GPP Training toolkit 4. Needs Assessment Module aims: To emphasise the importance of an effective needs assessment process prior to tendering, and provide guidance on how to carry this out. Trainers’ notes have been included under certain slides to highlight points to be emphasised, or provide further background information. An accompanying document is also available, which should be used as a handout for participants. This document forms part of the EU GPP Training Toolkit. The full toolkit can be found on the European Commission GPP website: http://ec.europa.eu/environment/gpp/index_en.htm

Module 4: Needs Assessment GPP Training Toolkit Module 1: Introduction Module 4: Needs Assessment Module 2: Strategic Aspects of GPP Module 5: Circular Procurement Module 3: Legal Aspects of GPP Module 6: Market Engagement Module 7: Operational (Key sectors for GPP) Module 4: Needs Assessment

Module 4: Needs Assessment Content of Module 4 What is needs assessment? User consultation Why we are buying – needs statement What we are buying Who we are buying for How much we are buying How we are buying – flexible contracts Further resources Module 4: Needs Assessment

What is needs assessment? GPP is not just about buying environmentally preferable goods/services – it is about reducing the overall impact of government procurement One of the most obvious ways to do this is by reducing demand for goods, services and works Needs assessment is about: Avoiding unnecessary purchases Ensuring what is purchased meets requirements Designing procurement and contracts to allow flexibility over time Examples of how needs assessment may affect procurement outcomes: A local authority chooses to repair furniture rather than purchasing new items A government department buys fewer desktops because some staff prefer to work on laptops A school awards a flexible contract for catering services so that the amount of food provided reflects daily student numbers Module 4: Needs Assessment

Module 4: Needs Assessment User consultation The users of a procurement may be internal to the buying organisation or external (e.g. citizens) In order to ensure purchases are appropriate to their needs, users must be consulted This should take place prior to the start of the procurement, and may continue during the tender process/contract execution stage It seems common sense, but appropriate user consultation is often lacking in procurement procedures. Examples of how to conduct user consultation: A questionnaire or online survey to determine user needs and preferences Observation and analysis of existing use patterns A review and planning meeting to which all relevant stakeholders are invited Inviting users to attend supplier demonstrations held as part of preliminary market consultation (see Module 6) Module 4: Needs Assessment

Why we are buying: needs statement Prior to launching a tender, the reason for the purchase must be clear (not just “because we bought it last year”) It should be possible to summarise the need in a simple statement which confirms if alternatives to purchasing have been taken into account, e.g. resource sharing, repairs/upgrades, leasing This statement may also be useful for the procurement business case It should be open to challenge on environmental grounds Needs Statement – Example “The Department has identified a need for 6 smart screens for use in its 12 meeting rooms. The screens will facilitate web-conferencing and reduce the need for document printing. Based on user consultation, a maximum of 6 meetings requiring screens are held at any one time. The existing projectors consume a large amount of energy and often break down. The Department will consider proposals for leasing the screens under a service contract.” Module 4: Needs Assessment

What we are buying: the subject-matter Needs assessment and user consultation help to define the subject-matter of the contract This tells the market what you are buying and will include: Whether the contract is for supplies, services or works The title and short description of the contract The relevant CPV codes (for an OJEU tender) The subject-matter is important because it determines the scope of GPP criteria you apply Contracting authorities are free to define the subject-matter of the contract in the way which best meets their needs. For example, based on the needs statement in the previous slide, the subject-matter might be: “Supply of energy-efficient smart screens” Appropriate GPP criteria can then be chosen for each aspect of the contract (specification, award criteria, contract performance clauses) Module 4: Needs Assessment

What we are buying: the specification Needs assessment helps to choose the most appropriate specification – whether based on functional requirements or on standards Avoids the ‘copy and paste’ approach Like the needs statement, specifications should be open to challenge on environmental grounds, as well as to ensure that they are not overly restrictive, allow SMEs to compete, etc. Procurement documents must contain technical specifications (except in competitive dialogue procedure). These should reflect the information gathered from the needs assessment, but not be overly prescriptive. Example: Buying smart screens Specification sets out basic requirements in terms of functionality and energy-efficiency. Award criteria are used to evaluate functionality and innovative aspects beyond the specification (e.g. connectivity, energy-saving features, upgrade options) Further information on the role of specifications and award criteria in GPP is given in Module 3. Module 4: Needs Assessment

Performance/Output-based specifications Performance, or output-based specifications describe the need you wish your procurement to fulfil, rather than prescribing exactly how you want this done Allows suppliers to determine the most effective and efficient way to meet this need – and propose innovative solutions with environmental benefits Example: define office lighting requirements in terms of lumens required in different rooms at different times, not in terms of the number of lighting fixtures or wattage required Module 4: Needs Assessment

Who we are buying for: joint procurement Joint procurement can save resources create a stronger demand for green goods + services As part of the needs assessment, consider whether any of the following applies: Can you buy from an existing framework or contract? Can you set up a framework or contract that will be used by others? Can you conduct a joint procurement with one or more other authorities? Different approaches to joint purchasing exist, and may in some cases involve a centralised purchasing body. The rules on joint procurement are set out in Article 37-39 of Directive 2014/24/EU. Different rules apply depending on the type of joint procurement. For GPP, joint procurement can help to send the market a stronger signal regarding demand and stimulate investment in green production processes, equipment, certification/labels etc. Example: The department which is only purchasing 6 smart screens is unlikely to be able to influence the market to provide more energy-efficient models. However if it set up a framework on behalf of all government departments, the market may respond more favourably. Module 4: Needs Assessment

Module 4: Needs Assessment How much we are buying OJEU tenders require you to estimate the total quantity or scope in advance This does not form a contractual commitment to buy that volume Needs assessment can help to estimate a realistic quantity or range without going beyond it This applies to services and works as much as supplies Examples of how needs assessment may inform the scope of a contract: The size of a new office building should be based on current user needs and any projected growth, taking account of trends in home working, desk sharing etc. The frequency of street cleaning services should be based on observation and analysis of the area, taking account of any initiatives on waste reduction and recycling The number of printers should be based on current usage, taking account of planned print management activities to reduce demand. Module 4: Needs Assessment

How we are buying: flexible contracts Contracts and frameworks normally last for several years and needs can change over this time Contract terms should be sufficiently flexible to allow adjustments to volume, frequency etc. They may also include a ‘best available technology’ or ‘continuous improvement’ clause to drive environmental innovation Framework agreements are particularly good for allowing flexibility in purchasing Avoid getting ‘locked in’ to contracts which require a specific volume of supplies, services or works to be purchased. While these may seem to offer good value at the outset, if needs change then the environmental impact of excess purchasing will quickly become apparent. For example: Deliveries of stationery every week may encourage excess consumption A daily cleaning service may not be needed for all parts of a building A school catering contract should reflect the number of students present each day Intelligent contract design for GPP involves flexibility, so that the volume is always ‘just right’. Framework agreements are particularly useful as they allow for adjustments to be made over time without a new tender procedure being required. Module 4: Needs Assessment

Further guidance Innovation Procurement Guidance (2018) Procura+ Manual (3rd edition, 2016) Buying Green (3rd edition, 2016) Circular Procurement Guidance (2017) Good Practice Examples GPP Helpdesk For further support on GPP, contact the EU’s free Helpdesk Full links: EC Innovation Procurement Guidance: https://ec.europa.eu/docsroom/documents/29261 Procura+ Manual: http://www.procuraplus.org/fileadmin/user_upload/Manual/Procuraplus_Manual_Third_Edition.pdf Buying Green: http://ec.europa.eu/environment/gpp/buying_handbook_en.htm Circular procurement guidance: http://ec.europa.eu/environment/gpp/pdf/CP_European_Commission_Brochure_webversion_small.pdf Good practice examples: http://ec.europa.eu/environment/gpp/case_group_en.htm (further links presented in Module 2) Helpdesk: http://ec.europa.eu/environment/gpp/index_en.htm Toolkit developed for the European Commission by ICLEI - Local Governments for Sustainability Module Author: Public Procurement Analysis Owner, Editor: European Commission, DG Environment, 2019 Photos: courtesy of Pixabay.com under Creative Commons CCO Disclaimer: This toolkit is an indicative document of the Commission services and cannot be considered binding to this institution in any way. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in this document. Module 4: Needs Assessment