EU Webinar Series | #5 Social Enterprises & Public Procurement - - PowerPoint PPT Presentation

With the financial support of the European Union

EU Webinar Series | #5

– “Social Enterprises & Public Procurement” –

23 September 2015

With the financial support of the European Union

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With the financial support of the European Union

EVPA & Public Affairs

by Elinor de Pret

EVPA EU Webinar Series

With the financial support of the European Union

Welcome to EVPA’s Webinar on Social Enterprises and Public Procurement

With the financial support of the European Union

Public Procurement Webinar | Welcome to our e-Speakers!

Merlin Sepp Good Deed Foundation Anna Lupi European Commission Sascha Haselmayer Citymart Jonathan Bland Social Business International Julian Blake Bates Wells Braithwaite

With the financial support of the European Union

Public Procurement Webinar | Programme

1. The Reform of EU Public Procurement Rules Anna Lupi 2. The Situation of Public Procurement in the UK Jonathan Bland Julian Blake 3. The Estonian Advocacy Experience in the field of Public Procurement Merlin Sepp 4. Procurement as Open Problem Solving in City Government Sascha Haselmayer 5. Q&A Session

With the financial support of the European Union

• 1. | EU Reform of PP Rules

By Anna Lupi Legal Officer, DG GROW (Unit G1), COM

The Reform of EU Public Procurement rules

EVPA webinar "Social Enterprises & Public Procurement" 23 September 2015

Anna Lupi DG GROW – Internal Market, Industry, Entrepreneurship and SMEs European Commission

Content

New Directive 2014/23/EU on concessions

• 1. EU Public Procurement reform
• 2. Objectives of social aspects of the reform
• 3. Tools for social enterprises: what's new?
• Reserved contracts
• Light regime for services
• Technical specifications, Labels
• Contract award criteria

Current and new rules

Directive 2014/24/EU

• n PP replacing

Directive 2004/18/EC Directive 2014/25/EU on utilities replacing Directive 2004/17/EC New Directive 2014/23/EU on concessions Directives on defence procurement and remedies still applicable and unchanged

Transposition deadline: 17 April 2016

Reform objectives

Simple, more flexible rules Better access for SMEs Sound procedures Strategic use of PP Governance, professionalization of PP

Objectives of social aspects

• Encourage social inclusion
• Encourage socially sustainable criteria through PP
• Ensure compliance with applicable legislation

(social, environmental, labour)

Reserved contracts: sheltered workshops

New Directive 2014/23/EU on concessions

• For all types of works, services and supplies
• For whom: sheltered workshops (or sheltered

employment programmes) and economic operators whose main aim is the social and professional integration of disabled and or disadvantaged persons

• Conditions: staff composed by 30 % (currently 50%)

disabled or disadvantaged

Reserved contracts - Light regime for social services

New Directive 2014/23/EU on concessions

• For certain social services.

Listed exhaustively in Art. 77.

• For whom: non profits
• Conditions:
• pursuit of a public service mission
• profits reinvested in objective and distributed

based on participatory considerations

• employee ownership/participatory principles
• no contract within previous 3 years
• max duration of contract is 3 years

Light regime for social services

New Directive 2014/23/EU on concessions

• Obligations on publication of notices
• Obligations on publication of award notices
• No specific procedures  national rules +

transparency and equal treatment principles

• Higher threshold for application of Directives (EUR

750.000 vs)

Light regime for social services

New Directive 2014/23/EU on concessions

• Evaluation of offer: contracting authorities must

have the opportunity to take into account criteria related also to accessibility, specific needs of users, involvement/empowerment of users, innovation.

• Award: may be based on the best price-quality ratio,

taking into account quality and sustainability CAs may award tenders meeting all quality criteria which are critical to the social service to be provided

Technical specifications

Explicit provisions allowing TS to refer to specific process

• f production/provision or other stages of life-cycle, even

where not materially relevant to performance (must be linked to the subject-matter and proportionate) Accessibility criteria now compulsory (comply

• r explain)  def. by other EU provisions

Enterprises may be required to apply a specific process in production or performance

Labels

May be required in technical specifications, award criteria, contract performance conditions as proof that required characteristics are met.

• 5 cumulative conditions:
• 1. Label requirements linked to the subject-matter and

appropriate

• 2. Objectively verifiable and non-discriminatory
• 3. Label follows open and transparent procedure
• 4. Label accessible to all interested parties
• 5. No influence of tenderer over labelling entity

Award criteria (all other contracts)

• May include qualitative and social aspects

Examples in Directive include: accessibility, design for all users, social, environmental, innovative characteristics and trading and its conditions…

• May include factors related to the specific process of

production/provision Contracts may be evaluated and awarded on the basis of socially relevant characteristics of the project, but also the characteristics of the production process (ex. commitment to employ of highest number of disabled)

Corporate policies

• Contract award criteria must be linked to subject-

matter of contract and may apply only to staff involved in the performance of the contract.

• Enterprises cannot be required to have

certain corporate social or environmental policies (e.g. CSR)

• Contact details - Anna Lupi
• Anna.lupi@ec.europa.eu

Thank you for your attention!

With the financial support of the European Union

• 2. | Situation of PP in the UK

By Jonathan Bland Managing Director, Social Business International And Julian Blake Partner and Joint Head of Charity, BWB

Public Procurement and Social Enterprises

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Jonathan Bland

Social Business International

Julian Blake

Bates Wells Braithwaite

Social Business Initiative

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“The single market needs new, inclusive growth, focused on employment for all, underpinning the growing desire of Europeans for their work, consumption, savings and investments to be more closely attuned to and aligned with 'ethical' and 'social' principles”. Social Business Initiative 2011

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0682:FIN:EN:PDF

The Role of Social Enterprise

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Recognised in SBI :

• Innovative models and solutions
• Goes much wider than labour market

integration

• Social Value
• GECES impact framework

UK context - 20 years development

• f SE in public service markets

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• Recognition and support from successive governments,

significant growth in leisure, housing, health and care, education.

• Voluntary sector – move into service delivery
• Spinouts, “public service mutuals”
• Link to wider measures on commissioning and social investment
• Social Value Act
• E3M group of social enterprises illustrate the nature and

experience of what successful SEs can do

E3M Examples

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HCT group

• Transport
• £43M, 930 staff

Sandwell Community Caring Trust

• Care
• £15M, 700 staff

Application in the UK- How social is it?

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• 1. Commissioning without procurement.
• 2. Public Service innovation and integrated specification.
• 3. Public Service development, including "Innovation Partnerships".
• 4. Social Value and Social Impact in specifications and "MEAT" assessments,

including GECES report and "lifecyle costing"

• 5. "Light touch" regime and exemption for public benefit mutuals.
• 6. Fairness to smaller providers.

Social Value Act – main points

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• Sits under EU procurement law
• Requires public commissioners to consider securing economic,

social or environmental benefits when buying above the OEUJ threshold

• To comply, commissioners must think about how what they are

going to buy, or how they are going to buy it, could these add benefits and must consider whether to consult on these issues

• Effectively it encourages real value for money
• Challenges: awareness, understanding & measurement

University of Northampton new £320M campus

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• Create social impact without affecting the cost, quality, or timing of the project.
•

Questions relating to social impact in the PQQ. 
• Of 13 initial bidders, five were asked to put in an invitation to tender (“ITT”). 
•The university then produced a ‘social impact action plan’, and asked the potential suppliers for ideas about social impact that could actually reduce their cost etc.
•Of the five ITTs, four engaged productively with the social impact questions and collectively produced around thirty different ideas.

• Successful developer worked with UN team to develop a jointly owned social impact

action plan·

• Action plan includes KPIs and mechanisms to ensure performance can be simply

recorded and measured· Social impact action plan and KPIs now cascaded down to 115 tier 1 sub-contractors
•University will use the new campus to deliver 9 KPIs, each covering a discrete area of social impact designed to improve the lives of the people of Northamptonshire
•They want SEs in the supply chain: purchasing building slabs from HMP Onley; engaging HOPE, a SE catering service which employs homeless

Other measures to promote innovation in public service and social enterprise

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• Public Mutuals programme ( Cabinet office)
• Commissioning Academy ( Cabinet Office)
• SEUK Buy Social Campaign and directory
• E3M programme and Bold Commissioners

Club

Some useful links

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• www.e3m.org.uk
• www.bwbllp.com
• http://mutuals.cabinetoffice.gov.uk/
• https://www.gov.uk/government/collections/commissioni

ng-academy

• http://www.socialenterprise.org.uk/policy-

campaigns/latest-campaigns/buy-social

With the financial support of the European Union

• 3. | Estonian Advocacy Experience

By Merlin Sepp Head of Social Innovation, The Good Deed Foundation

Public procurement: Estonian advocacy experience Case study

Merlin Sepp Good Deed Foundation – Head of Social Innovation Estonian Social Enterprise Network - Managing Director

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Estonian advocacy experience related to advancing public procurement principles

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Before… and after our advocacy efforts

Public tenders in 2007-2015

• Lowest price
• Qualitative criteria as simple as possible

The draft law (not yet reached the Parliament)

• Articles 20 and 77 on reserved contracts fully included.
• Also the wording is relevant in national context.
• The default choice of ´the most economically advantageous

tender´ included.

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Success factors so far

• Personal meeting (initially, Ministry of Finance was interested in
• ur assistance).
• As a result: we got into list of Ministry´s partners.
• Organising UK´s Social Value Act intro seminars in cooperation

with British Embassy.

• Writing an opinion piece to one of the major Estonian daily

newspapers.

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Working with Department of Social Welfare, City of Pärnu

They hired ESEN to prepare impact analysis reports for local non- profits (based on our innovative impact mapping methodology). The reports will be used qualitative evaluation when procuring public services in 2016.

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Case study Good Deed Foundation

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How we work

Inputs NETWORK: team, pro bono

experts and contacts from private, public and third sectors

IMPACTFUL SOLUTIONS:

we look for interventions with the biggest impact and implement them in Estonia, plus raise the capabilities of the

• rganizations who implement

them

INVESTMENTS: we bring

together the interest and funds from philanthropists, enterprises and the state to launch initiatives in Estonia

Activities

SA Kiusamise Vastu

Less bullying at school Cleaner environment Better education Stronger communities and less juvenile crime Healthier citizens

Impact

• ADVISING parties

who invest into social impact

• LAUNCHING new

initiatives

• INCREASING the

capabilities of our portfolio

• rganizations

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Examples from GDF portfolio

• Problem: People with special needs are finding it difficult

to enter the labour market.

• Started as a call centre and secured working environment
• perated by disabled people, with some of the target

group being helped back to the open labour market.

• Operating for 2-3 years as a service provider for the

Unemployment Office and helping people with special needs and long-term unemployed back to the open labour market.

• Problem: The profession of teaching is not a popular

choice, the best university graduates do not choose this profession and the average age of the teacher in schools being close to 48 years.

• Ministry of Education and Research joined as a partner

providing the teacher training for the NK participants in the university for free.

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Examples from GDF portfolio

• Problem: Communities with high crime rates and youth at

risk population not targeted with effective preventative interventions.

• GDF commissioned by the Ministry of the Interior to set up

a sports based preventative programm drawing inspiration for the UK based Kickz model.

• One year contract to develop the model, network and set

up the program. After that period we spinned an NGO who through a procurement process won the contract for

• perating the program with the government support for 6

years.

• Problem: Estonia had above average rates of school

bullying in Europe and no evidence based programs fighting the cause.

• KiVa – an evidence based program fighting the school

bullying developed in Turku University (Finland) introduced in Estonia using philanthropic capital.

• After 2 years of operating the program is now partly

financed by the government – Ministry of the Interior, Ministry of Education and Research, Ministry of Social Affairs.

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Partnership with public sector

• Advocacy (public procurement law, public services etc)
• Social innovation network
• Social innovation toolkit, training programs
• Social impact measurement tool
• Developing and testing innovative services, programs, models

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Thank You!

Merlin Sepp merlin@heategu.ee merlin@sev.ee +372 53 016 866

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With the financial support of the European Union

• 4. | Procurement as Open Problem

Solving in City Government

By Sascha Haselmayer CEO Citymart and Ashoka Fellow

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With the financial support of the European Union

• 5. | Q&A Session

Elinor de Pret

e-Speakers e-Moderator

Anna Lupi Jonathan Bland Julian Blake Sascha Haselmayer Merlin Sepp

With the financial support of the European Union

Thank You !

Elinor de Pret

Public Affairs Manager edepret@evpa.eu.com

Dr Lisa Hehenberger

Research and Policy Director lhehenberger@evpa.eu.com

Don’t hesitate to contact EVPA’s Policy Team, should you have any follow-up question related to this webinar and / or to EVPA’s activities!

With the financial support of the European Union

EVPA is kindly supported by:

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