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Socially Responsible Public Procurement in the Czech Republic

This project explores how socially responsible public procurement (SPP) drives the social economy in the Czech Republic, detailing the national approach, efforts of key ministries, challenges, and barriers faced by social enterprises (SEs). It discusses initiatives, methodologies, and practical examples, emphasizing the importance of involving SEs in public procurement processes. The project aims to enhance the understanding and adoption of SPP principles across government procurement policies. Discover more about the involvement of SEs, barriers faced, guidance for practitioners, and strategies to overcome obstacles in participating in public tenders.

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Socially Responsible Public Procurement in the Czech Republic

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  1. Responsible public procurement in the Czech Republic How to involve SE‘s in Public Procurement? Adam Gromnica Ministry of Labour and Social Affairs of the Czech Republic Socially responsible public procurement: a driver for the development of the social economy in Latvia Riga, Latvia October 2nd, 2019

  2. SPP in the Czech Republic

  3. Czech Republic - National approach • Act No. 134/2016 Coll., on public procument (as amended) • fully allows (and supports) RPP/SPP (special conditions for participation or qualitative criteria) • Resolution No. 531 dated 24 July 2017 - Guidelines for the Application of Responsible Public Procurement and Commissioning Applied by the Public Administration and Local Authorities.

  4. „Socially Responsible Public Procurement“ • Responsibilities • Ministry of Regional Development: Act on public procurement • Ministry of Finance: 3E and central purchases • MoLSA: (Socially) Responsible Public Procurement • Ministry of Environment: GPP • Ministry of Commerce and industry: SME‘s, CSR, Circular Economy • Ministry of Justice

  5. Project „Socially Responsible Public Procurement“ • 2016 – 2020 – with an objective to include the principles of RPP/SPP in everyday practice in Czech public procurement • Methodological support, advice, consultation, long-term cooperation with contracting authorities, exchange of best practice examples, etc.

  6. Project „Socially Responsible Public Procurement“ 2016 - 2019 • 8 topics: 1) employmentofdisadvantagedpeople, 2) practicalemploymentexperience and apprenticeships and retraining, 3) decentworkingconditions, 4) SMEs, 5) socialenterprises, 6) fair conditions in supplychains, 7) ethicalpurchasing, 8) environment-friendlysolutions. • 3 comprehensivemethodologiespublished • 80 events(conferences, seminars, WSs) on RPP (for more than 3 thousandsparticipants), incl. 4 annualconferences • More than50 articles, newsletter, LinkedIn, FB, eLearning, etc. • Initiatives in sustainableaspects in centralisedpurchases

  7. 2019 – current state of SPP • General understanding of RPP, new opportunities and topics emerge • Increasing number of contracts with some type of RPP • Increasing number of contracting authorities open to adopt principles of RPP into their procurement policies • Regular meetings on Ministries and Discussions on SPP • Challenges and barriers • controlling mechanisms (EU funds) – unpredictable, question of non-monetary and subjective award criteria or „unusual“ conditions; • emphasis on administrative rules (instead of outcomes or best value); • lack of knowledge of SE market and capacities

  8. SE‘s in Czech Public Procurement

  9. What do Czech SE‘s do?

  10. Where to find SE‘s? Catalogue of SE‘s www.ceske-socialni-podnikani.cz Sorting by location and field of expertise Around 230 SE‘s

  11. MoLSA – strategy for RPP 2014 - 2019 • 2014: Strategy of Responsible Public Procurement for MoLSA 3 priorities: • socially responsible public procurement, • environment-friendly solutions, • diversity in the supply chains • Internal regulation: principles of RPP/SPP + checklist • A huge number of public contracts with RPP/SPP aspects: supplies of office equipment, facility management, supplies of food and material aid, sustainable events and promotional items, etc. • 2019 – updates, challenge: extension to the whole organization

  12. MoLSA – Leading by example • Social enterprises involved in the supply chains for conferences (catering for the events/conferences) • Canteen provider • Reserved tenders • Employment conditions in tenders (printing services)

  13. Possible barriers for the SE‘s to také part in public procurement? • Lack of competitiveness of SE‘s (?) • Lack of capacity of SE‘s for big and complex tenders • Lack of knowledge of the procurement processes (incl. Digitalisation) and lack of administrative capacity • Lack of knowledge of the market and goods and services available • Risk averse

  14. Public procurement guidance for practicioners https://ec.europa.eu/regional_policy/sources/docgener/guides/public_procurement/2018/guidance_public_procurement_2018_en.pdf

  15. Overcoming barriers for SE's to take part in public tenders • Use of reserved contracts • Use of special requirements in the tender with regard to job opportunities (contract performance conditions, award criteria) • Adaptation of conditions, so that also SE‘s and SME‘s can participate • Early involvement of the market players • Simplification of the documents • Necessary assistance for bidders • Management of the Supply chain

  16. How to apply employment-requirement in tenders? • Decision of the Czech Office for the protection of Competition S0734/2016/VZ-04395/2017/543/MŠl • It is legal and justified to demand the bidder to create job opportunities for people with dissabilities with their tenders. • The bidder (direct contract partner of the contracting authority) does not have to provide the disadvantaged person with a job opportunity directly/himself – a job offered by a subcontractor is also allegible.

  17. Case study:Concourse maintenance - Prague 12 Borough • Contracting authority: Prague 12 Borough • Tender: Concourse maintenance • SPP aspects: Support of SE‘s, job opportunities for disabled • Estimated value: 24 917 000 CZK/ca 1 million EUR (before taxes) • Case study: http://sovz.cz/praxe/udrzba-verejne-zelene-a-uklid-verejnych-prostranstvi-praha-12/

  18. Case study:Concourse maintenance - Prague 12 Borough • Securing social benefits: • Reserved contract • bidders, whose at least 50 % employees recruit from people with dissabilities • Award criteria (60-20-20) • percentage of workers in the tender in hand from group of people with dissabilities (30 % minimum) • methodology of work (including methodology of inclusion with people with dissabilities) Source: http://sovz.cz/wp-content/uploads/2016/11/dp_cs_ozp_fokus_zahrada_praha-12.pdf

  19. Case study:Logging services/forestry works – Havlíčkův Brod Facilities, Ltd. • Contracting authority: Havlíčkův Brod Facilities, Ltd. • Tender: Logging services • SPP aspects: Support of SE‘s • Total estimated value: 9 555 000 CZK/ 370 000 EUR (before taxes) • Estimated value of the lot (1 of 5): 2 785 000 CZK/ 110 000 EUR (before taxes) • The best bid for the lot (1 of 3): 1 425 600 CZK/ 55 000 EUR (before taxes) • Case study: http://sovz.cz/praxe/tezebni-a-pestebni-prace-v-lesnich-porostech-technicke-sluzby-havlickuv-brod/

  20. Case study:Logging services/forestry works – Havlíčkův Brod Facilities, Ltd. • Securing opportunities for SE‘s: • Taking into account capacities of SE‘s • division into lots • Chain-saw harvesting • Harvestor operation • Gathering • Transportation • Cultivation, Fencing, Mowing Source: http://sovz.cz/wp-content/uploads/2018/05/sovz_case_studies_tezebni-prace-v-lese.pdf

  21. Project „Supporting Implementation and Development of socially responsible public procurement“ Ministry of Labour and Social Affairs www.sovz.cz/en Adam Gromnica, adam.gromnica@mpsv.cz

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