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