From Green Public Procurement to Sustainable Public Procurement

Transcription

1 From Green Public Procurement to Sustainable Public Procurement An overview of the European process on Sustainable Public procurement Siddharth Prakash Chiang Mai, Thailand; Based on Buying Green! A handbook on green public procurement, 2nd Edition, European Union, 2011

2 Content Why Sustainable Public Procurement? Preparing Sustainable Public Procurement Procurement Process Defining the Requirements of the Contract Selecting Suppliers and Service Providers Evaluating Tenders Contract Performance Clauses 2

3 Why Sustainable Procurement? Public authorities in Europe spend about 2 trillion per year (19% of the EU s GDP) (EU, 2011) Large purchasing power for choosing goods, services and works with a reduced environmental impact Driver for innovation for the industry Financial savings for public authorities Contribution towards local, regional, national and international sustainability targets 3

4 Preparing Sustainable Public Procurement SPP Policy Setting priorities & targets Training & guidance Sources of SPP criteria Monitoring & reviewing GPP Communication 4

5 Preparing Sustainable Public Procurement High-level support, cooperation between different departments and existence of a written SPP policy is key to implementing SPP SPP Policy SPP policy should include clear targets, priorities and timeframes Define the scope of purchasing activity Should the activity cover the whole authority or just one department? Create a working group! A management system does not run itself! A first step should be the establishment of a crossdepartmental Working Group. Depending on the scope of the activities to be covered this group should involve representatives from all relevant departments, e.g. purchasing, environmental, legal, financial, training and communications officers. Should it focus on many product/service groups or start with just a few? For a less experienced authority it is advisable to keep the scope initially small, and systematically widen it Indicate overall responsibilities for implementing the policy Develop and implement a mechanism for monitoring performance 5

6 Preparing Sustainable Public Procurement Prioritization of products, services & works should take place against: Setting priorities & targets Environmental impact Budgetary importance Potential to influence the market Political priorities Define clear targets! Overall procurement targets e.g. 75% of procurement (by value and by number of tenders) should include SPP criteria by Targets can differ for national, regional, local levels. Product/service specific targets e.g. by % of meals served in school canteens should be organic, or by 2015 all cleaning services should use products meeting the EU Ecolabel criteria Operational targets e.g. all procurement staff will receive SPP training by 2013, or SPP guidance will be available to all staff on the authority intranet Market availability of environmentally preferable alternatives Cost considerations Availability of criteria Visibility 6

7 Preparing Sustainable Public Procurement Training & guidance It is crucial to ensure that staff responsible for carrying out specific tasks have the appropriate skills, or that appropriate training is given on: How to integrate environmental considerations into tender procedures Where to find assistance in developing environmental criteria Guidance! EU GPP Criteria EU GPP Helpdesk EU GPP Monitoring Buy Fair How to assess and verify environmental claims made by tenderers How to evaluate life-cycle costs in tendering Trainings for: For procurers on the technical aspects of SPP implementation For procurers and financial staff on the concept of life-cycle costing For managers and high-level decision-makers on SPP in general and the potential benefits it can bring, to ensure high-level support for actions 7

8 Preparing Sustainable Public Procurement EU GPP criteria Core criteria Sources of SPP criteria Comprehensive criteria Public Type I Eco-labels (ISO 14024) EU Ecolabel,Blue Angel, Nordic Swan etc. Public single issue labels Energy Star, EU Organic label Public graded product labels EU Energy label Private sector-specific labels FSC, PEFC Fair Trade labels Max Havelaar, Transfair 8

9 Preparing Sustainable Public Procurement Assessing progress towards targets Monitoring & Reviewing SPP Record of tenders and/ or awarded contracts that include SPP criteria Include information about the environmental impact of purchasing decisions Qualitative as well as quantitative monitoring, focussing on barriers, corrective actions and improvements required Monitoring activities should take place within the authority s regular performance monitoring procedures, such as through internal audit functions. It should at least be ensured that the quantified data on procurement actions (e.g. expenditure planning, tender & awards with SPP criteria etc.) is collected on an annual basis. 9

10 Preparing Sustainable Public Procurement Communication SPP is most effective if there is a clear understanding, among all staff and suppliers, of what it stands for, and the reasons for its introduction: Awareness raising activities for all staff possibly through seminars, in-house newsletters, the authority s intranet Communicating intentions in advance to suppliers, providing the time and information to adjust to new requirements. Marketing activities aimed at the general public. Public authorities are in a strong position to lead by example Do good and talk about it Raising awareness Source: LUBW,

11 Procurement process Basic principles Choosing the procedure Consulting the market Business case for SPP Contract or framework agreement 11

12 Procurement process Basic principles Best value for money Does not necessarily mean going only for the cheapest offer. It means finding a solution which meets the requirements you have identified including environmental and social ones in the most cost-effective way Acting fairly Non-discrimination Equal access to the contract Equal treatment Comparable situations must not be treated differently and different situations must not be treated in the same way Transparency Advertise widely enough to ensure competition, transparent decision-making process Proportionality 12

13 Procurement process Open procedure Any operator may submit a tender Maximum choice of potential environmental friendly solutions Choosing the procedure Shorter time required Restricted procedure Limit the number of operators for the tender by assessing environmental technical capacity in a prior stage According to the European Law [2004/18/EC; Article 44(3)] a minimum of five applicants are required, provided there are sufficient suitable candidates Possibility of missing out on offers with high environmental performance Negotiated and competitive dialogue Elements of flexibility not available in open & restricted options Useful for complex procurements (e.g. when a contracting authority is not objectively able to define the technical means capable of satisfying its needs) Allows participants to propose solutions which can then be redefined in successive stages leading to selection of most economically advantageous tender 13

14 Procurement process Consulting the market Market knowledge on e.g. the availability, cost & possible practical implications of greener alternatives is important Simple online market research Engage in dialogue with potential suppliers prior to tendering Supplier dialogue should be transparent & non-discriminatory and should not confer an unfair advantage on any of the suppliers who participated It is important to inform the market well in advance about tenders which will include environmental & social criteria Publish a Prior Information Notice (PIN) Publish the information on the website or hold an information day for interested suppliers 14

15 Procurement process Include Life-Cycle Costing in tendering Details in the next training module Joint Procurement Business case for SPP Combining the procurement activities of a group of public authorities to achieve savings through bulk buying, reduced administrative costs, and pooling environmental, social, technical and market knowledge. Joint procurement can be put in place, for example, by central purchasing bodies at the regional or national level to carry out procurement on behalf of public authorities 15

16 Procurement process Contract or framework agreement One way of increasing the efficiency of tendering while implementing SPP can be to award framework agreements Framework agreements may be established with one or multiple operators Allows for multiple contracts to be awarded without repeating the whole procurement process (Article 32 of Directive 2004/18/EC and Article 14 of Directive 2004/17/EC) 16

17 Defining the requirements of the contract Defining the subject matter Environmental technical specifications Specifying materials & production methods Use of variants Using ecolabels & GPP criteria Verifying compliance 17

18 Defining the requirements of the contract It is less important WHAT you buy, but more important HOW you buy! Defining the subject matter Public authorities have a great deal of freedom in defining the subject matter During the definition of the subject matter, public authorities have a great deal of freedom in specifying their requirements w.r.t sustainability Thus, limiting the scope to e.g. recycling paper, energy efficiency products, electricity from renewable energy etc. is possible right at the beginning of the tendering process Also, social criteria can be included as long as they are linked to the subject-matter Hence, it is important to conduct a prior comprehensive need assessment and market consultation before beginning the procurement process Source: European Fair Trade Association (EFTA), 2006 Even the choice of an appropriate title for tendering informs potential suppliers, local communities and other authorities about the focus of the tender 18

19 Defining the requirements of the contract Environmental Technical Standards (ETS) Environmental technical specifications References to ETS can be included directly in the specification, thus helping to define the subject matter in a clear way However, tenders based on equivalent standards or equivalent solutions must be accepted Standards are useful in public procurement as they are clear, non-discriminatory and usually developed in a broad stakeholder participation process Applying a performance-based approach Specifying materials and production methods Materials and production methods can be taken into account when defining technical specifications Should have a direct link to the subject matter It is not allowed to insist upon a production process which is proprietary to one supplier Principle of proportionality should be considered Performing LCAs or relying on existing ecolabel criteria is helpful Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 19

20 Defining the requirements of the contract The variants approach helps tenderers submit an alternative solution which meets certain minimum requirements, but not full specifications. Use of Variants Both variant and non-variant bids are evaluated against the same set of award criteria To apply the variant approach: Indicate in the contract notice that variants will be accepted Specify the minimum requirements which the variants have to meet Identify any specific requirements for presenting variants in bids (such as requiring a separate envelope indicating variant or stipulating that a variant can only be submitted combined with a non-variant bid) Award the contract on the basis of most economically advantageous tender (MEAT) Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 20

21 Defining the requirements of the contract Ecolabels are useful information sources when developing your tender requirements Using ecolabels and GPP criteria EU GPP criteria are designed to be inserted directly into tender documents and include information on verification methods To help you draw up your technical specifications in order to define the characteristics of the goods or services you are purchasing To check compliance with these requirements, by accepting the label as one means of proof of compliance with the technical specifications Source: European Union, 2012 Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 21

22 Defining the requirements of the contract Environmental and social requirements are often complex and assessing compliance requires technical expertise. Verifying Compliance Few examples: Include reference to mandatory legislations (for instance compliance with the RoHS Directive in the EU) While using Ecolabel criteria, presence of an Ecolabel certificate or alternative equivalent forms of evidence should be accepted (for instance, independent test report that criteria is fulfilled) Environmental Product Declarations (EPDs) based on ISO Source: European Union, 2012 Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 22

23 Selecting Suppliers & Service Providers Exclusion Criteria Selection Criteria 23

24 Selecting Suppliers & Service Providers Exclusion criteria includes: If the operator is bankrupt, has committed serious professional misconduct or has not paid taxes or social security contributions Exclusion Criteria In particularly serious criminal cases, exclusion is mandatory Two provisions in the exclusion criteria can be used to take into account operators behaviour to the detriment of the environment: Conviction by final judgment of an offence concerning professional conduct or Proven grave professional misconduct A case of non-compliance with environmental legislation may under national law amount to professional misconduct Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 24

25 Selecting Suppliers & Service Providers Evidence of environmental technical capacity Previous experience with environmental contracts Selection Criteria Access to personnel with required educational & technical qualifications Access to necessary technical equipment Requirements for Environmental Management Systems For example ISO However, contracting authorities can never require companies to possess an ISO registration or comply fully with the requirements of registration Important to look at the actual elements of technical capacity covered by an Environmental Management System which are relevant to the subject matter of the contract Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 25

26 Evaluating Tenders General rules for awarding a contract Applying sustainability award criteria Life-Cycle Costing Cost-Utility Analysis 26

27 Understanding various forms of criteria in SPP Exclusion criteria Selection criteria Core criteria Comprehensive criteria Award criteria The core EU GPP criteria are those suitable for use by any contracting authority across the Member States and address the key environmental impacts. They are designed to be used with minimum additional verification effort or cost increases. The comprehensive EU GPP criteria are for those who wish to purchase the best products available on the market. These may require additional verification effort or a slight increase in cost compared to other products with the same functionality. Contracting authorities will have to indicate in the contract notice and tender documents how many additional points will be awarded for each award criterion. 27

28 Evaluating Tenders General rules for awarding a contract Award criteria Most economically advantageous tender (MEAT) implies that award criteria will be taken into account apart from the price Examples: Quality, price, technical merit, aesthetic, functional and environmental characteristics, social standards, running costs, after-sales service, technical assistance, delivery date, period of completion etc. Several techniques can be applied to evaluate the award criteria, such as matrix comparisons, relative weightings and bonus/ malus systems It is up to each contracting authority to determine which award criteria to apply, and what weighting to assign to each of them Source: European Union, 2012 Source: European Union, 2012 Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 28

29 Evaluating Tenders Award criteria: Must have a link to the subject matter of the contract General rules for awarding a contract Must not confer an unrestricted freedom of choice Must have been advertised previously Whether the contract will be awarded on the basis of lowest price only or MEAT The criteria and sub-criteria you will apply (if you are using MEAT) The weighting which you will apply to each of the criteria in the evaluation. When the contracting authority can demonstrate that weighting is not possible the award criteria may be indicated in descending order of importance Must not be selection criteria Must respect community law Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 29

30 Evaluating Tenders Applying sustainability award criteria Decide if you want to include environmental and social criteria as minimum requirement (specification) or a preference (award criteria) Applying environmental and social criteria as award criteria makes sense if you are not familiar with the associated & market availability of such products Set minimum level of performance in the technical specifications and then allocate extra points for even better performance at the award stage There is no set maximum for the weighting to be assigned to environmental and social criteria. If there is not a large degree of price variation for a product, but environmental and social performance varies greatly, it makes sense to allocate more marks to assess sustainability characteristics. One approach could be to use certain ecolabel and/ or fair trade criteria as minimum requirements in the specifications, and then award extra points for fulfilling more ecolabel and/ or fair trade criteria Environmental Management Systems may also be used as evidence when assessing award criteria Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 30

31 Evaluating Tenders Life Cycle Costing (LCC) Energy efficient appliances are usually more expensive in comparison to equivalent conventional appliances Cost Utility Analysis (CUA) LCC can be used to put higher purchasing prices into a realistic perspective Energy efficient products often show monetary benefits (higher purchasing prices - lower operating costs) This could be used to convince consumers/ public authorities and to promote efficient appliances on the market Usage of LCC & CUA in SPP will be explained in detail in the next module Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 31

32 Contract Performance Clauses Contract Performance Clauses Contracting authorities can use contract clauses to include environmental and social considerations during the execution of the contract (thus, NOT referring to technical specifications, award or selection criteria). These must be linked to the tasks necessary for the production and provision of the goods or services that the authority intends to purchase. Examples include: ILO fundamental principles & core conventions during the production of the good, including the supply chain Requiring that the supplier takes back (and recycles or reuses) any packaging that comes with the good Requiring suppliers to provide regular information on GHG emissions caused in delivering the product In order to discourage breaches of environmental & social commitments, contracting authorities can introduce adequate sanctions & penalties under the contract. Train-the-Trainers (ToT): Training on developing GPP criteria for public tendering 32

33 Your contact persons Siddharth Prakash Senior Researcher Oeko-Institut e.v. Institute for Applied Ecology P.O. Box 17 71, Freiburg, Germany Telefon: Tobias Schleicher Researcher Oeko-Institut e.v. Institute for Applied Ecology P.O. Box 17 71, Freiburg, Germany Telefon Vortragstitel Referentenname Ort Datum 33