MGA for PCP and PPI cofunds in Horizon 2020
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1 MGA for PCP and PPI cofunds in Horizon 2020 Lieve Bos European Commission DG CONNECT (Communication Networks) F2 unit ( Innovation )
2 PCP-PPI Complementarity PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors PPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market Applied R&D / Pre-commercial Procurement (PCP) Public Procurement of Innovative Solutions (PPI) Phase 0 Curiosity Driven Research Phase 1 Solution design Supplier A Supplier B Supplier C Supplier D Phase 2 Prototype development Supplier B Supplier C Supplier D Phase 3 Original development of limited volume of first test products / services Supplier B Supplier D Phase 4 Deployment of commercial volumes of end-products Wide diffusion of newly developed solutions Supplier(s) A,B,C,D and/or X Also normally multiple sourcing here to keep competition going Objectives: Price/quality products that better fit public sector needs Earlier customer feedback for companies developing solutions Better take-up/wider commercialisation of R&D results
3 Status of PCP implementation across Europe June 2014 Already piloted in FP7 Awareness Raising Exploring possibilities Framework identified Working on and/or pilots framework in preparation PCPs projects ongoing Malta Lithuania Latvia Bulgaria Poland Cyprus Czech Slovenia Iceland Luxembourg Republic Switzerland Hungary Estonia Romania Spain Greece Slovakia Portugal Finland Sweden Ireland Netherlands Denmark UK Belgium France Germany Austria Examples of PCPs done by procurers in countries around Europe without EU support: in Norway, Austria, Italy, Spain, UK, etc ->More Info about national PCP initiatives in Member States: Examples of on-going EC funded PCP projects in ICT domain doing joint cross-border PCP procurements: SILVER (Robotics solutions for elderly care), CHARM (Traffic management), V-CON (Virtual Construction / Modelling of Roads), SMART@FIRE (Integrated ICTs for Smart Personal Protective Equipment for Fire Fighters and First Responders), DECIPHER (applications based on Distributed EC Individual Personal Health Records), PRACE 3IP (high energy efficient high performance computing), C4E (Cloud computing), ENIGMA (lighting solutions for cities), IMAILE (e-learning), PREFORMA (long term digital preservation), NYMPHA-MD (mobile care for bipolar disorders), THALEA (telecare for ICU patients), UNWIRED HEALTH (mobile care solutions for vaccination/heart failure patients) ->More info on EU funded ICT domain cross border PCP projects:
4 Participation: 3 public procurers plus Minimum of 3 independent participants from 3 different MS or AC, of which minimum 2 public procurers (buyers group) from 2 different MS or AC Public procurers are contracting authorities or contracting entities as define in the EU public procurement directives They can be complemented by other types of procurers that are providing services of public interest and share the same need to procure R&D or innovative solutions E.g. NGOs or private procurers Other entities may participate as direct beneficiaries on condition that they add value to the action, are not potential suppliers of solutions sought for by the PCP/PPI and have no other type of conflict of interest Assisting the procurers in the preparation, implementation and follow-up
5 Roles in MGA Beneficiaries Action contains beneficiaries that undertaken together the PCP or PPI procurement, the buyers group & the lead procurer Buyers group Procurers in the action that provide the financial commitments to undertake the PCP or PPI procurement Min 2 public procurers from 2 different Member States or associated countries Lead procurer Procurer appointed by buyers group to lead and coordinate the PCP or PPI procurement Third parties linked to beneficiaries E.g. Third parties (e.g. end-users such as fire brigade) putting resources (e.g. test sites, testers) at the disposal of the beneficiaries (e.g. the ministry of internal affairs that is the procurer for the fire brigades) to carry out the action Subcontractors Successful tenderers, selected by the buyers group & lead procurer as result of the PCP or PPI call for tender, to provide the R&D services (PCP) or innovative solutions (PPI). They do 'NOT' become partners in the MGA.
6 Eligible activities Preparation stage Preparation of one joint PCP or PPI procurement per action Open market consultation /verification of market readiness to meet procurement need If relevant to the action, other networking or coordination activities Outcome Agreed common tender specifications Joint procurement agreement Confirmation of commitment on availability of financial commitments to start PCP or PPI Execution stage Joint procurement of the R&D services (PCP) or innovative solutions (PPI) Implementation of the procurement contracts /payment of providers Assessment of the outcomes of the procurement Confirmation of 'after-pcp/ppi' strategy for dissemination/exploitation of results If relevant to the action, other networking or coordination activities
7 EU contribution Reimbursement rate direct costs: Max 70% of eligible costs for PCP cofund actions, Max 20% of eligible costs for PPI cofund actions Eligible direct costs to carry out eligible activities defined in WP include: - Price of the R&D services (PCP) or innovative solutions (PPI) procured (if procurement conducted in compliance with requirements in Annex E WP) - Eligible coordination and networking activities - May include in-kind contributions (e.g. third parties putting resources at disposal of beneficiaries e.g. for testing of solutions) - VAT is an eligible cost unless for beneficiaries that can deduct it Flexibility: Consortium may choose to use part of the Union contribution to increase the support to coordination and networking activities/budget for call for tender as long as the Union contribution does not exceed 70% (PCP)/20% (PPI) of the sum of those costs and the price of the call for tender/coordination and networking activities. Requested reimbursement for coordination and networking can comprise max 30% (for PCP) / max 50% (for PPI) of total requested grant Plus 25% for indirect costs. But, no indirect costs on the price of the PCP/PPI procurement or on 3 rd party resources not used at the premises of the beneficiaries Pre-financing: Yes, 1 st pre-financing at start project for costs for preparation stage, 2 nd pre-financing before execution stage for costs for rest (incl. call for tender budget)
8 Specific requirements PCP procedure (Annex E WP) Procedure: Compliance with applicable national procurement rules + compliance with additional specific requirements Definition PCP (Horizon 2020 RfP and PCP communication) EU-wide published open market dialogue and call for tender PCP call for tender open for at least 60 days Same objective evaluation criteria Functional / performance based specifications Best value for money award criteria Majority of R&D activities performed in MS/AS IPR arrangements for PCP R&D providers generating results in PCP shall own attached IPRs Procurers shall enjoy royalty-free access rights to use the R&D results for their own use Procurers shall also enjoy the right to grant or to require participating R&D providers to grant non-exclusive licenses to third parties to exploit the results under fair and reasonable market conditions without any right to sublicense
9 Specific requirements PPI procedure (Annex E WP) Procedure: Compliance with applicable national procurement rules + compliance with additional specific requirements Unless PPI limited to prototypes, test-products developed during pre-ceding PCP Cofund action Definition PPI (Horizon 2020 RfP). Choice between procurement procedures covered by procurement directives that do not include procurement of R&D EU wide publication of open market consultation, early announcement of target date for launching the PPI and call for tender PPI call for tender open for at least 60 days PPI call for tender open to tenderers from EU Member States and Horizon 2020 associated countries + (if applicable) additional countries that ratified WTO GPA Possibility of conformance testing before contract award Same objective evaluation criteria Functional / performance based specifications Best value for money award criteria IPR arrangements for PPI IPRs attached to results generated during PPI shall be owned by the party generating the results, unless duly justified cases (e.g. party the generating results is not able to exploit IPRs)
10 Other obligations related to implementation of call - Beneficiaries must ensure wide publication for open market consultation and contract notice, unless for PPI ltd to prototypes/test products from PCP cofund - OJEU, H2020 sites, NCPs etc The beneficiaries must formally notify the Commission: 5 days before publication in OJEU: copy of the PIN for the open market consultation 30 days before publication in OJEU: copy of the contract notice and its contents Open market consultation shall be announced well in advance to the market: Min 2 months in advance via publication of PIN in OJEU (except for PPI procuring outcomes of PCP) Joint call for tender shall remain open: At least 60 days: for PCP At least 60 days: for PPI
11 Updates/clarifications in MGA PCP-PPI Cofunds June 2014 Annex 11: Commitment availability of resources (updated annex) Pre-financing payments (Art 21.2, footnotes 44 & 45) 1 st : corresponds to the percentage of the maximum grant amount that is foreseen for the related additional coordination and networking activities related to the preparation of the call for tender 2 nd : corresponds to a maximum of 980% minus the amount of the first pre-financing payment, unless option with three pre-financing payments is used. Deliverables (Art 19 aligned with proposal template) at the end of the tender evaluation [OPTION for PCP:(including after the intermediate evaluations preceding the start of each new PCP phase (see Article 13))]: information on the evaluation of tenders: the final ranking list of the selected projects, final scores and qualitative assessment per evaluation criterion for each received bid, minutes of the evaluation meeting [OPTION for PCP: assessment by the buyers group of the results achieved by each participating tendererin the previous PCP phase(not applicable to the initial evaluation of tenders at the start of the PCP)] at the end of the action: information on each project financed by the procurement, including data on each contractor that participated in the procurement and overview of the results, for publication and evaluation purposes; This must include an assessment by the buyers group, based on the validation of solutions, of the final results of each participating tenderer in terms of achieving the performance and functionality requirements of the initial tender specifications.
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