Transcript Innovative Procurement

INNOVATIVE
PROCUREMENT
The Next Steps
Anthony Cachia
Director (Operations)
Department of Contracts
What is meant by
‘Procurement for innovation’?
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‘Procurement for innovation’ means the
purchase of goods and services that do not
yet exist, or need to be improved, and hence
need research and innovation to meet the
specified user needs
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Innovative procurement is a new way of
carrying out procurement with new
instruments and procedures, in order for
Government to acquire new or better goods,
products or services
Workshops on
Innovation Procurement
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A number of Workshops are envisaged for
different stakeholders, concerning:
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Introducing Innovative Procurement
Legal Framework for Innovative Procurement
Gearing up for Innovative Procurement
Designing tenders for Innovation
Designing criteria and awarding for innovation
Monitoring and Evaluation Innovative
Procurement following award
Training (1)
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Introductory Workshops (Procurement,
Research and Innovation)
Legal Framework for Procurement in relation to
Innovation
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Public Procurement significance to the Single Market
Possibilities under the Legal Framework
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Looking Forward: Foresight, Market Analysis and
Technical Dialogue
Technical Specifications
Selection and Award Criteria
Confidentiality
Contract performance clauses
Training (2)
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Recent Changes to promote innovation
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Competitive Dialogue
Framework Agreements
Output/Performance Specifications
From Directives to Practice: Using the Possibilities
Tendering, Assessing and Awarding Contracts
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Specifying the need
Structuring the tendering process for innovation 
Dealing with risk
Dealing with abnormally-low offers
Training (3)
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Contracting for Innovation
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Treatment of intellectual property rights
Liability provisions
Duration of contract
Monitoring and Evaluating Progress
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Diffusion and learning
Policy evaluation
Guidelines to
Innovative Procurement
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The DOC intends to revise the current
guidelines on public procurement
These will be brought in line with the current
Directives and Maltese Legislation
The guides will also cover the aspect of
innovative procurement, and how the new
Directives encourage innovative procurement
Identification of new opportunities
within the Directives (1)
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New Procurement Directives offer more opportunities for
Government purchasers to use innovation-oriented
tendering
 Contract specifications may be defined in terms of
performance or functional requirements, rather than
being ‘standards-based’
 Flexible technical specifications/requirements by
allowing “variant (innovative) solutions”
 Use of ‘Prior Information Notices’ to raise
awareness amongst economic operators of the
purchaser’s future needs, and start preparing
possible innovative solutions
Identification of new opportunities
within the Directives (2)
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Use of sub-contracting
Awarding criteria based on the ‘Most Economically
Advantageous Tender (MEAT)” offer, and not
exclusively on the cheapest price
Negotiated Procedure
Laying down of overly-restrictive selection criteria
could exclude/discourage young, innovative
enterprises
Use of lots so as to open up opportunities for small
innovative suppliers
Framework Agreements
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Use of Public-Private Partnerships
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Identification of new opportunities
within the Directives (3)
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Competitive Dialogue may be carried out when a
public contract is particularly innovative and
complex, and the technical means that satisfy the
purchaser’s needs and objectives cannot be
defined, or the legal/financial make-up of the project
cannot be fully specified
Design Contests (including Design & Build, Design,
Build & Operate etc.) can be a powerful means of
developing and testing new ideas
Technical Dialogue/Requests for Information
Use of web portals for increased advertisements
e.g. SIMAP, OJEU
Some Examples… (1)
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Negotiated Procedure
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Strategic Partnership for Enterprise Server
and Storage Consolidation (MITTS)
Competitive Dialogue Procedure used for:
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Catering services for Mater Dei Hospital
Advertising Campaign for MTA
Mellieħa Home for the Elderly (through a
Public-Private Partnership)
Some Examples… (2)
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Requests for Proposals:
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Requests for Information:
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Offshore wind development in Malta
Submarine electrical interconnection between
the Maltese and European grids
Framework Agreements:
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Photo-voltaic electric generation
8 steps to embed innovation in
the tendering process 
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Study whether innovation is desired or feasible
Allow the legal and financial departments to include viability of
assessing innovation issues
Fix the qualifications required to participate in the
tender/procedure
Fix the benchmark values needed to assess whether a proposed
alternative solution complies with the innovative requirements
Develop selection criteria which draw innovation in procurement
Express how the shared liability issues, warranties,
implementation risk and payments will be handled in the contract
Train tender evaluators to assess complete compliance with
tender documents and work conditions
Communicate results to all bidders, while keeping in mind
intellectual property represented by the proposed innovations, in
order to allow bidders to develop them fully or use them in future
proposals
Thank you for your kind
attention
Telephone: 21231303
Fax: 21247681
Email: [email protected]