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PAN-COMMONWEALTH PUBLIC PROCUREMENT NETWORK CONFERENCE 28-30 Sep 2011
Sustainable Public Procurement (SPP) The Mauritian Experience
By S Tahalooa Balaclava, Mauritius
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Objectives of Public Procurement*
• Value for money in procurement of goods, works and services• Integrity – avoiding corruption and conflicts of interest• Accountability• Equal Opportunities and equal treatment for providers• Fair treatment for providers• Efficiency in the procurement process
* Sue Arrowsmith
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Secondary Policies
• Harness Government Procurement power to support some policy goals that are not directly linked directly to the goods, works and services procured:o Industrial policieso Social policieso Environmental policies
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Industrial Policies
Procurement can be used to promote industrial development:
•Buy national (e.g Buy America Legislation)
•Price preference for domestic contents
•Strategic intervention: supporting industries in disadvantaged or declining regions, national security
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Social Policies
Supporting policies of a non-economic nature:•Promoting equal opportunities for those disadvantaged by gender or by ethnic group•Promoting fair labour standards by government contractors and their sub-contractors•Promoting employment opportunities for long-term unemployed persons
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Environmental Policies
• Using public procurement to support environmental objectives:
oAddress climate changeoPreserve bio-diversityoE.g Procurement of products with particular
environmental features like energy efficiency
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Sustainable Public Procurement*
• Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves “value for money on a whole life basis” in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment
• UK SP Task Force and MTF SPP Task Force, 2006
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Implementing SPP in Mauritius
• The Prime Minister promoted a concept known as “Maurice Ile Durable” [Mauritius Sustainable Island]
• Through the National Policy framework of 2007 a policy framework for promoting Sustainable Consumption at national level has been devised
• In 2008 the Government requested UNEP for Mauritius to be a pilot country for SPP implementation and UNEP approved
• Procurement Policy Office selected as the National Focus Point for implementing SPP
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Strategic priorities of SCP programme framework
• Resources Use Efficiency with a Focus on Energy , Water and Sustainable Buildings and Construction
• Education and Communication for Sustainable Lifestyles
• Integrated Solid Waste management and Recycling
• Sustainable Public Service Practices*
• Increase Market Supply and Demand for Sustainable Products
* Sustainable Public Procurement falls under this priority
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SPP Marrakech Process10
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Implementation Process
• Setting up of a steering committee under the chairmanship of the Director, PPO
• All major stakeholders involved
• Technical support of UNEP critical
• Hiring of consultants where required
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Status Assessment
• Status Assessment completed in 2009
• Assessment revealed that generally Mauritius does not consider sustainable criteria in public procurement
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Status Assessment
• Legal environment conducive for SPP implementation:
o A sound procurement systemo Mauritius has ratified most international conventions
related to environment, labour conditions, human righto Evaluation of suppliers based on price and non-price
factorso Contract management is carried outo Suppliers are engaged
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Market Readiness Analysis (TOR)
• Determine availability and market share of the targeted sustainable products /services
• Establish whether the targeted products are available in the local market
• Determine the number of SMEs and/or large enterprises involved in the fabrication or import of the targeted products
• Explore the prospects for in-country supply of new sustainable products and services
• Establish whether the goods and services are available in the international market and impacts of importation
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Market Readiness Analysis (TOR 2)
• Catalogue current instruments and tools available to certify and verify the sustainability of the products
• Assess national programmes, policies and/or instruments which currently exist to promote sus-tainable production in the targeted sectors
• Determine the extent to which companies in the targeted sector have environmental management systems and/or other sustainable development credentials in place; and finally
• Explore the prospects for development of the in-country market to supply the international market.
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Market Readiness Analysis-Methodology
• A three-stage approach was adopted so as to obtain the best results:
o Literature reviewoAnalysisoSurveys
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Market Readiness Analysis-Methodology (Stage 1)
• Discussions with PPO to clarify some aspects of the TORs
• Collection and preliminary analysis of procurement data for 2008 and 1st semester of 2009
• Examination of the national public procurement system• Discussions with a few stakeholders• An extensive review of literature on sustainable public
procurement.
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Market Readiness Analysis-Methodology (Stage 2)
Carrying out a prioritization study, based on UK‘s Sustainable Procurement Task Force Methodology to identify the largest, quickest and easiest sustainable procurement opportunities
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Market Readiness Analysis-Methodology (Stage 3)
Survey the market to evaluate the availability of targeted products and services in the priority areas, and the national conformity assessment infrastructure
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Market Readiness Analysis
Recommendations (Priority spend areas):• Buildings• Waste collection and disposal• Roads Construction• Wastewater Management • Food and Catering• Water Supply: Works and Maintenance• Energy: Plants and Equipment• IT Systems: Computers and Office Machinery • IT; Computerization and System maintenance• Paper and Printing
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Market Readiness Analysis
Quick wins:• IT SYSTEMS: COMPUTERS & OFFICE MA-CHINERY• IT: COMPUTERISATION & SYSTEMS AINTENANCE• FOOD AND CATERING; and PAPER and PRINTING
Pioneer:• CONSTRUCTION OF BUILDINGS
Challenging• Remaining five
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Policy Statement
The Policy Statement is an official commitment of Government of Mauritius to observe the principles of sustainability in the conduct of public procurement
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Action Plan 2011-2015
• A national and an international consultant with the support of PPO has developed the SPP Strategy and Action Plan
• A phased approach recommended
• Quick wins: Paper, vehicles and ICT
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Procurement of Vehicles using sustainable criteria
• Objectives: purchase vehicles that are fuel efficient and emit less CO2
• Methodology: o Setting a minimum level of CO2 emission o Applying LCC (Acquisition costs, operating
costs and Residual value)
• Wide consultation with key stakeholders
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Challenges
• LCC concept not fully conversant
• Perception that SPP is completely different from traditional procurement
• Difficult to estimate the price after useful life of the vehicles
• Fear of high price of vehicles
• Fear that bidders not making offer
• Non availability of data for CO2 emission
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Lessons Learned
• To carry out pilot test with a minimum quantity and where availability of the item is not critical
• Awareness to key stakeholders critical
• Any new concept (e.g LCC) clearly explained to key stakeholders
• Such initiatives should be undertaken: Lessons learned are optimal
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Future of SPP
• Strategic importance of Procurement
• Concern for environment protection increasing
• Concern for social factors
• Increasingly government pursuing its policies through Public Procurement
• Best practices and tools emerging in SPP
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