1. GPP Training toolkit 4. Needs Assessment
Module aims: To emphasise the importance of an effective needs assessment process prior to tendering, and provide guidance on how to carry this out.
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 document forms part of the EU GPP Training Toolkit. The full toolkit can be found on the European Commission GPP website:

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

3. Module 4: Needs Assessment
Content of Module 4
What is needs assessment?
User consultation
Why we are buying – needs statement
What we are buying
Who we are buying for
How much we are buying
How we are buying – flexible contracts
Further resources
Module 4: Needs Assessment

4. What is needs assessment?
GPP is not just about buying environmentally preferable goods/services – it is about reducing the overall impact of government procurement
One of the most obvious ways to do this is by reducing demand for goods, services and works
Needs assessment is about:
Avoiding unnecessary purchases
Ensuring what is purchased meets requirements
Designing procurement and contracts to allow flexibility over time
Examples of how needs assessment may affect procurement outcomes:
A local authority chooses to repair furniture rather than purchasing new items
A government department buys fewer desktops because some staff prefer to work on laptops
A school awards a flexible contract for catering services so that the amount of food provided reflects daily student numbers
Module 4: Needs Assessment

5. Module 4: Needs Assessment
User consultation
The users of a procurement may be internal to the buying organisation or external (e.g. citizens)
In order to ensure purchases are appropriate to their needs, users must be consulted
This should take place prior to the start of the procurement, and may continue during the tender process/contract execution stage
It seems common sense, but appropriate user consultation is often lacking in procurement procedures. Examples of how to conduct user consultation:
A questionnaire or online survey to determine user needs and preferences
Observation and analysis of existing use patterns
A review and planning meeting to which all relevant stakeholders are invited
Inviting users to attend supplier demonstrations held as part of preliminary market consultation (see Module 6)
Module 4: Needs Assessment

6. Why we are buying: needs statement
Prior to launching a tender, the reason for the purchase must be clear (not just “because we bought it last year”)
It should be possible to summarise the need in a simple statement which confirms if alternatives to purchasing have been taken into account, e.g. resource sharing, repairs/upgrades, leasing
This statement may also be useful for the procurement business case
It should be open to challenge on environmental grounds
Needs Statement – Example
“The Department has identified a need for 6 smart screens for use in its 12 meeting rooms. The screens will facilitate web-conferencing and reduce the need for document printing. Based on user consultation, a maximum of 6 meetings requiring screens are held at any one time.
The existing projectors consume a large amount of energy and often break down. The Department will consider proposals for leasing the screens under a service contract.”
Module 4: Needs Assessment

7. What we are buying: the subject-matter
Needs assessment and user consultation help to define the subject-matter of the contract
This tells the market what you are buying and will include:
Whether the contract is for supplies, services or works
The title and short description of the contract
The relevant CPV codes (for an OJEU tender)
The subject-matter is important because it determines the scope of GPP criteria you apply
Contracting authorities are free to define the subject-matter of the contract in the way which best meets their needs.
For example, based on the needs statement in the previous slide, the subject-matter might be: “Supply of energy-efficient smart screens”
Appropriate GPP criteria can then be chosen for each aspect of the contract (specification, award criteria, contract performance clauses)
Module 4: Needs Assessment

8. What we are buying: the specification
Needs assessment helps to choose the most appropriate specification – whether based on functional requirements or on standards
Avoids the ‘copy and paste’ approach
Like the needs statement, specifications should be open to challenge on environmental grounds, as well as to ensure that they are not overly restrictive, allow SMEs to compete, etc.
Procurement documents must contain technical specifications (except in competitive dialogue procedure). These should reflect the information gathered from the needs assessment, but not be overly prescriptive.
Example: Buying smart screens
Specification sets out basic requirements in terms of functionality and energy-efficiency. Award criteria are used to evaluate functionality and innovative aspects beyond the specification (e.g. connectivity, energy-saving features, upgrade options)
Further information on the role of specifications and award criteria in GPP is given in Module 3.
Module 4: Needs Assessment

9. Performance/Output-based specifications
Performance, or output-based specifications describe the need you wish your procurement to fulfil, rather than prescribing exactly how you want this done
Allows suppliers to determine the most effective and efficient way to meet this need – and propose innovative solutions with environmental benefits
Example: define office lighting requirements in terms of lumens required in different rooms at different times, not in terms of the number of lighting fixtures or wattage required
Module 4: Needs Assessment

10. Who we are buying for: joint procurement
Joint procurement can save resources create a stronger demand for green goods + services
As part of the needs assessment, consider whether any of the following applies:
Can you buy from an existing framework or contract?
Can you set up a framework or contract that will be used by others?
Can you conduct a joint procurement with one or more other authorities?
Different approaches to joint purchasing exist, and may in some cases involve a centralised purchasing body. The rules on joint procurement are set out in Article of Directive 2014/24/EU. Different rules apply depending on the type of joint procurement.
For GPP, joint procurement can help to send the market a stronger signal regarding demand and stimulate investment in green production processes, equipment, certification/labels etc.
Example: The department which is only purchasing 6 smart screens is unlikely to be able to influence the market to provide more energy-efficient models. However if it set up a framework on behalf of all government departments, the market may respond more favourably.
Module 4: Needs Assessment

11. Module 4: Needs Assessment
How much we are buying
OJEU tenders require you to estimate the total quantity or scope in advance
This does not form a contractual commitment to buy that volume
Needs assessment can help to estimate a realistic quantity or range without going beyond it
This applies to services and works as much as supplies
Examples of how needs assessment may inform the scope of a contract:
The size of a new office building should be based on current user needs and any projected growth, taking account of trends in home working, desk sharing etc.
The frequency of street cleaning services should be based on observation and analysis of the area, taking account of any initiatives on waste reduction and recycling
The number of printers should be based on current usage, taking account of planned print management activities to reduce demand.
Module 4: Needs Assessment

12. How we are buying: flexible contracts
Contracts and frameworks normally last for several years and needs can change over this time
Contract terms should be sufficiently flexible to allow adjustments to volume, frequency etc.
They may also include a ‘best available technology’ or ‘continuous improvement’ clause to drive environmental innovation
Framework agreements are particularly good for allowing flexibility in purchasing
Avoid getting ‘locked in’ to contracts which require a specific volume of supplies, services or works to be purchased. While these may seem to offer good value at the outset, if needs change then the environmental impact of excess purchasing will quickly become apparent.
For example:
Deliveries of stationery every week may encourage excess consumption
A daily cleaning service may not be needed for all parts of a building
A school catering contract should reflect the number of students present each day
Intelligent contract design for GPP involves flexibility, so that the volume is always ‘just right’. Framework agreements are particularly useful as they allow for adjustments to be made over time without a new tender procedure being required.
Module 4: Needs Assessment

13. Further guidance Innovation Procurement Guidance (2018)
Procura+ Manual (3rd edition, 2016)
Buying Green (3rd edition, 2016)
Circular Procurement Guidance (2017)
Good Practice Examples
GPP Helpdesk For further support on GPP, contact the EU’s free Helpdesk
Full links:
EC Innovation Procurement Guidance:
Procura+ Manual:
Buying Green:
Circular procurement guidance:
Good practice examples: (further links presented in Module 2)
Helpdesk:
Toolkit developed for the European Commission by ICLEI - Local Governments for Sustainability
Module Author: Public Procurement Analysis
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.
Module 4: Needs Assessment