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Pre-Commercial Procurement towards Pan-European broadband mobile for Public Safety
Innovation activity to develop technologies to enable a pan-European interoperable broadband mobile system for PPDR, validated by sustainable testing facilities
Pre-Commercial Procurement Process – how it works
Marie-Christine Bonnamour
www.broadway-info.eu
PCP in a nutshell
• To steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors
• https://www.securityresearch-cou.eu/sites/default/files/Plenary-Lieve%20Bos-Innovation%20Procurement.pdf
• https://www.broadway-info.eu/the-pre-commercial-procurement-process/
Why PCP ?
Pre-Commercial Procurement (PCP) is the procurement of• research and development of new innovative solutions before they are
commercially available.
→ Challenge needs radical innovation: no solution ‘available' or 'close to’ market yet.
→ Different suppliers compete through different phases of development.
→ Risks and benefits are shared between the procurers and the suppliers under market conditions
→ Procurers share the benefits and risks related to the IPR resulting from the R&D with suppliers at market price.
→ Separation from the deployment of commercial volumes of end-products
Why PCP?
Mutual benefitFor suppliers:- Finance ( de-risk) R&D- Remove supplier lock-in: new players, cross-border cooperation- Dialogue and speed-up process with customers- Enlarge the market - Defragmentation
For public sector:- Access to cheaper products – economy of scale
- Customer driven approach- Share experience, develop cooperation between Eu countries facing the same needs
PCP vs Traditional Procurement
Traditional PCPTendering Procedures and legal framework national rules apply
Exemption for R&D under EU Directives
Low Risk: Low degree of Innovation focused on solutions on (or close) to the market
High Risk: high degree of innovation and R&D Effort required
Technical Specifications addressing shorter term needs Functional Specifications focused on longer term needs
1 contract to 1 supplier awarded Competitive Development: several contracts to several suppliers
Development in 1 phase Development in multiple phases
IPR Generated IPR Risk/Benefit Sharing
PCP – Horizon 2020 principles
• Legal regime: Ø Exempted from WTO GPA and public procurement directives
Ø Subject to the TFEU principles:
- Respect of the principle of non discrimination- No distortion of competition- No violation of the principle of transparency
Ø EU references: PCP communication COM 2007/799 and Staff working document SEC/2007/1668
PCP- Guiding principles
- Risk-benefit sharing- IPR retained by contractors as much as possible- Competitive development during the 3 phases- Funding of R&D - Price at market condition- Place of performance: at least 50% in EU Member States and/or
associated countries- Right to publish PCP activities
IPR regime in PCP
• Sharing of IPR between suppliers and procurers:
Supplier
Keep IPR rights
ProcurerRight to use for internal use
Right to license to third parties on fair and reasonable market
conditionsCall-back provision
PCP Process - detailed
PCP Process
Preparation Tendering Executionü Prior Information Notice
Open Market Consultation • Market assessment• State of the Art, policy and standardization• Legal Frameworks
Tender DocumentsContract Notice (on TED)
Tender Procedure Tender EvaluationFramework Agreement(1 for the complete PCP and specific agreements per phases )
3 PCP Phases with fixed terms and maximum budget per phase• Design• Prototype• Pilot
Per phase: - Monitoring- End of Phase report- Payment- Eligibility for the next phase
Timetable of the next steps
End of the preparation phase:Publication of a report on the OMC (in November 2018)Tender documents to be finalised
Tendering procedure:Contract Notice to be published in first months of 2019EvaluationFramework agreement and specific contracts for the different phases
Contract details
• 1 joint budget - value of the PCP: 9 Millions euros• 1 joint call for tender published EU wide• 1 lead procurer (Astrid from Belgium) awarding the procurement in
the name and on behalf of the group of procurers (« buyers group »)• 1 joint evaluation of the different offers• 1 framework contract for each of the awarded tenderer• Specific contracts per PCP phase depending on evaluation and offer
for the phases• Payment per phase