REPORT on the public procurement strategy package

27.6.2018 - (2017/2278(INI))

Committee on the Internal Market and Consumer Protection
Rapporteur: Carlos Coelho

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the public procurement strategy package

(2017/2278(INI))

The European Parliament,

–  having regard to the Commission communication of 3 October 2017 on Making Public Procurement work in and for Europe (COM(2017)0572),  

–  having regard to the Commission communication of 3 October 2017 on Helping investment through a voluntary ex-ante assessment of the procurement aspects for large infrastructure projects (COM(2017)0573),

–  having regard to Commission Recommendation (EU) 2017/1805 of 3 October 2017 on the professionalisation of public procurement – Building an architecture for the professionalisation of public procurement (C(2017)6654)[1],

–  having regard to Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC[2],

–  having regard to Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC[3],

–  having regard to Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts[4],

–  having regard to the Commission report of 17 May 2017 on the review of the practical application of the European Single Procurement Document (ESPD) (COM(2017)0242),

–  having regard to Directive 2014/55/EU of the European Parliament and of the Council of 16 April 2014 on electronic invoicing in public procurement[5],

–  having regard to the Commission report of 11 October 2017 on the Assessment of the European Standard on electronic invoicing, according to Directive 2014/55/EU (COM(2017)0590),

–  having regard to the European Economic and Social Committee opinion of 14 February 2018,

–  having regard to Rule 52 of its Rules of Procedure,

–  having regard to the report of the Committee on the Internal Market and Consumer Protection, the opinion of the Committee on International Trade and the position in the form of amendments of the Committee on the Environment, Public Health and Food Safety (A8-0229/2018),

A.  whereas the full potential of public procurement in helping to build a competitive social market economy is yet to be unlocked, and whereas over 250 000 public authorities in the Union spend around 14 % of GDP, or nearly EUR 2 000 billion, each year on the purchase of services, works and supplies;

B.  whereas public procurement involves the spending of a considerable amount of taxpayers’ money, meaning that it should be carried out in an ethical manner, with transparency and integrity and in the most efficient way, in terms of both costs and quality delivered, in order to provide quality goods and services to citizens;

C.  whereas correctly implemented public procurement rules are a crucial tool in the service of a stronger single market and for the growth of EU companies and jobs in the Union and whereas the intelligent use of public procurement can be a strategic tool to achieve the EU’s goals of smart, sustainable and inclusive growth, accelerating the transition to more sustainable supply chains and business models;

D.  whereas, when it comes to the transposition of EU rules on public procurement and concessions, the full transposition and implementation of EU law is essential to make it easier and cheaper for small and medium-sized enterprises to bid for public contracts, with full respect for the EU’s principles of transparency and competition;

E.  whereas the Commission launched a targeted consultation on the draft Guidance on Public Procurement of Innovation on 3 October 2017, and a targeted consultation on the scope and structure of a Commission guide on socially responsible public procurement on 7 December 2017;

F.  whereas according to a 2016 survey, as mentioned in Commission communication COM(2017)0572, only four Member States relied on digital technologies for all major steps in public procurement, such as e-notification, e-access to tender documents, e-submission, e-evaluation, e-award, e-ordering, e-invoicing and e-payment;

G.  whereas according to the European Semester thematic fact sheet on public procurement of November 2017, the number of tender procedures with only one bid increased from 14 % to 29 % for the period 2006­2016, and whereas, according to Commission communication COM(2017)0572, ‘SMEs win only 45 % of the value of public contracts above EU thresholds, clearly below their weight in the economy’;

H.  whereas the new rules introduced by the 2014 directives, by facilitating public procurement and imposing more controls, should contribute to the implementation of the Europe 2020 Strategy for a sustainable, more social, innovative and inclusive economy;

I.  whereas according to Commission communication COM(2017)0572, 55 % of public procurement procedures still use the lowest price as the only award criterion, instead of, for instance, strategic social and environmental criteria;

J.  whereas the European Union is committed to the United Nations Sustainable Development Goals (SDGs);

K.  whereas it is of crucial importance that suppliers trust that the Union’s public procurement systems offer simple and accessible digital procedures, full transparency, integrity and security of data;

Legislative framework and implementation

1.  Welcomes, almost four years after the extensive revision of the Union public procurement legislative framework was concluded, the set of non-legislative measures proposed by the Commission and expects that this will create impetus for better implementation;

2.  Is deeply disappointed by the pace at which many Member States have transposed the 2014 directives in the area of public procurement, and by the many delays, and deplores the fact that the Commission had to initiate infringement procedures against some Member States; urges the swift completion of transposition in all Member States without any further delay;

3.  Is concerned about the next round of deadlines provided by the directives regarding electronic procurement and the transition of Member States to full e-procurement, including e-invoicing; stresses the need for the Member States’ digital agendas to include the promotion of full e-procurement;

4.  Calls on the Commission to finalise swiftly the Guidance on Public Procurement of Innovation and the Guide on socially responsible public procurement, in order to facilitate the implementation of the respective legal provisions in the Member States;

5.  Asks the Commission to better and more clearly organise the guides and other tools developed to help Member States with the implementation of the public procurement framework, in a more accessible and user-friendly way that offers a good overview to all practitioners, while also paying attention to the languages available;

6.  Welcomes the new public procurement guidance for practitioners of February 2018, designed to help national, regional and local public officials ensure efficient and transparent public procurement procedures for EU-funded projects;

Strategic and coordinated procurement

7.  Points out that the current Union legislation, more than ever, allows for public procurement to be used as a strategic instrument to promote EU policy goals, and encourages the Member States to get the most that they can out of it; recalls that public procurement is also an important tool at a regional and local level to complement local and regional strategies and encourages public hearings and consultations with the end users of products and services;

8.  Calls for the extensive use of innovative procurement to achieve smart, green and inclusive growth and to strengthen the circular economy; underlines the importance of the circular economy and, in this regard, the new possibilities offered by the new public procurement directives as regards goods and services reused, repaired, remanufactured, refurbished and other sustainable and resource-efficient products and solutions;

9.  Calls on the Member States to use public procurement strategically in order to promote smart, sustainable and inclusive growth, including for SMEs and social enterprises; underlines that this requires Member States to systematically signal such policies at the highest level and support, to this end, procurers and practitioners in the public administration;

10.  Points out the importance of tendering conditions which are not overly burdensome, so that access to public contracts remains possible for all companies, including SMEs;

11.  Welcomes the example of adopting National Public Procurement Strategies and encourages more Member States to follow this example as a means of modernising and streamlining their public procurement systems and hence enhancing their efficiency; stresses that public procurement is a cross-cutting area for the various sectors of public administration, and that it is thus essential to have, in addition to coordination, a governance structure that involves the main stakeholders so that the fundamental decisions can be taken in a more collaborative manner and accepted by all those involved;

12.  Welcomes the fact that many Member States have made provisions for the use of quality criteria (including the best price-quality ratio) and encourages their systematic application; encourages contracting authorities to apply criteria other than simply the lowest price or cost effectiveness, taking into account qualitative, environmental and/or social aspects;

13.  While acknowledging that in some cases the low price can reflect innovative solutions and efficient management, is concerned about the excessive use of the lowest price as the primary award criterion in a number of Member States with disregard for quality, sustainability and social inclusion, and therefore calls on the Commission and the Member States to analyse and report on the reasons behind this situation and to propose suitable solutions where necessary;

14.  Calls on the Member States to ensure that public procurement practices are in line with the Convention on the Rights of Persons with Disabilities; calls on the Member States to encourage consultation with persons with disabilities and their representative organisations in this respect;

15.  Calls for the adoption of a European code of ethics for public procurement for the various actors in the procurement process;

16.  Stresses that it is important for contracting authorities to consider the full life-cycle of products, including their impact on the environment, in their purchasing decisions, when appropriate, and calls on the Commission to assist in the development of methodologies to implement the concept of ‘life-cycle costing’;

17.  Notes that innovative, social and environmental considerations are legitimate and essential award criteria in public procurement, and that contracting authorities can also pursue green, innovative or social goals through well-thought-out specifications and by allowing variant offers in a non-discriminatory way, provided that these characteristics are linked to the subject matter of the contract and are proportionate to its value and objectives;

18.  Recalls that the Union’s legislative framework on public procurement obliges Member States to ensure that contractors and subcontractors fully comply with the environmental, social and labour law provisions which apply at the place where the works are executed, services are provided or goods are produced or supplied, as set out in the applicable international conventions, in Union and national law as well as in collective agreements concluded in accordance with national law and practices; calls on the Commission to guarantee that this obligation is fulfilled by Member States in the transposition and application of the 2014 directives and to facilitate the exchange of best practices in this area;

19.  Acknowledges that a qualitative assessment of bids requires skilled procurers, and calls on the Commission to assist Member States with the dissemination of evaluation methodologies and practices, particularly through the organisation of workshops and training courses; underlines that such assistance should be available at all administrative levels where procurement is carried out;

20.  Points out that that socially responsible public procurement must take into account supply chains and the risks associated with modern-day slavery, social dumping and human rights violations; notes that efforts must be made to ensure that goods and services acquired through public procurement are not produced in a manner that violates human rights; calls on the Commission to include substantive provisions on ethics in supply chains in its new guide on social considerations in public procurement;

21.  Welcomes the efforts of several Member States to set up authorities that are responsible for coordinating procurement, and acknowledges that this contributes to conducting strategic and efficient procurement;

22.  Calls for more Member States to use the advantages of central purchasing and aggregation of public purchasing, and notes that Central Purchasing Bodies could and should speed up dissemination of expertise, of best practices and of innovation;

23.  Stresses that, especially with the aim of fostering innovation, it is important that contracting authorities engage with the market and make sufficient use of the pre-procurement phase as preparation for the next steps; believes that pre-procurement is also an essential phase for supporting SME involvement;

24.  Considers that the new partnership procedure will help to foster innovation, and encourages contracting authorities to cooperate with the market in order to develop innovative methodologies, products, works or services which do not yet exist; welcomes in this regard the fact that 17 innovation partnership procedures have been initiated to date;

25.  Welcomes the voluntary ex-ante assessment of procurement aspects for large infrastructure projects, as proposed by the Commission, and calls on the Commission to swiftly implement the helpdesk, the notification mechanism and the information exchange mechanism, while fully respecting confidentiality;

Digitalisation and sound management of the procurement procedures

26.  Regrets the slow uptake of digital technologies in public procurement in the Union, and calls on the Member States to strive for a rapid digital transformation of the procedures and for the introduction of e-processes for all major stages, namely from notification, access to tenders and submission to evaluation, contract award, ordering, invoicing and payment;

27.  Calls on the Commission and the Member States to put in place the eForms by the end of 2018 at the latest;

28.  Recalls that e-procurement offers a range of important benefits such as significant savings for all parties, simplified and shortened processes, reductions in red tape and administrative burdens, increased transparency and greater innovation as well as improved access of SMEs to public procurement markets;

29.  Agrees with the Commission that contract registers can be a cost-efficient tool for managing contracts, for improving transparency, integrity and data, and for better governance of public procurement;

30.  Calls on the Commission to look into the possibility of interlinking national contract registers with Tenders Electronic Daily (TED) to remove the obligation on contracting authorities to publish the same information in two systems;

31.  Draws attention to the difficulties that may arise for bidders, and especially SMEs, regarding requirements for certificates and signatures and encourages a light requirements regime in this respect, together with full application of the once-only principle in order to minimise the burden for bidders;

32.  Emphasises that all Member States should be in a position to provide all necessary data on public procurement implementation, including data on tenders, procedures and contracts and statistical information, also in order to enable the Commission to assess the single market on procurement;

33.  Calls on the Member States to promote the innovative use of open-format data, as such data are essential for any government to manage its public administration, and at the same time, to enable the economic potential of such data to be harnessed by companies, while also encouraging transparency and responsibility within institutions and bodies dealing with public procurement; points out that such data must always be published with due regard for the principle of proportionality and in accordance with the EU acquis on data protection and business secrecy;

Single market and improved access to procurement

34.  Points out that competitive bidding is vital in public procurement, and notes with regret a decrease in the intensity of competition in public procurement in the Union in recent years; urges the Member States recording a high percentage of notices with only one bidder to address the problem;

35.  Urges the Member States to increase joint procurement procedures, including cross-border, as facilitated by the revised EU rules, and calls on the Commission to provide in-depth support in this field; considers that such procedures should not however result in contracts of such size that SMEs are effectively excluded from consideration at the earliest stage of the process;

36.  Regrets that SMEs and social economy enterprises are still facing difficulties in accessing public procurement, and calls on the Commission to assess the effectiveness of the measures provided by the 2014 directives and to come forward with new solutions if necessary;

37.  Asks the Commission to report to Parliament on the implementation on the ground of the ‘apply or explain’ principle in Article 46 of Directive 2014/24/EU, which requires contracting authorities to provide an indication of the main reasons for their decision not to subdivide into lots, which must be systematically explained in the procurement documents or the individual report;

38.  Calls on the Member States to support SMEs’ participation in tenders, for example by mandatory division into lots when possible or by placing a limit on the turnover required to participate in a tender procedure; highlights that division of public procurement contracts into lots fosters competition in the market as well as avoiding the risk of single-supplier dependency; calls on the Commission and the Member States to develop advisory services and training for SMEs to improve their participation in tendering processes;

39.  Calls on the Commission to analyse in particular the impediments to cross-border public procurement resulting from language, administrative, legal or any other barriers, and to propose solutions or intervene in order to guarantee functional cross-border procurement;

40.  Underlines the importance of ensuring interoperability in purchased goods and services and of avoiding vendor lock-in, and calls on the Commission to propose measures in this field;

41.  Regrets the lack of clear and consolidated public procurement data in the EU and notes that reliable data on access to public procurement are necessary to verify the accountability of public authorities, and are a means of combating fraud and corruption;

42.  Accepts the evaluation outcome of the Remedies Directive and the Commission’s decision not to propose a legislative revision, but calls for continuation of the cooperation of national review bodies and for more guidance from the Commission on the directives;

43.  Regrets that the Defence Procurement Directive has not yet delivered the desired results, in particular with regard to trans-national infrastructure projects, and urges the Commission and the Member States to intensify their efforts to better implement the currently applicable rules;

44.  Highlights the importance of transparency and the non-discriminatory nature of public procurement procedures; recalls the importance of having proper appeal procedures in place and the importance of access to guidance on how to launch an appeal;

International public procurement

45.  Calls for Union action to improve the access of EU suppliers to third-country public procurement markets, as the Union’s public procurement market is one of the most open in the world;

46.  Expresses concern over unfair competition within public procurement procedures as a result of state interference with third-country competitors, in particular, but not limited, to the market for electric vehicles and batteries; considers that there is a need to link trade defence instruments and public procurement practices;

47.  Stresses that public procurement markets are of major economic importance, given that procurement expenditure is estimated to account for 20 % of global GDP, and stresses that improving access to public procurement markets in third countries, as well as levelling the playing field for European businesses, can therefore be a major driver of growth in trade of goods and services, and also leads to greater choice and better value for tax payers’ money, both in the EU and in third countries;

48.  Points out that public procurement markets in third countries are often de jure and/or de facto closed to EU bidders; encourages the Commission to collect and provide better data on international public procurement procedures; recalls that the Commission estimates that more than half of the global procurement market is currently closed to free international competition owing to protectionist measures, which are on the rise globally, while approximately EUR 352 billion in value of EU public procurement is open to bidders from member countries of the WTO Agreement on Government Procurement; stresses the need for the EU to address this imbalance without resorting to protectionist measures; asks the Commission to ensure that European companies get similar market access to that enjoyed by our foreign competitors in the EU market and notes that the proposed so-called international procurement instrument (IPI) could under certain conditions be a means to create leverage for increasing market access;

49.  Welcomes the fact that one of the six priority areas for the Commission’s action in the field of public procurement is the improvement of access to procurement markets; stresses that improving access to public procurement markets in third countries, including at sub-national level, constitutes a strong offensive interest for the EU in trade negotiations, given that many EU companies are highly competitive in various sectors; stresses that government procurement should be included in each future trade agreement with a view to maximising the participation of European companies in foreign tenders; calls on the Commission to ensure compliance with and proper implementation of the provisions concerning public procurement markets contained in the EU’s free trade agreements; recalls that trade agreements should be used to improve access to third countries’ public procurement markets and that improved market access to third-country procurement markets, and enhanced rules for modern, efficient and transparent procurement procedures, which are crucial to obtaining better value for public money, should be key elements of any trade agreement to be concluded by the EU, while fully respecting the legitimate public policy objectives enshrined in the Union’s public procurement directives; stresses that third-country economic operators must comply with European social and environmental criteria in order to qualify for public procurement contracts, as laid out in Directives 2014/23/EU, 2014/24/EU and 2014/25/EU, and encourages, in line with this, the use of MEAT (most economically advantageous tenders) criteria for the award of such contracts; notes that bilateral and sub-regional free trade agreements do not always guarantee full access to procurement markets; asks the Commission to negotiate the greatest possible access to public procurement markets in third countries;

50.  Emphasises that any strategy to open up public procurement markets in third countries must concretely address the obstacles to and specific needs of SMEs to facilitate their access to markets, as they are particularly disadvantaged when it comes to penetrating third-country public procurement markets, while the effects on SMEs of exposure to new competitors from third countries must also be given due consideration; calls on the Commission to encourage the inclusion of SME-friendly procurement procedures (including cross-border initiatives and the division of tenders into lots) in trade agreements; stresses the benefits to be gained, by SMEs in particular, through digitalisation and the use of e-procurement in all public procurement processes with third countries;

51.  Points out that major emerging economies, such as Brazil, China, India and Russia, are not yet part of the GPA, while China and Russia are officially in the process of acceding, and asks the Commission to encourage and promote third countries in their efforts to join the GPA, as multilateral and plurilateral agreements are the best way to establish a level playing field in the long term; stresses that bilateral trade agreements with ambitious procurement provisions that respect the underlying principles of the GPA can be a stepping stone for enhanced multilateral cooperation;

52.  Highlights the importance of the GPA not only for providing de jure access to procurement markets in third countries, but also for enhancing the transparency and predictability of procurement procedures; encourages the Commission to promote the development of global and convergent standards for transparent procurement as an important tool for combating corruption; more specifically, asks the Commission to strive for the inclusion in trade agreements of provisions on joint rules for public procurement which enable reporting of corruption, simplify procedures and strengthen integrity and transparency for bidders;

Professionalisation

53.  Welcomes the Commission’s recommendations on professionalisation and calls on the Member States to develop national plans as a priority; suggests that each plan should differentiate between types of procurement, in particular as SME access to procurement in services and digital infrastructure may be facilitated in a different way to procurement access in the case of large infrastructure contracts;

54.  Calls on the Commission to propose the means for financial support from Union funds to support relevant actions on professionalisation in the Member States;

55.  Regrets the low level of professionalisation among those responsible for public purchasing and calls on the Member States to improve the skills of everyone involved in all stages of the public procurement process;

56.  Underlines that both procurers and suppliers need to be adequately trained in order to work efficiently at all procurement stages, and that attention must be given to all levels of public administration and to quality criteria, including social and environmental criteria, regarding professionalisation; believes that better results can be achieved by improving how public authorities consider what they will procure as well as how they procure it; without prejudice to the negotiated procedure, regrets that public procurement can often be captured by more experienced firms, which assist in the design phase of a procurement contract and as a consequence are better placed to win the contract;

57.  Asks Member States to encourage universities to further develop university courses in European public procurement law and to improve the training and career management of procurement practitioners, including those working in SMEs, including concerning the development and uptake of accessible IT tools; supports the creation of a common European framework of relevant technical and computer skills;

°

°  °

58.  Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.

• [1]  OJ L 259, 7.10.2017, p. 28.
• [2]  OJ L 94, 28.3.2014, p. 65.
• [3]  OJ L 94, 28.3.2014, p. 243.
• [4]  OJ L 94, 28.3.2014, p. 1.
• [5]  OJ L 133, 6.5.2014, p. 1.

EXPLANATORY STATEMENT

In early 2014, the EU co-legislators concluded the revision of the Union’s public procurement legislative framework. This extensive reform, a necessity in the process of European integration as identified by the 2011 Single Market Act, meant to serve directly the European 2020 Strategy and to considerably contribute to the Union’s growth and competitiveness.

At that time the Parliament was reasonably satisfied with the outcome of the negotiations. It had fought firm – and succeeded – that the new Directives provide to the Member States the tools to modernise public buying, to digitally transform public procurement, and to move from simply regulating public procurement to implementing strategic public procurement.

However, the Directives are indeed offering options and opportunities for Member States; but, it is up to each country to make the choices. For the moment, about four years after the formal adoption of the Directives, there is no clear picture, nor full overview of how the Directives are transposed and implemented in the different Member States. This is unfortunately also due to the fact that considerable delays occurred as regards to transposition in many Member States – also to the extent that the Commission had to start infringement procedures for few of them.

The position of the Rapporteur

Your Rapporteur welcomes the set of soft measures proposed by the Commission on 3 October 2017 and its updated strategy on public procurement for the Union; this can stimulate better implementation of the public procurement rules in the Member States and accelerate national reforms as necessary.

Nevertheless, your Rapporteur wishes to note that the Parliament reserves its right to ask the European Commission anytime to propose legislative measures, should the need arise for the improvement of the Public Procurement Framework.

The 2014 Directives are an opportunity for the Member States to modernize their public purchasing rules. To this end, clear requirements of the Directives is the digitalization of procurement (e-procurement from the beginning to the end), as well as maximum simplification. This is an opportunity

- for more transparency;

- for more efficiency;

- for less bureaucracy;

- for a stronger single market.

In addition, the new Directives not only set the rules with which public authorities need to comply in order to justify how they spend taxpayers’ money. More than any other time, the Directives provide enormous opportunities for the Member States to attain strategic goals and pursue policies through public spending. Public procurement is not a mere procedural tool to regulate the public purchase of goods, services or works. It can be a vehicle for the Member States, for example:

- to promote innovation;

- to promote green and circular economy;

- to pursue social goals such as for the benefit of disabled or older people;

- to support small and medium enterprises.

Your Rapporteur is concerned about the pace with which the Member States are modernising their public procurement framework and the intended depth of reforms. Therefore, he takes this opportunity to call on the Member States

-  to move, where appropriate, from the lowest-price criterion to the most economically advantageous tenders and life-cycle costing; to encourage, from the highest state level, procurers and national practitioners to adopt this approach;

-  to support SMEs participation in tenders, for example by the mandatory division into lots;

-  to accelerate digitalisation of all stages in the procurement process;

-  to put in place transparency tools, such as contract registers and systems serving the once-only-principle;

-  to develop National Public Procurement Strategies, including comprehensive professionalization plans;

-  to systematically collect and analyse public procurement data;

-  to exploit better the advantages of central purchasing and of Central Purchasing Bodies;

-  to use the pre-procurement phase and the new innovation partnership procedure for innovative buys;

-  to take drastic measures to increase cross-border public procurement and cooperative procurement;

Your Rapporteur also calls on the Commission

-  to identify possibilities available for Union funds to support relevant actions on professionalization in the Member States;

-  to focus on the helpdesk for the voluntary ex-ante assessment of procurement aspects for large infrastructure projects as a priority;

-  to adopt swiftly the guidance on innovation and socially responsible public procurement;

-  to organise all available guidance and other material in a user-friendly way that offers a good overview to practitioners;

-  to assist Member States with the methodologies on life-cycle costing;

-  to ensure eForms are timely put in place.

ANNEX: LIST OF ENTITIES OR PERSONSFROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The following list is drawn up on a purely voluntary basis under the exclusive responsibility of the rapporteur. The rapporteur has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

Entity and/or person
Prof. Dr Christopher Bovis, University of Hull
Prof. Dr Jörg Becker, University of Münster
Mr Jaime Quesado, President of the Portuguese Government Shared Services Entity
Mr Joan Prummel, Advisor from the Dutch Organisation Rijkswaterstaat
Ms Baiba A. Rubesa, CEO of Rail Baltica
Mr Thomas Solbach, German Federal Ministry for Economic Affairs and Energy
Business Europe
UEAPME (European Association of Craft, Small and Medium-sized Enterprises)
Eurocities
OpenPEPPOL (Pan-European Public Procurement On-Line)
Architects’ Council of Europe /Federal Chamber of German architects
RESAH (Hospital Procurement Network) / EHPPA association
IFPSM (International Federation of Purchase and Supply Chain Management)

OPINION of the Committee on International Trade (24.5.2018)

for the Committee on the Internal Market and Consumer Protection

on the public procurement strategy package
(2017/2278(INI))

Rapporteur for opinion: Daniel Caspary

SUGGESTIONS

The Committee on International Trade calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1.  Stresses that public procurement markets are of major economic importance, given that procurement expenditure is estimated to account for 20 % of global GDP, and stresses that improving access to public procurement markets in third countries and levelling the playing field for European businesses can therefore be major drivers for growth in trade of goods and services, and lead to greater choice and better value for taxpayers in the EU and third countries;

2.  Points out that public procurement markets in third countries are often de jure and/or de facto closed to EU bidders; encourages the Commission to collect and provide better data on international public procurement procedures; recalls that the Commission estimates that more than half the global procurement market is currently closed to free international competition owing to protectionist measures, which are globally on a rise, while approximately EUR 352 billion in value of EU public procurement is open to bidders from member countries of the WTO Agreement on Government Procurement (GPA); stresses the need for the EU to address this imbalance without resorting to protectionist measures; asks the Commission to ensure that European companies are given market access similar to that which our foreign competitors enjoy in the EU market and notes that the proposed international procurement instrument (IPI) could under certain conditions be a means to create leverage for increased market access;

3.  Welcomes the fact that one of the six priority areas for the Commission’s action in the field of public procurement is the improvement of access to procurement markets; stresses that improving access to public procurement markets in third countries, including at sub-national level, constitutes a strong offensive interest for the EU in trade negotiations, given that many EU companies are highly competitive in various sectors; stresses that government procurement should be included in each future trade agreement with a view to maximising the participation of European companies in foreign tenders; calls on the Commission to ensure compliance with and proper implementation of the provisions concerning public procurement markets contained in the EU’s free trade agreements; recalls that trade agreements should be used to improve access to third countries’ procurement markets and recalls that this improved access, and enhanced rules for modern, efficient and transparent procurement procedures, which are crucial for securing better value for public money, should be key elements in any trade agreements concluded by the EU, while fully respecting the legitimate public policy objectives enshrined in the Union’s public procurement directives; stresses that third-country economic operators must comply with European social and environmental criteria for the awarding of public procurement contracts, as set out in Directives 2014/23/EU, 2014/24/EU and 2014/25/EU, and encourages, in line with this, the use of most economically advantageous tender (MEAT) criteria to award such contracts; notes that bilateral and sub-regional free trade agreements do not always guarantee full access to procurement markets; asks the Commission to negotiate the greatest possible access to public procurement markets in third countries;

4.  Emphasises that any strategy to open up public procurement markets in third countries must concretely address the obstacles and specific needs of SMEs to facilitate their access to markets, as they are particularly disadvantaged when it comes to penetrating third-country public procurement markets; considers that the effects on SMEs of exposure to new competitors from third countries must also be given due consideration; calls on the Commission to encourage the inclusion of SME-friendly procurement procedures (including cross-border initiatives and the division of tenders into lots) in trade agreements; stresses the potential benefits, for SMEs in particular, of digitalising via e-procurement in all public procurement processes with third countries;

5.  Points out that major emerging economies, such as Brazil, China, India and Russia, are not yet part of the GPA, while China and Russia are officially in the process of acceding, and asks the Commission to encourage and promote third countries in their efforts to join the GPA, as multilateral and plurilateral agreements are the best way to establish a level playing field in the long term; stresses that bilateral trade agreements with ambitious procurement provisions respecting the underlying principles of the GPA can be a stepping stone for enhanced multilateral cooperation;

6.  Highlights the importance of the GPA not only for providing de jure access to procurement markets in third countries, but also for enhancing the transparency and predictability of procurement procedures; encourages the Commission to promote the development of global and convergent standards for transparent procurement as an important tool for combating corruption; asks the Commission, more specifically, to strive to include in trade agreements provisions on joint rules for public procurement that enable the reporting of corruption, simplify procedures and strengthen integrity and transparency for bidders.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted	17.5.2018
Result of final vote	+: –: 0:	29 3 4
Members present for the final vote	William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Maria Arena, Tiziana Beghin, David Campbell Bannerman, Daniel Caspary, Salvatore Cicu, Santiago Fisas Ayxelà, Christofer Fjellner, Nadja Hirsch, Yannick Jadot, France Jamet, Jude Kirton-Darling, Patricia Lalonde, Danilo Oscar Lancini, Bernd Lange, David Martin, Emma McClarkin, Anne-Marie Mineur, Alessia Maria Mosca, Artis Pabriks, Franck Proust, Viviane Reding, Inmaculada Rodríguez-Piñero Fernández, Marietje Schaake, Helmut Scholz, Joachim Schuster, Joachim Starbatty, Adam Szejnfeld, Iuliu Winkler
Substitutes present for the final vote	Goffredo Maria Bettini, Klaus Buchner, Sajjad Karim, Emmanuel Maurel, Fernando Ruas, Jarosław Wałęsa

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

29	+
ALDE	Nadja Hirsch, Patricia Lalonde, Marietje Schaake
ECR	David Campbell Bannerman, Sajjad Karim, Emma McClarkin, Joachim Starbatty
EFDD	Tiziana Beghin, William (The Earl of) Dartmouth
PPE	Laima Liucija Andrikienė, Daniel Caspary, Salvatore Cicu, Santiago Fisas Ayxelà, Christofer Fjellner, Artis Pabriks, Franck Proust, Viviane Reding, Fernando Ruas, Adam Szejnfeld, Jarosław Wałęsa, Iuliu Winkler
S&D	Maria Arena, Goffredo Maria Bettini, Jude Kirton-Darling, Bernd Lange, David Martin, Alessia Maria Mosca, Inmaculada Rodríguez-Piñero Fernández, Joachim Schuster

3	-
ENF	France Jamet, Danilo Oscar Lancini
GUE/NGL	Helmut Scholz

4	0
GUE/NGL	Anne-Marie Mineur
S&D	Emmanuel Maurel
VERTS/ALE	Klaus Buchner, Yannick Jadot

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

POSITION IN THE FORM OF AMENDMENTS of the Committee on the Environment, Public Health and Food Safety (20.3.2018)

for the Committee on the Internal Market and Consumer Protection

on the public procurement strategy package

(2017/2278(INI))

AMENDMENTS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to take into account the following amendments:

Amendment    1 Draft report Citation 9 a (new)
Draft motion for a resolution	Amendment
	-  having regard to the voluntary instrument of Green Public Procurement (GPP),
Amendment    2 Draft report Recital B a (new)
Draft motion for a resolution	Amendment
	Ba.  whereas public procurement is a strategic tool used to achieve the EU’s goals of green and socially inclusive growth;
Amendment    3 Draft report Recital C a (new)
Draft motion for a resolution	Amendment
	Ca.  whereas, when it comes to the transposition of EU rules on public procurement and concessions, the full transposition and implementation of EU law is essential to make it easier and cheaper for small and medium-sized enterprises to bid for public contracts, in full respect of the EU’s principles of transparency and competition;
Amendment    4 Draft report Recital E
Draft motion for a resolution	Amendment
E.  whereas according to 2016 data, it appears that only four Member States rely on digital technologies for all major steps in public procurement;	E.  whereas according to the Commission communication from 2016, only four Member States relied on digital technologies for all major steps in public procurement, such as e-notification, e-access to tender documents, e-submission, e-evaluation, e-award, e-ordering, e-invoicing and e-payment;
Amendment    5 Draft report Recital F
Draft motion for a resolution	Amendment
F.  whereas according to the European Semester thematic fact sheet on public procurement of November 2017, the number of tender procedures with only one bid increased from 14 % to 29 % for the period 2006¬-2016;	F.  whereas according to the European Semester thematic fact sheet on public procurement of November 2017, the number of tender procedures with only one bid increased from 14 % to 29 % for the period 2006¬-2016, and whereas, according to the Commission communication, ‘SMEs win only 45 % of the value of public contracts above EU thresholds, clearly below their weight in the economy’;
Amendment    6 Draft report Recital I a (new)
Draft motion for a resolution	Amendment
	Ia.  whereas public procurement can provide an important demand-side stimulus to the uptake and production of low- and zero-emission vehicles and hence contribute to reducing overall transport emissions;
Amendment    7 Draft report Paragraph 1
Draft motion for a resolution	Amendment
1.  Welcomes, almost four years after the extensive revision of the Union public procurement legislative framework was concluded, the set of non-legislative measures proposed by the Commission and hopes that this will create impetus for better implementation;	1.  Welcomes, almost four years after the extensive revision of the Union public procurement legislative framework was concluded, the set of non-legislative measures proposed by the Commission and expects that this will create impetus for better implementation;
Amendment    8 Draft report Paragraph 2
Draft motion for a resolution	Amendment
2.  Is disappointed by the pace at which many Member States have transposed the 2014 directives in the area of public procurement, and by the many delays, and regrets the fact that the Commission had to initiate the infringement procedure for a small number of Member States;	2.  Is disappointed by the pace at which many Member States have transposed the 2014 directives in the area of public procurement, and by the many delays, and regrets the fact that the Commission had to initiate the infringement procedure for some Member States when it comes to enforcing the acquis on the single market, industry, entrepreneurship and SMEs, which are supposed to lead to a deeper and fairer internal market with a strengthened industrial base;
Amendment    9 Draft report Paragraph 2 a (new)
Draft motion for a resolution	Amendment
	2a.  Is concerned about the delays that have occurred in the transposition of the 2014 directives in some Member States, and calls on the Member States to avoid measures that increase the amount of bureaucracy in order to guarantee a fair single public procurement market;
Amendment    10 Draft report Paragraph 7
Draft motion for a resolution	Amendment
7.   Points out that the current Union legislation, more than ever, allows for public procurement to be used as a strategic instrument to promote policy goals, and encourages the Member States to get the most that they can out of it;	7.  Points out that the current Union legislation, more than ever, allows for public procurement to be used as a strategic instrument to promote policy goals, and encourages the Member States to get the most that they can out of it; recalls that at regional and local level as well, public procurement is an important tool to respond to regional and local strategies, which are environmentally and socially sustainable;
Amendment    11 Draft report Paragraph 7 a (new)
Draft motion for a resolution	Amendment
	7a.  Calls for the extensive use of innovative procurement to implement green and socially inclusive growth;
Amendment    12 Draft report Paragraph 8
Draft motion for a resolution	Amendment
8.  Calls on the Member States to use public procurement strategically in order to promote a sustainable, circular and socially responsible economy, as well as innovation, SME growth and competition; underlines that this requires Member States to signal such policies at the highest level and support, to this end, procurers and practitioners in the public administration;	8.  Calls on the Member States to use public procurement strategically in order to promote an innovative, sustainable, circular and socially responsible economy, which promotes SME growth and competition; underlines that this requires Member States to signal such policies at the highest level and support, to this end, procurers and practitioners in the public administration;
Amendment    13 Draft report Paragraph 10
Draft motion for a resolution	Amendment
10.  Welcomes the fact that many Member States have made provisions for accepting the most economically advantageous tender (MEAT) and encourages its systematic application;	10.  Welcomes the fact that many Member States have made provisions for accepting the most economically advantageous tender (MEAT) and encourages its systematic application; highlights the importance of green criteria in MEAT;
Amendment    14 Draft report Paragraph 11
Draft motion for a resolution	Amendment
11.  While acknowledging that in some cases the low price reflects innovative solutions and efficient management, is concerned about the excessive use of the lowest price as an award criterion in a number of Member States and therefore calls on the Commission and the Member States to analyse the reason behind this situation;	11.  While acknowledging that in some cases the low price reflects innovative solutions and efficient management, is concerned about the excessive use of the lowest price as the main award criterion without commensurate reflection of other criteria in a number of Member States and therefore calls on the Commission and the Member States to analyse the reason behind this situation;
Amendment    15 Draft report Paragraph 12 a (new)
Draft motion for a resolution	Amendment
	12a.  Underlines that, when applying LCC, public purchasers should take into account the costs of resource use, maintenance and disposal, which are not reflected in the purchase price, especially as there is an enormous potential for savings over the life-cycle of a good, work or service by savings on the use of energy, water and fuel, on maintenance and replacement as well as on disposal costs, among other things;
Amendment    16 Draft report Paragraph 13
Draft motion for a resolution	Amendment
13.  Notes that innovative, socio-economic and environmental considerations are legitimate award criteria in public procurement, but that contracting authorities can also pursue green, innovative or social goals through well-thought-out specifications and by allowing variant offers;	13.  Highlights that innovative, socio-economic and environmental considerations are important award criteria in public procurement, but that contracting authorities can also pursue green, sustainable, innovative or social goals through well-thought-out specifications and by allowing variant offers; recalls the possibility of using quality criteria as the award criteria, e.g. in promoting locally produced food;
Amendment    17 Draft report Paragraph 13 a (new)
Draft motion for a resolution	Amendment
	13a.  Underlines that public procurement policies have an important role in fostering the procurement of agricultural products and foodstuffs from local producers, and calls on the Commission to propose measures to support short food supply chains and to assess their impact on the rural economy;
Amendment    18 Draft report Paragraph 13 a (new)
Draft motion for a resolution	Amendment
	13a.  Notes the importance of financing in green transport infrastructure projects, e.g. infrastructure for alternative fuels, and cross-border cooperation between Member States; stresses that the award criteria for obtaining EU financing needs to include an obligation to demonstrate how the proposed project will contribute to achieving climate targets;
Amendment    19 Draft report Paragraph 13 a (new)
Draft motion for a resolution	Amendment
	13a.  Welcomes the Commission’s proposal for revision of the Clean Vehicles Directive (amending Directive 2009/33/EC on the promotion of clean and energy-efficient road transport vehicles) and the inclusion of binding procurement targets for 2025 and 2030, which will increase the market uptake of low- and zero-emission vehicles and contribute to the Union’s drive towards low-emission mobility;
Amendment    20 Draft report Paragraph 16
Draft motion for a resolution	Amendment
16.  Calls for more Member States to use the advantages of central purchasing and aggregation of public purchasing, and notes that Central Purchasing Bodies can speed up dissemination of expertise, of best practices and of innovation;	16.  Calls for more Member States to use the advantages of central purchasing and aggregation of public purchasing, and notes that Central Purchasing Bodies could and should speed up dissemination of expertise, of best practices and of innovation;
Amendment    21 Draft report Paragraph 19 a (new)
Draft motion for a resolution	Amendment
	19a.  Expresses concern over unfair competition within public procurement procedures as a result of state interference with third country competitors, in particular, but not limited to the market for electric vehicles and batteries; considers that a linkage between trade defence instruments and public procurement practices is necessary;
Amendment    22 Draft report Paragraph 25
Draft motion for a resolution	Amendment
25.  Notes with regret a decrease in the intensity of competition in public procurement in the Union in recent years, and urges the Member States recording a high percentage of notices with only one bidder to address the problem;	25.  Notes with regret a decrease in the intensity of competition in public procurement in the Union in recent years, and urges particularly those Member States with a high percentage of notices with only one bidder to address the problem by improving access to public procurement tenders;
Amendment    23 Draft report Paragraph 26
Draft motion for a resolution	Amendment
26.  Urges the Member States to increase joint procurement procedures, including cross-border, as facilitated by the revised EU rules, and asks the Commission to provide technical support in this field;	26.  Urges the Member States to increase joint procurement procedures, including cross-border, as facilitated by the revised EU rules, and calls on the Commission to provide in‑depth support in this field;
Amendment    24 Draft report Paragraph 27
Draft motion for a resolution	Amendment
27.  Regrets that SMEs are still facing difficulties in accessing public procurement, and calls on the Commission to assess the effectiveness of the measures provided by the 2014 directives and to come forward with new solutions if necessary;	27.  Regrets that SMEs are still facing difficulties in accessing public procurement, and calls on the Commission to assess the effectiveness, efficiency and quality of the measures provided by the 2014 directives and to come forward with new solutions as soon as review procedures reveal the necessity of doing so;
Amendment    25 Draft report Paragraph 28
Draft motion for a resolution	Amendment
28.  Calls on the Member States to support SMEs’ participation in tenders, for example by mandatory division into lots;	28.  Calls on the Member States to support SMEs’ participation in procurement markets, also beyond their national frontiers, for example by mandatory division into lots, placing a limit on the turnover required to participate in a tender procedure, a reduction in documentation requirements or the involvement of SMEs in prior market consultations; calls on the Commission and the Member States to develop advisory services and training for SMEs to ensure their better participation in tendering processes;
Amendment    26 Draft report Paragraph 29
Draft motion for a resolution	Amendment
29.  Calls on the Commission to analyse in particular the impediments to cross-border public procurement resulting from language barriers, and to propose solutions;	29.  Calls on the Commission to analyse in particular the impediments to cross-border public procurement resulting from language, legal or any other barriers, and to propose solutions or intervene in order to guarantee functional cross‑border procurement;
Amendment    27 Draft report Paragraph 37 a (new)
Draft motion for a resolution	Amendment
	37a.   Highlights the importance of transparency and the non-discriminatory nature of public procurement procedures; recalls the importance of having proper appeal procedures in place and the importance of having access to guidance on how to launch an appeal;

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted	20.3.2018

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted	19.6.2018
Result of final vote	+: –: 0:	28 2 0
Members present for the final vote	John Stuart Agnew, Pascal Arimont, Dita Charanzová, Carlos Coelho, Lara Comi, Anna Maria Corazza Bildt, Daniel Dalton, Nicola Danti, Dennis de Jong, Pascal Durand, Maria Grapini, Liisa Jaakonsaari, Philippe Juvin, Antonio López-Istúriz White, Eva Maydell, Nosheena Mobarik, Christel Schaldemose, Olga Sehnalová, Jasenko Selimovic, Igor Šoltes, Ivan Štefanec, Róża Gräfin von Thun und Hohenstein, Mylène Troszczynski, Mihai Ţurcanu, Anneleen Van Bossuyt, Marco Zullo
Substitutes present for the final vote	Biljana Borzan, Birgit Collin-Langen, Marc Tarabella, Kerstin Westphal

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

28	+
ALDE	Dita Charanzová, Jasenko Selimovic
ECR	Daniel Dalton, Nosheena Mobarik, Anneleen Van Bossuyt
EFDD	Marco Zullo
GUE/NGL	Dennis de Jong
PPE	Pascal Arimont, Carlos Coelho, Birgit Collin-Langen, Lara Comi, Anna Maria Corazza Bildt, Philippe Juvin, Antonio López-Istúriz White, Eva Maydell, Ivan Štefanec, Róża Gräfin von Thun und Hohenstein, Mihai Ţurcanu
S&D	Biljana Borzan, Nicola Danti, Maria Grapini, Liisa Jaakonsaari, Christel Schaldemose, Olga Sehnalová, Marc Tarabella, Kerstin Westphal
VERTS/ALE	Pascal Durand, Igor Šoltes

2	-
EFDD	John Stuart Agnew
ENF	Mylène Troszczynski

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention