Public Procurement of Innovation

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1 Public Procurement of Innovation Jaroslav Kračún Legal Officer, Unit C3 European Commission DG Internal Market and Services Directorate C Public Procurement Policy 05/03/2015

2 Summary Part I: Innovation drive with current PP Directives (2004) A. General procedures B. Competitive Dialogue C. Pre-Commercial Procurement Part III: Innovation with reformed PP Directives (2014) A. Innovation Partnership B. Generalised negotiated procedure C. Cross border joint procurement

3 Innovation ability to take up new ideas translate them into commercial outcome using new processes, products or services in a way that is better and faster than competition impossible to be organised by regulations state of mind of market actors should be supported by the legal framework

4 Why innovation in Public Procurement? to enhance EU competitiveness in globalised economy to address important issues: climate change non-renewable resources demographic change etc. public procurers: 18-19% of GDP specific sectors with specific competition should act as intelligent customers

5 Part I Innovation with Public Procurement Directives 2004/17/EC and 2004/18/EC A. General procedures B. Competitive Dialogue C. Pre-Commercial procurement

6 A. General Procedures Technical specifications referring to: Fixed description / Standards or Performance and functional requirements allowing market to propose creative solutions asking for solution, not prescribing it Award criteria: Lowest price Economically most advantageous tender Variants technical merits and better quality achievements life-time costs: energy efficiency, maintenance costs, reliability

7 B. Competitive dialogue Specific procedure Formalised dialogue to explore the development of best solutions that are particularly complex for a specific product or service impossibility to define the technical means inability to determine among different solutions Economically most advantageous tender Risks to be avoided confusion with negotiated procedure maintain competition non-discriminatory criteria equal information sharing among operators final fine-tuning: no major modification of the tender

8 C. Pre-Commercial Procurement Applicability (out of Directives, Exclusion Art. 16(f) of Directive 2004/18/EC) Procurement of R&D services where procurer shares costs and results with the operator (risk-benefit sharing) lower price for procurers for not keeping all Intellectual and Property Rights opportunity/risk for operators to resell the solution Double phase procurement process Pre-commercial phase / Commercial phase

9 Part III Innovation with the reformed PP Directives 2014/24/EU and 2014/25/EU All previous instruments remain available, the reform brings additional tools: A. Innovation Partnership B. Generalised negotiated procedure C. Cross-border joint procurement

10 A. Innovation Partnership brand new procedure divided into stages specifically designed to procure innovative solutions competition phase at the outset to select the partner partner will: develop the new product/service attain target(s) set in each stage of the procedure be able to supply final product/service IPR should be clearly set by contracting authority

11 B. Generalised negotiation procedure more flexibility better fine-tuning respecting original specifications C. Cross-border joint procurement by contracting authorities from various Member States for innovative projects to share risks and pool resources specific provisions on governing law

12 Contact information All information available at: urement/index_en.htm Jaroslav Kračún Thank you for your attention

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