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 2. Strategic use 1. Simpler/ more flexible procedures 4. Sound procedures 3. Better access (SMEs, cross-border trade) 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 nonnegotiable; • 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 Innovation partnership Supplier A Tender A Supplier B Tender B Project B Supplier C Tender C Project C Supplier D Tender D Project D Supplier E Tender E Project E Supplier F Tender F Project A Project B Project B Project D Project D Delivery from supplier B Supplier X Tender period Tender document Award of contract phase 1 Phase 1 development of concept/idea Phase 2 prototypes & test series Award of contract phase 2 and delivery 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 Nohrstedt peter.nohrstedt@kkv.se +46 8 5861718