European Union News
EC Tender on Quantifying Procurement in Europe - ICT Sector
Brussels, 11 December 2013
The object of this call for tenders is Pre-Commercial Procurement (PCP), an approach for procuring R&D services that is defined in the PCP communication COM/2007/799 and the associated staff working document SEC/2007/1668.
It is an approach that aims to identify the best value for money solutions on the market to address a specific procurement need, by making use of competitive development in phases, risk-benefit sharing under market conditions, and a clear separation between the procurement of R&D services via the PCP and possible Public Procurements of Innovative solutions (PPI) focusing on deployment of commercial volumes of end-products.
This call for tender focuses on PCPs with these key characteristics and are thus in line with the applicable exemptions from the EU public procurement directives and the WTO Government Procurement Agreement without involving State aid.
Public procurement of innovative solutions (PPI) refers to a public procurement implemented according to the applicable EU and national Legislations, in which public procurers act as early adopter, possibly in cooperation with additional private buyers, by procuring innovative solutions that are new arrivals on the market but not yet available on a large-scale commercial basis. Note that in this context PCP and PPI are separate but complementary procurements. A split between PCP and PPI allows companies that have developed products through other means than a PCP (e.g. through SME funding instruments, other R&D grants, own company R&D resources) to still compete for PPI deployment contracts, avoiding issues of foreclosing of competition and crowding out of private R&D investments.
By acting as technologically demanding first buyers, public procurers can drive innovation from the demand side. This enables European public procurers to innovate the provision of public services faster and creates opportunities for companies in Europe to take international leadership in new markets. Reducing time-to-market, by developing a strong European home market for innovative products and services, is key for Europe to create growth and jobs in quickly evolving markets such as ICT.
A number of PCP procurements and follow-up PPI procurements have taken place in Europe over the past years and similar experiences exist in other parts of the world. To encourage wider implementation across Europe, there is a need to collect quantitative evidence from concrete cases that demonstrate the benefits versus costs of undertaking PCPs. Addressing this gap is essential to encourage wider usage of PCP across Europe.
The purpose of this call for tenders is to procure a study which will:
Build an evidence base quantifying the impacts (in particular measurable economic impact) of PCP, compared to traditional procurement approaches, based on experiences from US and Europe.
Make recommendations for new actions to be undertaken at EU and national level to encourage wider use of PCP and PPI based on lessons learnt.
- Provide evidence to better quantify the impact needed to encourage policy makers to make wider use of PCP; help realise DAE action 55; provide recommendations for new actions to be undertaken at EU level
Deadline: 16 January 2014
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