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PPT, B Garcia Porras, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019


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PPT, B Garcia Porras, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019

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PPT, B Garcia Porras, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019

  1. 1. The European Commission’s priorities for public procurement Bonifacio Garcia Porras Head of Unit – Access to Procurement Markets – DG GROW – European Commission 6 November 2019 - Tbilisi
  2. 2. 12/11/2019 Public Procurement Towards growth and good governance • 1/5 of EU GDP (= 2.3 trillion Euro) • Over 400 Billion Euro: value of calls for tender with EU-wide publication • Crucial importance for the Internal Market • Good public spending builds trust in the institutions of the state 2
  3. 3. The EU Public Procurement framework
  4. 4. The basic principles Transparency Equal treatment Non-discrimination Competition
  5. 5. Directives on public procurement Public Contracts 2014/24/EU Utilities 2014/25/EU Concessions 2014/23/EU
  6. 6. Directive on Public Contracts • The general legislation, covering contracting authorities over a certain threshold (same as in the GPA) • Public contracts for works, supplies and services • Detailed set of rules and procedures 6
  7. 7. 7 Utilities Directive • Procurement for services, supplies or works • By utilities (public or private) • Utility activity (water, energy, transport, postal)  Private entities subject to procurement rules if "operating on the basis of special and exclusive rights"  More flexible regime for utilities
  8. 8. Directive on Concessions • Works & service concessions • Classical and utilities sector • No closed list of procedures • Basic rules for selection and exclusion criteria 8
  9. 9. Remedies Directives 9 Key objective: ensuring that in the area of public procurement effective and rapid remedies are in place and available at national level Pre-contractual and post-contractual remedies Basic requirements under the directives: • Availability of review procedures • Independent review body • Minimum powers
  10. 10. Legislative framework in the region  Phase 1 of DCFTA advanced, but its completion not yet confirmed  Modern legislative framework in place  New legislation prepared or in the adoption process
  11. 11. Challenges in the region on legislative framework  Full compliance with the interdependence and impartiality principles for the review bodies;  Lengthy and difficult adoption process for the legislation, resulting in delays for the DCFTA implementation;  Difficulties in developing EU compliant concession legislation;  Discriminatory measures included in the legislation
  12. 12. Policy priorities
  13. 13. Key political messages • PP is a strategic area for policy makers. not just an administrative process, but an opportunity to deliver value for public money. • A partnership to improve the PP in practice. Beyond 2014 legal reform, improvement needs smart implementation of the new rules. • The Commission is ready to play its part. We will develop a range of support tools, (guidelines, best practices) for authorities. • 6 priority areas for improving PP in practice
  14. 14. Our priorities, but general • Wider uptake of strategic procurement • Professionalising public buyers • Increase access to procurement markets • Improving transparency, integrity, data • Boosting the digital transformation of PP • Cooperating to procure together
  15. 15. Goals of EU Public procurement • Guaranteeing and fostering competition • Enabling public buyers to make the most efficient use of public funds • Enabling public buyers to support societal and policy goals through PP
  16. 16. Award criteria MEAT: award can be based on the lowest price or by taking into account other costs Best price quality ratio (BPQR) AGAINST lowest price The use of BPQR instead of the lowest price considers: social and environmental factors, quality and price! Award criteria: - May concern the whole life-cycle - Use of labels/label requirements is possible Points can be awarded for commitment to transparency in different production phases (raw material, processing, etc…). Labels: points for commitment to provide certified products. Points can be awarded for applying specific environmental policies when carrying out the contract (environmental management schemes, i.e. EMAS).
  17. 17. Award criteria Legal requirements It is possible to apply quality award criteria, provided those : • are linked to the subject-matter of the contract • do not confer an unrestricted freedom of choice on the contracting authority • ensure the possibility of effective competition; • are expressly mentioned in the contract notice and tender documents • comply with the Treaty principles
  18. 18. Latest developments
  19. 19. Wider uptake of strategic procurement - Green Public Procurement • New GPP criteria were developed and published for some product groups; other groups to follow. • GPP support tool developed • Life Cycle Costing methodologies for certain product groups are under development.
  20. 20. Wider uptake of strategic procurement – Innovation Procurement • The Commission Notice "Guidance on Innovation procurement" was published in May 2018. • It clarifies: • what is meant by innovation procurement, • outlining how to setup a policy framework (vision, strategy and appropriate means) necessary to make strategic use of innovation procurement and • describing how different public procurement procedures and aspects of procurement can be put at work to modernize public services with innovative solutions
  21. 21. ECF will identify the skills and competencies public buyers should possess to perform procurement in a more efficient and strategic manner and will translate them into functions/job profiles. The framework will be complemented by a web-based self-assessment tool. Work is ongoing - to be finalised in 2020. Professionalising public buyers - European competency framework
  22. 22. Progress in SMEs’ participation in public procurement • A positive trend can be identified for above- threshold procurement: • From 55% in 2010 to 61% in 2017 in terms of number of contracts • From 29% for the 2009-2011 period to 33% in terms of value for 2011-2017 • The estimated direct and indirect participation increased from 45% to 49% in terms of value.
  23. 23. Other actions to support SMEs • EU level - projects to support: • SME participation in procurement • Procurement of innovation • Professionalisation of public buyers Cooperation with EEN and other stakeholders Member States actions
  24. 24. The EU is to guarantee a high level protection to whistle-blowers across a wide range of sectors including: public procurement, financial services, product and transport safety, public health, consumer data protection, etc. Improving transparency, integrity, data – the Whistleblower Directive
  25. 25. • eForms implementing regulation adopted September 2019 Improving transparency, integrity, data - eForms
  26. 26. Boosting the digital transformation - E-procurement milestones eNotice eAccess eSubmission eEvaluation eAward eOrdering eInvoice ePayment eESPD eCertis TED 4/2016 4/2016 10/2018 4/2019 4/2018 4/2016
  27. 27. Guidance: Overview - Adopted on 24 July 2019 - Guidance shall give assistance to public buyers (legal and practical): - improve understanding of practical aspects of PP procedures when dealing with third country participation in tenders. - promote the principle that not only price, but also high standards in the area of labor, environment and security should be taken into account
  28. 28. Access of third country bidders/goods to EU procurement market - Art. 25 of Directive 2014/24/EU: legally secured access for works, supplies, services and bidders from third countries that are covered by the GPA or FTA - Otherwise: no legally secured access and bidders may be excluded
  29. 29. Quality standards - A strategic approach to public procurement - Levelling playing field only possible if all bidders have to comply with high standards, regardless of origin - Competition on quality requirements allows widest possible range of bidders to participate on an equal footing - SRPP, GPP and Innovation Procurement can help mainstream quality and sustainability
  30. 30. Progress in the region on such priorities • Modern electronic procurement systems; • Move away from lowest and e-auctions only; • Important efforts on professionalisation; • Establishment of central purchasing bodies; • Increased transparency of the procurement process. •
  31. 31. Challenges in the region • Lowest price predominance and lack of experience with best-price-quality-ratio; • Improve the image and attractiveness of the procurement job; • Enforcement of public procurement legislation on the ground.