Presentation of Tekes Finnish experience and actions in public procurement. Sini Uuttu, Tekes 16 th of June 2009, Brussels

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1 Presentation of Tekes Finnish experience and actions in public procurement Sini Uuttu, Tekes 16 th of June 2009, Brussels

2 Tekes Finnish Funding Agency for Technology and Innovation The main public funding and expert organisation for research and innovation in Finland DM Copyright Tekes

3 Tekes - Creating networks for innovations Our services funding for innovative R&D and business networking Finnish and global companies and researchers Customers Finnish and foreign companies located in Finland universities, research institutes, hospitals etc. Resources budget: 600 million euros annually personnel: 360 in Finland and abroad public organisation under the Ministry of Employment and the Economy DM Copyright Tekes

4 Goals to build a strong networked knowledge base to renew the economy and create new businesses to increase productivity in industries and service sector to enhance well-being and environmental sustainability DM Copyright Tekes

5 What do we do? Encourage companies to do challenging R&D Tekes accepts more risks than private financiers funding annually over 500 million euros Facilitate collaboration and networking between small and large businesses industry and the academia public private globally nationally regionally DM Copyright Tekes

6 Tekes R&D funding in 2008 Total 516 million euros 1,983 projects Companies R&D grants 208 million euros Universities research institutes polytechnics Research funding 223 million euros R&D loans 85 million euros Figures include 31 million euros funding from EU Structural Funds. DM and Copyright Tekes

7 Half of Tekes funded projects are internationally networked International activities in projects funded by Tekes in Any international company located in Finland is eligible for Tekes' funding, regardless of ownership. DM Copyright Tekes

8 INNOVATION IN PUBLIC PROCUREMENT Funding for innovative procurement

9 GOALS Better services (quality, productivity) Generate market operations Promote innovation among bidders Encourage through competition, life cycle analysis and innovative solutions END USER Innovation PROCURER SUPPLIER

10 TWO STAGE FUNDING FOR PUBLIC PROCURERS STRATEGIC ACQUISITION 1 st STAGE: Planning of procurement e.g. Need of services from a long term perspective Need of outline through requirement specification Comparision between different options Technical dialogue between different parties Funding Typically 75 % of project s total expenses NB! Requirement that 1 st stage funding has been granted. OPERATIVE ACQUISITION 2 nd STAGE: Implementation of procurement e.g. Implementation of new solutions Creation of new operational models Funding Typically 75% of (procurer s and supplier s) R&D expenses Option funding max. 50% of other expenses due to the innovative nature of the procurement (max.1milj. ) Tekes is sharing the possible risk caused by the innovative nature of the procurement.

11 PILOT PROJECT: City of Vantaa, sheltered housing for seriously disabled Project goals Development of a customer oriented service concept Creation of functional markets in the area of sheltered housing for seriously disabled Challenges Until this project no experience in organizing competion among possible bidders in this area has been done in Finland Market absence and underdevelopment To find adequate measurement of service level and service quality in the case of statutory subjective rights and when service level needs varybycustomer

12 PILOT PROJECT: City of Tampere, Helsinki and Espoo, use of design competition in service procurement, case deduction program for homelessness Project goals Implement a design competition form (compatible with the procurement law) into service generating design process A design process is created, which allows the most innovative solution to arise in the competiton phase Service provider s know-how and most suitable space and functional solution are combined in the competition process Challenge Design competition has not been used before in Finland in this type of service generation

13 CASE: Journey planner for Public Transportation in the Helsinki Metropolitan Area

14 Journey planner Gives advice on the best public transport connection door-to-door within the Helsinki Metropolian Area Fastest route can be found by entering the street addresses of the departure and arrival places into the Web browser The service covers bus, tram, metro, commuter train and ferry routes Procurement Initiated in 2000, after the first attempt had been failed four years ago Procurer: Helsinki Metropolitan Area Council (YTV) Supplier: WM-data-a LogicaCMG Duration of the procurement process was 10 months

15 Competition Three stage competition 10 bids were accepted, 6 were selected out for the first qualification, and 3 were chosen for demonstration implementiation Unique aspect: 3 basic bidders were asked to realize the demonstration service using real data before the final selection Selection criterion To fullfil the functional requirements: maintenance, data structure (user and use ability, output of the plans, managing and configuration, actual trip planning, update process for the data) Contract Original contract for 5 years, has been extended Benefits More effective and time saving personal trip planning Growth in the use of public transportation Cost-benefit analysis has shown benefits worth of 5MEUR in 2002

16 THANK YOU!

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