protection of workers, employment of

handicapped, long term jobless, etc.)

DIRECTIVE 2014/24/EU

Recital 2

Public procurement plays a key role in the Europe 2020 strategy, as one of the market-based instruments to be used to achieve smart, sustainable and inclusive growth while ensuring the most efficient use of public funds.

New features on GPP (classic sector)

Aim - better integration of environmental considerations.

Horizontal clause:

– performance of public contracts have to comply with

environmental obligations (law)

– abnormally low tenders have to be rejected if suppliers do not

comply with environmental obligations

Labels

• Possible to refer to a specific label

• all criteria must relate to the subject matter of the contract

• developed in a transparent process

• based on objective and non-discriminating criteria and

available

• too little time to get a label equivalent labels or other

means of proof must be accepted

Production process

• Possible to consider all factors of the production, provision or trading

• Technical specification - factors that do not form part of the

material substance of the product• Ex: products manufactured /provided using energy-efficient

machines, production processes with low emissions etc.

• Award – possible to take into account these factors and

also to favour products with a fair trade origin, sustainable

timber origin etc.

Life-cycle costing

• All costs – including internal as well as external costs (emissions of greenhouse gases, extraction of raw materials)

• Monetary value can be determined and verified• No EU method exists – ok with own method

ex. clean vehicle directive• Not designed for one specific PP• Objective• Reasonable effort by enterprises

Environmental Management Schemes

• Can now also be used in procurement of goods• Reference to the European Union Eco

Management and Audit Scheme (EMAS) or equal• Recognize equivalent certificates

Competitive procedure with negotiation• Replaces the negotiated procedure with prior publication –

substantial changes to conduct:

• Identification of “core” (minimum) non-negotiable

requirements; award criteria and weighting also non-

negotiable;

• All other aspects may be negotiated (e. g. quality,

quantities, commercial clauses; social, environmental,

innovative aspects)

Definitions of innovation procurement

Innovation procurement

Innovation friendly procurement

Contracting authorities actively use procurement to buy the best performance.

Stimulates deployment of innovations!

Procurement of innovations

Contracting authorities require and order an innovation in order to solve a specific problem.

Stimulates that innovations happens!

Innovation partnerships

• New procedure to be implemented in National law.

• Contracting authorities can start partnerships with one or many partners in order to develop and then procure innovative products.

• Partnerships shall be divided into successive stages.

• Contracting authority may terminate the partnership after each stage.

• Contracting authority shall negotiate with tenderers.

Preconditions for innovation procurement

Support from leadership

Support from the organisation

Knowledge

Resources

Tender document

Tender C

Tender D

Tender E

Tender F

Tender A

Tender B

Supplier A

Supplier B

Supplier C

Supplier D

Supplier E

Supplier F

Supplier X

Award of contract phase 1

Project C

Project D

Project E

Project A

Project B Project B Project B

Project D Project D

Tender period

Phase 1 development

of concept/idea

Phase 2prototypes & test

series

Award of contract phase 2 and delivery

Innovation partnership

Delivery from

supplier B

Delivery phase

Discussion and questions

Questions

• Which procurements would be suitable for innovation friendly procurement?

• What is needed (from the organisation, resources, working methods)?

• What challenges/problems do you have that can be solved by the market?

• What current/coming development projects are suitable for innovation procurement?

Thank you for your attention!

Peter Nohrstedtpeter.nohrstedt@kkv.se +46 8 5861718