Negotiations in Public Procurement Past, present and (near) future ICEL Dublin February 2013 Pedro Telles.

Slides:



Advertisements
Similar presentations
Joint WTO/WB Regional Workshop on Procurement Reform and Transparency Session 6: Transparency and Fair and Equitable Procedures Mr. Jean-Jacques Raoul.
Advertisements

Evaluation of public procurement Directives High Level Group of Independent Stakeholders on Administrative Burdens Thursday 14 July 2011.
General introduction to Community legislation in the field of Public procurement the classical sector – Directive 2004/18/EC Mr. Jari Kallio DG MARKT Directorate.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Application of the Competitive Dialogue in Practice Glenn.
Tendering Yuck!.
EU Procurement – competitive dialogue and case-law Norman Ballantyne Yousof Khan.
LGAP’s Initiatives to Support Procurement in Local Government
The Changing Face of Public Procurement
Appendix 6: OJEU Process Chart: Summary Restricted Competitive Dialogue Negotiated with OJEU advert Negotiated Without OJEU advert Submit OJEU Award Notice.
REPUBLIC OF ALBANIA PUBLIC PROCUREMENT AGENCY Introduction to the Albanian Public Procurement System Central Asia Regional Public Procurement.
Public Procurement in Albania in the framework of recent reforms PUBLIC PROCUREMENT AGENCY 1.
1 E-procurement overview Prof. Marcella Corsi Università “La Sapienza” di Roma January 2006.
GPP in the new PP directives Peter Nohrstedt. Structure of the presentation New PP support organisation in Sweden GPP in the EU PP directives – what is.
Enhancing Integrity in Public Procurement OECD Recommendation and Toolbox Elodie Beth Administrator Integrity Public Governance and Territorial Development.
1 Introduction to Public Procurement Julie Nazerali Partner, Beachcroft LLP, Brussels and London 5 June 2009.
Gaining Business in the Public Sector. An Introduction Geoff Yale – Public Sector consultant.
Developing eProcurement policies for public sector Key regulatory questions in current international legal standards and national laws Eliza Niewiadomska.
INNOVATIVE PROCUREMENT The Next Steps Anthony Cachia Director (Operations) Department of Contracts.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Martin Oder, LL.M. The Emerging Role of the Competitive Dialogue.
The Lean Sourcing Process
Directorate-General for Translation EUROPEAN COMMISSION Tendering for EU projects – Why and how? London, 25 September 2008 Klaus Ahrend Head of Unit S.2.
1 Fair competition between the public and the private sector - Community law on public contracts and concessions Florian Ermacora European Commission,
The new EU legal framework for e-procurement: Expectations and Prospects Conference ‘E-procurement and Public Spending: Status, Opportunities and Prospects’
PROCUREMENT OVERSIGHT AND MONITORING – A MEANS FOR EFFECTIVE PROJECT IMPLEMENTATION 11 th PUBLIC PROCUREMENT KNOWLEDGE EXCHANGE FORUM June, 9-12, 2015.
Practising open procurement of IT Thomas Vinje, Partner, Clifford Chance LLP, Brussels 10 June 2010.
EU-Japan FTA negotiations – The European rail industry perspective after two years EESC Seminar "EU-Japan Free Trade Agreement: an ambitious deal to boost.
PUBLIC PRIVATE PARTNERSHIP – CROATIAN EXPERIENCE Kamilo Vrana, B.Sc.E.E. Managing Director Beograd, November 18, 2010.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed ( ) Practice 19. Public procurement and EC directives.
United Nations Procurement Division
Creating the global research village EU Procurement Nicola Anson, DANTE TF-MSP Meeting, 1 March 2011.
Sub-dimensional PUBLIC PROCUREMENT: between EU principles and gold plating Dacian C. Dragos Center for Good Governance Studies Babes Bolyai University,
1 Social Considerations in EC Public Procurement Loredana Puiu Internal Market & Services DG Directorate C: Public Procurement Policy.
VALUE FOR MONEY 1 OGC buying.solutions Procurement of Projects Presented by Andy Hamer Pre Accession Advisor, Finance Ministry.
Promoting Innovation by means of Public Procurement Deputy Director Christian Boel Central Denmark Region.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ensuring Good Quality PPP Projects Martin Darcy United Kingdom.
The Tenders Process Ian Williams Head of Hertfordshire Purchasing Hertfordshire Business Services.
Proposal for new EU procurement Directives 30 May 2012 Catherine Wolfenden.
Tendering Basics Introductions Housekeeping Scope 1.
Gwerth Cymru Value Wales Supplier Selection Nick Sullivan Gwerth Cymru/Value Wales 2 Gorffenaf/July.
EMTA General Meeting Prague May 2012 Round table on PSO Regulation 1370/2007 “Two years after enforcement, where are we? How efficient is the regulation?
Legal chapter in outline – 1’st draft P4ITS meeting # 8, Genoa, 2-3 December 2015.
NIFHA Annual Conference 2014 Great Homes, Thriving Communities 24 October 2014 Micaela Diver, A&L Goodbody.
M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 5 – Public Procurement Bilateral screening:
REPUBLIC OF ALBANIA PUBLIC PROCUREMENT AGENCY Eighth Regional Public Procurement Forum May, 22-25, 2012 Tirana
Reforms in the Albanian Public Procurement System 7 th Regional Public Procurement Forum Tbilisi, Georgia May 16-19, 2011 PUBLIC PROCUREMENT AGENCY 1.
Contract Models & Effective Tendering Practices National Commissioning & Contracting Training Conference Martin Quinn Cat Consultancy.
The new EU directives on public procurement and concessions Māris Pūķis, Dr.oec., Dr.phys., Senior adviser Latvian Association of Local and Regional Governments.
An Introduction to Procurement Alex Hatt, PRT. What is procurement? “Act of obtaining or buying goods, services or works from an external source” external.
C H I L D R E N A N D A D U L T S Intermediate Care and Reablement Strategy Market Event 26 November 2015.
Commercial Medicines Unit (CMU)
The Challenge of Deciding What Procurement Method to Use
M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 5 – Public Procurement Bilateral screening:
Contract Changes Jenny Mellerick CMG Procurement Litigation Conference 23 June 2016.
Dealing with tenderers during the procurement and debriefing process Mary Dunne 23 June 2016.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ensuring Good Quality PPP Projects Martin Darcy Regional Workshop.
“The 3 Ps: Procurement” 4 December 2015.
An Introduction to Procurement
Making Changes Lawfully CMG Procurement Litigation Conference
12.2 Conduct Procurements The process of obtaining seller responses, selecting a seller and awarding the contract The team applies selection criteria.
Contract Award Procedures
European Structural and Investment Funds Masterclass
National Commissioning & Contracting
Simplification and reduction of administrative burden.
Workshop ESF and tendering 11 October 2006, Brussels Directive 2004/18/EC Tendering of public contracts Robert Wein, European Commission Disclaimer:
The Lean Sourcing Process
Anti-corruption measures under the new Public Procurement Directives
Switzerland: Recent Developments in Public Procurement Law
Andrea Sundstrand Associate Professor
Modernisation of EU public procurement policy
Procurement Overview Derbyshire County Council 14 March 2019
Presentation transcript:

Negotiations in Public Procurement Past, present and (near) future ICEL Dublin February 2013 Pedro Telles

Plan Past Traditional limitations to negotiation Present Negotiation in numbers Competitive dialogue and contract performance (Near) future New procedures on draft Directive Compromise Text and associated risks

Past Present Near (future)

Negotiations have been frowned upon in European public procurement

Negotiations have been frowned upon in European public procurement Why?

Reasons Protect competition (internal market) Increase transparency As an insurance policy

Insurance policy? To minimise corruption and incentives issues

How did Member States react?

Did the sky fall? Commission initiated two proceedings against the UK in and we are still waiting for a decision Kathro case (R on the Application of Kathro v Rhondda Cynon Taff County BC) 2001

Past Present Near (future)

Legal regime at EU level Standard procedures with negotiations freely available Directive 2004/18No Directive 2004/18 Part B Services Yes Directive 2004/17Yes Contracts not covered by Directives (i.e. low value or concessions) Yes Directive 2009/43Yes

EU %18.6% Source: Eurostat (online data codes: gov_oth_procur) Percentage of public contracts advertised on OJEU (value)

Source: Cost and Effectiveness in public procurement report 2011 Open and restricted procedure represent 80% of advertised contract value

Only 14.88% of total procurement value in 2010 was awarded through procedures without negotiation

What have we learned over the last 8 years with competitive dialogue?

Dialogue stage is actually a negotiation Dialogue after tender submissions should be more limited than on open/restricted procedure Dialogue with preferred bidder is pure madness “Negotiations” within competitive dialogue

Lack of competition leverage Fosters foot dragging by bidder Leads to “negotiation creep” What do you mean by “pure madness”?

Focus discussions on specific topics Use stages for consolidation Set deadlines for end of dialogue/stage Get participants to sign document stating they do not wish to discuss any topic further at the end How to extract value from dialogue stage?

What about negotiations during contract performance? Same caveats apply as before Asymmetry of information and resources, capture of regulator Cautionary tale: Plus Pressetext, Succhi di Frutta and the recent Spain v Commission (AVE) ECJ decisions

Past Present Near (future)

Competitive dialogue (revised) Competitive procedure with negotiation (revised negotiated procedure with prior publication) Innovation partnership (new) A well stocked negotiation toolkit for 2014?

Photo by rocknroll_guitar - Draft Directive appears to bring wider access to negotiations......Is it a good idea?

Higher transaction costs Contracting authority Suppliers Higher opportunity costs Suppliers Scope for much worse outcomes What are going to be the consequences of widespread negotiations in public procurement?

Reasons to limit negotiations Protect competition (internal market) Increase transparency As an insurance policy against corruption, incentive or lack of training

Photo by Bartek Kuzia % of procurement will improve 80% of procurement will get worse results Competitive procedure with negotiation will be the new restricted procedure

Questions welcome.