DEVELOPMENT OF A MEASUREMENT INSTRUMENTFOR INNOVATION FACILITATING PROCUREMENT

GRADUATION COMMITTEE:

BART LENDERINK

RIJKSWATERSTAAT

AREND NAGEL

M.E.L. (MIEKE) HOEZEN

UNIVERSITY OF TWENTE

J.I.M. (JOOP) HALMAN

J. (HANS) BOES

Main question: How can the percentage of the total procurement budget of Rijkswaterstaat spend on Innovation Facilitating Procurement be measured?

1. Introduction on topic

2. Research design

3. Initial measurement instrument

4. Changed measurement instrument

5. Validation of the measurement instrument

6. Conclusions

7. Recommendations

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OVERVIEW

Definition: The targeted seeking of innovative solutions by public agencies or providing

possibilities towards market parties to develop and offer innovative solutions [1]

Goal: stimulate innovation among suppliers to obtain solutions with superior quality against

similar or lower prices or solutions that are better equipped to address societal challenges

Methods:

• Through regular contract forms [2,3]

• Through specific contract types and procedures [2,3]

• Provide information on innovation needs prior to procurement

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INTRODUCTIONINNOVATION FACILITATING PROCUREMENT (IFP)

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RESEARCH DESIGN

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Result-oriented scope:

1. “Public purchasing activities which lead to innovation through the targeted

seeking of innovative solutions, and/or

2. providing possibilities to the market which lead to the development, testing, and/or

offering and implementation of innovative solutions” (based on [1,4])

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INITIAL MEASUREMENT INSTRUMENTINITIAL SCOPE

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INITIAL MEASUREMENT INSTRUMENTMEASUREMENT FACTORS OF IFP

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Input-process oriented scope:

1. All procurements which have the procurement of innovative solutions or the

development and/or testing of new solutions as an objective should be considered

IFP.

2. furthermore, the provision of possibilities to the market to offer additional value

through products, processes and services is considered IFP as well.

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CHANGED MEASUREMENT INSTRUMENT

CHANGED SCOPE

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MDFS: Manually Determined Financial Spendings (Knowledge domain)

TPWT: Tendering Price Winning Tenderer

FPWT: Fictional Price Winning Tenderer

TPB: Total Procurement Budget of RWS

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CHANGED MEASUREMENT INSTRUMENT

KEY PERFORMANCE INDICATOR FOR IFP

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CHANGED MEASUREMENT INSTRUMENT

QUESTION SCHEME FOR THE DETERMINATION OF IFP IN THE KNOWLEDGE DOMAIN

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Validation Method:

1. Performing the measurement of the KPI twice

2. Design principles of de Bruijn [5] (interaction, variety and dynamics)

3. Evaluation on 13 LEI criteria for performance indicators [6] (such as robustness,

simplicity and relevance)

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VALIDATION OF THE MEASUREMENT INSTRUMENT

• Value of Innovation Facilitating Procurement

• How can the percentage of the total procurement budget of Rijkswaterstaat spend

on Innovation Facilitating Procurement be measured?

• Value of the measurement instrument

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CONCLUSIONS

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Rijkswaterstaat:

• Continue to develop the measurement instrument for IFP to include the other

procurement domains

• Perform a more thorough validation on the measurement instrument for IFP

• Include the developed measurement factors in the yearly evaluation of RWS by

market parties

Ministry of Economic Affairs

• Develop and publish a clear scope for the measurement of IFP next to the current

definition or narrow the definition of IFP to the point on which it is clear how it

should be measured to avoid opportunistic behaviour in the measurement of IFP

• Develop and implement a measurement instrument which is capable to determine

the spending's on IFP on a national scale

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APPENDIX ARECOMMENDATIONS

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University of Twente

• Investigate if a more generic quantitative measurement method can be developed

for Innovation Facilitating Procurement which can be used for the whole national

government.

• Investigate to which extent specific contract forms and procedures for IFP can lead

to innovative products, processes and services.

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APPENDIX ARECOMMENDATIONS

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END OF THE PRESENTATIONQUESTIONS?

[1] Ministerie van Economische Zaken (2013a) Plan van aanpak: Programma Inkoop Innovatie Urgent, Tech. rep.

[2] Abby Semple (2014) Guidance for public authorities on public procurement of innovation, Tech. rep.,

ConsortiomofthePPIPlatform2014 and ICLEI.

[3] Rijkswaterstaat (2014a) Beleidskader innovatiegericht inkopen, Tech. rep.

[4] Rolfstam, M. (2013) Public Procurement and Innovation: The Role of Institutions, Edward

Elgar Publishing.

[5] de Bruijn, H. (2006) Prestatiemeting in de publieke sector, LEMMA, Den Haag, 2nd edn.

[6] Vrolijk, H. C. J., Cotteleer, G., Kramer, K. J., van Leeuwen, T. C. and Luesink, H. H.

(2003) Performance-indicatoren, LEI Wageningen UR.

References in the appendices can be found in the graduation report (essay.utwente.nl/66578/)

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REFERENCES

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Graduation Report: essay.utwente.nl/66578/

Rijkswaterstaat (General site and Policy Framework for PPI):

1. http://www.rijkswaterstaat.nl/en/

2. http://www.rijkswaterstaat.nl/en/images/Factsheet%20Policy%20Framework%20-%20Public

%20Procurement%20of%20Innovation_tcm224-368853.pdf

Public Innovation Procurement programme:

http://www.inkoopinnovatieurgent.nl/info-en/

Dutch Public Procurement expertise centre:

http://www.pianoo.nl/about-pianoo

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APPENDIX AMORE INFORMATION

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Public Procurement for Innovation: public procurement for innovation occurs when a

public organization places an order for the fulfilment of certain functions within a

reasonable period of time (through a new product).

(Edquist and Zabala-Iturriagagoitia, 2012).

Public procurement of innovation is defined as “purchasing activities carried out by

public agencies that lead to innovation” (Rolfstam, 2013).

public procurement of innovative solutions which is defined as “procurements

where contracting authorities act as launch customer for innovative goods or services

which are not yet available on large scale commercial basis and may include

conformance testing” (EC, 2014b,c).

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APPENDIX BDEFINITIONS OF PPI

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APPENDIX CLINK BETWEEN PCP AND PPI

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