1. GPP Training toolkit 6. Market engagement
Module aims: To outline the benefits of introducing market engagement processes into procurement actions, and guidance on how this may be done.
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 provides a set of legal FAQs, some best practice examples, and further guidance on when to engage the market.
This document forms part of the EU GPP Training Toolkit. The full toolkit can be found on the European Commission GPP website:

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

3. Module 6: Market Engagement
Content of Module 6
What is market engagement and why do it?
Legal framework for market engagement
Preparing for market engagement
How to engage the market
Managing risks
Module 6: Market Engagement

4. What is market engagement?
Market engagement is a process which takes place prior to, during, and after procurement
It aims to:
Identify potential bidders and/or solutions
Build capacity in the market to meet the requirement(s)
Inform the design of the procurement and contract
Help suppliers to submit strong bids
Module 6: Market Engagement

5. Why engage with the market?
Effective market engagement can
Change and improve the way you plan and manage procurement
Improve your understanding of the market and help you to become a more intelligent buyer
Increase your trust and credibility with suppliers and become a buyer of choice
Create the market conditions needed to deliver sustainable and innovative solutions
Module 6: Market Engagement

6. Legal framework for market engagement
Market engagement is within the bounds of the European Union’s Directives on Public Procurement
Article 40 of Directive 2014/24/EU states that: “Before launching a procurement procedure, contracting authorities may conduct market consultations with a view to preparing the procurement and informing economic operators of their procurement plans and requirements.”
Many procurers remain reluctant to engage the market outside of the formal tendering procedure, as they are afraid of legal challenge. This and the next slide convey the message that such engagement is legal, provided some basic principles are followed.
A set of legal FAQs can be found in the Accompanying Document with further information on this point.
Module 6: Market Engagement

7. Legal framework for market engagement
Legal considerations for market engagement
Must be carried out in a transparent and non-discriminatory manner
Results of the consultation may not confer an unfair advantage on any of the suppliers who participated
Be fair, open and transparent
Record discussions
Take steps to ensure integrity e.g. giving same information to all suppliers
Give equal access to all suppliers and treat all suppliers equally
Module 6: Market Engagement

8. Preparing for market engagement
Determine what is required before engaging
Assess your needs and consult users
Research what solutions are available on the market already
Consider what the performance and function of the contract should be
Link this to module 4 (Needs Assessment)
Module 6: Market Engagement

9. Preparing for market engagement
Carry out an initial market analysis
Maturity: is the market ready to deliver what's required?
Feasibility: will the market be technically capable of meeting your requirement?
Technical/product innovation: are any technological advancements or product/service developments expected?
Competition and capacity: how many suppliers provide what is required?
Sustainability: can suppliers provide solutions to sustainability issues?
Market engagement may not be necessary or appropriate in all cases. Prior to doing so, it makes sense to carry out some initial market analysis to find out more about how suppliers could meet the needs for the product, service or work that is being considered. This slide lists some of the questions to consider.
Further considerations on when to engage the market, developed by Cornwall Council in the UK, is included in the Accompanying Document.
Module 6: Market Engagement

10. Preparing for market engagement
Case Study: Municipality of Copenhagen (1/2)
Has political target of 90% organic food to be served in public meals, including organic Halal and diversity and seasonality in fruit and vegetables
Market engagement in preparation and tender stages:
1. Ask the kitchens about their needs
2. Pre-tender supplier meetings– what can the market deliver, and how?
3. Consult with the kitchens during the process of writing the tender
4. ‘Supplier Information Day’ 10 days after tender was published to clarify the specification in simple language
5. After meeting market could ask written questions, which are published (anonymous) with answer to all participants
Link to full case study:
Full case study
Module 6: Market Engagement

11. Preparing for market engagement
Case Study: Municipality of Copenhagen (2/2)
Range of potential environmental savings including GHG reductions, with 88% of food in municipal facilities now organic
Positive results of the extensive market dialogue included:
Innovation in the supply and delivery products
Greater sustainability of the sourced food
Improved relationships with suppliers
Lessons learned
Market engagement reduced risk with innovation procurement of lack of bids
Time intensive, but building market knowledge = realistic but innovative specifications that attract competition
Full case study
Module 6: Market Engagement

12. How to engage the market
Engaging the market at different procurement phases
Pre-Procurement
During Tender
Post Tender
Publish PIN and forward procurement plan
Attend trade shows
Attend a ‘Meet the Buyer’ event
Issue Request for Information
Arrange event for suppliers to present proposed solutions
Meet with industry bodies
Meet with a group of key suppliers
Sound out the market
Provide a pre-tender briefing
Industry workshops
Brief suppliers who have submitted a response
Brief short listed suppliers
Hold a question and answer session – or send a list of all questions and their answers to all suppliers
Let suppliers know who has been successful
Debrief suppliers
Contract and supplier management
Strategic supplier management
Maintain market awareness and competitor offerings
Module 6: Market Engagement

13. How to engage the market
Pre-procurement
Desktop research and analysis: explore the market using online tools and sources
Consult with other public authorities: find out what others are purchasing (and reassure risk-averse decision-makers!)
Publish Prior Information Notice (PIN): to inform the market about the consultation
Supplier and market sounding questionnaires: useful and low time-consuming method for quick information
Expression of interest: used for the pre-registration of suppliers, but also to assess market capability
A PIN notice can also be used to reduce the time required for the submission of tenders
Module 6: Market Engagement

14. How to engage the market
Pre-procurement 2
Forward procurement plan: give suppliers advance notice upcoming contract opportunities
Trade shows: attend relevant trade shows to raise awareness of potential opportunities
Meet the Buyer / Meet the Supplier: an event where potential buyers get to meet with potential suppliers
Solutions ‘Show-and- Tell’: for suppliers to present solutions to your needs
Buying organisations have traditionally held ‘Meet the Buyer’ events, where suppliers are invited to attend an open day and given the opportunity to meet the people responsible for the purchase of specific goods and services.
Module 6: Market Engagement

15. How to engage the market
Pre-procurement 3
Meeting with industry bodies: discuss your needs with representatives of industry, who can present possible solutions
Meeting with groups of key suppliers: discuss your needs and enable suppliers to ask questions and present possible solutions in response
Supplier information days: before publishing a Contract Notice hold a pre-tender briefing for suppliers
Promote supplier networking: set up or encourage meetings between potential suppliers
Supplier networking can explore joint bids, partnering arrangements or subcontracting opportunities – useful especially for SME involvement
Module 6: Market Engagement

16. How to engage the market
Case study: Transport for London (1/2)
In 2015 Transport for London (TfL) aimed to reduce whole life-cycle costs of lighting the London Underground network.
Early Market Engagement aimed to drive competition and stimulate innovation within the lighting market across Europe
Market Sounding Prospectus
Presenting at Europe’s largest lighting conferences
Developing and using online submission tools
Distributing market surveys to gather information on manufacturers’ capabilities, innovative technologies and innovation experiences
Hosted a ‘Suppliers Morning’ event: over 70 manufacturers, suppliers and representatives from Europe’s Lighting Industry Association attended.
Link to full case study:
Full case study
Module 6: Market Engagement

17. How to engage the market
Case study: Transport for London (2/2)
Market engagement helped TfL acquire information on almost 300 different innovative lighting technologies from 75 suppliers
Indicative results suggest a 25% saving on whole life-cycle costs, and reductions in energy consumption
Market engagement created innovations that continue to evolve into the contract phase through ‘Product Refresh’
Lessons learned from TfL
Do not be afraid to engage the market early. Industry has information that can be used to strengthen your business case
Cast the net far and wide. Engage as many manufacturers and suppliers as possible and encourage as much competition in the market as possible
Involved approximately 25% of the known European suppliers
Full case study
Module 6: Market Engagement

18. How to engage the market
During a procurement process
Having published a Contract Notice you can hold briefings with:
suppliers who are interested in submitting a response
suppliers who have submitted a registration or expression of interest
short listed suppliers
It is important to apply equal treatment and to ensure that all suppliers receive the same information
Module 6: Market Engagement

19. How to engage the market
Post procurement supplier debrief
Let suppliers know the reason/s their proposal was unsuccessful
Address any concerns of suppliers
Ask for feedback on your process
‘Win-review’ with successful supplier
Remind suppliers that going beyond any sustainability requirements and specifications within the bid is encouraged and welcomed
Module 6: Market Engagement

20. Module 6: Market Engagement
Managing risks
Understand the risks associated with market engagement
Unfairly advantaging one supplier
Accusations of favouritism
Engaging in a way that disadvantages a group of suppliers
Shaping your specification or requirement in favour of one potential supplier or solution
Failing to protect a supplier’s intellectual property rights or commercially sensitive information
Module 6: Market Engagement

21. Module 6: Market Engagement
Managing risks
Simple steps to manage the risks
Be fair, open and transparent
Plan how and when you will engage with the market
Make the process clear to all suppliers and manage expectations
Treat all suppliers equally – do not discriminate
Share the same information with all suppliers
Keep records of your meetings
Be clear with suppliers as to what will and will not be shared as part of the market engagement process
Engaging with the market can feel like a leap into the dark and public bodies are naturally risk-averse, but the gains can be significant if the process can shape the market to deliver new solutions which truly meet the needs of users.
Module 6: Market Engagement

22. Further guidance Market Engagement Best Practice Report (2018)
Buying Green (3rd edition, 2016)
Procura+ Manual (3rd edition, 2016)
GPP Helpdesk For further support on GPP, contact the EU’s free Helpdesk
Full links:
Market engagement best practice report:
Buying Green:
Procura+ Manual:
Toolkit developed for the European Commission by ICLEI - Local Governments for Sustainability
Module Author: ICLEI – Local Governments for Sustainability
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.