Evaluation of public procurement Directives High Level Group of Independent Stakeholders on Administrative Burdens Thursday 14 July 2011

Total public expenditure Eurostat and Commission estimatesAs % EU GDP (2008)

Use of procedures Pwc, London Economics, Ecorys from OJEU data

SME access and success GHK

Cross border procurement Ramboll as % of total (above threshold) procurement

Cross border participation Ramboll How often did your company participate in public procurement tenders (domestically and abroad) in the last three years? 76,1 10, ,4 5,3 4,9 11,1 72, more than 20 times 10 to 20 5 to 10 1 to 5 Never % of respondents Participation abroad N=1011 Participation overall (domestically and abroad) N=1026

Reasons for not bidding cross border Ramboll

Total cost of procedures Average cost per procedure cost of average 5 – 6 bids contracting authority costs Total Costs 5.3 billion Less than 1.3% of total contract value

Average person days for procedure Pwc, London Economics, Ecorys from OJEU data

Person-days required Best performer Worst performer Difference Authorities Firm Authorities and winning firm combined PwC, London Economics, Ecorys

Savings Econometric model Save 1% on the final contract value if contract notice advertised further 3 % if open procedure or 1.1 % if restricted procedure Total per cent compared with the initial estimate. PwC, London Economics, Ecorys

Frequency of contract values PwC, London Economics, Ecorys

Evaluation: main findings Effectiveness Relevance Efficiency Consistency with other policies EU added value

Effectiveness Transparency Competition Savings Cross border Differences in implementation

Relevance Value for money CPBs and Frameworks Equal treatment Non discrimination

Efficiency Positive cost benefit analysis Compliance costs Difference across MS Unintended consequences

Consistency with other Policies Green public procurement Socially responsible Innovation Lack of monitoring Different requirements, standards, labels…

EU Added Value Single Market Coordination Still large differences in implementation

Evaluation: overall conclusion Savings outweigh costs Scope for improving balance of costs and benefits particularly for small contracts Potential for more cross border procurement