EU Webinar Series | #5 – “Social Enterprises & Public Procurement” – 23 September 2015 With the financial support of the European Union
GoToWebinar | Tips & Tricks (1/2) GETTING STARTED You are able to Open and Hide your Control Panel The control panel will collapse automatically when not in use. To keep it open you can click the “ View ” menu and uncheck “ Auto-hide Control Panel ”. To Join Audio Choose “ Mic & Speakers ” to use the VoIP. If you choose “ Telephone ”, you will receive the PIN for the webinar. Dial using the information provided in the registration confirmation. If you have technical issues accessing the Webinar please call Candela Farroni in the EVPA Brussels office on +32 (0)2 513 21 31. With the financial support of the European Union
GoToWebinar | Tips & Tricks (2/2) Q&A TIME You can address questions in written form to our panellists. Those will be directed to them and answered during the Q&A time. If you have a technical issue while connected to the Webinar please submit a text question or comment to the organisers using the Questions panel. Participants will be kept muted . This session is recorded . With the financial support of the European Union
EVPA & Public Affairs by Elinor de Pret EVPA EU Webinar Series With the financial support of the European Union
Welcome to EVPA’s Webinar on Social Enterprises and Public Procurement With the financial support of the European Union
Public Procurement Webinar | Welcome to our e-Speakers! Julian Blake Anna Lupi Jonathan Bland Bates Wells Braithwaite European Commission Social Business International Merlin Sepp Sascha Haselmayer Good Deed Foundation Citymart With the financial support of the European Union
Public Procurement Webinar | Programme The Reform of EU 1. Anna Lupi Public Procurement Rules The Situation of Public Procurement Jonathan Bland 2. in the UK Julian Blake The Estonian Advocacy Experience in the 3. Merlin Sepp field of Public Procurement Procurement as Open Problem 4. Sascha Haselmayer Solving in City Government 5. Q&A Session With the financial support of the European Union
1. | EU Reform of PP Rules By Anna Lupi Legal Officer, DG GROW (Unit G1), COM With the financial support of the European Union
The Reform of EU Public Procurement rules EVPA webinar "Social Enterprises & Public Procurement" 23 September 2015 Anna Lupi DG GROW – Internal Market, Industry, Entrepreneurship and SMEs European Commission
Content 1. EU Public Procurement reform New Directive 2014/23/EU on concessions 2. Objectives of social aspects of the reform 3. Tools for social enterprises: what's new? - Reserved contracts - Light regime for services - Technical specifications, Labels - Contract award criteria
Current and new rules Directive Directive New Directive 2014/25/EU on 2014/24/EU 2014/23/EU on utilities replacing on PP replacing concessions Directive Directive 2004/17/EC 2004/18/EC Directives on defence procurement and remedies still applicable and unchanged Transposition deadline: 17 April 2016
Reform objectives Strategic use of Simple, more PP flexible rules Sound procedures Better access for SMEs Governance, professionalization of PP
Objectives of social aspects • Encourage social inclusion • Encourage socially sustainable criteria through PP • Ensure compliance with applicable legislation (social, environmental, labour)
Reserved contracts: sheltered workshops • For all types of works, services and supplies New Directive • For whom: sheltered workshops (or sheltered 2014/23/EU on employment programmes) and economic operators concessions whose main aim is the social and professional integration of disabled and or disadvantaged persons • Conditions : staff composed by 30 % (currently 50%) disabled or disadvantaged
Reserved contracts - Light regime for social services • For certain social services. Listed exhaustively in Art. 77. New Directive 2014/23/EU on • For whom: non profits concessions • Conditions : - pursuit of a public service mission - profits reinvested in objective and distributed based on participatory considerations - employee ownership/participatory principles - no contract within previous 3 years • max duration of contract is 3 years
Light regime for social services • Obligations on publication of notices New Directive 2014/23/EU on • Obligations on publication of award notices concessions • No specific procedures national rules + transparency and equal treatment principles • Higher threshold for application of Directives (EUR 750.000 vs)
Light regime for social services • Evaluation of offer: contracting authorities must have the opportunity to take into account criteria New Directive related also to accessibility, specific needs of users, 2014/23/EU on involvement/empowerment of users, innovation. concessions • Award: may be based on the best price-quality ratio, taking into account quality and sustainability CAs may award tenders meeting all quality criteria which are critical to the social service to be provided
Technical specifications Explicit provisions allowing TS to refer to specific process of production/provision or other stages of life-cycle, even where not materially relevant to performance (must be linked to the subject-matter and proportionate) Enterprises may be required to apply a specific process in production or performance Accessibility criteria now compulsory (comply or explain) def. by other EU provisions
Labels May be required in technical specifications, award criteria, contract performance conditions as proof that required characteristics are met. 5 cumulative conditions : • 1. Label requirements linked to the subject-matter and appropriate 2. Objectively verifiable and non-discriminatory 3. Label follows open and transparent procedure 4. Label accessible to all interested parties 5. No influence of tenderer over labelling entity
Award criteria (all other contracts) • May include qualitative and social aspects Examples in Directive include: accessibility, design for all users, social, environmental, innovative characteristics and trading and its conditions… • May include factors related to the specific process of production/provision Contracts may be evaluated and awarded on the basis of socially relevant characteristics of the project, but also the characteristics of the production process (ex. commitment to employ of highest number of disabled)
Corporate policies • Contract award criteria must be linked to subject- matter of contract and may apply only to staff involved in the performance of the contract. • Enterprises cannot be required to have certain corporate social or environmental policies (e.g. CSR)
Thank you for your attention! • Contact details - Anna Lupi • Anna.lupi@ec.europa.eu
2. | Situation of PP in the UK By Jonathan Bland Managing Director, Social Business International And Julian Blake Partner and Joint Head of Charity, BWB With the financial support of the European Union
Public Procurement and Social Enterprises Jonathan Bland Social Business International Julian Blake Bates Wells Braithwaite 24
Social Business Initiative “The single market needs new, inclusive growth, focused on employment for all, underpinning the growing desire of Europeans for their work, consumption, savings and investments to be more closely attuned to and aligned with 'ethical' and 'social' principles”. Social Business Initiative 2011 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0682:FIN:EN:PDF 25
The Role of Social Enterprise Recognised in SBI : • Innovative models and solutions • Goes much wider than labour market integration • Social Value • GECES impact framework 26
UK context - 20 years development of SE in public service markets • Recognition and support from successive governments, significant growth in leisure, housing, health and care, education. • Voluntary sector – move into service delivery • Spinouts, “public service mutuals ” • Link to wider measures on commissioning and social investment • Social Value Act • E3M group of social enterprises illustrate the nature and experience of what successful SEs can do 27
E3M Examples HCT group - Transport - £43M, 930 staff Sandwell Community Caring Trust - Care - £15M, 700 staff 28
Application in the UK- How social is it? 1. Commissioning without procurement. 2. Public Service innovation and integrated specification. 3. Public Service development, including "Innovation Partnerships". 4. Social Value and Social Impact in specifications and "MEAT" assessments, including GECES report and "lifecyle costing" 5. "Light touch" regime and exemption for public benefit mutuals. 6. Fairness to smaller providers. 29
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