PUBLIC PROCUREMENT IN THE NETHERLANDS Wouter Stolwijk nov 2015

PUBLIC PROCUREMENT IN THE NETHERLANDS

Wouter Stolwijknov2015

Public Procurment in the Netherlands 2

DUTCH PUBLIC PROCUREMENT LAW 2012

• All European Directives in one law

• Codification of proportionality principle

• National Public Procurement Principles are introduced below EU thresholds

• Several measures to reduce administrative burdens, e.g. TenderNed (e-Procurement) & Self-declaration

• Supporting Policy Measures are introduced to give more guidance to contracting authorities

• Enforced April 1st , 2013


MAIN GOALS PUBLIC PROCUREMENT LAW

• Uniformity

• Better compliance

• Value for tax payers money (MEAT)

• Reduction of costs (e-Procurement, self declaration, freely available specifications …)

• Better access for SMEs (clustering is ‘forbidden’, dividing in small lots, low selection criteria, financial turnover may not be used as selection criterion, …)

• Procurement >> compliance more emphasis on professional procurement


PIANOo

• Two origins:

– Parliamentary enquiry on fraud in the construction sector

– National report on compliance to the EU rules

• Start PIANOo mid 2005

• Aim:

– Enhance compliance

– Develop practical knowledge

– Further professionalization

– Value for public money

– Setting up the exchange of knowledge

– Support of new and innovative developments

– Promote e-Procurement


ORGANIZATIONAL STRUCTURE OF PIANOo

• Part of the Ministry of Economic Affairs (responsible for implementation EU directives for tendering)

• Steering committee: – Central government– Provinces– Municipalities – Water boards

• Financing: central government (80%)• About 12 fte (excl TenderNed)


PIANOo ACTIVITIES I

• Web site (daily 1400 – 1500 visits)• (https://www.pianoo.nl/public-procurement-in-the-netherlands)

• Two weekly Newsletter (6000)

• Interpretation of jurisprudence

• Answering questions contracting authorities (1.100 yearly)

• Guidelines, manuals, best practices

• Online forum: PIANOo-desk / Procurement Forum

– Only contracting authorities (2.800 clients)

– E-mail with new discussions, daily

• Yearly congress (500-600 visitors)

• Regional workshops


ACTIVITIES PIANOo II

• Study groups of expert practitioners – Public procurement law– Public procurement management– Public procurement of construction works

• Stimulation of – Cooperative procurement (organizational)– Green procurement– Procurement of innovation– Social return on investment

• International: EU public procurement lab, Public procurement of innovation (http://www.innovation-procurement.org/about/), IPPC, IRSPP…


ACTIVITIES PIANOo III: TenderNed

• The online marketplace of the Dutch government

• Transparent, easy and cheaper public procurement

• Lowers the threshold for businesses to compete for government assignments

• Saving of administration costs around 60 million/year

• EU

• Aim: reduction administrative burdens

• EU aim’s for mandatory digital public procurement from 2016

• NL

• Publication duty in tender law

• EU statistics duty

• Uniform and compact operational management of governments

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PIANOo PRIORITY THEMES

• Enhance strategic level Public Procurement

• Shift from judicial emphasis towards focus on economy

• Enhance market knowledge contracting authorities

• Enhance e-Procurement (TenderNed)


PUBLICATIONS OF PIANOo

• Procurement of innovation (English)

• Sustainable procurement (English)

• Interpretation of specific juridical issues

• Practical issues of competitive dialogue (English)

• Combating the crisis through government procurement? (English)

• Procurement of services

• ‘Marketplace’ (procurement of small services/self employed)

• Micro lots

• Market dialogue

• Checklist market exploration (English)

• How to use MEAT?

• How to organize collaborative procurement among municipalities?

• How to select market operators below European threshold?


MARKET MEETINGS

• 80% meetings concern services: catering, employment agencies, architects, technical advisers, duty trips, ICT, cleaning …

• Highlights of the discussions:– Distrust, lack of dialogue, lack of knowledge of the market – Unreasonable demands for SME– General terms of delivery (liability, intellectual property,

warranty) – Lowest price or MEAT (award criteria)– Framework agreements, duration of the contract (change

personnel, innovation, partnership)– Re-tendering contract always new contractor (extra

costs)

WORKFORCE AND EDUCATIONWho belongs to ‘the workforce’ in Public Procurement?

Lawyers, purchasers (what is a ‘purchaser’?),

substance specialists, managers, budget owners, support staff, etc.

We found 280 courses, curriculae etc from about 40 different organizations.

NEVI is an important one. PIANOo chose not to specialize in training and education



CONTRACTING AUTHORITIES IN The Netherlands

• Central government

– Ministries 11

– Autonomous Governing Bodies 150

• Provinces 12

• Water boards 24

• Municipalities 420

• Universities 15

• Schools ±1.400

• Police 25

• Bodies governed by public law ±1.000


PUBLIC PROCUREMENT IN The Netherlands

Billion € NumberCost per tender

European

Tender Procedures18 4.000 (1,5%) € 75.000

National

Open Procedure11 8.000 (3%) € 55.000

National

Multiple negotiated contract21 70.000 (25%) € 6.000

National

Negotiated contract (1/1)8 ± 200.000 (71%) € 3.000

Total/average 58 ± 300.000 € 6.000


TRIALS AND LITIGATION

• The Netherlands do not have a Public Procurement Authority

• Analysis on 600 national trials concerning tendering (2004-2009)– Growth 2004-2006– Stabile 2007-2009 (140 yearly)

– Results: 65% in favor of contracting authorities – Reasons for trials

> Invalidity/rejection of tender > Transparency > Equality> Proportionality

TRIALS AND LITIGATION

Commission of PP experts:• Since 2012• Expert-assessment, not judicial force• File a complaint first with the contracting authority• Then with this Commission• Two complaints a week roughly• 30-60 days processing time



PUBLIC PROCUREMENT TRENDS

• Public procurement becomes more a strategic profession

• Accountability has been or will be strengthened • Shift from compliance to value for tax payers money• The use of internet is growing (e-Procurement)• Public procurement has to contribute to other policy

goals:– Innovation– Stimulation of SMEs– Social aspects– Sustainability

• Those trends are not typical for The Netherlands


QUESTIONS & INFORMATION

• Questions

– Official [email protected]

– Direct: [email protected],

• Information

– Website PIANOo www.pianoo.nl/about-pianoo

– Website TenderNed www.tenderned.nl

Documents

PUBLIC PROCUREMENT IN THE NETHERLANDS Wouter Stolwijk nov 2015