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Evaluation of public procurement Directives
High Level Group of Independent Stakeholders on Administrative Burdens
Thursday 14 July 2011
Total public expenditure
Eurostat and Commission estimates As % EU GDP (2008)
Published in OJEU 3,14
Below threshold 2,10
Health 4,12Social
Protection 1,18
Education 0,81
Fuel for energy 2,46
Defence 0,59
Other 2,30
VAT on OJEU published
0,61
Use of procedures
Pwc, London Economics, Ecorys from OJEU data 2006-2010
73%
9%
8%
7%0%
52%
23%
14%
5%4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number Value
Competitive dialogue
Accelerated procedures
Negotiated withoutpublication
Negotiated
Restricted
Open
SME access and success
By Number of contracts
18
18
18
18
22
21
24
20
19
39
42
39
4022 20
20
2006
2007
2008
Total
Micro Small Medium Large
By value of contracts
6
5
6
6
9
11
13
16
15
69
69
62
6611 17
19
2006
2007
2008
Total
Micro Small Medium Large
GHK
Cross border procurement
Ramboll as % of total (above threshold) procurement
13,9
11,4
3,6
1,4
13,712,4
11,211,7
3,23,7
1,81,60
2
4
6
8
10
12
14
16
2007 2008 2009
% total indirect cross-borderthrough affiliates(value)
indirect cross-borderthrough affiliates(number ofcontracts)
direct cross-border(value)
direct cross-border(number ofcontracts)
Cross border participation
Ramboll
How often did your company participate in public procurement tenders (domestically and abroad) in the last three years?
76,1
10,9
6
7
0
6,4
5,3
4,9
11,1
72,3
0 10 20 30 40 50 60 70 80 90 100
more than 20 times
10 to 20
5 to 10
1 to 5
Never
% of respondents
Participation abroad N=1011
Participation overall (domestically and abroad) N=1026
Reasons for not bidding cross border
Reasons for not bidding cross-border
32,5
34,2
34,6
36,6
47,6
48,6
50,3
61,3
0 10 20 30 40 50 60 70
Exchange rate risk
Administrative requirements
More resources to tender
Higher costs
Legal barriers
Too much local competition
Language barriers
No experience doing business abroad
Ramboll
Total cost of procedures
Average cost per procedure €28 000
€22 500 - cost of average 5 – 6 bids € 5 500 contracting authority costs
Total Costs €5.3 billion Less than 1.3% of total contract value
Average person days for procedure
Pwc, London Economics, Ecorys from OJEU data 2006-2010
0
10
20
30
40
50
60
70
80
Luxe
mbo
urg
Malt
a
Czech
Rep
.
Belgium
Franc
e
Icela
nd
Irelan
d
Finlan
d
Germ
any
Poland
Austri
a
Estonia
Norway
Slovenia
Nether
lands
Sweden
EEA-30
Hungar
y
Spain
Denmar
kUK
Latvi
a
Lithu
ania
Romania
Portu
gal
Slovak R
ep.
Greec
eIta
ly
Cypru
s
Bulgar
ia
Authorities Firms
Person-days required
Best performer
Worst performer
Difference
Authorities 11 68 57
Firm 10 43 33
Authorities and winning firm combined
22 93 71
PwC, London Economics, Ecorys
Savings
Econometric model Save 1% on the final contract value if contract
notice advertised further 3 % if open procedure
or 1.1 % if restricted procedure Total 2.1 - 4 per cent compared with the initial
estimate.
PwC, London Economics, Ecorys
N Cumulative
€Cumulative
80%
50%
20%
0
400
800
0 500 1000 1500 2000 2500 3000Value of purchase ('000)
Frequency of contract values
PwC, London Economics, Ecorys
Evaluation: main findings
Effectiveness Relevance Efficiency Consistency with other policies EU added value
Efficiency
Positive cost benefit analysis Compliance costs Difference across MS Unintended consequences
Consistency with other Policies
Green public procurement Socially responsible Innovation Lack of monitoring Different requirements, standards, labels…