Creating the global research village

EU Procurement

Nicola Anson, DANTE

TF-MSP Meeting, 1 March 2011

Creating the global research village

Introduction to speaker

Head of Finance & Commercial Operations at DANTE (Delivery of

Advanced Network Technology to Europe ) from January 2010

Responsible for procurement at DANTE

Background as Commercial Finance and Operations Director for last 15

years, purchase and sale of companies

Last role: Finance and Operations Director of technology transfer

company, University of Cambridge

Currently on learning curve with EU procurement activity within DANTE,

supported by Achilles and Matthew Scott

2

Creating the global research village

Current procurement activity within DANTE

3

DANTE World Service – Competitive Dialogue

Moscow/Copenhagen leased circuit – Open Procedure

GN3 Connectivity: Buc/Bud/Ath/Sof/Vie/Mil – Competitive Dialogue

CAREN Project leased circuit– Competitive Dialgoue

Transmission and Switching Equipment – Competitive Dialogue

Transatlantic Tender – Framework Agreement

Creating the global research village

What are the “EC rules”?

Principles and detailed procedures to be applied by “contracting

authorities” and “utilities” to their procurement

Reflect the risk that such bodies might favour national/local suppliers in

their procurement

Such preference breaches the EU Treaty obligations of free movement

of goods, services, people and capital (“the four freedoms”)

Open public procurement markets are a key objective of the EU

EC directives set out the procedures. The European Commission and

European Court of Justice interpret and apply them

4

Creating the global research village

Aims and principles

Aim:

To improve supplier opportunities and value for money by opening

up the market

Principles:

Transparency

Objectivity

Non-discrimination

Competition

5

Creating the global research village

Implications of the EC rules

Non-compliance can lead to:

Legal action against purchasers by potential suppliers . . .

And investigation by the European Commission

This will impact on procurement throughout the organisation

6

Creating the global research village

The process outlined

Publish a call for competition in the Official Journal of the EU

Select suppliers from those responding

Establish non-discriminatory specification

Seek proposals (formal tenders/discussions on proposed solutions). For Competitive Dialogue, Invitation to Participate in Dialogue (ITPD) is issued prior to Invitation to Tender (ITT)

Assess proposals (based on lowest price or most economically advantageous tender)

Notify all interested suppliers of the outcome of the assessment (allowing 10 days for challenges)

Conclude contract

Debrief suppliers

Publish contract award notice in Official Journal of the EU

Note: No obligation to award a contract – process can be cancelled at anytime prior to contract conclusion

7

Creating the global research village

Contracts covered

Most contracts above certain thresholds

Thresholds (2010-2011):

Works

– €4,845,000

Supplies and services

– Central government, including NHS: €193,000

– Local government, etc: €193,000

Note: Treaty obligation of non-discrimination applies even to low valuecontracts

8

Creating the global research village

Key points

Process quite lengthy (typically 6 months plus to award a contract)

Limits on the scope to exclude suppliers from tender lists

Negotiation deliberately constrained

Deliberately restricts the discretion of the purchaser, to limit the scope

for “preferential procurement” (e.g. national or local suppliers)

Legal sanctions against purchasers recently strengthened

Caveat emptor!

9

Creating the global research village

Procurements on behalf of others

Where one organisation is procuring on behalf of its community and other

NRENs in different countries:

Notice must make clear who is doing the buying

Need clarity as to legal jurisdiction

Need to ensure that the value of the contract and physical scope is clear

Need to have single point of contact for documents

Note: EU law does not set out any special rules for joint or cross-border

projects

10

Creating the global research village

Looking ahead

As you may be aware, this year, for the first time, €14M of EC co-financing is available for consortia of public authorities from around Europe to undertake pre-commercial procurements (PCPs) together, through the FP7 ICT work programme 2011. Call 8 (July 2011 and January 2012) is an open call where PCP proposals in any area of public interest can be submitted.

PCP enables public procurers, by acting as technologically demanding first buyers, to drive the development of innovative solutions for public sector challenges from the demand side. In addition to improving the quality and effectiveness of public services, this can help create opportunities for companies to take international leadership in new markets.

High-level event on pre-commercial procurement – towards a smarter research and innovation procurement strategy for Europe (11-12 April 2011, Budapest).

11