This document outlines the development of a measurement instrument aimed at quantifying the percentage of the procurement budget spent on innovation facilitating procurement (IFP) by Rijkswaterstaat. It discusses the research design, the initial and changed measurement instruments, and validation methods, emphasizing the importance of developing a clear scope and improved measurement techniques. The conclusions and recommendations suggest further validation and a potential national scale instrument for measuring IFP spending.

1. DEVELOPMENT OF A MEASUREMENT INSTRUMENT
FOR INNOVATION FACILITATING PROCUREMENT
GRADUATION COMMITTEE:
BART LENDERINK
RIJKSWATERSTAAT
AREND NAGEL
M.E.L. (MIEKE) HOEZEN
UNIVERSITY OF TWENTE
J.I.M. (JOOP) HALMAN
J. (HANS) BOES

2. Main question: How can the percentage of the total procurement budget of
Rijkswaterstaat spend on Innovation Facilitating Procurement be
measured?
1. Introduction on topic
2. Research design
3. Initial measurement instrument
4. Changed measurement instrument
5. Validation of the measurement instrument
6. Conclusions
7. Recommendations
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OVERVIEW

3. Definition: The targeted seeking of innovative solutions by public agencies or providing
possibilities towards market parties to develop and offer innovative solutions [1]
Goal: stimulate innovation among suppliers to obtain solutions with superior quality against similar
or lower prices or solutions that are better equipped to address societal challenges
Methods:
• Through regular contract forms [2,3]
• Through specific contract types and procedures [2,3]
• Provide information on innovation needs prior to procurement
3
INTRODUCTION
INNOVATION FACILITATING PROCUREMENT (IFP)
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4. 4
RESEARCH DESIGN
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5. Result-oriented scope:
1. “Public purchasing activities which lead to innovation through the targeted
seeking of innovative solutions, and/or
2. providing possibilities to the market which lead to the development, testing, and/or
offering and implementation of innovative solutions” (based on [1,4])
5
INITIAL MEASUREMENT INSTRUMENT
INITIAL SCOPE
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6. 6
INITIAL MEASUREMENT INSTRUMENT
MEASUREMENT FACTORS OF IFP
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7. Input-process oriented scope:
1. All procurements which have the procurement of innovative solutions or the
development and/or testing of new solutions as an objective should be considered
IFP.
2. furthermore, the provision of possibilities to the market to offer additional value
through products, processes and services is considered IFP as well.
7
CHANGED MEASUREMENT INSTRUMENT
CHANGED SCOPE
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8. MDFS: Manually Determined Financial Spendings (Knowledge domain)
TPWT: Tendering Price Winning Tenderer
FPWT: Fictional Price Winning Tenderer
TPB: Total Procurement Budget of RWS
8
CHANGED MEASUREMENT INSTRUMENT
KEY PERFORMANCE INDICATOR FOR IFP
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9. 9
CHANGED MEASUREMENT INSTRUMENT
QUESTION SCHEME FOR THE DETERMINATION OF IFP IN THE KNOWLEDGE DOMAIN
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10. Validation Method:
1. Performing the measurement of the KPI twice
2. Design principles of de Bruijn [5] (interaction, variety and dynamics)
3. Evaluation on 13 LEI criteria for performance indicators [6] (such as robustness,
simplicity and relevance)
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VALIDATION OF THE MEASUREMENT INSTRUMENT

11. • Value of Innovation Facilitating Procurement
• How can the percentage of the total procurement budget of Rijkswaterstaat spend
on Innovation Facilitating Procurement be measured?
• Value of the measurement instrument
11
CONCLUSIONS
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12. Rijkswaterstaat:
• Continue to develop the measurement instrument for IFP to include the other
procurement domains
• Perform a more thorough validation on the measurement instrument for IFP
• Include the developed measurement factors in the yearly evaluation of RWS by
market parties
Ministry of Economic Affairs
• Develop and publish a clear scope for the measurement of IFP next to the current
definition or narrow the definition of IFP to the point on which it is clear how it
should be measured to avoid opportunistic behaviour in the measurement of IFP
• Develop and implement a measurement instrument which is capable to determine
the spending's on IFP on a national scale
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APPENDIX A
RECOMMENDATIONS
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13. University of Twente
• Investigate if a more generic quantitative measurement method can be developed
for Innovation Facilitating Procurement which can be used for the whole national
government.
• Investigate to which extent specific contract forms and procedures for IFP can lead
to innovative products, processes and services.
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APPENDIX A
RECOMMENDATIONS
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14. END OF THE PRESENTATION
QUESTIONS?

15. [1] Ministerie van Economische Zaken (2013a) Plan van aanpak: Programma Inkoop Innovatie Urgent, Tech. rep.
[2] Abby Semple (2014) Guidance for public authorities on public procurement of innovation, Tech. rep.,
ConsortiomofthePPIPlatform2014 and ICLEI.
[3] Rijkswaterstaat (2014a) Beleidskader innovatiegericht inkopen, Tech. rep.
[4] Rolfstam, M. (2013) Public Procurement and Innovation: The Role of Institutions, Edward
Elgar Publishing.
[5] de Bruijn, H. (2006) Prestatiemeting in de publieke sector, LEMMA, Den Haag, 2nd edn.
[6] Vrolijk, H. C. J., Cotteleer, G., Kramer, K. J., van Leeuwen, T. C. and Luesink, H. H.
(2003) Performance-indicatoren, LEI Wageningen UR.
References in the appendices can be found in the graduation report (essay.utwente.nl/66578/)
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REFERENCES
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16. Graduation Report: essay.utwente.nl/66578/
Rijkswaterstaat (General site and Policy Framework for PPI):
1. http://www.rijkswaterstaat.nl/en/
2. http://www.rijkswaterstaat.nl/en/images/Factsheet%20Policy%20Framework%20-
%20Public%20Procurement%20of%20Innovation_tcm224-368853.pdf
Public Innovation Procurement programme:
http://www.inkoopinnovatieurgent.nl/info-en/
Dutch Public Procurement expertise centre:
http://www.pianoo.nl/about-pianoo
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APPENDIX A
MORE INFORMATION
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17. Public Procurement for Innovation: public procurement for innovation occurs when a
public organization places an order for the fulfilment of certain functions within a
reasonable period of time (through a new product).
(Edquist and Zabala-Iturriagagoitia, 2012).
Public procurement of innovation is defined as “purchasing activities carried out by
public agencies that lead to innovation” (Rolfstam, 2013).
public procurement of innovative solutions which is defined as “procurements
where contracting authorities act as launch customer for innovative goods or services
which are not yet available on large scale commercial basis and may include
conformance testing” (EC, 2014b,c).
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APPENDIX B
DEFINITIONS OF PPI
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18. 18
APPENDIX C
LINK BETWEEN PCP AND PPI
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