The New Rules: Flexibility, Legality, Accountability Reform of the European Public Procurement Rules Legal and Practical Implications 15 May 2014 Bucharest Paola Zanetti Directorate General Internal Market and Services

December 2011: Commission proposes 3 new directives on public procurement Public Contracts UtilitiesConcessions

January 2012 – July 2013: Negotiations Parliament Council Commission

The new directives come into force 15 January 2014 Vote in Parliament 11 February 2014 Adoption by the Council 26 February 2014 Formal signature by EP and Council presidencies 28 March 2014 Publication in the EU Official Journal 17 April 2014 Entry into force/Start of transposition period

Objectives and Trade-offs Strategic procurement Sound procedures Simplification - Flexibilisation Better access (SMEs, cross-border) Governance – Professionalisation of procurement

1. Simplification 6

Simplification – Flexibility More negotiations in procurement General overhaul of procedures Simpler course of proceedings Simplified rules for smaller authorities

Simpler rules for small authorities Prior Information Notice replaces Contract Notice Flexible time-limits

1 European Single Procurement Document 2 Qualitative selection Evaluation of tenders 3 Documentary check for winning tenderer only Simplification - less red tape

Simplification - Fully Electronic Communication Mandatory as from spring 2016 Last respite until autumn 2018

Timeline for e-communication + 24 months Directive enters into force Period for transposition expires + 36 months Mandatory for Central Purchasing Bodies + 54 months Generally mandatory

Simplification (scope) End of distinction between A/B services Public-Public – Codification of case-law – Vertical (in-house) – Horizontal ( horizontal cooperation) 12

2 -Better access for SMEs

Better access Division into lots Turnover cap Direct payments European Single Procurement Document

Innovation Environment Social 3 -Strategic Procurement

Strategic procurement- Main Principles  Freedom of choice what to buy  Subject matter link maintained  Inclusion of process of production  Labels can be required

Horizontal clause Compliance with "applicable obligations in the fields of environmental, social and labour law established by Union law, national law, collective agreements or by the international... law provisions listed in Annex XI"

Green Procurement  Production process  Labels  Life-cycle costing including environmental externalities

Social Procurement  Social requirements, for example  Integration of disadvantaged persons  Fair Trade  Reserved contracts  Horizontal clause  Protection against unfair treatment by subcontractors

Social services  Special "light" regime  Threshold: EUR  Simplified European-wide publication

06/08/ Sound procurement 21

Sound procurement – Increased Transparency Prior publication Concessions All services E-procurement Mandatory from 2016 European Single Procurement Document Standardised self-declaration 06/08/201522

Sound procurement – during the procedure Exclusion of tenderers who Conclude agreements Influence the contracting authority Try to breach confidentiality Conflicts of interest European definition Obligation to take measures Prior involvement and market consultations Abnormally low tenders Strengthening the investigation obligation Limiting the exclusion possibilities 06/08/201523

Sound procurement – After award Modification of contracts Codification of case law Clear and restrictive rules Termination of contracts Must be possible under certain circumstances Reporting obligations of Member States Measures to prevent and detect fraud and corruption 06/08/201524

5 – Governance – Professionalisation of Procurement 25

Important Websites European Commission, Public Procurement: European Parliament, Internal Market Committee (IMCO): Council Document Register (Look for "public procurement" or "public contracts") public-register?lang=en