Strategic Procurement Programme for the City of Lahti
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- Garey Long
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1 Strategic Procurement Programme for the City of Lahti ECOPOL Conference - Parallel session Part 1: Applying eco-innovation policy practices in a different context: GREEN PUBLIC PROCUREMENT Tomi Tura Athens, October 22th 2013
2 Background Need for new business support instruments in the demonstration/reference phase Governmental decision on cleantech solutions in public procurement New national INKA programme Strategic targets of the City of Lahti Green City targets (reduce of CO2 emissions, energy and material efficiency, support for cleantech industries) Major investment programme + 0,5 billion annual PP volume in the city region aim to utilise these for the strategic targets
3 Strategic Procurement programme for the City of Lahti A city level plan for the strategic use of public procurement Includes PP targets & instruments related to Business, innovation and employment policy Environmental policy Productivity and quality of public service production Special focus on how to support local eco-innovative business via PP opportunities for important first references Utilisation of the Vancouver model
4 Gaps No sufficient strategic guidance and follow-up of procurement; mainly technical coordination of procurement Varied level of dialogue with enterprises as well as market knowledge; mainly focused on the ongoing procurements instead of informing and discussing the long-term procurement plans with the market players Risk aversive culture in municipalities; partly due to the deeply rooted ways of acting, partly to the lack of support mechanisms for risk taking Lack of knowledge and tools of how to do eco-innovation supporting procurement in practice
5 What will change? More strategic perspective on PP More intensive early-phase market dialogue Better understanding of the market Better opportunities for the companies to product/service development Extended and systematic use of innovation-supporting procurement models (e.g functional definition) Extended use of environmental criteria
6 What will happen in practice? Assessment of all (potential) procurements of the city Organisation of the strategic procurement function in the city level Binding targets for PP: e.g. use of early-phase market dialogue in all major tenders, requirement to assess the entrepreneurial effects and opportunities for use of innovationsupporting methods Operational model for the early-phase market dialogue and innovation-supporting PP methods (e.g. innovation challenges) Lauch of the procurement portal and the procurement market especially for small tenders to support local businesses Product-specific environmental criteria for all procurements
7 Pilot case: public transport system in the Lahti region The procurement of the whole public transport system (6 years, 64 buses, estimated value ~30 Meur) Aim to increase the level of environmental requirements in the tender, but not enough knowledge of what is possible and how to do this in practice Contribution from ECOPOL: organisation of market dialogue (technology FS, neutral workshops with technology and service providers) support for the design of the tender (use of fuctional and/or quality criteria) Result: tender based on the extended use of quality criteria (e.g. higher scores for electric vehicles), planning of a separate pilot bus line BUT EVEN MORE IMPORTANTLY: real improvement in understanding of how to use PP for piloting/demonstration of new services and technologies several new pilot projects wil be launched with local and international companies, planning of the city level infrastructure supporting e-vehicles
8 Conclusions and lessons learned Without strategic perspective and real political commitment PP will remain as a technical issue The bottlenecks are not so much in attitudes as such but in lack of knowledge market knowledge, use of innovationsupporting methods Importance of the early phase market dialogue in boosting ecoinnovations via PP Small cases may provide more opportunities for innovative solutions smaller procurements should also be seen as strategic and worthwhile for discussion with markets Need for (national, EU level) risk-carrying mechanisms
9 Thank you! Tomi Tura Development Director Lahti Development Company LADEC Ltd Coordinator, ECOPOL initiative
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