Implementation of the EU Procurement Directives and Wider Commercial Reform. Ed Green Deputy Director, EU and Domestic Procurement Policy

Transcription

1 Implementation of the EU Procurement Directives and Wider Commercial Reform Ed Green Deputy Director, EU and Domestic Procurement Policy

2 Agenda Crown Commercial Service Policy Priorities European Policy Reform Modernising the EU Procurement Directives UK Transposition Timeline UK objectives in Brussels: simplification to support growth Top UK negotiating wins Embedding to support the change Lessons and FAQs Domestic Legislative Reform Enabling better access for small businesses Transparency, Anti-Corruption, steel FAQs 2 Procurement Week, Bangor University, 9 and 10 June 2016

3 The Crown Commercial Service Est. April 2014 as trading fund and executive agency of Cabinet Office Provide commercial and procurement expertise and services to central government and wider public sector 15bn public sector spend through CCS deals 1,400 customers across central government and the wider public sector 2,600 suppliers (60% SMEs) m savings for our customers (2015/16 against 2014/15 baseline) 3 Procurement Week, Bangor University, 9 and 10 June 2016

4 Policy priorities for procurement Regulation Embed the flexibilities in the new EU rules designed to simplify process and to make it easier to do business with government. SMEs One third of central government spend with smaller businesses by 2019/20. Prompt payment to suppliers. Apprenticeships Supporting the Manifesto commitment to create three million apprenticeships public contracts should support skills. Economic Growth Ministerial priorities on growth including measures to address barriers that prevent UK suppliers from competing effectively. Transparency More transparent and accessible commercial information e.g. on price, contract performance, etc. 5 Procurement Week, Bangor University, 9 and 10 June 2016

5 European Policy Reform Modernisation of the EU Procurement Directives 5 Procurement Week, Bangor University, 9 and 10 June 2016

6 UK Transposition Timeline Extensive UK participation in EU consultation/re-negotiations from In April 2014, a package of 3 new EU procurement directives (for the public sector, utilities sector, and concession contracts), came into force at EU level. Member States then had 2 years to implement the directives into national law i.e. by April The UK prioritised the public sector directive for earliest possible implementation, to realise the significant economic benefits from the new, modernised rules, as soon as possible. We achieved early implementation of the Public Sector Directive in just 10 months of the 24 months allowed. The Public Contracts Regulations 2015 came into force in February The utilities and concessions directives were implemented on time. 6 Procurement Week, Bangor University, 9 and 10 June 2016

7 UK Objectives The UK Government wanted significant simplification of the public procurement regime to free up markets and facilitate growth: Allow a flexible approach towards employee-led organisations/mutuals so they can gain experience of running public services prior to full and open competition; Reduce lengthy and burdensome procurement processes that add cost to business and barriers to market competition; Modernise the procurement procedures and provide more flexibility for purchasers to follow best commercial practice to achieve the best procurement outcomes; Support measures to enhance SME access to public procurement, where such measures are non-discriminatory and are consistent with a value for money approach. The agreed Directives are an excellent overall outcome for the UK 7 Procurement Week, Bangor University, 9 and 10 June 2016

8 Main UK-inspired changes 1. Temporary exemption for public service mutuals 2. Much simpler process of assessing bidders credentials 3. More freedom for buyers to negotiate with suppliers 4. Legally exclude suppliers who have a poor track record 5. Greatly simplified rules on Dynamic Purchasing Systems 6. Expressly permit the use of electronic catalogues for public procurement 7. Reduced red-tape on suppliers response times 8. Legally binding commitment on the Commission to review the financial thresholds 9. Legal clarity that buyers can take into account the relevant skills and experience of individuals when awarding contracts for consultants, lawyers, architects, etc 10. Improved the rules on social and environmental aspects 8 Procurement Week, Bangor University, 9 and 10 June 2016

9 Other key changes Part A/Part B Services distinction removed. Improved safeguards from corruption. SME friendly easements. Preliminary market consultation Innovation Partnership procedure. Full life-cycle costings 9 Procurement Week, Bangor University, 9 and 10 June 2016

10 Embedding Blended Learning Package for all public sector procurement staff: Over 4500 professionals received briefing on the new regulations via training sessions delivered across the UK. E-learning is available free of charge to public sector colleagues Training materials, handbooks and subject specific guidance documents are free to access on gov.uk All information can be found on the Public Procurement Policy page: 10 Procurement Week, Bangor University, 9 and 10 June 2016

11 Key Lessons Learned Transposing early demands innovation To deliver at a significantly faster pace, we needed an innovative approach. We started work unusually early on transposition, as soon as the provisional agreement on the text was reached in Brussels which was 9 months before the Public Sector Directive was published in OJEU. Discussion paper process informed initial thinking on policy choices. Transposed Public Sector Directive in 10 months, 14 months early. 11 Procurement Week, Bangor University, 9 and 10 June 2016

12 Domestic Legislative Reform 12 Procurement Week, Bangor University, 9 and 10 June 2016

13 Domestic Reforms Additional legislation introduced in the PCRs 2015 which: abolish PQQs for low value contracts and mandate a standardised PQQ for high value contracts mandate that 30 day payment terms are passed down the supply chain ensure that all public sector contracts are readily accessible online in one place a new improved Contracts Finder Small Business Enterprise and Employment Act: 1) An enabling power to make provision in secondary legislation for procurement matters 2) A power for Ministers to request information in relation to public procurements through the Mystery Shopper scheme 13 Procurement Week, Bangor University, 9 and 10 June 2016

14 Transparency Greater transparency in public contracting helps tackle corruption and drives accountability by allowing taxpayers and Civil Society Organisations to see how Governments spend taxpayers money. The Open Contracting Partnership developed the Open Contracting Principles, to provide greater transparency of public contracting. These are underpinned by the Open Contracting Data Standard, which sets out how data should be published across the contracting lifecycle, so that data is released in an interoperable, machine readable way. Open Contracting Data Standard on a major infrastructure projects in order to drive accountability and galvanise action internationally. HS2 will trial the Open Contracting Data standard and CCS will implement the Standard by October. 14 Procurement Week, Bangor University, 9 and 10 June 2016

15 Anti-Corruption Corruption erodes public trust in government and undermines the rule of law. Anti-Corruption Summit, to step up global action Government needs to know who it is doing business with. Beneficial ownership information as part of the procurement process. Criminal record checks Account will be taken of any "self-cleaning" 15 Procurement Week, Bangor University, 9 and 10 June 2016

16 Steel New requirements to open up the steel market, level the playing field for UK business and stimulate competition Takes account of social impacts of competing suppliers Assess carbon footprint Guidance published for departments to apply on major projects. Guidance is being extended to wider public sector 16 Procurement Week, Bangor University, 9 and 10 June 2016

17 Policy Information: Further information on all items mentioned within this presentation and other public procurement policies can be found on the Public Procurement Policy page: 17 Procurement Week, Bangor University, 9 and 10 June 2016

18 12 Stay in touch W: E: info@crowncommercial.gov.uk T: LinkedIn: Crown Commercial