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Session Best practice for the procurement of services The award of services in the area of advertising, public relations, etc. – case study regarding the.

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Presentation on theme: "Session Best practice for the procurement of services The award of services in the area of advertising, public relations, etc. – case study regarding the."— Presentation transcript:

1 Session Best practice for the procurement of services The award of services in the area of advertising, public relations, etc. – case study regarding the award of advertising campaigns for road safety Wolfgang Berger EBRD-Consultants, WOLF THEISS Kiev, November

2 Agenda Advertising services Definition Intellectual services Choice of procedure Framework Agreement Placement of advertisements Case Study: Advertising campaigns for road safety 2

3 Advertising services – definition Advertising services are priority services according to Annex II EU PPD EU PPD is fully applicable Advertising services are listed in the Common Procurement Vocabulary (CPV) from to (except and ). Examples: Advertising services (e.g. Advertising campaign services, Advertising management services, etc.) Marketing services (e.g. direct marketing) Customer services (e.g. customer survey services, customer satisfaction survey, Customer-care services, etc.) Public relations services (e.g. PR-management services, PR- consultancy services) 3

4 Advertising services – intellectual service Advertising services are in most cases intellectual services. Intellectual services are services for which the contract specifications cannot be established with sufficient precision to permit the award of the contract by selection of the best tender according to the rules governing open or restricted procedures. Intellectual services are always in whole or in part creative services. The specification for intellectual services can only be described functionally. The services will not lead necessarily to the same outcome (e.g. different design etc.). 4

5 Advertising services – choice of procedure (1) Intellectual advertising services e.g. Creation and realization of advertising campaigns Authoring of advertising texts Negotiated procedure (mandatory) Non intellectual advertising services e.g. Placement of advertisements Direct marketing Open procedure Restricted procedure 5

6 Advertising services – Framework Agreement (1) Framework Agreement (FA) - for regularly recurring services Is an agreement with one ore more FA-partners, which regulates the conditions for the conclusion of contracts, within a certain time-period The contracting authority is not obliged to conclude a contract 2 Phases 1. Phase: Award of Framework-Agreement-partner(s) after a procurement procedure (e.g. open, restricted or negotiated procedure) 2. Phase: 1 Partner: Award of contracts with the FA-partner based on the FA >1 Partners: Award of the contract based on the FA Competition based on the FA, award of the contract 6

7 Advertising services – Framework Agreement (2) Regulations for FA (EU PPLD Art 9 and 32): Estimated value: the max estimated value of all the contracts envisaged for the total term of the FA Max total term: 4 years The awarded contracts have to be based on the FA (interdiction of substantial amendments!) Jurisdiction (Austria): The contracting entity has to specify the envisaged quantity of the services that will be awarded (Federal Public Procurement Office , N/0009-BVA/06/ ) 7

8 Advertising services – Framework Agreement (3) Pros: the contracting authority can award the needed services directly based on the FA without an obligation for the contracting entity to award a minimum of contracts without an exclusivity of the FA-partner Cons: without an obligation of awarding a minimum of contracts the FA may not be calculable or the bidders have to calculate the risk to get no contract (the agreement prices will be high) FA should include a minimum of contracts that will be awarded (calculable tender price) 8

9 Advertising services – Placement of Advertisements EU PPL is applicable: Placement of advertisements is neither a public works nor a public supply contract public service contract No exclusion of PPLD Priority services according to Annex II A EU PPLD Placement of advertisements is neither explicitly enumerated in Annex II A nor in the CPV Annex II A refers also to the CPC (Central Product Classification) Reference No Sale or leasing services of advertising space or time Planning, creating and placement services of advertising Priority services 9

10 Case Study - General (1) Project and subject matter of the tender: Advertising- and media-agency services regarding road safety campaigns Contracting entity ASFINAG owned by the Republic of Austria ( classic contracting entity) Estimated value Value of all the contracts envisaged for the total term of the FA EUR 1,000,000 10

11 Case Study - General (2) Kind of service Priority services according to Annex II to the EU public procurement directives Advertising services Tender procedure Negotiated procedure (two stages) with prior EU-wide publication ! Pre-qualification stage Tender stage Framework Agreement with one economic operator 1 Advertising campaign-contract for road safety was awarded with the FA 11

12 Case Study - Pre-qualifcation stage (1) Deadline for submission of request to participate (RTP) 40 days 4 candidates proceed to second stage Proof of suitability Suitability to pursue professional activity Proof of a permission to pursue the services General professional reliability Confirmation by competent fiscal authority (tax office) and Confirmation by social security 12

13 Case Study - Pre-qualifcation stage (2) Financial capability Professional indemnity insurance with indemnity limit of at least EUR 50,000 per damage Technical capability (1) 2 Reference projects (advertising campaigns) of the economic operator Requirements: include classic advertising, online, below-the-line and media planning adressed to a wide audience (>1.5 million people) over a time period of at least 6 months have a budget for classic advertising (agency fees, production costs, costs for the placement of advertisments) within 6 months of at least EUR 500,000 not older than 3 years (date of notification of the tender) 13

14 Case Study - Pre-qualifcation stage (3) Key personnel Project leader (Etat-Director) At least 10 years of relevant work experience and min 5 years as a senior consulter. One successful project that fulfills the criteria for the reference project. Creative director At least 5 years of relevant work experience and min 2 years as a creative director. One successful project that fulfills the criteria for the reference project. Senior Media-Planner At least 5 years of relevant work experience as a media planner. One successful project that fulfills the criteria for the reference project. 14

15 Case Study - Pre-qualifcation stage (4) Selection criteria weighting: Agency reference project Basic score for each reference (max 4 projects) Additional points for each reference project with a budget over EUR 500,000.- the content road safety Key personnel Basic score for max 2 additional references Additional score for each reference project with the content road safety 15

16 Case Study - Pre-qualifcation stage (5) Evaluation table 16 Weighting of the selection criteria Maximal total points Agency-reference (max. 4 references, max. 20 points for each reference) 80 Etat-Supervisor (max. 2 references, max. 22 points for each reference) 44 Creative-Director (max. 2 references, max. 22 points for each reference) 44 Mediaplaner (max. 2 references, max. 16 points for each references) 32 SUM 200 points = 100%

17 Case Study - Tender stage (1) Award criteria (evaluation by a jury) Price (weighting 25%) Concept for media campaigns (65%) e.g. Quality of the communication concept Plausibility of recommended medias (print medias, TV, etc.) Plausibility of the budget. Professional interview with key personnel (weighting 10%) Evaluation of the quality criteria by a jury (5 Members: 2 contracting entity, 1 Ministry of Economic Affairs, Univ. Professor for marketing, 1 Opinion Research Institute) Partial compensation payment for tenders (except for the awarded): EUR 5,

18 Case Study - Tender stage (2) During the offering period: Rebriefing/Information of the bidders about the tasks of the safety campaigns After submission of tenders Negotiation Content of the contract (specification of the content of the first campaign) Contractual conditions (liabilities, contractual penalties) Price 18

19 Contact 19 Dr. Wolfgang Berger Tel: + 43 / 050 / Fax: +43 / 050 / ASFINAG Rotenturmstraße Vienna Austria


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