Public
and
Private
Procurement
Title
in
the
European
Union
Sub-title
Richard Hall & Toni Saraiva
Enterprise Europe Network – EISC Ltd
PLACE PARTNER’S
LOGO HERE
European Commission
Enterprise and Industry
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Running Order
• Basic concepts, Stepping stones and trends
 EU public procurement market
 Israeli companies & EU procurement
 Jargon
 Trends: innovation, green, e-procurement
• Strategies for effective tender search and submission
 Where to find opportunities
 Searching for and reading tender
 Procurer’s psyche
 Finding partners
 The Basic necessities
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Running Order (continued)
• Exercise – Bid review and writing
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A picture of Europe
• Law
• The Euro
• The EU
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What is EU public procurement?
• Who buys?
 The Public sector:
•
•
•
•
•
•
Government
Municipalities
Hospitals
Schools
Utilities
Etc
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Public procurement in the EU
• Around 275 000 contracting Authorities
• 19% of EU GDP in procurement value
(2 000 Bn € every year)
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Tenders
• 1000 high-value tenders every day
• 500 million € per year
• Summary in English
• Language of the country
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Can you sell to procurers in the EU?
• Have you ever sold there?
• Can you deliver your activity there?
• What is your value proposition and does
it fit with the EU procurers’?
• Can you sell like an EU company?
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How to sell to the public sector
• GPA – what does it mean for you?
• EU Directives 17 & 18 but also 81
• A better understanding of:
 EU principles
 The thresholds
 The jargon
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GPA - Parties
-
Armenia
Canada
Honk Kong
Iceland
Israel
Japan
Korea
-
Lichtenstein
Norway
Singapore
Switzerland
Chinese Taipei
United States
European Union
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GPA
CA
KR
JP
US
EU
3.2
50
23
12
85
4.3
77
70
27
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Companies from Israel
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Israeli companies winning abroad
• Last 5 years:
 18 Israel based companies won directly (*)
 26 contracts won
 Smallest contract:140 000€
 Biggest contract: 35 Million €
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Israel based
Nakicom
Shapir
Structures
1991 Ltd
013
Netvision
RRSat Global
Communications
IEP Israel
Encounter
Elmo-Tech Ltd
Elbit Systems
Elta Systems Ltd
Armoni
Marketing
Tahal
Consulting
Engineers Ltd
Motorola Israel Ltd
Israel Aerospace
Industries Ltd
Israel Military Industry Ltd
Orad Hi-Tec Systems Ltd
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EU Directives
• EU Directives 17 & 18 but also 81
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EU principles
•
•
•
•
•
Equal Treatment (non-discrimination)
Mutual recognition
Proportionality
Transparency
Fairness
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Thresholds in a typical UK City
Value (service or
product)
Procedure
Up to €25,000
3 Quotes
€25,001 to €100,000
3 Tenders
€100,001 to €200,000
5 Tenders
€200,000 and above (OJEU
threshold - works start at €5m)
Compliance with EU
procurement directives
Approved Suppliers List
Yes
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Sub EU-Thresholds
• Different in every country
• Different in different Authorities in the UK
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Trends in Public Procurement
in the EU
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Trends in EU procurement
• E-procurement
• 2010 target
• Portugal
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E-procurement (continued)
• E-signatures
• The New Directives and the future
• The Golden e-book
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Trends in EU procurement
• Green Procurement
•
•
•
•
•
Life Cycle Costing
Performance based criteria
Voluntary target 50% of procurement to be Green
Different criteria level basic, advanced, top
19 GPP activities with criteria
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Trends in EU procurement
• Innovation procurement
•
•
•
•
Newest trend
In need of clarification / framing
The SBIR in the USA & development in the EU
PCP, FCP etc.
 http://vimeo.com/channels/eisc
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Some Jargon
• PQQ
Pre Qualification Questionnaire
• ITT - CN
Invitation To Tender – Contract Notice
• VFM
Value For Money
• EOI
Expression of interest
• E-Auction
Bidding down process
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Finding Tenders
Private opportunities
Public opportunities
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Private Opportunities in Europe
• The Olympic Games & Legacy
 www.competefor.com
• Accessing other private opportunities
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www.competefor.com
Register
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Why competefor is interesting?
• Live private opportunities
• Up-to-date database of companies
 Partners
 Clients
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How private companies source
suppliers in the EU?
• Same as in Israel
• E-procurement systems:
 Some specific to industries (ex.
Construction - Glenigan)
 To sell ICT: ITIndex
 100 active e-procurement / ecatalogue
suppliers, different markets or sectors
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Where to find Opportunities
• ITIndex, Consip, competeFor, national,
regional portals, newspapers…
• EU level:
 TED ted.europa.eu
• Private search services
 Example: www.winningtenders.eu
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Winningtenders.eu
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Ted.europa.eu
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What will you find? What to do with it?
• CN
• CA
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Key Tender formats
Open
Procedure
Restricted
Procedure
Invitation to Tender
Pre Qualification (PQQ)
Tender Document
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What do you need to tender?
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What do you need to tender? (1)
• A track record in delivering
 Build up references
 Aim for 5 to 10
 If no Public Sector then use similar
Private sector
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What do you need to tender? (2)
• Policies





Environmental/Sustainable
Equal opportunities
Health & Safety
Risk management
Quality Management Statement
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What do you need to tender? (3)
• Insurances
 Public liability
 Employer’s liability
 Professional Indemnity
• Certifications
 ISO 9001 / 14001?
• And the finances…20% unwritten rule
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What do you need to tender? (4)
• Research the market







Who is the buyer?
What do they value?
Who are the competitors?
Who is the incumbent if any?
How are you different?
Can you partner to be stronger?
Have you got references?
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What is important for Procurers?
• You are the procurers
 Buying a minibus
 Who do you choose and why?
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Conclusions
Specifications are as good as the procurer
Cheapest is not best
If not clear ask questions
Comply to what is asked
Do not make the life of the procurer
difficult
Try adding value
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Finding Partners
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Partnering in Europe – where to start?
• Tender databases
 Competefor
 TED
• Enterprise Europe Network
 BCD - commercial
 BBS – technological
• Brokering events
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Some brokering events of interest
• In the EU
 Kortrijk, BE (28th May) – Infopol: Security & Emergency
 Aachen, DE (18th June) – Biomedica
• In Israel
 Tel Aviv (10th June) – Biomed 2013
Uri Fishelson
Telephone:+972 (0)3 5118171 uri@iserd.org.il
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www.b2match.eu/infopol-xpo112
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Which country to start with?
• Country to start with:
 Public procurement:
English speaking or use your staff expertise
 Private opportunities:
UK/ Ireland / Scandinavian / Netherlands
usually good landing places
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Country information
• Your Europe portal
• EU Export Help Desk
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Practical Exercise
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Group Work
• Security
• Software
• Medical /
Pharmaceutical
• Water technology
• Training / elearning
• Engineering /
Fasteners
• Textile
• Drug detection
• Marketing
• Traffic Management
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To do
•
•
•
•
•
Read the notice
Define key areas
List questions to be answered by procurer
Build an executive summary
Build a team – affect roles
 30 mins
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Executive summary
•
•
•
•
•
•
What Problem / Need / Opportunity?
Why it matters right now?
What results they want?
Which results matter the most?
What you can offer?
Why you are the best choice?
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Review of the Group work
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Ideas for facilitating responses
Process
• Build folders
• Build a workflow
• Use a writing process
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I keep six honest serving-men
(They taught me all I knew);
Their names are What and Why and When
And How and Where and Who.
I send them over land and sea,
I send them east and west;
But after they have worked for me,
I give them all a rest.
I let them rest from nine till five,
For I am busy then,
As well as breakfast, lunch, and tea,
For they are hungry men.
But different folk have different views;
[…]
The Elephant's Child , Rudyard Kipling
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Ideas for enhancing responses
Content
• Graphics / Tables / Numbers
• Bullet points / Bold / Paragraphs
• Readability – word statistics
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Typical Question
• Please enclose a summary of your experience in
client liaison and examples of how you have been
successful in this. Please restrict your summary to
no more than 250 words.
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How they answered
Our aim is 95% plus customer satisfaction and we do
this by asking all our contracts team to have a chat
with the residents before we go on site and ask them
what is important for them while we are working on
their site they usually say stuff like noise cleaning and
nor arriving on time and we have found over the last
15 years that we have been pretty good at this and
they also like a single POC and we always find
someone who can do this for us.
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Possible response
KPI
POOR AVE
SATISFIED
VERY
HAPPY
NOISE
LEVEL
0
0
83%
17%
TIMING
0
0
79%
21%
CLEAN
0
0
95%
5%
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Ideas for enhancing response
• Value proposition – what is it?
• Differentiators – rank / use wisely
• Prove – different levels
• Say it clearly
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Getting feedback
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Feedback from procurers
• Directive 2007/66
• Standstill period
• Information on award
• Feedback
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Summary
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•
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•
•
•
What public sector is
Why public sector buy this way
The concept of safe pair of hands
The purchasing guidelines
Different levels means different difficulties
Not all contracts are winnable
One procurer does not do it all
Understand jargon
Where to find tenders
Understand contract notice
Why contract awards are important
Importance to get feedback
Respecting deadline
Think added-value
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Errors to avoid
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•
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Making Assumptions
Lying
Missing Deadlines
Not complying
Trying to change the system
Being arrogant
Going for the wrong opportunity
Not replying to the questions
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Any other questions?
Thank you!
Richard and Toni
toni@eiscltd.eu
+44 (0)23 80 20 61 62