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Creating the global research village
EU Procurement
Nicola Anson, DANTE
TF-MSP Meeting, 1 March 2011
Creating the global research village
Introduction to speaker
Head of Finance & Commercial Operations at DANTE (Delivery of
Advanced Network Technology to Europe ) from January 2010
Responsible for procurement at DANTE
Background as Commercial Finance and Operations Director for last 15
years, purchase and sale of companies
Last role: Finance and Operations Director of technology transfer
company, University of Cambridge
Currently on learning curve with EU procurement activity within DANTE,
supported by Achilles and Matthew Scott
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Creating the global research village
Current procurement activity within DANTE
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DANTE World Service – Competitive Dialogue
Moscow/Copenhagen leased circuit – Open Procedure
GN3 Connectivity: Buc/Bud/Ath/Sof/Vie/Mil – Competitive Dialogue
CAREN Project leased circuit– Competitive Dialgoue
Transmission and Switching Equipment – Competitive Dialogue
Transatlantic Tender – Framework Agreement
Creating the global research village
What are the “EC rules”?
Principles and detailed procedures to be applied by “contracting
authorities” and “utilities” to their procurement
Reflect the risk that such bodies might favour national/local suppliers in
their procurement
Such preference breaches the EU Treaty obligations of free movement
of goods, services, people and capital (“the four freedoms”)
Open public procurement markets are a key objective of the EU
EC directives set out the procedures. The European Commission and
European Court of Justice interpret and apply them
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Creating the global research village
Aims and principles
Aim:
To improve supplier opportunities and value for money by opening
up the market
Principles:
Transparency
Objectivity
Non-discrimination
Competition
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Creating the global research village
Implications of the EC rules
Non-compliance can lead to:
Legal action against purchasers by potential suppliers . . .
And investigation by the European Commission
This will impact on procurement throughout the organisation
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Creating the global research village
The process outlined
Publish a call for competition in the Official Journal of the EU
Select suppliers from those responding
Establish non-discriminatory specification
Seek proposals (formal tenders/discussions on proposed solutions). For Competitive Dialogue, Invitation to Participate in Dialogue (ITPD) is issued prior to Invitation to Tender (ITT)
Assess proposals (based on lowest price or most economically advantageous tender)
Notify all interested suppliers of the outcome of the assessment (allowing 10 days for challenges)
Conclude contract
Debrief suppliers
Publish contract award notice in Official Journal of the EU
Note: No obligation to award a contract – process can be cancelled at anytime prior to contract conclusion
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Creating the global research village
Contracts covered
Most contracts above certain thresholds
Thresholds (2010-2011):
Works
– €4,845,000
Supplies and services
– Central government, including NHS: €193,000
– Local government, etc: €193,000
Note: Treaty obligation of non-discrimination applies even to low valuecontracts
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Creating the global research village
Key points
Process quite lengthy (typically 6 months plus to award a contract)
Limits on the scope to exclude suppliers from tender lists
Negotiation deliberately constrained
Deliberately restricts the discretion of the purchaser, to limit the scope
for “preferential procurement” (e.g. national or local suppliers)
Legal sanctions against purchasers recently strengthened
Caveat emptor!
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Creating the global research village
Procurements on behalf of others
Where one organisation is procuring on behalf of its community and other
NRENs in different countries:
Notice must make clear who is doing the buying
Need clarity as to legal jurisdiction
Need to ensure that the value of the contract and physical scope is clear
Need to have single point of contact for documents
Note: EU law does not set out any special rules for joint or cross-border
projects
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Creating the global research village
Looking ahead
As you may be aware, this year, for the first time, €14M of EC co-financing is available for consortia of public authorities from around Europe to undertake pre-commercial procurements (PCPs) together, through the FP7 ICT work programme 2011. Call 8 (July 2011 and January 2012) is an open call where PCP proposals in any area of public interest can be submitted.
PCP enables public procurers, by acting as technologically demanding first buyers, to drive the development of innovative solutions for public sector challenges from the demand side. In addition to improving the quality and effectiveness of public services, this can help create opportunities for companies to take international leadership in new markets.
High-level event on pre-commercial procurement – towards a smarter research and innovation procurement strategy for Europe (11-12 April 2011, Budapest).
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