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PPT, CR Ipate, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019

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PPT, CR Ipate, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019

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PPT, CR Ipate, EC, Third ENP East public procurement conference, Tbilisi, 6 November 2019

  1. 1. SMEs in public procurement - inside and outside the EU Raluca Ipate European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs
  2. 2. Why is it important to help SMEs participate in public procurement? • The magnitude of the market and the opportunities it offers to companies. • It pays off to have SMEs as suppliers. • The challenges are bigger for SMEs than for large companies.
  3. 3. WHAT DO WE DO CONCRETELY?
  4. 4. April 2014 Three new Directives adopted by the European Parliament and the Council Public Contracts 2014/24/EU Utilities 2014/25/EU Concessions 2014/23/EU
  5. 5. Measures to enhance SME's access to public contracts NON-DISCRIMINATION Practice Policy development/monitoring Legislation
  6. 6. I. Division of contracts into lots II. Turnover cap III. Reduction of administrative burden Measures to enhance SMEs’ access to public contracts
  7. 7. I. Division of contracts into lots Old New Old rules New rules
  8. 8. II. Limitation of the turnover required to participate in a tender procedure
  9. 9. III. Reduction of administrative burden
  10. 10. Other SME-friendly provisions • E-procurement • E-Certis • Best Price Quality Ratio (BPQR) • Green, social and innovation procurement • Direct payments to subcontractors • Variants
  11. 11. Other actions • 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
  12. 12. Name of the measure Scope Sector Year Initiator Typology Relevance for SMEs Public Procurement Academy of the Federal Procurement Agency Austria All / BBG (Federal procurement agency) Training of public procurement staff Measure aimed at broader target group but useful for SMEs Electronic notifications and e-procurement in Finland Finland All 2007 Ministry of Economic Affairs and Employment Encourage the use of e- procurement Measure aimed at broader target group but useful for SMEs Integrity Pacts for a better transparency of procurement processes Bulgaria All 2011 Transparency International and various Ministries Improving transparency of procurement processes Measure aimed at broader target group but useful for SMEs Helpdesk service for SMEs Croatia All 2015 Ministry of the Economy, Entrepreneurship and Crafts Provision of information/guidance to SMEs Measure aimed at broader target group but useful for SMEs The Aarhus Model of smaller-sized public procurement City of Aarhus, Denmar k All 2014 Municipality Government Encourage the division of contracts into lots Reduced economic and financial requirements Measure aimed at SMEs only Financial support for innovative public procurement Estonia All 2016 The Ministry of Economic Affairs and Enterprise Estonia Financial support to SMEs Training of public procurement staff Measure aimed at broader target group but useful for SMEs Collaborative reverse factoring to facilitate the prompt payment of public contracts France All 2015 UGAP (Central purchasing body) Simplified processes and documentation requirements Timely and efficient payment terms/arrangement for SMEs (or Measure aimed at broader target group but useful for SMEs
  13. 13. IS IT WORKING?
  14. 14. 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.
  15. 15. Trends by type of contract By number of awards By aggregate contract value (<100m) N = 53,535 N = 37,905
  16. 16. SME policy outside the EU • SME Work Programme in the Government Procurement Agreement, WTO • Negotiations of FTAs • Engagement with other international organisations
  17. 17. SME Working Programme in the Government Procurement Agreement, WTO DECISION OF THE COMMITTEE ON GOVERNMENT PROCUREMENT ON A WORK PROGRAMME ON SMEs Recognises the importance of facilitating the participation of SMEs in government procurement; and Recognises that Parties have agreed to seek to avoid introducing or continuing discriminatory measures that distort open procurement. The parties are currently working on a list of non-discriminatory practices for promoting and facilitating the participation of SMEs in government procurement.
  18. 18. Categories of measures in the a list of non- discriminatory practices  Enhanced transparency  Reduction of administrative burden  Procurement opportunities for the SMEs, including through proportional qualification and selection criteria  Enhancing the professionalisation of procuring entities as well as the cooperation and dialogue between them and SMEs
  19. 19. DCFTAs and FTAs • DCFTAs • Legislation in line with the directives: Article 46 Division of contracts into lots Article 58 Selection criteria Article 59 European Single Procurement Document: paragraph 1 mutatis mutandis, paragraph 4 Phase 2 Approximation and implementation of basic elements of Directive 2014/24/EU and of Directive 89/665/EEC
  20. 20. FTAs – public procurement chapter • GPA+ provisions Article IV of the GPA, Paragraph 6 Offsets 6. With regard to covered procurement, a Party, including its procuring entities, shall not seek, take account of, impose or enforce any offsets.

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