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

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. 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. The EU Public Procurement
framework

4. The basic principles
Transparency
Equal treatment
Non-discrimination
Competition

5. Directives on public procurement
Public
Contracts
2014/24/EU
Utilities
2014/25/EU
Concessions
2014/23/EU

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
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. Directive on Concessions
• Works & service concessions
• Classical and utilities sector
• No closed list of procedures
• Basic rules for selection and exclusion criteria
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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. 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. 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. Policy priorities

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. 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. 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. 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. 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. Latest developments

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. 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. 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. 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. 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. 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. • eForms implementing regulation adopted
September 2019
Improving transparency, integrity,
data - eForms

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. 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. 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. 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. 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. 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.