Presentation by Dariusz Piasta, Poland, at the SIGMA regional conference on public procurement which took place in Beirut on 2-3 June 2015. Also available in Arabic.

1. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
SIGMA Regional Conference on
Public Procurement
Modernisation of the European Union public procurement
policy and legal framework
Dariusz Piasta, Poland
Beirut 2-3 June, 2015

2. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Main elements of the procurement legal
framework
• Directive 2014/24/EU (…) on public procurement
replacing 2004/18 directive,
• Directive 2014/25/EU (…) on procurement by entities
operating in the water, energy, transport and postal
services sectors replacing 2004/17 directive,
• Directive 2014/23/EU (…) on the award of concession
contracts (“Concessions Directive”).
• Defence and security procurement directive
(2009/81)
• „Remedies (review)” directives
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3. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Short story of a long (recent) process of
reforming EU rules
• Comprehensive evaluation of the impact and
effectiveness of the EU procurement
legislation (published June 2011)
• Public consultations by Green Paper on the
modernisation of EU public procurement
policy (over 620 replies, synthesis published
June 2011)
• Draft proposals of 3 new EU directives
(published December 2011)
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4. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Short story…(cont.)
• Legislative process leading to adoption by EU
institutions of three new directives (2012-
2014),
• Adoption and publication of new directives,
• Implementation by EU Countries (2014-….),
should be finalised by April 2016, with possible
postponement concerning some provisions –
(October 2018),
• the United Kingdom (England, Wales & the
Nothern Ireland) first to implement (in
comprehensive way) new rules.
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5. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Results of the public consultations –
fuel for the reform
• Insufficient cost – efficiency of the procedures – need
for less administrative burden and more flexibility
• Not enough margin of manoeuvre for purchasers to
pursue policy goals (horizontal policies, previously
known as secondary objectives)
• Further room for improvement for access to public
contracts (SMEs, (EU) cross – border procurement)
• Need for enhancing integrity of procedures and
enforcement of proper application of the rules
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6. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Objectives of the recent reform
1. Simpler/more flexible procedures
2. Strategic use of public procurement (pursue
of policies)
3. Better access to public procurement (for
SMEs and bidders from other EU countries)
4. Sound procedures
5. Governance/professionalisation of
procurement
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7. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
International context of the reform
Full compliance with (old and new) Government
Procurement Agreement and bilateral trade
agreements (thresholds, procedures) is
required but
additional flexibility offered under GPA
(shortening time periods, reducing
obligations of sub – central authorities)
possible
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8. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Main elements of the reform
1. „Flexibilisation” of procedures
2. Strategic use of public procurement
3. Reducing documentation requirements (to be
met by bdders)
4. (mandatory) e – procurement
5. SME access to public procurement
6. Sound procedures
7. Governance
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9. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Main elements of the reform
The outline of presentation:
1. Problem identified in the consultation
process/impact assessment
2. Actions undertaken in the new directives
3. (potential) impact of new provisions
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10. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
„Flexibilisation” of the procedures
Problem: disproportionate and inflexible
procedures
Actions: increase use of competitive negotiation
procedure, simplification of tools for
repetitive purchasing, wider use of e-
procurement, wider menu of available
procedures („tool box”), alleviation of
obligations
Results/impact: reduction of administrative
burden, improvement of overall cost
efficiency
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11. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Strategic use of public procurement
Problem: insufficient leeway for strategic use of
procurement
Actions: new instruments (e.g. special
procedure for innovation), enhanced
possibilities for taking account of social
considerations in procurement, greater use of
„labels”, exclusion of bidders for violation of
EU environmental or social standards
Impact: higher prices, inappropriate use due to
lack of maturity to use it, preferences,
„fragmentation” of the market
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12. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Reducing documentation requirements
(of bidders)
Problem: administrative burden = barrier for
SMEs
Actions: reliance of self declarations as prima
facie evidence (documents from the winner
only), exhaustive list of requirements for
selection criteria, reliance on the European
Single Procurement Document, reliance on
electronic databases
Impact: savings in time for bidders, more work
for procurement officers
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13. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
E – procurement
Problem: lost opportunities due to insufficient
uptake of electronic procurement (translated
from „EU speak” - some EU countries lagging
behind)
Actions: mandatory e – procurement following
expiry of transitional period, full electronic
availability of tender documents, simplification
of rules on dynamic purchasing systems,
electronic auctions
Impacts: savings due to more competitive prices,
lower transactional costs for economic operators
but potentially a barrier for SMEs 13

14. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
SME access to public procurement
Problem: missed opportunities for SMEs and
(EU) cross-border procurement
Actions: reduced documentation obligations for
bidders/candidates, „turnover cap”, division
of contracts into lots („divide or explain”)
Impact: increase competition, increase
administrative burden (i.e. more work for
purchasers), lower costs of participation for
economic operators (or, transfer of
transaction costs from bidders to purchasers)
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15. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Sound procedures
Problem: lack of sufficiently clear rules to prevent
corruption, lack of rules on „conflict of interest”
Actions: provisions ensuring integrity of procedures,
minimum safeguards against conflict of interest
and illicit behaviour; provisions on modification of
contracts, enforcement of provisions on
abnormally low tenders
Impacts: clearer rules for sound procedures increase
confidence in the system; more attractive
environment for bidders, increase competition
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16. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Governance
Problem: high „error rate” (translated from
auditors language – share of irregularities),
divergent application of rules
Actions: provisions on monitoring of application
of procurement provisions, reporting
obligations of purchasers and EU countries
(including effects of application of policies)
Impact: increased administrative burden,
broader picture of the impact of procurement
rules
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17. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
What next?
„There is no such thing as an empty space or
empty time….”- there is always something to
do:
1.Monitoring of the results of the reform
2. Impact assessment of functioning of review
(remedies) rules in public procurement
3. public consultations (concerning)
review/remedies
4. „professionalization”
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18. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Thank you very much for your
attention
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