Simplification and reduction of administrative burden. PUBLIC PROCUREMENT OFFICE Simplification and reduction of administrative burden. Polish experiences – state of play. Hubert Nowak – Vice President, Public Procurement Office of Poland Budapest, Hungary, 14 November 2017

Public procurement market in Poland - general data for 2016 107 billion PLN (ca 26 billion Euro) – value of awarded public contracts; 127.930 – number of awarded public contracts; structure of the public procurement market in Poland in terms of types of awarded public contracts: services supplies Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Public procurement market in Poland - general data for 2016 (2015) ca 35.000 entities with status of contracting authority; economic operator – could be almost everyone, i.e. natural persons, legal persons, organisational units not having legal personality or above mentioned entities bidding together (consortia); two official publicators for publication of contracts notices: Official Journal of the European Union – for contracts above the EU thresholds; Public Procurement Bulletin – for contracts below the EU thresholds average number of bids in a single public procurement procedure: …* (2,65) – per public procurement procedure above the EU thresholds; 2,87 (2,90) - per public procurement procedure below the EU thresholds; * EU has not yet presented the data Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Public procurement market in Poland - general data for 2016 (2015) average length of a public procurement procedure: ….* (85) days – procedure above the EU thresholds; 36 (35) days - procedure below the EU thresholds; ….* (98) days – public procurement procedure for works with estimated value above the EU thresholds; * EU has not yet presented the data Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Public procurement market in Poland - general data for 2016 (2015) number of appeals submitted by economic operator’s and judgments of the National Appeal Chamber – the independent quasi-judicial review body (the appeals refer to irregularities in the public procurement procedure) – 2.496 (2.877) appeals, from among of which: 21% (21%) - admitted by the National Appeal Chamber; 15% (16%) - admitted by contracting authority; 64% (63%) - dismissed or rejected. Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Public procurement market in Poland - general data for 2016 Types of the public procurement procedures: open tendering; restricted tendering; negotiated procedure with notice publication; competitive dialogue; innovation partnership (since July 2016); electronic bidding; procedures initiated by publication of the notice negotiated procedure without publication; single-source procurement; request-for-quotation; without publication of the notice Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Public procurement market in Poland - general data for 2014-2016 Public procurement procedures in numbers:   Type of procedure Years/Percentage of the procedures 2014 2015 2016 Open tendering 82,19% 83,39% 81,81% Single-source procurement 13,42% 11,75% 13,40% Request-for-quotation 3,14% 3,55% 3,59% Restricted tendering 0,74% 0,83% 0,70% Electronic bidding 0,21% 0,27% 0,33% Negotiated procedure without publication 0,13% 0,10% Negotiated procedure with notice publication 0,08% 0,07% 0,05% Competitive dialogue 0,01% Innovation partnership (since July 2016) not existed Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Polish public procurement system – legal framework Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (Official Journal of the European Union L 94 of 28 March 2014, p. 65, as amended); Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (Official Journal of the European Union L 94 of 28 March 2014, p. 243, as amended); The Act of 29 January 2004 – (Polish) Public Procurement Law (Journal of Laws of 2017, item 1579); Implementation of the above directives was made by amendment of the Act of 29 January 2004 - Public Procurement Law (PPL) adopted on 22 June 2016 (Journal of Laws of 2016, item 1020, as amended). Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Problems and main recent amendments complicated / formal procedure requirements Amendment of Public Procurement Law: reduction of formal duties at the stage of application for a contract: at the stage of submission of tenders, economic operator encloses to the bid only a statement as an initial confirmation that he is not subject to exclusion and complies with the conditions for participation in the procedure before awarding a contract, contracting authority shall call on the economic operator whose tender has been evaluated as the best to submit documents confirming the contractor is not subject to exclusion and complies with the conditions for participation in the procedure simplification of procedures for awarding so-called social and other specific services such as legal services, hotel services, catering, cultural services, health services Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Problems and main recent amendments lack of flexibility during the process of establishing the contractual provisions and low number of negotiations procedures Amendment of Public Procurement Law: facilitation of the use of negotiations as a manner of clarifying the contractual terms with bidders and obtaining the services, goods or works that best meet the needs of the contracting authority Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Problems and main recent amendments Problem: application of lowest price criterion only Amendment of Public Procurement Law: promotion and support for non-economic objectives such as environmental protection, social inclusion, or innovation, by among others: emphasis on selection of the most advantageous tender based on the cost-effectiveness and on non-price award criteria while limiting the use of the lowest price criterion introduction of the new type of procurement procedure - an innovation partnership - aimed at acquiring innovative products and services not yet available on the market promotion of social inclusion of disadvantaged persons and their integration on the labor market by amending provisions which allow to reserve the right to compete for a contract only to economic operators whose main activity is social inclusion of such persons and which employ at least 30% of people belonging to disadvantaged groups Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Problems and main recent amendments low number of bids and low access to public procurement market of small and medium-sized enterprises (SMEs) Amendment of Public Procurement Law: better access to public procurement procedures for SMEs by: facilitating the division of contract into lots, what usually makes them better accessible for SMEs introducing limitations as regards the conditions that might be determined by the contracting authority with reference to average annual turnover of the bidder - up to twice of the estimated value of a contract Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Problems and main recent amendments lack of flexibility during execution of contracts bancruptcy of tenderers cash flows – limited number of cases when contracting authority could make advanced payment Amendment of Public Procurement Law: introduction of more flexible rules for modification of public procurement contracts introduction of possibility for contracting authority to provide for advance payment in almost every contract Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

provide efficient e-Procurement Ongoing task provide efficient e-Procurement Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND

Ongoing task Thank you! Public Procurement Office in Poland www.uzp.gov.pl Public Procurement Office, Postępu Str. 17A, 02-676 Warsaw, POLAND