Public Procurement

GPP in the new PP
Peter Nohrstedt
Structure of the presentation
New PP support organisation in Sweden
GPP in the EU PP directives – what is new?
Innovation partnership – what is it about?
The new Swedish support
organisation for public
The Swedish Competition Authority
The Swedish Competition Authority is a state
authority working in order to safeguard and
promote competition and supervise public
procurement in Sweden
"Economic welfare through effective markets"
Public Procurement – SCA’s new tasks
• SCA responsible for support and guidance to
suppliers and contracting authorities
 Contribute to reinforce the strategic importance of public
 Facilitate SMEs’ participation in public procurement
 Prevent corruption and combat conflicts of interest
 Contribute to goals about sustainable procurement and
encourage voluntary improvement of environmental
considerations in public procurement
 Promote innovation procurement
New public procurement directives
• Reform proposals presented by the Commission 2011
• Ordinary legislative procedure
European Parliament decision 1st reading January 2014
Council of Ministers adopted acts February 2014
• Three new directives; “classic”, “utilities” and
• Directives implemented in national law by spring 2016
Objectives for the reform
2. Strategic use
1. Simpler/ more
flexible procedures
4. Sound procedures
3. Better access (SMEs,
cross-border trade)
5. Governance, professionalization of procurement
Strategic procurement
• Freedom of choice what to buy
• Subject matter link maintained but extended (production
process, fair trade)
• Use of labels
• Life cycle costs (including measurable external costs)
• Social criteria (protection of workers, employment of
handicapped, long term jobless, etc.)
Recital 2
Public procurement plays a key role in the Europe
2020 strategy, as one of the market-based
instruments to be used to achieve smart,
sustainable and inclusive growth while ensuring
the most efficient use of public funds.
New features on GPP (classic
Aim - better integration of environmental considerations.
Horizontal clause:
– performance of public contracts have to comply with
environmental obligations (law)
– abnormally low tenders have to be rejected if suppliers do not
comply with environmental obligations
• Possible to refer to a specific label
• all criteria must relate to the subject matter of the contract
• developed in a transparent process
• based on objective and non-discriminating criteria and
• too little time to get a label equivalent labels or other
means of proof must be accepted
Production process
• Possible to consider all factors of the production,
provision or trading
• Technical specification - factors that do not form part of the
material substance of the product
Ex: products manufactured /provided using energy-efficient
machines, production processes with low emissions etc.
• Award – possible to take into account these factors and
also to favour products with a fair trade origin, sustainable
timber origin etc.
Life-cycle costing
All costs – including internal as well as external costs
(emissions of greenhouse gases, extraction of raw materials)
Monetary value can be determined and verified
No EU method exists – ok with own method
ex. clean vehicle directive
Not designed for one specific PP
Reasonable effort by enterprises
Environmental Management
• Can now also be used in procurement of goods
• Reference to the European Union Eco
Management and Audit Scheme (EMAS) or equal
• Recognize equivalent certificates
Competitive procedure with
Replaces the negotiated procedure with prior publication –
substantial changes to conduct:
• Identification of “core” (minimum) non-negotiable
requirements; award criteria and weighting also nonnegotiable;
• All other aspects may be negotiated (e. g. quality,
quantities, commercial clauses; social, environmental,
innovative aspects)
Definitions of innovation
Innovation procurement
Innovation friendly
Contracting authorities
actively use
procurement to buy
the best performance.
Stimulates deployment of
Procurement of
 Contracting authorities
require and order an
innovation in order to solve
a specific problem.
Stimulates that innovations
Innovation partnerships
• New procedure to be
implemented in
National law.
• Contracting authorities
can start partnerships
with one or many
partners in order to
develop and then
procure innovative
• Partnerships shall be
divided into
successive stages.
• Contracting authority
may terminate the
partnership after
each stage.
• Contracting authority
shall negotiate with
Preconditions for innovation
 Support from leadership
 Support from the organisation
 Knowledge
 Resources
Innovation partnership
Supplier A
Tender A
Supplier B
Tender B
Project B
Supplier C
Tender C
Project C
Supplier D
Tender D
Project D
Supplier E
Tender E
Project E
Supplier F
Tender F
Project A
Project B
Project B
Project D
Project D
supplier B
Supplier X
Award of
phase 1
Phase 1
development of
Phase 2
test series
Award of contract
phase 2 and delivery
Delivery phase
Discussion and questions
• Which procurements would be suitable for
innovation friendly procurement?
• What is needed (from the organisation, resources,
working methods)?
• What challenges/problems do you have that can
be solved by the market?
• What current/coming development projects are
suitable for innovation procurement?
Thank you for your attention!
Peter Nohrstedt
[email protected]
+46 8 5861718

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