How to Buy: Study on Public Procurement and Green Public Procurement in Europe

1. HOW TO BUY Study on existing regulations and experiences in Europe in the field of public procurement, green public procurement and common procurement Fabio Formentin Silvia Zamboni Andrea Normanno Michele Bartolomei (PUNTO3) Partner Meeting Bologna June 19th 2009

2. COMPRO WP 5: Setting up a joint procurement procedure Task 5.1: analysis of conditions to set up a transnational joint public procurement The questions to try to answer are: • What to buy; • Who buys (for whom); • How to buy.

3. Deliverable Structure 1. Common Procurement and Green Public Procurement: the legal framework 2. Past and Present Common Procurement experiences 3. Partners in action: what to buy, how to buy, who buys

4. 1. Common Procurement and Green Public Procurement: the legal framework 1.1 The European legal framework 1.2 The National legal Frameworks 1.2.1 France 1.2.2 Germany 1.2.3 Italy 1.2.4 Sweden Conclusion

5. 1.1 The European framework • COM(2001) 274 4th July 2001 • European Court response 17th September 2002 CONCORDIA BUS • ETAP (2004) Environmental Technologies Action Plan • UE directives: 2004/17/CE and 2004/18/CE • UE directive on the promotion of clean and energy efficient road transport vehicles

6. 1.1 The European framework • 2004/17/CE“coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors” • 2004/18/CE “on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts”

7. 1.1 The European framework In particular 2004/18/CE: • legitimates and regulates the introduction ofenvironmental criteria in public procurement (GPP) • foresees the introduction of central purchasing bodies that are tools for the aggregation of public demand

8. 1.1 The European framework In particular 2004/18/CE: • Art 1 comma 10: “A ‘central purchasing body’ is a contracting authority which: • acquires supplies and/or services intended for contracting authorities, or awards public contracts or • concludes framework agreements for works, supplies or services intended for contracting authorities.”

9. 1.1 The European framework In particular 2004/18/CE: • Art 11: Public contracts and framework agreements awarded by central purchasing bodies 1. Member States may stipulate that contracting authorities may purchase works, supplies and/or services from or through a central purchasing body. […]

10. 1.1 The European framework • UE directive proposal: COM(2007) 817 on the promotion of clean and energy efficient road transport vehicles • Inclusion of the operational lifetime cost of energy consumption, CO2 emission and pollutant emissions as award criteria for all procurement of road transport vehicle for local authorities and LPT operators.

11. 1.2 The National legal Frameworks • 1.2.1 France: Implementation of the directive 17-18 2004: “Code des Marchés Publics” – Code of the public contract

12. 1.2 The National legal Frameworks • 1.2.2 Germany: • 1.2.2.1 The Text of Adoption of EU directives 17 and 1 8 in Germany • 1.2.2.2 Tendering Practice for Vehicle Procurement • 1.2.2.3 Execution of a tendering process from the notice to the award

13. 1.2 The National legal Frameworks • 1.2.3 Italy: Implementation of the Eu directives: “Code of the public contract for works services and supply” D.Lgs. 163/06 • 1.2.3.1 How to insert GPP criteria in an italian call for tenders

14. 1.2 The National legal Frameworks • 1.2.4 Sweden: • The procurement act of sweden • Green criteria • Framework agreements

15. 2. Past and Present Common Procurement experiences 2.1 Common Procurement typologies 2.2 Some examples of existing National, Regional and Municipal Central purchasing authorities in France, Italy, UK, Sweden 2.2.1 Survey on vehicle common procurement experiences undertaken in the partner countries (by central purchasing agencies) 2.3 Some examples of Collaborative Agreements 2.4 Other experiences: Campania Region

16. 2.1 Common Procurement typologies Types of Joint Procurement (or Common Procurement): • CP carried by Permanent CP organisations in form of framework agreement– In some European countries organisations have been established to provide a centralised procurement function on behalf of a number of different public authorities. • Collaborative agreements between public authorities – JP does not require the setting up of permanent organisations, however. Another approach is for participating public authorities to directly collaborate in procurement actions, through their existing purchasing departments. Source: Procura+ “Tool D: Joint procurement –Combining public procurement actions”

17. 2.1 Common Procurement typologies • Different models of collaborative agreements: • 3.2. Model A – Full joint procurement • For any Full JP action a “Lead Authority” should be designated, who will be responsible for co-ordinating the action. This is likely to be the instigator of the activity, or possibly the largest authority participating. • 3.3. Model B – “Piggy-backing” joint procurement • ”Piggy-backing” is the simplest approach to CP, involving very little extra work, and little co-ordination with other potentially participating authorities. • When an authority publishes a tender it is possible to include a statement that other named public authorities may also wish to make use of the resulting contract

18. 2.2 National, Regional and Municipal Central Purchasing Authorities Central purchasing authorities have been introduced in many European countries.As far as the partner countries are concerned the situation is: • 2.2.1 France - UGAP (National) • 2.2.2 Italy • CONSIP (National) • Intercent-ER (Emilia-Romagna Region) and other regional purchasing authorities in Lombardy, Piemont. • 2.2.3 Sweden -Gotheborg procurement company (municipal) • 2.2.4 The ESPO experience (UK) (Procura +)

19. 2.2.1 UGAP • UGAP (union des groupements d’achats publics), is the only French public central purchasing organisation in the sense of public market code and the ordnance n° 2005-649 , 6th June 2005. UGAP is a Public industrial and commercial Establishment and is placed under the control of two national government Ministries (Industry,-Finance and Economy as well as Education and Research). UGAP does not benefit any public subsidies and evolves on the competitive market. UGAP customers are exclusively public entities and private entities entitled with public service missions. Any public person has the choice to use UGAP or not.

20. 2.2.2 Italian Central Purchasing Bodies • CONSIP is the Italian central purchasing body that is committed to elaborate and implement framework agreements (called conventions) with goods and services suppliers in order to reduce public procurement costs thanks to economy scale and process rationalization. In few words CONSIP acts in order to provide local authorities with the most convenient conditions for goods and services procurement; • INTERCENT-ER is Emilia-Romagna’s regional central purchasing body.

21. 2.2.3 The Goteborg Procurement Company • The Procurement Company is a wholly owned municipal enterprise and was set up in 1994. The main tasks for the company is to co-ordinate the procurement of goods and services and implement collective purchasing for all departments and companies within the City of Göteborg. • The Procurement Company also collaborates with the surrounding municipalities. Each year a large number of contracts are signed or renewed in widely differing areas.

22. 2.3 Collaborative Agreements • Collaborative Agreements examples: • Greater Lyon (france) • KÖR’ (Kooperation Östliches Ruhrgebiet - Germany) • Hybrid Bus Project - BSAG Bremen, Üstra Hannover and MVG München (not activated) • Pamplona (Spain) • Voralberg (Austria) (Procura +)

23. 3. Partners in action Check-list for the call for tender drafting 3.1 Who buys 3.2 What to buy/price/quantity 3.3 How to buy

24. 3.1 Who buys • The first step is to decidewho is the contracting authority for the buyer consortium, since he will decide how to call for tender. • The options are: • A national central purchasing body • A regional one • A local authority • A public transport company (to be verified). ATC (BOLOGNA) has already said not to be in the condition to carried out to common procurement. • The choice of the common buyer implies that he will call for tender according to his national legislation. Therefore it must be assured in advance that the procedure is compatible with other countries’ legislations • within the consortium.

25. 3.2 What to buy • The BUS ZERO. • Results of the analysis of the technical specifications requested by COMPRO partners and follower cities (Nantes/Semitan); • survey on the CNG and Hybrid buses available in the market;

26. 3.3 How to buy • The contracting authority will lead the Common procurement procedure, which can/should be chosen after a common analysis carried out within the consortium. The typology of CP will depend also on the nature of the contracting authority. • The options for the transfrontal procurement are: • A framework agreement realized by a central purchasing authority (for instance UGAP, CONSIP, INTERCENTER); • A full collaborative agreement within the consortium partner, carried out by a common procurer identified by the consortium (for instance a LPT company); • A piggy backing tender which foresees a convention between the contracting authority and the consortium partners who are interested in procuring the same product • The contracting authority will have of course the responsibility to defined the specifications for the call for tender (for instance price and technical specifications).

27. 3.3 How to buy IntercentER scenario (IntercentER as central purchasing body) IntercentER could be the central purchasing body for COMPRO project IntercentER normally carries out framework agreements (f.a.), that involve one or more buyers and one or more suppliers. According to the Italian law (art. 3, comma 13 D.lgs. N. 163/06), the aim of a f.a. is to set up the specifications referring to tenders to be awarded, during a determined period of time, particularly with reference to prices and the foreseen amount of the goods to be supplied. A f.a. cannot last more than 4 years. The duration of a f.a. can overcome the problem of the different investment funds availability of each buyer.

28. 3.3 How to buy • IntercentER can provide different framework agreements: • Type1: framework agreement with only one suppliers with all fixed specifications; • Type 2: framework agreement with one supplier with non all fixed specifications; it means that buyers can contract specific features of the supply; • Type 3: framework agreement with more than tree suppliers with all fixed sfecifications; the framework agreement award contains the priority list implies a rotation criterion in order to choose the supplier for each single tender; • Type 4: framework agreement with more than tree suppliers and with not all fixed specifications.

29. Thank you!fformentin@regione.emilia-romagna.itszamboni@regione.emilia-romagna.itanormanno@regione.emilia-romagna.itmichele@punto3.info