1. ec.europa.eu/internal_market/publicprocurement Erik Nooteboom DG Internal Market and Services, European Commission Public Procurement: Overview of current developments and forthcoming legislative review GOSZAKAZ – 2011 March 24, Moscow

2. EU procurement: some figures Total public expenditure on goods and services = 2’100bn€ in 2009 (19% of GDP); 400bn€ procurement contracts advertised @ EU level: 150’000 above threshold procedures; 200’000+ contracting authorities in EU; 30’000+ authorities publish in OJ TED in any 1 year, typically once; Average number of bidders for EU procedure = 5 Markets remain predominantly national/local – 1.5% of contracts awarded cross-border EC Directives on « Classical » procurement of goods & services, « Utilities » («2004 package »), Remedies and Defense

3. EU Procurement review & modernisation of the « 2004 package » Green Paper on modernisation of EU public procurement policy (early 2011) Evaluation of impact and effectiveness of EU procurement policy (June 11) Responses to GP: April 2011 Impact Assessment for legislative proposals Legislative proposals End 2011/early 2012

4. Current EU work-programme 2011 1.Legislative modernisation (leg proposals end 2011) 2.E-procurement (road-map of legislative/non-leg changes - Sept); 3.Public-public co-operation (Q&A) 4.Service concessions proposal (May) 5.Third country aspects (leg proposal - summer);

5. Reasons to review EU procurement legislation Do rules open markets and delivering better procurement outcomes ? Issues surrounding scope Simplify/reduce admin burden/increase flexibility Support strategic procurement Adapt to changes in procurement markets: –Centralisation, aggregation (10% of purchases via framework agreements), e-procurement (fast replacing paper-based procurement in several MS)

6. Leg. Review: Scoping issues 1.Change thresholds ? 2.Public-public cooperation: 3.Utilities procurement: continued need for rules on procurement purchasing by utility operators ? 4.Review distinction between Annex 2A and 2B services? Caveat: room for manoeuvre on scope is heavily circumscribed by GPA.

7. Simplifcation/flexibility Make procedures easier to perform, more flexible: 1.More scope for negotiaion ? 2.Lighter rules for frequently puchsed goods and services? 3.More pragmatism on selection/award criteria? 4.Lighter-touch rules for smaller authorities or smaller contracts ?

8. Strategic procurement: Allow other policy objectives to be taken into account (reduce focus on ‘best value for money’) Currently EU legislation is permissive within limits (criteria to be linked to the subject of the contract) Issues for discussion: –Factors not linked to the subject of supply/service; –Obligations on ‘what to buy’? –complication and cost for individual purchasers; –How to limit potential for market-restriction.

9. What happens next? Green Paper consultation ends 18.04.2011: Analysis and publication of feedback statement; Publication of evaluation of existing Directives - June EP opinions (May/June?) Possible conference: 30/06 Commission proposal – Dec 2011/Jan 2012 http://ec.europa.eu/internal_market/publicproc urement/news_en.htmhttp://ec.europa.eu/internal_market/publicproc urement/news_en.htm