The new procurement Directive(s)

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1 The new procurement Directive(s) Behind the scenes the passage of the new EU procurement directives Upphandlingsdagarne Stockholm 28 January 2015 Claudio Romanini DG for Internal Market, Industry, Entrepreneurship and SME's Unit E3

2 Scope of proposals International context: Compliance with GPA Proposals replace Directives 2004/18/EC and 2004/17/EC Directives 2014/24/EU & 2014/25/EU Proposal for a Concessions Directive Directive 2014/23/EU No changes to the Directives on Defence procurement (2009/81/EC) nor on Remedies (89/665/EEC and 92/13/EC ) Other parallel proposals International trade instrument Directive 2014/55/EU of 16 April 2014 on electronic invoicing in Public Procurement

3 Objectives for the reform 1. Simpler/ more flexible procedures 2. Strategic use 4. Sound procedures 3. Better access (SMEs, cross-border trade) 5. Governance, professionalization of procurement

4 Main issues during the adoption process Access to procedures involving negotiations: broader and identical access to both competitive dialogue and competitive procedures with negotiation procedural safeguards Innovation partnership Strategic use award criteria Social aspects: horizontal clause: observance of applicable obligations in the field of environmental, social and labour law, referred to i. a. for exclusion grounds strengthened provisions on abnormally low tenders subcontracting

5 Contract award criteria Sole award criterion: MEAT most economically advantageous tender - to be assessed on the basis of price, or cost, using a cost-effectiveness approach such as lifecycle costing, or the best price-quality ratio (BPQR)to be assessed on the basis of award criteria linked to the subject-matter of the contract. organisation, qualification and experience of the staff delivering the contract where this can significantly impact the level of performance of the contract MS can exclude or restrict the use of price or cost only as sole criterion.

6 Life-cycle costing Life-cycle costs borne by the imputed to environmental externalities acquisition use, maintenance, end of life

7 Public-Public a few remarks Builds on jurisprudence Covers inhouse: Sole control Joint control "Horizontal" cooperation Clarification, codification plus "bottoms-up" "essential part" = more than 80% private participation in limited cases C.U.1 C.A. C.U.2 CU1 CU2 CU3

8 Services light regime The current distinction between Part A / Part B services abolished New system: Starting point: all services are subject to the full set of rules, unless The service concerned is explicitly excluded from the scope (Art. 10 Classic Directive (CD); Art. 21 Utilities Directive (UD), Art. 19 Concessions Directive (CND)), or The service concerned is explicitly listed in the exhaustive Annex XIV CD/XVII UD/IV CND ( «light regime») Recital 119 CD/125 UD

9 Light regime (CD+UD) New specific simplified rules for social, health, cultural and other services: higher threshold EUR (EUR Utilities); below threshold: typically no-cross-border interest (except if EU funding) only specific rules: ex-ante & ex-post publicity, remedies Non-discrimination principle; national rules; Title I of Directive(s) applicable MS may impose traditional MEAT (= BPQR) criterion only Other services covered, e. g. Hotel and restaurant services Certain legal services Rescue, fire fighting and prison services Investigation and security services (e. g. alarm monitoring services, guard services)

10 Transposition planning measures 1 Thematic meetings of Expert Group Priority: clarification/discussion of main identified issues: meetings of EXPP 1st half of transposition period 12 days of meetings (5 2-day meetings and 2 1- day meetings from February till November 2014) Commission services : written material (ppt slides) - MS : written questions sent prior to meetings at least further 7 days of meetings planned for 2015 an electronic forum (implementation wiki) for the transposition process is being put in place

11 Transposition planning measures 2 Which subjects have been covered until now? Concessions: Definition, duration and estimation of value Classic & Utilities: Mixed contracts (incl. defence), Operational units (threshold calculation), e-procurement, Light regime (social services), in particular reserved contracts, Exclusions from the scope of the Directives, Public-public cooperation, Modifications, Exclusion grounds, in particular self-cleaning, Aggregation of demand - joint procurement, Award procedures, including innovation partnerships, Aggregation of demand - framework contracts, Utilities specific aspects, Award criteria (in particular life-cycle costing), Social considerations, Subcontracting

12 Contact European Commission DG for Internal Market, Industry, Entrepreneurship and SME's Directorate E: Public procurement, Unit E 3

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