1. Modernisation of EU public procurement policy Proposal of the Commission Directive on public procurement (replacing Directive 2004/18/EC) NB: The information contained in this presentation is not binding for the European Commission and does not present an official position of the European Commission

2. Objectives of the Reform 24/10/2015 1. Simpler / more flexible procedures 2. Strategic use 3. Better access (SMEs, cross- border trade) 4. Sound procedures 5. Governance / Professionalisation of procurement

3. International context  Full compliance with WTO Government Procurement Agreement (GPA) and bilateral trade agreements (e.g., thresholds, procedures)  Full use of flexibility under GPA (simplified procedures for sub-central authorities, shortening of deadlines,…)

4. Main thematic clusters Flexibilisation of procedures Strategic use of public procurement – Environment – Social aspects – Innovation Reducing documentation requirements E-procurement Facilitating SME access Sound procedures (anti-corruption measures) Governance (oversight)

5. Flexibilisation of procedures  Possibility of increased use of “competitive procedure with negotiation”  Negotiate the quality of the offers, no change to basic parameters of the procurement (subject matter)  GPA – inspired (publish & negotiate)  (GPP – friendly)

6. Strategic use – Green Procurement  The new Directive shall clarify and facilitate the use of GPP  Remove ambiguity when using green criteria:  in technical specifications, qualification criteria and award criteria  Production process (non-bleached paper)  Life-cycle costs (from cradle to grave: CO2 footprint)  Facilitate handling of societal requirements through labels Possibility to refer to a specific label as long as its content is linked to the subject-matter of the product Equivalent labels must be accepted as well Possibility for economic operators to provide alternative evidence where no access to the label in due time

7. Green Procurement as a Business Opportunity Growing trend for the acquisition of environmental friendly goods and services (societal request) Most of the public infrastructure can have better environmental performance Main players: Regional/local contracting authorities (70% of the EU procurement market) – community buildings, schools, health and social care facilities Utilities enterprises: Electricity (renewable energy, windfarms, solar energy) Water supply/Wastewater treatment Transport (green vehicles)

8. Sustainable Procurement in the WTO GPA Strategic use of procurement (green & social,… objectives)varies among the GPA Parties Reconciling “Best value for money” and green & social objectives is not an easy task WTO relevance to harmonise policies and avoid protectionism…… GPA Work Programme on Sustainable Procurement 24/10/2015

9. Strategic use: Social aspects  Sheltered workshops Exception extended to economic operators whose main aim is the social and professional integration of disabled and disadvantaged workers; Reduction from 50% to 30% of the minimum required percentage of disabled or disadvantaged workers

10. Strategic use: Innovation Innovation partnership The contracting authority cooperates with a company – selected in a regular competitive tender procedure (buying the research and the product/service) – for the development and purchase of an innovative product, work or service, which does not exist on the market

11. Reducing documentation requirements  Self-declaration  Only the winning bid submits original docs&proofs

12. E-procurement  Mandatory full electronic availability of tender documents (as from publication)  Fully electronic communication (including submission of tenders)  (Does not include e-evaluation)  mandatory 2 years after transposition deadline (2016)

13. SME access  Division of contracts into lots:  “apply or explain”  obligation to give reasons for not splitting contracts with value equal or greater than thresholds but not less than EUR 500 000

14. SME access  Turnover cap (economic and financial standing): max. 3x the estimated contract value  Possibility for Member States to foresee direct payments to subcontractors:

15. Sound procedures  Minimum safeguards against conflicts of interest and other illicit behaviour: obligation to declare conflicts of interests and take necessary measures  Strengthen rules on abnormally low tenders: obligation to investigate  Clear rules for contract modifications during execution: extra works, change of conditions of execution

16. Governance  Obligation on MS to ensure correct application:  Monitoring of structural problems, legal advice and guidance/assistance, complaints, annual report …  Reinforce mutual assistance and information exchange amongst Member States, using the IMI system

17. Contact European Commission Directorate General Internal Market and Services Directorate C: Public procurement, Unit C 3 World Wide Web: http://ec.europa.eu/internal_market/publicprocurement/index_en.htm 24/10/2015