PUBLIC PROCUREMENT IN THE NETHERLANDS Wouter Stolwijk nov 2015

Public Procurment in the Netherlands 2 DUTCH PUBLIC PROCUREMENT LAW 2012 All European Directives in one law Codification of proportionality principle National Public Procurement Principles are introduced below EU thresholds Several measures to reduce administrative burdens, e.g. TenderNed (e-Procurement) & Self-declaration Supporting Policy Measures are introduced to give more guidance to contracting authorities Enforced April 1 st, 2013

Public Procurment in the Netherlands 3 MAIN GOALS PUBLIC PROCUREMENT LAW Uniformity Better compliance Value for tax payers money (MEAT) Reduction of costs (e-Procurement, self declaration, freely available specifications …) Better access for SMEs (clustering is ‘forbidden’, dividing in small lots, low selection criteria, financial turnover may not be used as selection criterion, …) Procurement >> compliance  more emphasis on professional procurement

Public Procurment in the Netherlands 4 PIANOo Two origins: – Parliamentary enquiry on fraud in the construction sector – National report on compliance to the EU rules Start PIANOo mid 2005 Aim: – Enhance compliance – Develop practical knowledge – Further professionalization – Value for public money – Setting up the exchange of knowledge – Support of new and innovative developments – Promote e-Procurement

Public Procurment in the Netherlands 5 ORGANIZATIONAL STRUCTURE OF PIANOo Part of the Ministry of Economic Affairs (responsible for implementation EU directives for tendering) Steering committee: – Central government – Provinces – Municipalities – Water boards Financing: central government (80%) About 12 fte (excl TenderNed)

Public Procurment in the Netherlands 6 PIANOo ACTIVITIES I Web site (daily 1400 – 1500 visits) ( Two weekly Newsletter (6000) Interpretation of jurisprudence Answering questions contracting authorities (1.100 yearly) Guidelines, manuals, best practices Online forum: PIANOo-desk / Procurement Forum – Only contracting authorities (2.800 clients) – with new discussions, daily Yearly congress ( visitors) Regional workshops

Public Procurment in the Netherlands 7 ACTIVITIES PIANOo II Study groups of expert practitioners – Public procurement law – Public procurement management – Public procurement of construction works Stimulation of – Cooperative procurement (organizational) – Green procurement – Procurement of innovation – Social return on investment International : EU public procurement lab, Public procurement of innovation ( IPPC, IRSPP…

Public Procurment in the Netherlands 88 ACTIVITIES PIANOo III: TenderNed The online marketplace of the Dutch government Transparent, easy and cheaper public procurement Lowers the threshold for businesses to compete for government assignments Saving of administration costs around 60 million/year EU Aim: reduction administrative burdens EU aim’s for mandatory digital public procurement from 2016 NL Publication duty in tender law EU statistics duty Uniform and compact operational management of governments 8

Public Procurment in the Netherlands 9 PIANOo PRIORITY THEMES Enhance strategic level Public Procurement Shift from judicial emphasis towards focus on economy Enhance market knowledge contracting authorities Enhance e-Procurement (TenderNed)

Public Procurment in the Netherlands 10 PUBLICATIONS OF PIANOo Procurement of innovation (English) Sustainable procurement (English) Interpretation of specific juridical issues Practical issues of competitive dialogue (English) Combating the crisis through government procurement? (English) Procurement of services ‘Marketplace’ (procurement of small services/self employed) Micro lots Market dialogue Checklist market exploration (English) How to use MEAT? How to organize collaborative procurement among municipalities? How to select market operators below European threshold?

Public Procurment in the Netherlands 11 MARKET MEETINGS 80% meetings concern services: catering, employment agencies, architects, technical advisers, duty trips, ICT, cleaning … Highlights of the discussions: – Distrust, lack of dialogue, lack of knowledge of the market – Unreasonable demands for SME – General terms of delivery (liability, intellectual property, warranty) – Lowest price or MEAT (award criteria) – Framework agreements, duration of the contract (change personnel, innovation, partnership) – Re-tendering contract  always new contractor (extra costs)

WORKFORCE AND EDUCATION Who belongs to ‘the workforce’ in Public Procurement? Lawyers, purchasers (what is a ‘purchaser’?), substance specialists, managers, budget owners, support staff, etc. We found 280 courses, curriculae etc from about 40 different organizations. NEVI is an important one. PIANOo chose not to specialize in training and education Public Procurment in the Netherlands 12

Public Procurment in the Netherlands 13 CONTRACTING AUTHORITIES IN The Netherlands Central government – Ministries 11 – Autonomous Governing Bodies 150 Provinces12 Water boards24 Municipalities420 Universities15 Schools±1.400 Police 25 Bodies governed by public law±1.000

Public Procurment in the Netherlands 14 PUBLIC PROCUREMENT IN The Netherlands Billion €Number Cost per tender European Tender Procedures (1,5%)€ National Open Procedure (3%)€ National Multiple negotiated contract (25%)€ National Negotiated contract (1/1) 8± (71%)€ Total/average58± € 6.000

Public Procurment in the Netherlands 15 TRIALS AND LITIGATION The Netherlands do not have a Public Procurement Authority Analysis on 600 national trials concerning tendering ( ) – Growth – Stabile (140 yearly) – Results: 65% in favor of contracting authorities – Reasons for trials  Invalidity/rejection of tender  Transparency  Equality  Proportionality

TRIALS AND LITIGATION Commission of PP experts: Since 2012 Expert-assessment, not judicial force File a complaint first with the contracting authority Then with this Commission Two complaints a week roughly days processing time Public Procurment in the Netherlands 16

Public Procurment in the Netherlands 17 PUBLIC PROCUREMENT TRENDS Public procurement becomes more a strategic profession Accountability has been or will be strengthened Shift from compliance to value for tax payers money The use of internet is growing (e-Procurement) Public procurement has to contribute to other policy goals: – Innovation – Stimulation of SMEs – Social aspects – Sustainability Those trends are not typical for The Netherlands

Public Procurment in the Netherlands 18 QUESTIONS & INFORMATION Questions – Official – Direct: Information – Website PIANOo – Website TenderNed