Collaborative Procurement

TF-MSP, Amsterdam

19th March, 2015

Paul Rouse

Head of Procurement

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Legal obligations

• Directive 2014/24/EU – 26th February 2014• “First principles”:

• Equal treatment• Non-Discrimination• Transparency• Proportionality

• Applies to GEANT

• Applies to many NRENs and Institutions

• Few exemptions

Background Background Approaches Practical Next Steps

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Objectives for collaborative procurement

1. Economies of scale

2. Open up markets – allow us to access suppliers/markets previously uninterested in us

3. Efficiency – average OJEU costs €60k

4. Use of scarce skills

Background Background Approaches Practical Next Steps

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Routes – 1. Framework Agreements

Background Background Approaches Practical Next Steps

Variation in National Procurem

ent Legislation

Suppliers

Contracting Authorities (CA) e.g. NREN

Centralised Purchasing Body (CPB)

Framework Agreement

In line with EC Directive 2014

Exploit scarce procurement skills

Lower prices/efficient procurement

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Routes – 2. Dynamic Purchasing System

Background Background Approaches Practical Next Steps

Variation in National Procurem

ent Legislation

Suppliers

Contracting Authorities (CA) e.g. NREN

Centralised Purchasing Body (CPB)

Framework Agreement

In line with EC Directive 2014

Exploit scarce procurement skills

Lower prices/efficient procurement

6Connect | Communicate | Collaborate

Routes – 3. In-house “Teckal”

Background Background Approaches Practical Next Steps

NREN 1 NREN 2 NREN 3 NREN x

Teckal Organisation

Supplier(s)

Teckal Tests:

1. Control 2. 80% of activities 3. Private equity

Not Reverse

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Routes – 5. In-house “Hamburg”

Background Background Approaches Practical Next Steps

NREN 1 NREN 2 NREN 3 NREN x

Supplier(s)

Hamburg Tests:

1. Cooperation 2. Public Interest 3. <20% Market

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Practical Application

Background Background Approaches Practical Next Steps

• PRISM – DWDM Framework• Limited adoption• Confirmed variation of EU Procurement Regulations

• Splunk• Insufficient aggregated demand• Licence model incompatible with separate legal entities

• DANTE World Service

• Cloud• Sustainable model• Ensuring adoption• In-house

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Next Steps

Background Background Approaches Practical Next Steps

1. Find a solution to in-house arrangements

2. Due diligence on National Legislation

3. Resourcing

4. Not gambling with our credibility – ensuring buy-in and the supplier returns on their business case

5. Don’t get left behind – this makes sense!

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Thank you!