Public Procurement in Germany a hidden gold mine Dirk Petri, San Francisco, June 16th 2011
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1 a hidden gold mine Dirk Petri, San Francisco, June 16th 2011 Overview About Media Broadcast The Opportunities: Facts and figures Recent History Who is who: The Players The modus operandi The principles The back to back experience The Do s and Don ts Page 1
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3 MEDIA BROADCAST Member of the TDF-Group. Facts and figures. An operator running over-the-air and shared networks: The TDF Group serves its clients, TV channels, radio stations, telecommunications operators and local authorities along the entire audiovisual and telecoms network value chain. Shareholders: Texas Pacific Group (TPG): 42 % Caisse des Depots & Consignations: 24 % AXA Private Equity: 18 % Charterhouse Capital Partners: 14 % Others: 2 % Consolidated turnover in : 1.55 billion Euro. Operation of 11,300 sites in Europe. Page 3
4 MEDIA BROADCAST. About us. Employees in 2011: 950 Turnover about 450 million /year. Germany-wide presence with customer centers in Hamburg Berlin Leipzig Cologne Frankfurt Mainz Stuttgart Munich Headquarters in Bonn. In-house R&D departments in Berlin and Darmstadt. Page 4
5 MEDIA BROADCAST. Our customers Our services MEDIA BROADCAST serves about 750 German and international customers worldwide: Public and private broadcasters Radio and TV production companies International network providers Media authorities Event organisers and right holders Telecommunication companies and MNO s Companies from other sectors, which require audiovisual solutions to attract customers or communicate with employees Associations and governmental institutions Wide range of services Terrestrial broadcast networks Multimedia Solutions Broadcast Contribution and Distribution Networks Event Broadcast Services Analogue and Digital audio broadcasting Radio based data services Broadcast and Corporate Satellite Services Corporate Communication Solutions Page 5
6 The Opportunities: Facts and figures Estimation of the EU-commission: Transaction volume of 1500 Billion EUR per year in the EU public sector including 250 Billion EUR in Germany alone 16% of the gross domestic product of the EU, 8% of Germany 1.4 Million RfP s per year Trans border procurement still less than 3% Page 6
7 Recent History Beginning in 1999, EU public procurement law has changed Thresholds for application of competition restraint rules and obligation for European-wide tender implemented Legal action for bidders who get no award is now guaranteed Stand still period of at least 10 calendar days after award since 2004 EU-commission : Directives have decreased the prices by 30% Sector specific customers: Water, Energy, Transport, Post Page 7
8 Who is who: The Players Public customer: functional not institutional Does the customer perform governmental operations? Definitely: federal government, the states, cities and communities Other legal entities (public companies) and associations Sector specific customers Subsidized entities And: Since 2006 all public broadcasters Page 8
9 The modus operandi Open procedure as the basic principle Non-open procedure with RfI Negotiated procedure.. means freehand Competitive dialogue.. if customer is not sure what he wants Page 9
10 The principles Non discrimination rule: All bidders are equal Competition: Formal procedure for as many bidders as possible Transparency: Clear rules and tender documents Support for SMB s: Award in batches if possible Cost effectiveness: efficiency counts (and the price ) Award only to appropriate companies: Professional ability Page 10
11 The back to back experience Always a good story: Subcontractors Close the delta, share the risk The sub is bigger? No worries, customer is awesome Be careful with offers from subs, limitations are lurking Force your procurement and sales dept. to cooperate! Use experienced project managers Page 11
12 The Do s and Don ts Rate your risk! means: No t s and c s! or: comply or die Alternative bids are the exception Only the communication as requested! No invitations, no gifts, no fun Don t lose your patience Ask bidder questions React fast if you detect failures in the documents Be careful with challenges Be up to date Trust your lawyer Page 12
13 MEDIA BROADCAST. Contacts. Dirk Petri Director Legal MEDIA BROADCAST GmbH Joseph-Schumpeter Allee Bonn, Germany Phone: Page 13 Company Presentation MEDIA BROADCAST
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