Public Procurement for Innovation
About this good practice
The Public Procurement of Innovation (PPI) aimed at stimulating the adoption of innovative services and product in the context of the refurbishing of two buildings. The fact that those buildings are inserted in historic areas, one of them to be classified as UNESCO heritage, gave the all process specificities that couldn´t be addressed under a regular procurement procedure, where price would be the main focus. The building are used as services building, having one of them also a museum in the basement. So the need to the quality of the indoor environment was an issue. Last, energy consumption and CO2 produced were on of the main criteria.
So, PPI was the type of procurement procedure that was selected to solve all those issues.
Overall, the aim was to improve the quality of public services activating market demand within very specific requirements and under desired quality/price ratio within a specific time.
During the procedure, companies were supported in order to improve their procurement process taking into consideration the award criteria above described. Even being not yet widely disseminated, public procurement for innovation is one solution for smaller municipalities to meet the challenge of climate change through the procurement of products, services and works with an high environmental performance and specifically taking into consideration LCA criteria as well as other like greenhouse gas reduction (like described in this specific procurement procedure).
Resources needed
The procurement total budget was 200 000€, divided among the two buildings. Staff resources were a key aspect to deliver the procurement procedure, as many meetings were needed, both to ensure market engagement and site visits.
Evidence of success
The procedure was based upon innovative award criteria and considered the bidder’s information provided, the innovation of the proposal and the innovative solutions. Among the relevant criteria, greenhouse gas reduction, in the context of the municipal buildings refurbishment was very relevant. The procurement procedure was based on technical criteria and price was valued only in 10%. Typically this procurement procedures are fully based on price.
Potential for learning or transfer
This initiative is interesting for other European regions because it allows, on one hand, to limit the environmental impacts of refurbishment in municipal context and, on the other hand, it can encourage the integration of life cycle analysis as an award criteria in public procurement procedures. It is possible, through the support of public policies the integration of Life Cycle Assessment as a procurement award criterion. Common European Directives encourage the use of PPI in Europe, but National Regulations on public procurement can hinder the transfer of successful initiatives developed to other territories.
Further information
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Good practice owner
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