PPI Pilot Instrument in CIP-PSP-ICT-2013 Objective 3 PPI Pilot Instrument in CIP-PSP-ICT-2013 Objective 3.2 (a) and (b) Lieve Bos European Commission DG CONNECT F2 unit (“Innovation”)

Objectives PPI pilot Focus on commercialisation / deployment phase Help transnational procurer groups to reduce fragmentation of demand and reduce risk/cost of early adoption of innovative solutions Result in early deployment/first application of innovative ICTs. Commitment to deploy if market able to deliver innovative solutions within pre-set time with pre-set quality/price requirements. Not pre-commercial R&D phase Innovative solutions, already technically demonstrated (small scale) but owing to residual risk not widely deployed yet in market of procurers in the project. Includes solutions based on existing technologies, used in a new innovative way. Does not include procurement of R&D. Either no R&D needed or R&D already progressed up to products nearly/already on market in small quantity, but not scaled up yet to meet mass market requirements. If R&D needed, complementary calls for R&D procurement (PCP) available under FP7 ICT program

PCP and PPI complementary PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors PPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market Public Procurement of Innovative Solutions (PPI) R&D / Pre-commercial Procurement (PCP) Phase 0 Curiosity Driven Research Phase 1 Solution design Phase 2 Prototype development Phase 3 Original development of limited volume of first test products / services Phase 4 Deployment of commercial end-products Diffusion of newly developed products / services Supplier A Supplier B Group of European procurers Pool public demand and specify needs Manage procurement process Share risks and benefits together and with suppliers Cost shared, IPR shared, knowledge shared Compatible with procurement directives and state aid Exception to procurement directives Legally defined as procurement of ‘R&D Services’ Possibility to restrict to ‘European wide offers’ Possibility to apply at European and Member States level Need for incentive to support the framework Supplier B Supplier B Supplier(s) A,B,C,D and/or X Supplier C Supplier C Supplier D Supplier D Supplier D Also normally multiple sourcing here to keep competition going … in line with WTO proc. rules, EU Treaty, State aid free

Open ICT PCP/PPI calls Funding for PCPs: FP7-ICT-2013-11 (Call deadline 16 April 2013) Targeted call for joint PCP(s) in digital preservation (CP-CSA for PCP grant) Objective 11.2: max €5Mio for up to 2 projects Targeted call for joint PCP(s) in technology enhanced learning (CP-CSA for PCP grant) Objective 8.2: min 5,5 €Mio for 1 or more projects Funding for PPIs: CIP-PSP-2013-7 (Call deadline 14 May 2013) Targeted calls for joint or coordinated cross-border PPIs in ICT for health – active ageing Objective 3.2(a): €5Mio for one or more PPI pilots in ehealth Objective 3.2(b): €5Mio for one or more PPI pilots in active ageing Targeted calls for thematic networks preparing future PPIs Objective 1.2(c): €1Mio for one network on smart sustainable mobility Objective 1.3: €1Mio for one network on resource efficient data servers for smart cities Health Inclusion Government Security eInfrastructure

PPI examples In Europe Low carbon healthcare PPI started 2006 Introducing more energy efficient LEDs in network of over 20 hospitals in 8 EU countries: 30% energy consumption saving 88% maintenance savings Total cost savings enable take-in +10% patients For more info: http://lowcarbon-healthcare.eu/ UK brand name for PPI = Forward Commitment Procurement (FCP) Swedish environmental/energy efficiency PPIs done by NUTEK/STEM agency: heating-ventilation-cooling of buildings public transportation (hydrogen busses) office blocks (sun shading, lighting) white appliances (washing machines, fridges) wind energy parks PPI called teknikupphandling in Sweden Discuss Pan European collaboration of designers, engineers, manufacturers & researchers. Discuss research and the realisation of research into product design. Requires multi-discipline teams to truly create / deliver innovation, Brings curiosity driven research and market needs / product development together. Result: Reduced the SE dependency on nuclear energy with 15% through PPIs in combination with product certification/labeling, take-up subsidies & tax incentives 5

Eligible Participants Duration & Funding Minimum 3 mutually independent procurers from different Member States or Associated Countries, of which at least 2 are public procurers established as public bodies Entities that are not public procurers can also participate in action, if they are not potential suppliers of solutions sought for by the PPI (avoiding conflict of interest). E.g. private procurers with similar procurement needs, independent experts assisting procurers with PPI Duration & Funding Indicative duration: 36 months Funding: up to €5 Mio for one or more PPI pilots for obj 3.2(a) up to €5 Mio for one or more PPI pilots for obj 3.2(b) Funding rate: - 100% for coordination activities (max 30% of grant, up to €1 Mio) - 20% of PPI procurement price (incl. VAT only for participants that are not able to deduct VAT)

Activities Preparation phase Defining common specs (functional/performance requirements). In proposal, consortium shall have already identified concrete specific challenge in innovation plans of procurers that requires innovation. Open market consultation, announcing intention to buy critical mass of innovative solutions if market able to meet solution requirements by pre-set date (published as PIN in OJEU). Optional: test / certification / labelling by end of date pre-set in PIN before buying, to check whether market really meets solution requirements. Confirmation of collaboration details to launch PPI tendering Plus, possibly if well justified, additional activities

Activities Implementation phase Implementation during project of 1 joint or several separate but coordinated PPI procurements based on above common specs Publication of call for tender(s) in OJEU Tenders as open as international agreements require Evaluation of tenders on best value for money (not just lowest price) Signature of contracts + payment to suppliers Distribution of rights/obligations between procurers and contractors published up front in call for tender docs, respecting IPR provisions in MGA No disproportionate selection criteria (to give also SMEs a fair chance) Deployment and operation of procured solutions (min 6 months) Evaluation & dissemination of results (pro-actively involving e.g. other procurers beyond project partners) Plus, possibly if well justified, additional activities * Read section 2.3.5 in Guide for applicants for PPI pilots: Coordination activities include preparation, management of PPI, evaluation of results and dissemination activities. Costs for installation & operation of procured solutions only eligible if included in PPI procurement cost.

How to use EC PPI support? Example PPI pilot grant Example: €3 or 5 Mio PPI pilot grant Max 30% up to max €1 Mio for coordination costs - 100% funded Remaining €2-4 Mio = EC contribution to the ICT solutions procured / deployed through one joint or several coordinated PPIs based on jointly defined specs Reimbursement rate 20% for public and private contracting authorities -> value total amount of PPI procurements by all procurers in consortium = €10-20 Mio One Joint or several separate but coordinated PPI call for tenders (based on jointly defined tender specs) Public Procurement of Innovative Solutions (PPI) Phase 4 Deployment of commercial end-products Early adoption of new to the market products / services P1 P10 Preparation Joint or coordinated PPIs P2 Procurer 1 buying e.g. €2 Mio solutions from supplier A … Group of European procurers Pool public demand and specify needs Manage procurement process Share risks and benefits together and with suppliers Cost shared, IPR shared, knowledge shared Compatible with procurement directives and state aid Exception to procurement directives Legally defined as procurement of ‘R&D Services’ Possibility to restrict to ‘European wide offers’ Possibility to apply at European and Member States level Need for incentive to support the framework Procurer 2 buying e.g. €1,5 Mio solutions from supplier B P4 P3 Procurer 3 buying e.g. €5 Mio solutions from supplier D Consortia of procurers e.g. P1->P10 (min 3) Procurer 4 buying e.g. €2 Mio solutions from supplier E … … Procurer 10 buying e.g. €2 Mio solutions from supplier X

CNECT website on PCP and PPI: Background Info CNECT website on PCP and PPI: Info on calls, EU funded projects, background docs, FAQs, PCP/PPI initiatives in countries around Europe http://cordis.europa.eu/fp7/ict/pcp/home_en.html CIP PSP ICT 2013 Call 7 page: Read objective 3.2 and 4.1.5 in Work Program Read the Guide for applications for PPI pilots Make use of pre-proposal check possibility http://ec.europa.eu/research/participants/portal (search for callIdentifier=CIP-ICT-PSP-2013-7) Info about PCP/PPI initiatives in MS and AC http://cordis.europa.eu/fp7/ict/pcp/msinitiatives_en.html PCP/PPI event in Berlin, 21-22 March 2013 http://cordis.europa.eu/fp7/ict/pcp/events_en.html