Best Value Procurement

Dutch Best Practice & Experience

13 april 2015

J.N. de Koning (Jaap) MA BSc

Prague, 10th April 2015

Introduction

J.N. (Jaap) de Koning MA BSc • Consultant contracting and procurement at

Witteveen+Bos;

• Manager Amsterdam office Witteveen+Bos;

• Chair IMC at EFCA;

• Member (Dutch) committee of procurement experts;

• Certified BVP expert;

• Chair Platform Integrated Contracts(CROW);

• Member committees Nlingenieurs.

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Witteveen+Bos

• Consulting Engineers, since 1946;

• 950 employees; 6 offices in NL;

• Turn-over 119 mln euro in 2014 (65/35);

• Owned by the employees;

• ‘Difficult projects are fun!’

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Content

• New European Directives; main items;

• The value of MEAT;

• The Dutch experience.

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New European Directives

• Directive 2014/24/EU of the European Parliament and of the Council on public procurement and repealing Directive 2004/18/EC

• Directive 2014/25/EU of the European Parliament and of the Council on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC

• Directive 2014/23/EU of the European Parliament and of the Council on the award of concession contracts

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Public procurement Directive

• 648 pages EC proposal; amendments IMCO Committee members

• EFCA Position Paper, 8 major issues (October 2013):

• Definition of knowledge-based/intellectual services (art 2)

• In-house activities (art 11)

• Choice of procedures (art 24)

• Variants (art 43)

• Division of contracts into lots (art 44)

• MEAT criteria and LCC (art 66, 67)

• Subcontracting (art 71)

• Modification of contracts (art 72)

• Meetings with Members of the European Parliamentary IMCO Committee

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National transposition

EFCA recommends that Member States, in transposing Art 67 into national law and in using the discretion there, use “should” instead of “may” in so that of the use of the price only for intellectual services or performances is prohibited.’

Why? Read article 67.1 and 67.2!

This advice is for free!

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What is MEAT?

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What is MEAT?

• Most Economically Advantageous Tender;

• Award Criterium;

• ‘more than just price’;

• (almost) a science…

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What is MEAT?

Award on criteria. minimal score=0 , maximum score = 5.

Nr. Criteria Weight A B C

1 Price 50,0 3,90 4,45 5,00

total price million € 6,250 5,685 5,125

2 Quality 20,0 4,68 3,61 1,59

3 Project control 15,0 3,39 4,86 2,78

4 Maintenance 10,0 4,26 3,58 1,24

5 Planning (construction) 5,0 5,00 1,00 3,00

100,0 4,07 4,09 3,51

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What is MEAT?

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Dutch experience: Leiden

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Leiden Parking facility

• Two locations

• Underground

• 1.000 parking spaces

• Multiple floors

• Historic Town of Leiden

• DBM(E) contract

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Results on quality

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Overall results

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Examples

• 3 examples;

• Low price / low quality?

• High price / low quality?

• Or?

• Low price /high quality!

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Dutch experience

• April 2013: New Dutch Procurement Law

• Main principle: “comply or explain”

• Award criteria: MEAT

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After one year

Economic Institute for the Construction Industry: ‘The use of MEAT’ • More use of MEAT;

• More kinds of criteria;

• More bidders with low price and high quality.

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Dutch Experience

Department of Public works and Waterways • Spends 8 bln Euro each year;

• Results on procurement: • 50% is rewarded on highest quality;

• 25% is rewarded on highest quality ánd lowest price.

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Why MEAT (1)?

• New Procurement Directive, art. 67

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Why MEAT (2)?

More value for money!

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Why MEAT (3)?

• because it is a better instrument than only price.

• Side-effect: away from price-driven procurement

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Why MEAT (4)?

Because it is about your actual work!

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Thank You!

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J.N. de Koning (Jaap) MA BSc

Jaap.de.koning@witteveenbos.com

0031 6512 00 636

Workshop award criteria (1)

Step 1: what are the projectgoals?

• Not the product;

• Think of theme’s relating to project- or procesmanagement;

• Discussion for 10 minutes.

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Workshop award criteria (2)

Step 2: derive MEAT-criteria from results step 1.

• discriminating;

• objective;

• Discussion for 10 minutes.

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Workshop award criteria (3)

Step 3: attribute weights to MEAT criteria.

• argumentation;

• Discussion for 10 minutes.

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Workshop award criteria (4)

Step 4: assessment of offers; how?

• Description of setup and process;

• Objectivity and transparancy;

• Discussion for 10 minutes.

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