Procurement Standards

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1 Procurement Standards Chris Walsh 24 March

2 Objectives The main aim of TRANSFORM is to mobilise the procurement power of city authorities and major companies to accelerate progress towards sustainable zero carbon transport systems. The three year project will focus on: The development of procurement of innovation strategies on realizing Green Transport The results will be used to bridge the gap with R&D, specifically the European Research Area (ERA) R&D An analysis of the impact of transport on climate change A sensible action plan to enable cities to make progress on smart, green integrated transport. An important part of the action plan is the potential synergies between public and private demand.

3 Progress to date on Procurement Standards Rotterdam workshop (December 13) Delivery of demand side measures in practice for environmentally friendly vehicles (summarised in following slides) Working group on the requirements from procurement standards Providing a quantitative measurement scheme of desired As a means of expressing values and goals Providing procedural guidance for fleet operators on how to comply Birmingham Peer Learning Workshop (March 14) Development of the procurement framework design. The standards need to consider that direct from a vehicle during use are only part of a vehicle s environmental. Upstream factors such as manufacturing, recyclability, reusability, life cycle impacts of construction materials etc. all contribute to a vehicle s environmental footprint. Barcelona (October 14) Delivery of the Innovation Procurement standards Framework (summarised in following slides)

4 Progress to date Rotterdam workshop (December 13) Delivery of demand side measures in practice for environmentally friendly vehicles (summarised in following slides) Working group on the requirements from procurement standards Providing a quantitative measurement scheme of desired As a means of expressing values and goals Providing procedural guidance for fleet operators on how to comply Birmingham Peer Learning Workshop (March 14) Development of the procurement framework design. The standards need to consider that direct from a vehicle during use are only part of a vehicle s environmental. Upstream factors such as manufacturing, recyclability, reusability, life cycle impacts of construction materials etc. all contribute to a vehicle s environmental footprint. Barcelona (October 14) Delivery of the Innovation Procurement standards Framework (summarised in following slides)

5 Transform Project Management Summary (1) This report provides a review of demand side measures as applied by cities to deliver environmental benefits via Environmentally Friendly Vehicles (EFVs). The report was commissioned for the Transform project and aims to provide a list of examples of demand side measures, with illustrative case study examples. As a UK consultancy, UK case study examples predominate but other European examples are included in what is an illustrative rather than an exhaustive study. In line with the European Commission s Lead Markets Initiative, the context for city strategy (Action Plans) can be seen as being derived from a range of tactical actions including; Procurement Local policy measures,including leveraging tools available via legislation, as well as standardisation, labelling and certification Other complementary actions The foundation for actions plans lies in the facilitating the market to respond with sustainable transport solutions. Section 0) Management Summary Cenex 2014 Page 5

6 Transform Project Management Summary (2) Procurement measures include; Green Public Procurement for existing products and services Innovation Procurement which helps stimulate the market to provide solutions to satisfy an unmet need For vehicles, city initiated Innovation Procurement works best where the public sector is a major purchaser and the products are more bespoke (e.g. Refuse Collection Vehicles, Buses) Both Green Public Procurement and Innovation Procurement can be conducted as a joint procurement activity with other cities (e.g. ZEUS and the LCVPPP Projects) Local Policy Measures include; Certification schemes for regulated vehicle types (taxis, freight logistics, city buses) Zones either Environmental or Congestion management zones Other regulation, as for parking and new developments These measures typically leverage standards and labelling to express demand in terms of preferences (for vehicles of a given environmental ) and require extensive consultation prior to set up and implementation needs to include policing measures Other complementary actions include; Partnerships with market suppliers, including leveraging innovation support City strategies Strategies based on demand-side measures can be assembled using selected actions from those illustrated in this report, ideally backed by a supporting evidence base and a political commitment from elected officials, senior managers and managers involved in implementation Section 0) Management Summary Cenex 2014 Page 6

7 Progress to date Rotterdam workshop (December 13) Delivery of demand side measures in practice for environmentally friendly vehicles (summarised in following slides) Working group on the requirements from procurement standards Providing a quantitative measurement scheme of desired As a means of expressing values and goals Providing procedural guidance for fleet operators on how to comply Birmingham Peer Learning Workshop (March 14) Development of the procurement framework design. The standards need to consider that direct from a vehicle during use are only part of a vehicle s environmental. Upstream factors such as manufacturing, recyclability, reusability, life cycle impacts of construction materials etc. all contribute to a vehicle s environmental footprint. Barcelona (October 14) Delivery of the Innovation Procurement standards Framework (summarised in following slides)

8 TRANSFORM Innovation Procurement Standards Mobility procurement challenge Current standard procurement tools, such as those developed for the clean vehicle directive, enable procurements to consider environmental factors. But, these are typically limited to considerations of fuel consumption and vehicle tail pipe, and so this current procurement practice may result in a missed opportunity for a step change in. Therefore, there is a need for a procurement standards framework to enable the full impacts of a mobility procurement to be considered. Such a framework is developed at a high level in this report. The developed framework can be used for current procurements and to signpost an unmet mobility need against criteria, through setting the required response at current best practice or at an unmet but desired level. Current practise procurement Fiesta Ecoboost Stop-start 99gCO 2 /km Euro 5 NCAP 5 Low cost Innovation focused procurement BMW i3 Electric 0g CO 2 /km LCA 50% less CO 2 Low noise 25% Recycled content 95% Recyclable NCAP 4 Future procurement Sustainable vehicle 200 miles 5 min refuel time 0g CO 2 /km No AQ LCA >70% less CO 2 100% Recyclable NCAP Cenex 2014 Page 8

9 TRANSFORM Innovation Procurement Standards Sustainable mobility framework A triple bottom line 1 assessment of a mobility service requires not only the use phase fuel consumption and vehicle tail pipe, but also consideration of factors throughout the vehicle life cycle related to human welfare, a full examination of environmental impact and the construction of a whole life cost economic model. A framework for this full assessment is shown opposite, where the areas that are additional to the traditional measures are indicated in red. Each one of these areas will be examined in this report and a proposal made for a relevant assessment approach when procuring a mobility service. Note; this framework is for a assessment and does not include operational considerations such as driving range or payload. Such operational considerations will need to be assessed in addition this framework. Note; this is a high level framework containing suggestions for levels within the framework, these suggestions may not be appropriate for all vehicle types and the framework levels should be refined for each specific tender for vehicles/ services. Ongoing monitoring and review Supplier credentials Life cycle Use phase consumption & AQ Economics Noise Safety 1. encompassing factors relevant to people, planet and profit Cenex 2014 Page 9

10 Red Amber Light Green Dark Green TRANSFORM Innovation Procurement Standards Methodology - Procurement with built in improvement Ongoing monitoring and management Life cycle Noise Discussion of the relevant factors and standards pertinent to the area or unacceptable Definition of the framework for the area Use phase consumption & AQ Supplier credentials Economics Safety The sustainable mobility elements are translated into a measurable standard assessment matrix where against each criteria is graded through red to dark green. The framework allows for local weighting by providing adjustment that ensure local priorities are addressed. Assessment factor Use phase consumption & AQ Life cycle Noise Safety Economics Supplier credentials Current procurement The areas are complied to provide the full framework Local Weighting The framework ensures continual improvement is built in. Ongoing monitoring and management Cenex 2014 Page 10

11 TRANSFORM Innovation Procurement Standards Methodology - Future procurement with built in improvement Assessment factor Use phase consumption & AQ Life cycle Noise Safety Economics Supplier credentials Ongoing monitoring and management Current procurement Local Weighting Assessment factor Use phase consumption & AQ Life cycle Noise Safety The framework allows the expression of unmet need in a future procurement, through setting criteria that are desirable but not currently achieved Future Procurement +5 years Local Weighting Economics Supplier credentials Ongoing monitoring and management Cenex 2014 Page 11

12 TRANSFORM Innovation Procurement Standards Framework summary A summary of the suggested framework is shown below, including a weighting column to allow adjustment to local priorities Measure Average Local Weighting CO 2 Use phase and consumption NOx PM CO Low emission vehicle is worse that the ICE comparator vehicle Low emission vehicle 0-25% lower than the ICE comparator vehicle Low emission vehicle 25-75% lower than the ICE comparator vehicle. Low emission vehicle has zero 0-100% NMHC Life cycle No consideration of LCA in the bid Some consideration of LCA in the bid An ISO & LCA presented for the proposed vehicles showing <200g/km CO2e (proposed cars only) An ISO & LCA presented for the proposed vehicles showing <100g/km CO2e (proposed cars only) 0-100% Noise Low emission vehicle is worse that the ICE comparator vehicle Low emission vehicle 0-3dB(A) lower than the ICE comparator vehicle Low emission vehicle 3-9dB(A) lower than the ICE comparator vehicle, in the relevant environment Low emission vehicle >9dB(A) lower than the ICE comparator vehicle, in the relevant environment 0-100% Safety No consideration of vehicle safety Some consideration of vehicle safety in the bid The biding company provided evidence of safety (high NCAP, > EC SSTA as a minimum) The bidding company provides highest safety standards to vehicles (EC WVTA, NCAP 5 vehicles, SAFED trained drivers) 0-100% Economic Assessment No consideration of vehicle WLC Some consideration of vehicle WLC with basic evaluation of different technologies The biding company provided evidence of WLC vehicle costing models The bidding company provided full evidenced of thorough WLC model and calculations for appropriate technologies 0-100% Supplier credentials No consideration of reporting in the bid Some consideration of reporting in the bid (e.g. UNGC, DJSI) The biding company provides a GRI compliant report The bidding company provides GRI compliant report to level A % Ongoing management and monitoring assessment No consideration of ongoing monitoring Some consideration of ongoing efficiency and low carbon tech. monitoring programme The biding company has provided good detail of a monitoring programme for ongoing vehicle and operational review The bidding company provides GRI compliant report to level A % Cenex 2014 Page 12

13 TRANSFORM Innovation Procurement Standards Conclusion and actions This work has developed an innovation procurement standards framework that provides a methodology for the procurement of current solutions and the signposting of an unmet need for a future procurement. This innovation procurement standards framework allows standards to be applied covering the full impacts of a mobility service. This framework is for a assessment and does not include operational considerations such as driving range or payload. Such operational considerations will need to be assessed in addition this framework. Suggestion for action: That the members of TRANSFORM work on a Compact to develop this framework and deploy it where possible, to procure mobility services upon considering their full impacts, and to deliver their unmet future mobility needs, triggering the development of vehicles and mobility services that bring comprehensive benefits to their city. Cenex 2014 Page 13

14 Forward plan Joint Standards activity next steps - Framework development, compact and pilot implementation. Procurement activity in the TRANSFORM cities can act as a test bed for the application of the standards. Cenex shall advise and support on the way the standards are implemented within the cities examining the and any issues arising leading to further development of the Standards framework where necessary. Sub tasks: Feedback on the proposed Standards framework from the cities, and compare current practices in the cities to those presented in the high level framework. Expand and revise the framework where required based on feedback to obtain city alignment and the basis for a compact. Identify suitable pilot procurements within the cities to utilise the Standards framework, and if the timeframe allows support use in pilot procurements Modify the Standards framework where required based on these pilot applications. Summarise and report. Budget = Euro 20k Timeframe = Completion by end of September 2015

15 End Chris Walsh 24 March