Pre-Commercial Procurement (PCP)
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1 Pre-Commercial Procurement (PCP) Lieve Bos DG CONNECT F2 unit ( Innovation ) 1
2 Rationale Health care Climate Change Energy Efficiency Transport Security Public sector is faced with important societal challenges. Addressing these, often requires public sector transformations so technologically demanding, that no commercially stable solutions exists on the market yet, and forward looking public procurement strategies are needed However, public procurement driving innovation from demand side is underutilised in EU versus other parts of the world 2
3 Earlier customer feedback for companies developing solutions Better take-up/wider commercialisation of R&D results How does it work Specific approach for public sector to procure R&D services, enabling Price/quality products that better fit public sector needs Earlier customer feedback for companies developing solutions Better take-up/wider commercialisation of R&D results Price/quality products that better fit public sector needs R&D / Pre-commercial Procurement (PCP) Public Procurement of Innovative Solutions (PPI) Phase 0 Curiosity Driven Research Phase 1 Solution design Supplier A Supplier B Supplier C Supplier D Phase 2 Prototype development Supplier B Supplier C Supplier D Phase 3 Original development of limited volume of first test products / services Supplier B Supplier D Phase 4 Deployment of commercial end-products Diffusion of newly developed products / services Supplier(s) A,B,C,D and/or X Also normally multiple sourcing here to keep competition going in line with WTO proc. rules, EU Treaty, State aid free 3
4 Win-win for all stakeholders Suppliers - Better products - Economies of scale - Wider market size - Shorter Time to market - New lead markets - Increase export - Global competitiveness Politicians - Quality of public services - Focus on political priorities - Improve innovation climate - Attract foreign investment - Increase employment -First buyer in early R&D -Shared risks & benefits Pre-commercial Procurement - Reduce cost of procurement - Reduce risk of innovation Get the Best Product - Address public market innovation failure - Shape product development to public needs - Increase technology knowledge - Reduce risk in commercial tendering - Favour supplier competition at the Lowest Price - Pooling of resources - Economies of scale - No licensing costs - First time right product - EU interoperable - Attractive to venture capitalists - Reduce unforeseen expenditure Procurers 4
5 Status of PCP implementation across Europe Update June 2012 status Awareness Raising Exploring possibilities Working on framework Framework identified Slovenia Latvia Germany Malta Portugal Romania Greece Ireland Spain Cyprus France Bulgaria Luxembourg Lithuania Hungary Slovakia (Eszak- Czech Republic Estonia Alfold) Poland Switzerland Pilots started Denmark Sweden Finland Norway BE (Flanders) SILVER UK Netherlands Austria Italy More Info about national PCP initiatives in Member States: More info about EU funded cross border PCP projects: - SILVER: First project from FP7-ICT-2011 calls, started January 2012 (Supporting Independent Living of Elderly through Robotics) - Five more cross-border PCPs about to start from WP2012 calls (embedded ICT for fire fighter suits, cooperative traffic management centres, sustainable road infrastructure modelling, mobile ehealth services, energy efficient high performance computing) - New call currently open, offering EU co-financing for cross-border PCPs in FP7-ICT PCP and PPI also foreseen as new EC funding instruments in Horizon
6 Example PCP-like pilot in Europe: Water management, Netherlands Dike burstz in Netherlands ( ) caused by dry period or broken water pipe inside the dike along canals PCP (2006): Developing/comparing possible solutions for real time dike inspection & early warning of dikes and dams Satellite based solution approach Chip technology based solution Optics/sensor based solution Camera based solution Helicopter based solution 6
7 PCP example on CO2 emissions Carbon capture Norway Statoil/Gassanova Regulatory requirement to seriously reduce CO2 emissions by 2016 without negative effects on health/environment, beyond what market is able to offer PCP started in 2011, currently comparing solution approaches of 5 vendors, time-to-market shortened Follow-up procurement for deployment foreseen for 2014 (open to whole market again) 7
8 Background info PCP website: Info on calls, EU funded projects, background docs, FAQs, PCP initiatives in Member States and Associated Countries etc 8
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