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PUBLIC PROCUREMENT IN THE NETHERLANDS

PUBLIC PROCUREMENT IN THE NETHERLANDS. Wouter Stolwijk. nov 2015. DUTCH PUBLIC PROCUREMENT LAW 2012. All European Directives in one law Codification of proportionality principle National Public Procurement Principles are introduced below EU thresholds

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PUBLIC PROCUREMENT IN THE NETHERLANDS

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  1. PUBLIC PROCUREMENT IN THE NETHERLANDS Wouter Stolwijk nov 2015

  2. DUTCH PUBLIC PROCUREMENT LAW 2012 • All European Directives in one law • Codification of proportionality principle • National Public Procurement Principles are introduced below EU thresholds • Several measures to reduce administrative burdens, e.g. TenderNed (e-Procurement) & Self-declaration • Supporting Policy Measures are introduced to give more guidance to contracting authorities • Enforced April 1st , 2013 Public Procurment in the Netherlands

  3. MAIN GOALS PUBLIC PROCUREMENT LAW • Uniformity • Better compliance • Value for tax payers money (MEAT) • Reduction of costs(e-Procurement, self declaration, freely available specifications …) • Better access for SMEs(clustering is ‘forbidden’, dividing in small lots, low selection criteria, financial turnover may not be used as selection criterion, …) • Procurement >> compliance  more emphasis on professional procurement Public Procurment in the Netherlands

  4. PIANOo • Two origins: • Parliamentary enquiry on fraud in the construction sector • National report on compliance to the EU rules • Start PIANOo mid 2005 • Aim: • Enhance compliance • Develop practical knowledge • Further professionalization • Value for public money • Setting up the exchange of knowledge • Support of new and innovative developments • Promote e-Procurement Public Procurment in the Netherlands

  5. ORGANIZATIONAL STRUCTURE OF PIANOo • Part of the Ministry of Economic Affairs (responsible for implementation EU directives for tendering) • Steering committee: • Central government • Provinces • Municipalities • Water boards • Financing: central government (80%) • About 12 fte (excl TenderNed) Public Procurment in the Netherlands

  6. PIANOo ACTIVITIES I • Web site (daily 1400 – 1500 visits) • (https://www.pianoo.nl/public-procurement-in-the-netherlands) • Two weekly Newsletter (6000) • Interpretation of jurisprudence • Answering questions contracting authorities (1.100 yearly) • Guidelines, manuals, best practices • Online forum: PIANOo-desk / Procurement Forum • Only contracting authorities (2.800 clients) • E-mail with new discussions, daily • Yearly congress (500-600 visitors) • Regional workshops Public Procurment in the Netherlands

  7. ACTIVITIES PIANOo II • Study groups of expert practitioners • Public procurement law • Public procurement management • Public procurement of construction works • Stimulation of • Cooperative procurement (organizational) • Green procurement • Procurement of innovation • Social return on investment • International:EU public procurement lab, Public procurement of innovation (http://www.innovation-procurement.org/about/), IPPC, IRSPP… Public Procurment in the Netherlands

  8. ACTIVITIES PIANOo III: TenderNed Public Procurment in the Netherlands • The online marketplace of the Dutch government • Transparent, easy and cheaper public procurement • Lowers the threshold for businesses to compete for government assignments • Saving of administration costs around 60 million/year • EU • Aim: reduction administrative burdens • EU aim’s for mandatory digital public procurement from 2016 • NL • Publication duty in tender law • EU statistics duty • Uniform and compact operational management of governments 8 8

  9. PIANOo PRIORITY THEMES • Enhance strategic level Public Procurement • Shift from judicial emphasis towards focus on economy • Enhance market knowledge contracting authorities • Enhance e-Procurement (TenderNed) Public Procurment in the Netherlands

  10. PUBLICATIONS OF PIANOo • Procurement of innovation (English) • Sustainable procurement (English) • Interpretation of specific juridical issues • Practical issues of competitive dialogue (English) • Combating the crisis through government procurement? (English) • Procurement of services • ‘Marketplace’ (procurement of small services/self employed) • Micro lots • Market dialogue • Checklist market exploration (English) • How to use MEAT? • How to organize collaborative procurement among municipalities? • How to select market operators below European threshold? Public Procurment in the Netherlands

  11. MARKET MEETINGS • 80% meetings concern services: catering, employment agencies, architects, technical advisers, duty trips, ICT, cleaning … • Highlights of the discussions: • Distrust, lack of dialogue, lack of knowledge of the market • Unreasonable demands for SME • General terms of delivery (liability, intellectual property, warranty) • Lowest price or MEAT (award criteria) • Framework agreements, duration of the contract (change personnel, innovation, partnership) • Re-tendering contract  always new contractor (extra costs) Public Procurment in the Netherlands

  12. WORKFORCE AND EDUCATION • Who belongs to ‘the workforce’ in Public Procurement? • Lawyers, purchasers (what is a ‘purchaser’?), • substance specialists, managers, budget owners, support staff, etc. • We found 280 courses, curriculae etc from about 40 different organizations. • NEVI is an important one. PIANOo chose not to specialize in training and education Public Procurment in the Netherlands

  13. CONTRACTING AUTHORITIES IN The Netherlands • Central government • Ministries 11 • Autonomous Governing Bodies 150 • Provinces 12 • Water boards 24 • Municipalities 420 • Universities 15 • Schools ±1.400 • Police 25 • Bodies governed by public law ±1.000 Public Procurment in the Netherlands

  14. PUBLIC PROCUREMENT IN The Netherlands Public Procurment in the Netherlands

  15. TRIALS AND LITIGATION • The Netherlands do not have a Public Procurement Authority • Analysis on 600 national trials concerning tendering (2004-2009) • Growth 2004-2006 • Stabile 2007-2009 (140 yearly) • Results: 65% in favor of contracting authorities • Reasons for trials • Invalidity/rejection of tender • Transparency • Equality • Proportionality Public Procurment in the Netherlands

  16. TRIALS AND LITIGATION • Commission of PP experts: • Since 2012 • Expert-assessment, not judicial force • File a complaint first with the contracting authority • Then with this Commission • Two complaints a week roughly • 30-60 days processing time Public Procurment in the Netherlands

  17. PUBLIC PROCUREMENT TRENDS • Public procurement becomes more a strategic profession • Accountability has been or will be strengthened • Shift from compliance to value for tax payers money • The use of internet is growing (e-Procurement) • Public procurement has to contribute to other policy goals: • Innovation • Stimulation of SMEs • Social aspects • Sustainability • Those trends are not typical for The Netherlands Public Procurment in the Netherlands

  18. QUESTIONS & INFORMATION • Questions • Official info@pianoo.nl • Direct: wouter.stolwijk@pianoo.nl, • Information • Website PIANOo www.pianoo.nl/about-pianoo • Website TenderNed www.tenderned.nl Public Procurment in the Netherlands

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