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Integrity Matters in the New Public Procurement Directives and other ongoing public procurement workstrands François Arbault 'Public Procurement Strategy'

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Presentation on theme: "Integrity Matters in the New Public Procurement Directives and other ongoing public procurement workstrands François Arbault 'Public Procurement Strategy'"— Presentation transcript:

1 Integrity Matters in the New Public Procurement Directives and other ongoing public procurement workstrands François Arbault 'Public Procurement Strategy' unit (DG GROW/G-1)

2 Integrity Stakeholders' integrity & Systems' integrity
Robust, resilient and transparent systems, allowing for the prevention, detection and redress of corrupt, collusive or biased behaviour, enabling effective law enforcement and sound policy making, also by generating data facilitating data analysis and public scrutiny

3 Promoting integrity in the EU
PP as priority area in EU anti-corruption policy in EU anti-fraud policy Key milestone: review of PP legislation London Anti-corruption summit (May 2016) "Public contracting - including by international organisations - and government budgets should be fair, accountable, open and transparent … greater use of e-procurement … ensure accountability … shareable and timely open data and documents on public contracting activities, consistent with applicable law …"

4 Relevance of PP 15-20% of the EU GDP spent via PP  around EUR 2000 billion a year (!) High level of financial interests at stake While the costs are difficult to quantify, it is a fact PP is a hotbed for corruption, and that corruption in PP impedes on the sound management of public money, competition and undermines the trust of citizens in democratic institutions

5 New PP Directives New Package: To be transposed by 18 April 2016
2014/24/EU – "Classical Directive", 2014/25/EU – "Utilities Directive" 2014/23/EU – "Concessions Directive" To be transposed by 18 April 2016 New provisions meant to strengthen integrity of PP systems and facilitate fight against corruption.

6 New 'integrity' provisions
Notion of 'Conflicts of interest' defined at EU level in the new Directives MS and contracting authorities are asked to take appropriate measures to effectively prevent, identify and remedy such cases. "[…] any situation where staff members of the contracting authority or of a procurement service provider acting on behalf of the contracting authority who are involved in the conduct of the procurement procedure or may influence the outcome of that procedure have, directly or indirectly, a financial, economic or other personal interest which might be perceived to compromise their impartiality and independence in the context of the procurement procedure".

7 New 'integrity' provisions
Ensuring Level playing field Eg: Preliminary market consultations : participation of a previously consulted company must not affect competition; any information must be shared with everyone [Art. 40, 41]

8 New 'integrity' provisions
Under exclusion reasons, on top of the existing reasons (obligatory exclusion for fraud, corruption, money laundering) a company may also be excluded in cases: where a conflict of interest cannot be effectively remedied by other less intrusive measures; it unduly influenced the decision-making process it provided misleading information  it entered into agreements to distort competition [Art. 57(4)]

9 New 'integrity' provisions
MS required monitor PP, to report violations of rules to national authorities, make public the results of their monitoring activities and submit a report to the Commission every 3 years on the most common sources of misapplication or legal uncertainty, possible structural or recurring problems as well as prevention, detection and adequate reporting of cases of procurement fraud, corruption, conflict of interest and other serious irregularities. [Art. 83]

10 New 'integrity' provisions
The modification of contracts during their term has been made clearer and simpler in order to remove any doubt and shed light on this corruption-prone phase. [Art. 72] Public procurement award procedures must be covered by a specific report by the public purchaser explaining the main decisions and reporting any conflict of interests and steps taken [Art. 84]

11 New 'integrity' provisions
All contracts of a large value (EUR 1/10 M) to be kept at least during the contract period and access must be granted (data protection). [Art. 83(6)] The simplification of procedures and the greater use of electronic tools in public procurement, especially the use of the European Single Procurement Document (ESPD) which will make it harder to eliminate "unwanted" economic operators. [ESPD: Art. 59]

12 Taking forward integrity policy in PP: current work strands
Reporting obligations under Art Country strategies for comprehensive reform of PP systems in selected MS Professionalization policy New Single Market Strategy (+ General EU anti-corruption and anti-fraud policies)

13 Taking forward integrity policy in PP: current work strands
Single Market Strategy ('SMS'): Improve the transparency and quality of national procurement systems through better data, by the establishment of contract registers covering the whole life cycle of contracts and by supporting the development and deployment of a data analytics and anomaly-detection tool to better uncover existing or prospective procurement irregularities.

14 Taking forward integrity policy in PP: current work strands - SMS
Better data (1/4) Art Reporting obligations of MS Improve data from procurement notices (eForms) Support collection of data below EU thresholds

15 Taking forward integrity policy in PP: current work strands - SMS
Contract registers (2/4) Cost-efficient tool for managing contracts and promoting good governance through enhanced transparency. Making available digitalized contracts, structured summaries as well as full wording, including contract performance conditions, terms of delivery, and subsequent modifications.

16 Taking forward integrity policy in PP: current work strands - SMS
EU database on irregularities (3/4) Based on available data (esp. audit and remedy data). Irregularities are major source of information for governance, including detection of corruption. Potential to uncover patterns and weaknesses in the public procurement system. Inform policy making

17 Taking forward integrity policy in PP: current work strands - SMS
Promote data analytics and analysis (4/4) New edition of Single Market Scoreboard: compares features / performance of MS in specific areas of PP Support to data analysis and anomaly detection tools

18 Thank you!


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