Nordic Lighthouse Project on Public Procurement and Health Care

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1 CALL FOR TENDERS: Nordic Lighthouse Project on Public Procurement and Health Care This proposal for an analysis and mapping of best practices is the initial activity in a lighthouse project on public procurement and health care, which is part of the Nordic Co-operation programme for innovation and business policy decided by the Nordic Ministers of Business. The proposal has been completed by a Nordic ad-hoc working group on the basis of results from a globalisation project on innovation and entrepreneurship in the health sector; recent Nordic reports on the issue; and a workshop with relevant stakeholders including the Nordic ministries of business- and health; regions (kommuner/regioner); national institutions and other relevant actors in the Nordic countries. The purpose of the analysis is to serve as background for discussion between the Nordic Ministers of Business; for developing the lighthouse project; as well as serving as a relevant tool for stakeholders working with innovative procurement on policy and operational level; with 6-8 Nordic in-depth case studies and applicable examples of best practice. Background The Nordic Ministers of Industry have decided in the Nordic Co-operation Programme for Innovation and Business Policy to launch a Lighthouse project on Public Procurement and Health Care: We will work together on innovative public procurement systems. Intensified efforts are needed if the Nordic countries are to harness the potential inherent in public procurement and regulation to create innovative and effective solutions. This will be achieved through Nordic-level co-operation on innovative public procurement and a common understanding of existing legal frameworks. The potential could perhaps be exploited by means of pre-commercial public-sector procurement. Background analyses and analyses of needs will be conducted in 2011.The target is to launch at least two pilot projects per country by The analyses will, among other things, lead to a common understanding of existing EU legislation in this area. The cooperation will focus on: welfare, with focus on exploiting the potential for public procurement in the health sector. Efforts from 2010 onwards may include building on the Nordic globalisation project on innovation and entrepreneurship in health care and the Nordic project on strategic use of public-private partnerships. Milestones: Analyses in Two pilot projects per country in Evaluation of the initiative in Responsibility: Norway

2 As indicated in the description above the project may include the work done in the Globalization project on Innovation and Entrepreneurship in Health Care. Recently two reports have been published by the Nordic Council of Ministers on publicprivate collaboration including innovative public procurement: Strategic use of publicprivate cooperation in the Nordic region 1 and Health innovation in the Nordic Countries 2. The reasoning and recommendations in those reports is partly the base for the proposed projects. A project plan for the lighthouse project has been prepared by an ad hoc Working Group, which has been established with representatives from the Norwegian Ministry of Industry and Trade, the Chairman of the Globalisation Project on Innovation and Entrepreneurship in Health Care, the Nordic Council of Ministers Secretariat, and Nordic Innovation. The working group is responsible for producing the project plan. An outline of the project has been decided upon by the Senior Officials Committee for Business in June 2011, and it is decided to carry out an analysis and a kick-off with stakeholders in 2011 as the initial face of the project. A preliminary list of relevant stakeholders in the Nordic countries has been put together (the list is available upon request). The stakeholders have taken part in the development of the plan and will be involved to varying degrees in the projects. Overall Project Definition, Scope and Operational Aims for the Lighthouse project The working definition on public procurement is the process by which governments, departments and agencies purchase goods and services from the private sector. In the Nordic co-operation programme for business and innovation policy it is stated that the project (see above) should focus on health care. However the project should have a broad approach and be able to include other parts of the welfare system and relevant actors where appropriate, in addition to focusing on health care. The health care sector may be organised differently in the Nordic countries; but the procurement process in the welfare sector in the Nordic countries have many similarities. The description of the lighthouse project (see above) indicates that the project should achieve: Increased facilitation of pre-commercial procurement and innovative procurement in the health care sector A better understanding of the legal framework concerning innovative procurement/private-public partnership in the health care sector, especially with regard to the EU legislation. On the basis of current activities in the Nordic countries, the working group proposes the following objectives for the program: Develop a robust model for Nordic co-operation in this field, that provides stakeholders and member states with a clear understanding of how to undertake 1 Strategic use of public-private cooperation in the Nordic region TemaNord 2011: Nordic Council of Ministers (2010) Health innovation in the Nordic Countries

3 pre-commercial procurement and innovative procurement in the health care sector Develop joint websites, workshops, guidelines, etc. that will facilitate sharing of relevant information for procurement co-operation and sharing of best practice. Analysis and mapping of Best Practices, incl. case studies In order to achieve the objectives of the lighthouse project a set of activities for the lighthouse project is proposed. The first activity is to conduct a mapping and analysis of best practices, as innovative public procurement is more challenging than traditional procurement. In order to understand how successful innovative procurements are done, it is necessary to identify best practices in the following fields: Legal Framework Although studies show that the legal framework is not an obstacle in itself for innovative public procurement, it is often perceived like that. EU-legislation is providing the framework for public procurement, but there seem to be different national interpretations. In addition, there seems to be a need to clarify the rules and to inform procurers about existing possibilities. A key to a successful innovative public procurement process is an understanding of the possibilities the existing legal framework provide. Process and Dialogue A successful innovative procurement depends on having a process that, besides fulfilling the legal requirements, is appropriate in terms of identification of needs, dialogue with companies, contracting with relevant incentives for all parties etc. Hence, it is important to design a process for innovative procurement that is tailored for this purpose. Risk Management Procuring innovation and innovative products is inherently more risky than traditional public procurement. There are several types of risks (financial, political, functional etc) involved. In order to promote innovative public procurement there must be effective ways to deal with this increased risk, i.e. risk management. This includes everything from auditing to traditional risk management/risk analysis. These risks need to be shared in an adequate way between the procuring agencies and the suppliers. In order to do this there need to be tools for analyzing and estimate the cost of the risk. The risk analysis and management framework for this has not yet been developed. Incentives A main obstacle for innovative public procurement is that the procuring agencies have weak (or non-existing) incentives for going for something else than a low cost. To stimulate an increased use of innovative procurement there is an urgent need to review the incentives and align them with the innovation policy. In cases where innovative procurement has been successful the right incentives have been in place.

4 Deliverables: Draft report with main findings; mapping, analysis and best practice cases Electronic version of the report (30-40 pages incl. pictures, graphs etc.) Printed version of the report (30-40 pages incl. pictures, graphs etc.) The report s target group is relevant stakeholders; public institutions, public buyers etc. It shall be presented in an attractive and readable way. Presentation of the results at kick off, including persons from the best practice case examples Milestones Call for tenders ultimo June 2011 Deadline for tenders 15 th August Decision on winner 22th August Start-up meeting ultimo August with consultant and the working group for the lighthouse project Draft executive summary of main findings and policy recommendations 30 th September for the Nordic Ministers of Business meeting in October Draft report 25 th October Final report in layouted electronic version 2 nd November Printed and layouted report ready for Kick-off with stakeholders in Copenhagen November 16 th where the consultant and persons representing selected case examples present the results Risk analysis The consultant will do a risk analysis and suggest how to tackle possible risks. Budget The maximum cost of the analysis can be DKK (excluding VAT). The budget includes layout and printing of the analysis. The tender must include a detailed budget included an estimate for hourly/daily rate for the personnel involved in the project. Reporting The contractor must report to the reference group and NMRS in September in order to discuss the setup and anchoring of the analysis. Allow for two meetings with NMRS before the final report is completed. Also the contractor must provide a draft executive summary with policy recommendations by 30 September 2011 and a draft report 25 th October. The reference group may provide insights and contacts for each country. Requirements for the contractor: Selection criteria: The following criteria will be used for evaluating tenders: 1) Competence - Substantial knowledge about public private cooperation, public procurement and innovation in the social and health care sector in the Nordic countries. Documentation on competence and experience in similar (national) projects. - The project manager must have relevant competence.

5 2) Relevance The goal of the project and its connection to policy development and practical implementation must be understood correctly. 3) Form - The tender must lead to a solution with good relevance and anchoring in the five Nordic countries. The solution must provide an added value compared to what could be achieved on a national basis. 4) Level of ambition The tender must be ambitious and have a good balance between price and quality. 5) The contractor must communicate fluently in English and one Scandinavian language The tender should include: 1. A proposed method for the project 2. A list of relevant references for the consultancy/institution for the past three years 3. A thorough résumé of the project manager and shorter résumés for the other personnel involved in the project. The personnel involved in the project shall not be substituted in the course of the project without a prior agreement with NMRS. Submission of tender and other questions Tenders shall be submitted by 15 th of August by to with copy to in word or pdf-format with the headline TENDER: Nordic lighthouse project in the health sector. Tenders should be drafted in English. Tenders shall remain valid for 60 days after the deadline for submission. Questions regarding the tender may be directed to with copy to Costs related to producing, delivering and following up tender documents will not be refunded by NMRS. Documents will not be returned. NMRS reserves the right to terminate; withdraw or amend the tender if factual reason occurs. Written notice will in that case be given. There is no commitment on the part of NMRS to accept any offer or part thereof. NMRS reserves the right to: accept non-substantive defects that might affect the presentation of tenders; reject tenders received after the deadline for submission of tenders, without justification.

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