1. External Consultation Workshop 20 May 2015, Vienna (A)
Giacomo Somma Project coordinator

2. Welcome!

3. Participants list Organisation First name Family name
Working Group 1 "PPI approaches, IPR & legal aspects"
Working Group 2 "Major PPI challenges & mitigation plans"
Working Group 3 "PPI and (Cooperative) ITS"
Social Dinner 20 May 2015 (19:30)
ASFINAG
Bernhard
Jelinek X
AustriaTech
Bianca
Kapl
Martin
Russ -
Bundesbeschaffung GmbH
Stefan
Wurm
CTAG
José M.
Martínez
ÉARDA
János
Agócs Kiss
Roland
Csehi
Melinda
Mátrai
ERTICO
Giacomo
Somma
Finnish Transport Agency
Kari
Hiltunen
Highways England
Ian
Chalmers XX
ITS Bretagne
Imad
FHAIL
LIST
Christophe
Feltus
Hungarian Innov. Agency
András
Hlács
North Denmark Region
Lasse
Stender
Svend
Tøfting
Regione Liguria
Cristina
Battaglia
Jacopo
Riccardi
Silvia
Risso
Swedish Transport Admin.
Annica
Roos
TOPOS / CEREMA
Jean-Philippe
Méchin
VTT
Satu
Innamaa
Total 7 8 15

4. Objectives and agenda

5. P4ITS objectives
P4ITS: a Thematic Network to prepare the ground for Public Procurement of Innovative solutions (PPI) for Cooperative Intelligent Transport Systems and Services (C-ITS)
Create a European network dedicated to public procurement of innovation for C-ITS
Provide the conditions for mutual learning and training for the network members (experience exchange, including good practice, identification of barriers/problems and workable solutions/mitigation measures)
Set up an external consultation process (to reach beyond the P4ITS consortium)
Raise awareness about the topic and the network (e.g., publishing proceedings, dissemination in congresses and via electronic media)
Propose key recommendations (guidelines) for PPI in C-ITS
Consolidate the project into a sustainable longer-term network

6. National / federal administrations
P4ITS consortium
National / federal administrations
AustriaTech
Finnish Transport Agency
ITS Sweden (Associate: Swedish Transport Administration)
Coordinated by ERTICO-ITS Europe
Regional authorities
North Denmark Region
Flanders Region
Észak-Alföld Regional development agency
ITS Bretagne
Regione Liguria
Topos Aquitaine (Associate: CETE du Sud-Ouest)
Cities
Vigo
Verona
Road operators
ASFINAG
OHL Concesiones
Research partners
CTAG
VTT
LIST
Associated partners
Highways England
ITS Spain
from 11 countries:
Austria, Belgium, Denmark, Finland, France, Hungary, Italy, Luxemburg, Spain, Sweden, UK

7. External consultation & feedback
Objectives:
Interact with external stakeholders and collect feedback on P4ITS Discussion paper
Input the consolidated feedback in the network's work plan
March-April 2015 – Online questionnaire
Discussion paper & questionnaire published on the P4ITS website
Invitation sent to identified external stakeholders (public procurers)
Collection and first analysis of responses to the online questionnaire
20 May 2015 – Workshop in Vienna
Presentation of Discussion paper & preliminary feedback gathered through the questionnaire
Discussion with external stakeholders on key network topics (to get the feedback and opinions)
Reality check on the first conclusions of the network
June-July 2015 – Identification of potential enablers & discussion topics update
Based on feedback received, identify PPI enablers remaining realistic in the scale of their potential achievement (e.g., aligning competition laws in all MS is not considered as a realistic enabler)
Identify which points could be effectively addressed through a concerted approach and which will have realistically the highest impact, thus leading to update network discussion topics

8. Agenda 09:30 Arrival of the participants 10:00 – 10:10
Opening and welcome
10:10 – 10:20
Workshop objectives & agenda (G. Somma, ERTICO - ITS Europe)
10: :45
PPI - Experiences and Strategies in the Mobility Sector (Martin Russ, AustriaTech)
Questions & Answers (10 min.)
10:45 – 11:10
Eco-AT Project – European Corridor – Austrian Testbed for Cooperative Systems (Peter Meckel, ASFINAG)
11:10 – 11:30
Coffee break
11: :00
P4ITS Discussion Paper& Online Questionnaire (G. Somma, ERTICO - ITS Europe)
Questions & Answers (15 min.)
12:00 – 13:00
Lunch
13:00 – 15:00
(coffee break at 14:00)
3 parallel Working Groups:
PPI approaches, IPR & legal aspects (moderator: L. Stender, North Denmark Region; rapporteur: G. Somma, ERTICO - ITS Europe)
Major PPI challenges and mitigation plans – PPI guidelines (moderator: Bianca Kapl, AustriaTech; rapporteur: Bernhard Jelinek, ASFINAG)
PPI and (Cooperative) ITS (moderator: Satu Innamaa, VTT; rapporteur: José M. Martinez, CTAG)
15:00 – 15:30
WG summary by the rapporteurs (10 min. each)
15:30 – 16:00
Final considerations and conclusions
19:00
Network dinner

9. P4ITS Discussion Paper

10. Innovation Procurement: complementarity PCP - PPI
PCP: contracting authorities to steer the development of solutions towards concrete public sector needs, whilst comparing / validating alternative solution approaches from various vendors  research, development, validation
PPI: contracting authorities to act as launching customer / early adopter / first buyer of innovative commercial end-solutions (goods or services) newly arriving on the market  (pilot) deployment
Source:

11. PPI flow chart

12. TRL - Technology Readiness Level
TRL definition (Horizon C(2013) 8631)
TRL 1: basic principles observed - Basic research.
Pre-concept
TRL 2: technology concept formulated - Concept and application formulated.
TRL 3: experimental proof of concept - Applied research. First laboratory tests completed; proof of concept.
Material solution analysis
TRL 4: technology validated in laboratory - Small scale (“ugly”) prototype built in a lab environment.
TRL 5: technology validated in relevant environment - Large scale prototype tested in intended environment.
Technology development (component)
TRL 6: technology demonstrated in relevant environment - tested in intended environment close to expected performance.
Technology development (system)
TRL 7: system prototype demonstration in operational environment - pre-commercial scale.
Engineering and manufacturing development
TRL 8: system complete and qualified - First of a kind commercial system. Manufacturing issues solved.
Production and deployment
TRL 9: actual system proven in operational environment - Full commercial application, technology available for consumers.

13. Which TRL?
Pre-commercial procurement (PCP) encompasses R&D services up to prototyping or first test production stages (i.e. the development of limited prototypes and/or test products, but not the acquisition of larger volumes of resulting end-solutions on a commercial scale. (pg. 20)
The innovation process encompasses R&D and later phases such as preproduction, production, distribution, training, market preparation and new organisational or marketing methods. (pg. 5)
Source: “Guidance for public authorities on Public Procurement of Innovation” available at
 TRL range for PCP ?  2-7
 TRL range for PPI ?  5-9

14. PPI flow chart with TRL TRL 1 Basic principles observed TRL 2
Technology concept formulated
TRL 3
Experimental proof of concept
TRL 4
Tech. validation in lab (small scale prototype)
TRL 5
Tech. validation in relevant environment (large scale prototype)
TRL 6
Technology demostration in relevant environment
TRL 7
System/prototype demonstration in operational environment
TRL 8
System complete and qualified
TRL 9
Actual system proven in operational environment

15. P4ITS questionnaire on Innovation Procurement

16. Participants to the questionnaire
32 respondents:
Countries: 13 (Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Spain, Sweden, Turkey and UK)
Organisations: public authorities, transport & road operators, innovation agencies, associations, research establishment, consultants, providers/suppliers
Sectors: Transport / ITS, works / supplies / services, health, ICT
Public Procurement Experience: 25 yes, 7 no.
Interest in P4ITS network: 17
Interest in questionnaire results: 21
Interest in attending the workshop: 15

17. Is the PPI flowchart clear?
Answered: Skipped: 0
Comments:
3: Reformulate question “are any new or additional requirements needed” - term “functional” not clear
1: Revise flowchart referring to Guidance for PAs on PPI (pg. 18)
2: Border between PCP and PPI as well as R&D and innovation is not always clear
1: RFI/RFQ is only the starting point and doesn't guarantee success of the whole process
7: TRL reference not clear, or not appropriate (e.g., software services), or different scaling is used
2: Use of dotted lines and TRL colors not clear
1: real-life examples would help understanding better the flowchart
Source: “Guidance for public authorities on Public Procurement of Innovation”,

18. PPI experience Answered: 29 Skipped: 3
Approaches knowledge / experience:
Other approaches suitable for catalysing innovation procurement: Yes (9), No (20)
PCP, Competitive dialogue, Integrated Procurement, Project financing, Competitions for the best idea, BIM tech
Experience with PPI as described in Chapter 2.2 of the P4ITS Discussion paper:
Yes (8), No (14), Not heard (7)
Tenders or PCP
PP (especially including PPI) becomes more and more difficult due to abundant ever moving formal requirements of PP legislation and jurisdiction. Especially the further evolution of procured systems is difficult since not all needs can be anticipated at initial procurement. Reasonable behaviour of the supplier is not enough for justifying additional procurements from the same supplier whereas full open procurement of such extensions is not really feasible. Due to evolving jurisdiction even "lessons learned" are often not useful. There is more formal / legal overhead than technical / user-side innovation required.
Approach
Yes No
Never heard
Prior Information Notice (PIN) and market consultations 11 16 5
Using functional specifications in your technical specifications 17 2
Allowing the suppliers to offer variants
Using the principle of Total Cost of Ownership (TCO) as award criteria 8 15 6
Joint procurement with other stakeholders 14 13
Risk sharing between procurer and supplier / provider 9 4

19. Key PPI aspects Answered: 8 Skipped: 24
Are IPR aspects taken into account?
Yes (5), No (1), Don’t know (2)
Contractual agreements with supplier / provider; difficult to deal with in case of disputes.
Challenging aspects of PPI & recommendations:
Defining relevant problems or unmet needs.
Specific knowledge of this topic; preliminary project processing capacity, according to industrial methods.
The state should be clear about the specs. The rules should be clear, possibly set with universities and possible supplier associations.
The legal framework, its interpretation and other inherent elements (e.g., liability, understanding of requirements by the supplier, user acceptance, system evolution, technical progress/obsolescence, etc.). Simplification of the legal framework and more stability / room for reasonable judgment (in general for PP but possibly in particular for PPI by exceptions).
Moving a product or service from prototype / demonstrator to commercial readiness.
Understanding the whole procurement process (supplier management, claim handling, contract management, reporting....), not just the bidding phase. PP is not just bidding; this is important, but it is only the starting point. The attitude is a challenge as well (e.g., lawyers should advise on what law allows to do rather than what is not allowed). Involve procurers in the idea phase to support the process (e.g., choice & use of the correct bidding method to support procuring innovations.
Procuring authority to be "first mover" in relation to new technology / solutions. The new rules on the negotiated procedures in the new procurement directive might help. Always use market consultations before drafting or issuing our technical specifications to avoid disregarding solutions that you don't know.

20. PPI and (cooperative) ITS
Answered: Skipped: 12
Any experience? Yes (7), No (10), Don’t know (3)
Is there any risk or difficulty factor specific to PPI in this particular sector? Rating from 0 (no particular sector related risk) to 5 (high risk when procuring ITS solutions)
Is there any other risk / difficulty factor specific to PPI in the (cooperative) ITS sector?
Contractor's bankruptcy (exclusivity), liability in case of failures.

21. Next steps

22. Next steps June-December 2015:
Trigger in-depth discussion on the updated identified barriers, or new topics identified
Prepare draft key recommendations/guidelines
Analysis of the updated discussion points/enablers
The network will hold a meeting (Helsinki, Sep. 2015) to:
process external feedback and provide a possible answer to realise the enablers
have a close look at the latest PPI experiences and actual cases
look at the legal context, evolved with the entry into force of the new public procurement directives
Towards the delivery of recommendations
The network will hold a meeting (Genoa, 2-3 Dec. 2015) to:
identify items where a consensus and a consolidated approach can be reached, and can have a positive impact for the market deployment of (cooperative) ITS
define a draft structure of the recommendations and the rationale behind.

23. Final Event @ the ITS WC in Bordeaux on Tuesday, 6 October 2015 at 13:30 - 15:00 CET

24. Setting up a longer term network on PPI

25. MG.8.3-2015 – Facilitating market take-up of innovative transport infrastructure solutions
Specific challenge: deployment of highly innovative infrastructure solutions at integrated system level
Type of action: Public Procurement of Innovation (PPI) Cofund
Scope: actions should lead to the improvement and capacity building in the field of public purchasing of innovative solutions in transport infrastructure leading to implementation of best available solutions on cross-border TEN-T network and other business cases representative of typical European situations. Proposals should be driven by clearly identified procurement needs of infrastructure owners (the procurers), including life-cycle and cost-benefit assessments and environmental impacts under the life-cycle perspective, and should effectively control budget across various European regions. The work should contribute to the revision / development of relevant standards and regulatory framework, and to study strategies oriented to favour the innovation in transport sector. Good practices should be made available for replication.
Expected impact: serve as pilot projects; allow for a better coordinated dialogue between procurers and suppliers; contribute to competence building in the sector; build a coherent basis for progressive step changes to regulation, standardisation and public procurement practices fostering innovation and sustainability in transport infrastructure.
Call funding: total budget 18,5 Million euro (1 to 5 Million euro per project, but request can be higher); 20% funding rate.
Call details: one-stage proposal submission; opening ; deadline

26. TM2.0: “Enable Interactive Traffic Management”
Facts:
Today, traffic management plans (TMP) are not part of the dynamic traffic information delivered to the vehicles
Individual vehicle behaviour (from the route guidance system) is not made available to the traffic management system
Expected outcomes:
Build upon deployment of connected travellers to achieve convergence of mobility services and traffic management.
Focus on individual travellers, collective mobility objectives, legacy and business opportunities.
TM2.0 is an ERTICO Innovation Platform launched by Tomtom and Swarco-Mizar. The 15 founding members are key stakeholders from public and private sectors.

27. Interested?
The network will provide interested public authorities and road operators with the opportunity to follow the activities.
Contact:
P4ITS Coordinator
Giacomo Somma
ERTICO – ITS Europe
Co-financed by the European Union
Competitiveness and Innovation Programme ICT-PSP