WELCOME TO

NEW EU PROCUREMENT DIRECTIVE!A Game Changer or Disguised

Incrementalism?

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2014-

0025+0+DOC+XML+V0//ENColin CramOpen Forum Events LtdMarc1 Ltdcolin.cram@marc1ltd.comTel: 01457 239894Mobile: 075251 49611

PURPOSE OF DIRECTIVE

• Bring up to date with developments in procurement and public procurement

• Less Bureaucratic – More Commercial• Trying to Force Modernisation of Procurement• Encourages Innovation• Support Economic Growth

MAIN FEATURES• New Procedures

• Revised Procedures and Thresholds

• Shorter Timescales

• Emphasis on Whole Life Costing

• Preliminary Market Consultations

• Social and Environmental

• Innovation

• SMEs

• Collaboration and Centralisation of Procurement Activity

• eProcurement to be Standard Means of Communication and Information Exchange

• Easier to Rule out or Re-structure Unsatisfactory Suppliers and Staff

THRESHOLDS

These remain the same except for services

Euros £

Works 5,186,000 4,322,012

Goods and Services

• Central Government and NHS 134,000 111,676

• Rest of Public Sector 207,000 172,514

For certain services: 750,000 625,050

SERVICES FOR WHICH Euro 750,000 APPLIES• Health

• Social

• Educational

• Cultural

• Benefit and Compulsory Social Security Services, Community, Political, Trades Union, Religious

• Services to the Community

• Prison Related Services

• Public Safety and Security

• Hotel and Restaurant

• Legal Services

• International Services

• Postal Services

• Miscellaneous such as tyre re-moulding

PROCEDURES• Open• Restricted• Competitive Procedure with Negotiation• Competitive Dialogue• Innovation Partnership• Negotiated Procedure (without prior publication)• Framework Agreements• Dynamic Purchasing Systems• Electronic Auctions• Electronic Catalogues

• Revised Procedures and Thresholds• Shorter Timescales• Emphasis on Whole Life Costing• Social and Environmental• SMEs• Collaboration and Centralisation of Procurement Activity• Boost to Electronic Trading• Easier to Rule out or Re-structure Unsatisfactory Suppliers and Staff

MINIMUM TIMESCALES

OPEN PROCEDURE: Receipt of tenders

• 35 days from date contract notice was sent• 30 days if tenders can be submitted electronically• 15 days if PIN sent for publication between 35days

and 12 months before contract notice sent. Also PIN must contain all information required for contract notice - as much as was available.

• 15 days in case of duly substantiated urgency.

MINIMUM TIMESCALESRESTRICTED PROCEDURE

• 35 days from date contract notice was sent for requests to participate

• 30 days after ITT was sent for receipt of tenders

• 10 days for receipt of tenders if PIN sent for publication between 35 days and 12 months before contract notice sent. Also PIN must contain all information required for contract notice - as much as was available.

• In case of duly substantiated urgency• Requests to participate: 15 days• Receipt of tenders 10 days

• Other than central government and NHS: contracting authorities may set time limit for receipt of tenders by mutual agreement. In absence of agreement, time limit at least 10 days.

MINIMUM TIMESCALES

COMPETITIVE PROCEDURE BY NEGOTIATION

Receipt of tenders

• 30 days for requests to participate

• 30 days for receipt of initial tenders from date on which ITT was sent

• Adequate time for all other tenders

COMPETITIVE DIALOGUE and INNOVATION PARTNERSHIPS:

• 30 days for requests to participate

MINIMUM TIMESCALESDYNAMIC PURCHASING SYSTEM

• Follow rules of restricted procedure

• 30 days from date contract notice was sent or, following a PIN, the invitation to confirm interest is sent, for requests to participate

• 10 days for receipt of tenders following issue of ITT

COMPETITIVE PROCEDURE WITH NEGOTIATION

• Works, services or supplies

• Description of needs and characteristics required

• Specify contract award criteria

• The elements of the description which define minimum requirements

• Information adequate to identify scope and nature of procurement

• Initial, then subsequent tenders following each negotiation

• Can whittle down number of tenderers at each stage applying award criteria

• Can close the procedure by calling for final tenders

DYNAMIC PURCHASING SYSTEM• Commonly used purchases – supplies, works, services -

characteristics generally available on market

• In effect creates preferred list of suppliers

• Fully electronic

• Follow rules of Restricted Procedure

• Call for competition to identify DPS is involved

• Indicate in procurement documents• Nature and estimated quantity of purchases envisaged• Any division into categories of products, works or services• How DPS operates including electronic equipment used,

technical connection arrangements and specifications

• All suppliers meeting selection criteria must be allowed to join

• Suppliers can apply any time

• All ’admitted’ participants must be invited to submit a tender

E-AUCTIONS

• For any supplies, services and works except for those that cannot be ranked using automatic evaluation methods

• Technical specifications can be established with precision

• May be used as • ‘Finale’ to Open, Restricted or Competitive Procedure with

Negotiation• Creating framework agreements• Re-opening of competition for parties to a framework agreement• Opening for competition of contracts to be awarded under DPS

ELECTRONIC CATALOGUES• Can require tenders to be presented in the form of an

electronic catalogue

• Can be made mandatory for certain types of procurement

• Can award contracts based on a DPS

FRAMEWORK AGREEMENTS

• For Works, Supplies, Services

• Can conclude with one or more ‘economic operators’

• Where several suppliers, may need to invite tenders from all suppliers for specific contracts

• Should not be used by contracting authorities not identified in them. Must be indicated by name or other means such as a category of contracting authorities within a clearly delineated geographical area

MAKING LIFE EASIER FOR SMEs

• European Single Procurement Document• Self Declaration• Supporting documents/evidence normally

required only before contract is about to be let• Divide large contracts into lots• May require justification for not dividing

contracts into lots• Overly demanding requirements re economic

and financial capacity to be illegal

WHOLE LIFE COSTING/LIFE CYCLE COSTING

• Preferred approach• Includes

• Costs related to acquisition• Costs of use such as energy and other resources• Maintenance costs• End of life costs• Costs imputed to environmental externalities linked to

the product, service or works during its life cycle provided their monetary value can be determined. Includes emissions of greenhouse gases and other pollutants. Must be non-discriminatory

BANNING SUPPLIERS FROM BIDDING

INCLUDES

• Significant and persistent deficiencies in performance of previous contract

• Professional misconduct

• Misrepresentation

• Collusion, fraud, corruption

• Non-payment of taxes

• Child labour, trafficking, terrorism, terrorist financing, money laundering

OTHER ISSUES• Contracts between entities within public sector not covered

by Directive

• ‘Light’ regime for certain services requires either PIN or OJEU contract notice. UK can determine its "light touch regime" as long as compliance with the principles of equal treatment and transparency.

• Social criteria can include employment of long term job seekers or training for the unemployed., but must relate to works supplies of services of the contract.

• Can use as an award criterion the organisation, qualification and experience of staff assigned to contract performance

• Can require re-structuring of supplier

• Compliance: Citizens can complain if they believe tender award unfair

Colin Cram FCIPSOpen Forum EventsMarc1 LtdEmail: colin.cram@marcltd.comTel: +44 (0)1457 239894Mob: +44 (0)75251 49611www.marc1ltd.com

GAME CHANGER OR DISGUISED INCREMENTALISM?

THANK YOU