1. Evaluation of public
procurement Directives
DG Internal Market
UK LGA Annual Conference
Thursday 30 June 2011

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Pwc, London Economics, Ecorys from OJEU data
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Average person days for procedure
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3. Person-days required
Best Worst Difference
performer performer
Authorities 11 68 57
Firm 10 43 33
Authorities and 22 93 71
winning firm
combined
PwC, London Economics, Ecorys

4. Total cost of procedures
 Average cost per procedure €28 000
 €22 500 - cost of average 5 – 6 bids
 € 5 500 contracting authority costs
 Total Costs €5.3 billion
 Less than 1.3% of total contract value

5. 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 2.1 - 4 per cent compared with the initial
estimate.
PwC, London Economics, Ecorys

6. SME access and success
By Number of contracts By value of contracts
Total 18 22 20 40 Total 6 11 17 66
2008 18 24 20 39 2008 6 13 19 62
2007 18 21 19 42 2007 5 11 15 69
2006 18 22 20 39 2006 6 9 16 69
Micro Small Medium Large Micro Small Medium Large
GHK

7. Cross border procurement
%
16
13,7 indirect cross-border
14 13,9 through affiliates
12,4
12 (value)
11,4
11,7 indirect cross-border
10 11,2 through affiliates
8 (number of contracts)
direct cross-border
6
through affiliates
3,7
4 3,2 (value)
3,6
direct cross-border
2
1,6 1,8 1,4 through affiliates
0 (number of contracts)
2007 2008 2009
Ramboll as % of total (above threshold) procurement

8. Cross border participation
How often did your company participate in public procurement tenders
(domestically and abroad) in the last three years?
72,3
Never 0
11,1
1 to 5 7
4,9
5 to 10 6
5,3
10 to 20 10,9
6,4
more than 20 times 76,1
0 10 20 30 40 50 60 70 80 90 100
% of respondents
Participation abroad N=1011
Participation overall (domestically and abroad) N=1026
Ramboll

9. Reasons for not bidding cross border
Reasons for not bidding cross-border
0 10 20 30 40 50 60 70
Exchange rate risk 32,5
Administrative requirements 34,2
More resources to tender 34,6
Higher costs 36,6
Legal barriers 47,6
Too much local competition 48,6
Language barriers 50,3
No experience doing business abroad 61,3
Ramboll

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

11. Timetable
 End June: Publish evaluation results &
synthesis of replies to January 2011 Green
Paper
 30 June: Conference on the Modernisation of
EU Public Procurement Policy
 End 2011: Present legislative proposals

12. Total public expenditure
Published in
Other 2,30 OJEU 3,14
Defence 0,59 VAT on OJEU
published
Fuel for 0,61
energy 2,46
Below
threshold 2,10
Education
0,81
Social
Protection Health 4,12
1,18
Eurostat and Commission estimates As % EU GDP (2008)

13. Use of procedures
0% 4%
100% 7% 5%
90% 8% Competitive dialogue
14%
80% 9%
Accelerated procedures
70%
23%
60% Negotiated without
publication
50%
Negotiated
40% 73%
30% 52% Restricted
20% Open
10%
0%
Number Value
Pwc, London Economics, Ecorys from OJEU data 2006-2010

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

16. Effectiveness
 Transparency
 Competition
 Savings
 Cross border
 Differences in implementation

17. Relevance
 Value for money
 CPB’s and Frameworks
 Equal treatment
 Non discrimination

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

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

20. EU Added Value
 Single Market
 Coordination
 Still large differences in implementation