Innovative Procurement in a Belgian context Chris Van der Auwera, - - PowerPoint PPT Presentation

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Chris Van der Auwera, Chief of Staff in charge of Public Administration Cabinet Minister Steven Vandeput, Minister of Defence & Civil Service

Innovative Procurement in a Belgian context

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The implementation of:

• a new or significantly improved product, service or process,

including but not limited to production, building or construction processes, a new marketing method, or a new

• rganisational method in business practices, workplace
• rganisation or external relations inter alia
• with the purpose of helping to solve societal challenges or to

support the Europe 2020 strategy for smart, sustainable and inclusive growth

Innovation according to Belgian procurement law

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Procedures for innovative procurement according to Belgian procurement law

Innovation PCP: precommercial procurement PPI: public procurement of innovation Innovative procedure Classical procedures

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▪

• Art. 32 of the Procurement law of 17.06.2016

▪ Research and development (R&D) : Procurement law does not apply

▪ What:

• Limited to R&D
• Application of risk-benefit sharing
• A competitive procurement designed to exclude State aid

▪ By:

• Risk-benefit sharing according to market conditions
• Competitive development in phases
• Separation between R&D and commercialisation

Precommercial procurement (PCP)

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▪ Except:

• for some services of research and development (certain

Common Procurement Vocabulary codes)

• (and) who are wholly renumerated by the contracting

authority

• (and) wherefore the benefits accrue exclusively to the

contracting authority for its use in the conduct of its own affairs

→ In that case Procurement law is applicable, so no PCP

Precommercial procurement (PCP)

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▪ Difficulties:

▪ R&D: need of an unambiguously definition ▪ Only refers to category 8 (and besides, of the previous Belgian law): services for research and development ▪ Quid category 7: ICT and related services → R&D possible ?

• ICT and related services: law is applicable
• ICT as R&D is possible but strictly limited and merely

applicable to research rather than development ▪ Quid intellectual property rights?

Precommercial procurement (PCP)

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▪ United States ‘Value for money’ vs. European ‘risk-aversion’

▪ What to do in case of doubt ?

• > Be less risk-averse
• Failure should be allowed
• Trial and error

Precommercial procurement (PCP)

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▪ Contracting authorities act as a launch customer for innovative goods of services which are not yet available on a large-scale commercial basis, and may include conformity testing ▪ Market share < 20% (https://www.ewi-vlaanderen.be/en/node/5347) ▪ How:

▪ Classical procurement procedures:

• negotiated procedure without prior publication
• competitive procedure with negotiation
• competitive dialogue
• pen procedure/restricted procedure

▪ Innovative procurement procedure: innovation partnership

Public procurement of innovation (PPI)

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PCP and PPI: How can we offer support ?

Innovation PCP Innovative sollutions that require R&D Limited to research and development Procurement law not applicable PPI Innovative solutions (test or market share <20%) Procurement law applicable BOSA, Section Procurement policy and advice

• Creating the process of innovative procurement on a federal level
• Creating an innovative department and providing tools (guidelines,

templates, advice)

• Support platform as a meeting space for contracting authorities and business

(proper technology and triggers for both parties) and offering a transversal approach

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▪ Despite the potential, still little public procurement in Belgium is aimed at innovation and R&D

▪ No specific metrics are available (federal, regional, or local) ▪ Qualitative study: Barometer Innovative Public Procurement in Belgium (De Coninck, Viaene, Leysen, Van der Auwera, June 2017)

▪ Some key initiatives in Belgium:

▪ Nido Innovation Lab (Federal) ▪ FPS Policy & Support (Federal) ▪ Flemish Program For Innovative Public Procurement (Flemish) ▪ Digipolis (Local)

Suggestion 2: Expertise Centre on Innovation Procurement

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▪ Why aren’t there more initiatives?

▪ Lack of awareness ▪ Lack of knowhow and expertise ▪ Risk-averse attitude ▪ Fear of the unknown ▪ …

▪ Ambition: Set up an Expertise Centre on Innovation Procurement

Suggestion 2: Expertise Centre on Innovation Procurement

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▪ What:

▪ Dedicated Expertise Centre on Innovation Procurement within FPS Policy & Support ▪ To boost innovation procurement in Belgium ▪ By starting small and leveraging existing (cross-border) knowhow

▪ Tasks:

▪ Informative role – Inform and inspire contracting authorities ▪ Strategic support and guidance – Help shape and materialize innovation ambitions of contracting authorities ▪ Operational support and guidance – Advice and guidance through practical tips, best practice sharing, templates, toolbox, etc. ▪ Networking – Community of like-minded practitioners in Belgium, and reaching out to other European initiatives

Suggestion 2: Expertise Centre on Innovation Procurement

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Starting point: Workshop with startups and SME’s to discover why so little of them are participating in public tenders Biggest conclusions: ➢ It’s not always clear what government wants ➢ Tendering process is too complex ➢ Legal language ➢ Time consuming ➢ Limited possibilities to propose innovative solutions ➢ Difficult to communicate with government ➢ Payment takes too long ➢ Too many administrative obligations ➢ Standard feedback, not much to learn from

Innovation starts with curiosity and openness

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Development of a virtual marketplace ➢ A great spot for companies to promote their innovative products or services to all public administrations ➢ An opportunity to infuse public administrations with innovation by taking part in the challenges ➢ A “small business proof” procedure, transparency and meaningful feedback

Innovation starts with curiosity and openness

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Direct an open question for solutions to the

• market. Formulate challenges and get inspired!

Give the competitors the necessary feedback so they can grow and do better next time.

Challenges for government