IISD Performance Based Specifications in Public Procurement by Laura Turley at GIB Summit

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Presented at the 4th Global Infrastructure Basel Summit 21 & 22 May 2014.
Read more about the world leading platform for Sustainable Infrastructure Finance at www.gib-foundation.org.
Next Summit: 27 & 28 May 2015 in Switzerland

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IISD Performance Based Specifications in Public Procurement by Laura Turley at GIB Summit

  1. 1. Performance Based Specifications in Public Procurement Laura Turley May 21 2014 Global Infrastructure Basel
  2. 2. Sustainable Infrastructure GIB Grading Tool Ambition Web (NL) ISI’s Envision Rating System
  3. 3. Best Practice in the Public Sector … Holistic, Integrated Framework Priority Areas Tools: Output Based Needs Analysis Tools: Market Consultations & Dialogues Targets Tools: Performance Based Specs
  4. 4. Performance Based Specifications Instructions that outline the functional requirements for a product or service – these should be clear, achievable, measurable and enforceable. Luminosity > Number of Bulbs Strength of Concrete > Mixture Proportions Efficiency of Fuel Use > Type of Fuel & Use
  5. 5. Public Procurement as a Driver of Innovation  Large spend volumes  De-facto guarantee to private sector to invest in new processes & technologies  Sharing of risks
  6. 6. • Focus on results over inputs • Encourages private sector to be innovative, resource & material efficient, and cost effective • Expertise to the experts • Drive new patterns of ownership • Assist moving to service economy & more circular economy Performance Based Specifications (PBS) are great because:
  7. 7. PBS Common Practice in Infrastructure Already  In as far as PBS are used to measure and monitor service delivery (but not all service contracts use result-oriented PBS)  Areas for improvement for infrastructure:  Use PBS in the needs analysis  Replace tech specs with PBS  Award based on performance targets  Monitor performance & targets
  8. 8. • Translation into tenders • Capacity of procurers • Price • Finance for suppliers • Necessity of green business models Performance Based Specifications (PBS) are challenging because:
  9. 9. About IISD • Non Profit Think-Tank, 75 specialists • Advisory and implementation services to governments, international organizations and companies • Themes: procurement, climate change, finance, water, energy, subsidies, investment, industrial development… • Offices in Canada, USA, Switzerland, & China • Supported by Norad, DANIDA, SECO, SDC, CIDA, SIDA, UNEP, AusAID, NZAid, OECD • Third in the Financial Times/Foreign Policy ranking of influential think tanks • Advised 15 countries on Sustainable Public Procurement and PPPs • Lead the 3GF Partnership for Procurement and Green Growth
  10. 10. Thank you! Laura Turley lturley@iisd.org

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