The Belgian federal policy framework for the sustainability of public procurement
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1 The Belgian federal policy framework for the sustainability of public procurement Jo Versteven - 26 June 2014 ICDO_CCIM WG sustainable public procurement
2 Framework: Circular of 16 May 2014 (Belgian Official Gazette 21 May 2014) Incorporation of sustainable development, including the social clauses and measures to benefit small and medium-sized enterprises, in the framework of public procurement contracts published by federal contracting authorities. 2 -
3 3 -
4 Objective 24 pages instruction document for federal buyers: 1) Implement a sustainable procurement policy in the federal government, 2) Promote the incorporation of social clauses, 3) Make public contracts more accessible to small and medium-sized enterprises 4 -
5 5 - Basic concepts in the circular
6 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 6 -
7 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 7 -
8 Mandatory: for who? Personnel scope of the circular (Act 22 May 2003, Art. 2, 1-4) > All federal public services (FPSs, PPSs, Ministry of Defence) > Administrative services with accounting autonomy (e.g. FEDOREST, SELOR, the Monetary Fund, Royal Meteorological Institute, Royal Library of Belgium...); > Administrative public institutions (e.g. Federal Agency for the Safety of the Food Chain (A), NGI (B), Federal Agency for Nuclear Control (C), PI of Social Security category D, ) > State holdings (SNCB Holding, SNCB, Infrabel, bpost) > Application recommended for the water, energy, transport and postal services sectors 8 -
9 Different services = different internal structures Need for obligations/guidelines on organizational level 9 -
10 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 10 -
11 Mandatory: what does it mean? NOT: Development and publication of GPP criteria Legislation on the obligation to use GPP criteria in tender documents In circular 16 may 2014: (1) Integration on actual (product related) regulation on SPP (2) Preparatory phase (3) Obligation on motivation: the role of inspection services (4) Informing the market (5) Obligation on internal procurement procedures (6) Reporting What about the content / the criteria? 11 -
12 Mandatory (1): Regulatory framework Regarding the legislation on public procurement Regarding the regulations for sustainable public procurement > 2012/27/EU Energy-efficiency Directive > Art 7bis of the Constitution > Royal Decree 20/12/2010 clean and energy-efficient road vehicles > Circular of 18 November 2005 on sustainably managed wood > Circular 307quinquies personal vehicles On the internal operation of the federal government regarding sustainable development > Act of 5 May 1997 coordination of sustainable development policy > Royal Decree of 22 September 2004 on Sustainable Development units 12 -
13 Mandatory (1): Regulatory framework Federal public administrations: Ministry for SD SD units Interdepartemental Commission on Sustainable Development... EMAS network Network of procurers WG1 WG2
14 Mandatory (2): Preparatory phase Preparatory phase and evaluation a) Obligation on needs assessment b) Obligation on market survey 14 -
15 Mandatory (3): Obligation to state reasons Green procurement Obligation to state reasons when procurers request an opinion of the Inspectorate of Finance and the Government Commissioner Contracts > 85,000 EUR (incl. VAT) Motivate the presence or absence of sustainable development Social responsible procurement Obligation to state reasons when procurers request an opinion of the Inspectorate of Finance and the Government Commissioner Contracts > 85,000 EUR (incl. VAT) deliveries and services Contacts > 1,200,000 (incl. VAT) works Motivate the presence or absence of social clauses 15 -
16 Manadory (3): Obligation to state reasons Usual purchase process: purchaser Tender procedure Internal Inspection Services Motivate why considerations of sustainable development or social clauses WERE or WERE NOT used 7 -
17 Mandatory (4): Informing the market Formulation of the object of the contract Standard clause in contract documents: All federal contracting institutions as mentioned in Article 2, (1-4), of the Act of 22 May 2003 on the organisation of the budget and the compatibility of the federal State have to comply with the provisions of the Circular of 16 May In the framework of this public contract we have taken into account sustainable development and the opportunities for the social-professional integration of people who face difficulties to access the labour market as much as possible to define the object, the criteria and conditions of the contract." Include a description of sustainable aspects in the title of the tender 17 -
18 Mandatory (5): Obligation on internal procurement procedures Internal organisation of the departments: procedures and guidelines Services that fall under governmental EMAS-obligation >Drawing up of internal guidelines and procedures >Deadline 31 December 2014 Services that do not fall under governmental EMAS-obligation >Approval of internal guidelines and procedures by the executive committee >Deadline 31 December
19 Mandatory (6) reporting On individual tender procedures that fall under the material scope On the implementation of the circular 19 -
20 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? The content How does sustainable procurement work in practice? Reporting? Actual work on implementation 20 -
21 What is sustainable procurement? Market survey: which environmental considerations must be examined? Guide for sustainable procurement: validated files by professional federations Ref. to EC toolkit criteria Other environmental criteria based on the following indicators: > toxic substances > air quality > water quality and consumption > soil quality > (odour, light, noise) nuisance > biodiversity > use of space > mobility > other 21 -
22 What is sustainable procurement?
23 What is sustainable procurement? 23 -
24 What is sustainable procurement? Market survey: which social considerations must be examined? social legislation equal opportunities and cultural diversity disabled access engagement of less qualified target groups and the unemployed conventions of the International Labour Organisation and human rights conventions acceptable wages (ILO no. 94) sustainable and fair trade production processes throughout the entire life cycle participation of sheltered workshops and social integration enterprises training, safety instructions,... etc. 24 -
25 What is sustainable procurement? Market survey: which economic considerations must be examined? sustainable innovative solutions (efficiency) cost optimisation (e.g. examine rent, leasing) life cycle cost (definition Council of State no of 20 December 2011: case Zodiac International vs. the Belgian State, represented by the Minister of Defence) SME measures (see infra Chapter 4) 25 -
26 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 26 -
27 In practice Preparatory phase and evaluation a) Obligation on needs assessment examine the priorities within the services (management agreements, policy memoranda, management plans and so on) examine existing stocks, reuse and so on opportunities at other federal services or commissions centres reasonable price 27 -
28 In practice Preparatory phase and evaluation b) Obligation on market survey - active: (company visit, Internet, brochures) - passive (magazines, F58 on e-notification and so on) - prior information sessions - guarantee of competition 28 -
29 In practice Working together with the Sustainable Development unit (Royal Decree 22 September 2004) Advisory role for: > Internal organisation > Systematic screening of sustainable public contracts The SD unit and procurement managers examine:» the needs assessment» the market survey» SD during the various phases of the public contract support: checklist in annex 1 Other services (fall outside the scope of the RD of 22 September 2004 and thus without Sustainable Development unit): provide for structural internal organisation for sustainable public contracts 29 -
30 In practice Preparatory phase and evaluation Needs assessment and market survey: practical organization - use checklist in annex 1 - annex 1 available for: - sustainable development unit - Inspectorate of Finance or Government Commissioner - Interdepartmental Commission for Sustainable Development 30 -
31 In practice Annex 1: 31 -
32 In practice Annex 1: 32 -
33 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 33 -
34 Reporting Federal public administrations: Ministry for SD SD units Interdepartemental Commission on Sustainable Development... EMAS network Network of procurers WG1 WG2
35 Reporting Reporting once a year: Minimal contents of the report: > Reference to contracts tendered in the past year and contracts being prepared > Checklists in accordance with annex 1 > Annex 3 on internal implementation of SPP policy Recipients of the report: > Federal government members, legislative chambers and the Federal Council for Sustainable Development > Society: National Labour Council, Central Economic Council, National High Disability Council 35 -
36 Reporting + investigation of compliance with the circular: by the minister competent for sustainable development by the minister competent for social affairs before 21 May
37 Reporting For information: reporting outside of the context of the circular: FEDCOM accounting software / contract management software of federal government Since 30 March 2014 reporting indicators about sustainable development for deliveries, services, works, subsidies and other expenditure 37 -
38 Basic questions for the federal SPP framework Is sustainable procurement mandatory? mandatory for who? what does is mean: mandatory? What is sustainable procurement? How does sustainable procurement work in practice? Reporting? Actual work on implementation 38 -
39 Actual work Training sessions Setting up internal policies Sessions: implementation of reporting mechanism what about accounting / contract management systems? 39 -
40 Thank you! Information: Federal Institute for Sustainable Development 4, Hertogstraat 1000 Brussels 02/ & 40 -
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