GPP Training toolkit 6 Market engagement GPP Training

GPP Training toolkit 6. Market engagement

GPP Training Toolkit Module 1: Introduction Module 4: Needs Assessment Module 2: Strategic Aspects of GPP Module 5: Circular Procurement Module 3: Legal Aspects of GPP Module 6: Market Engagement Module 7: Operational (Key sectors for GPP) Module 6: Market Engagement 2

Content of Module 6 1. 2. 3. 4. 5. What is market engagement and why do it? Legal framework for market engagement Preparing for market engagement How to engage the market Managing risks Module 6: Market Engagement 3

What is market engagement? Market engagement is a process which takes place prior to, during, and after procurement It aims to: • Identify potential bidders and/or solutions • Build capacity in the market to meet the requirement(s) • Inform the design of the procurement and contract • Help suppliers to submit strong bids Module 6: Market Engagement 4

Why engage with the market? Effective market engagement can • Change and improve the way you plan and manage procurement • Improve your understanding of the market and help you to become a more intelligent buyer • Increase your trust and credibility with suppliers and become a buyer of choice • Create the market conditions needed to deliver sustainable and innovative solutions Module 6: Market Engagement 5

Legal framework for market engagement Market engagement is within the bounds of the European Union’s Directives on Public Procurement Article 40 of Directive 2014/24/EU states that: “Before launching a procurement procedure, contracting authorities may conduct market consultations with a view to preparing the procurement and informing economic operators of their procurement plans and requirements. ” Module 6: Market Engagement 6

Legal framework for market engagement Legal considerations for market engagement • Must be carried out in a transparent and non-discriminatory manner • Results of the consultation may not confer an unfair advantage on any of the suppliers who participated – Be fair, open and transparent – Record discussions – Take steps to ensure integrity e. g. giving same information to all suppliers – Give equal access to all suppliers and treat all suppliers equally Module 6: Market Engagement 7

Preparing for market engagement Determine what is required before engaging • Assess your needs and consult users • Research what solutions are available on the market already • Consider what the performance and function of the contract should be Module 6: Market Engagement 8

Preparing for market engagement Carry out an initial market analysis • Maturity: is the market ready to deliver what's required? • Feasibility: will the market be technically capable of meeting your requirement? • Technical/product innovation: are any technological advancements or product/service developments expected? • Competition and capacity: how many suppliers provide what is required? • Sustainability: can suppliers provide solutions to sustainability issues? Module 6: Market Engagement 9

Preparing for market engagement Case Study: Municipality of Copenhagen (1/2) Has political target of 90% organic food to be served in public meals, including organic Halal and diversity and seasonality in fruit and vegetables Market engagement in preparation and tender stages: 1. Ask the kitchens about their needs 2. Pre-tender supplier meetings– what can the market deliver, and how? 3. Consult with the kitchens during the process of writing the tender 4. ‘Supplier Information Day’ 10 days after tender was published to clarify the specification in simple language 5. After meeting market could ask written questions, which are published (anonymous) with answer to all participants Full case study Module 6: Market Engagement 10

Preparing for market engagement Case Study: Municipality of Copenhagen (2/2) Range of potential environmental savings including GHG reductions, with 88% of food in municipal facilities now organic Positive results of the extensive market dialogue included: • Innovation in the supply and delivery products • Greater sustainability of the sourced food • Improved relationships with suppliers Lessons learned • Market engagement reduced risk with innovation procurement of lack of bids • Time intensive, but building market knowledge = realistic but innovative specifications that attract competition Full case study Module 6: Market Engagement 11

How to engage the market Engaging the market at different procurement phases PRE-PROCUREMENT DURING TENDER POST TENDER • Publish PIN and forward procurement plan • Attend trade shows • Attend a ‘Meet the Buyer’ event • Issue Request for Information • Arrange event for suppliers to present proposed solutions • Meet with industry bodies • Meet with a group of key suppliers • Sound out the market • Provide a pre-tender briefing • Industry workshops • Brief suppliers who have submitted a response • Brief short listed suppliers • Hold a question and answer session – or send a list of all questions and their answers to all suppliers • Let suppliers know who has been successful • Debrief suppliers • Contract and supplier management • Strategic supplier management • Maintain market awareness and competitor offerings Module 6: Market Engagement 12

How to engage the market Pre-procurement • Desktop research and analysis: explore the market using online tools and sources • Consult with other public authorities: find out what others are purchasing (and reassure risk-averse decision-makers!) • Publish Prior Information Notice (PIN): to inform the market about the consultation • Supplier and market sounding questionnaires: useful and low time- consuming method for quick information • Expression of interest: used for the pre- registration of suppliers, but also to assess market capability Module 6: Market Engagement 13

How to engage the market Pre-procurement 2 • Forward procurement plan: give suppliers advance notice upcoming contract opportunities • Trade shows: attend relevant trade shows to raise awareness of potential opportunities • Meet the Buyer / Meet the Supplier: an event where potential buyers get to meet with potential suppliers • Solutions ‘Show-and. Tell’: for suppliers to present solutions to your needs Module 6: Market Engagement 14

How to engage the market Pre-procurement 3 • Meeting with industry bodies: discuss your needs with representatives of industry, who can present possible solutions • Meeting with groups of key suppliers: discuss your needs and enable suppliers to ask questions and present possible solutions in response • Supplier information days: before publishing a Contract Notice hold a pre-tender briefing for suppliers • Promote supplier networking: set up or encourage meetings between potential suppliers Module 6: Market Engagement 15

How to engage the market Case study: Transport for London (1/2) In 2015 Transport for London (Tf. L) aimed to reduce whole life-cycle costs of lighting the London Underground network. Early Market Engagement aimed to drive competition and stimulate innovation within the lighting market across Europe • • Market Sounding Prospectus • • Developing and using online submission tools • Hosted a ‘Suppliers Morning’ event: over 70 manufacturers, suppliers and representatives from Europe’s Lighting Industry Association attended. Presenting at Europe’s largest lighting conferences Distributing market surveys to gather information on manufacturers’ capabilities, innovative technologies and innovation experiences Module 6: Market Engagement Full case study 16

How to engage the market Case study: Transport for London (2/2) Market engagement helped Tf. L acquire information on almost 300 different innovative lighting technologies from 75 suppliers • Indicative results suggest a 25% saving on whole life-cycle costs, and reductions in energy consumption • Market engagement created innovations that continue to evolve into the contract phase through ‘Product Refresh’ Lessons learned from Tf. L • Do not be afraid to engage the market early. Industry has information that can be used to strengthen your business case • Cast the net far and wide. Engage as many manufacturers and suppliers as possible and encourage as much competition in the market as possible Module 6: Market Engagement Full case study 17

How to engage the market During a procurement process • Having published a Contract Notice you can hold briefings with: – suppliers who are interested in submitting a response – suppliers who have submitted a registration or expression of interest – short listed suppliers • It is important to apply equal treatment and to ensure that all suppliers receive the same information Module 6: Market Engagement 18

How to engage the market Post procurement supplier debrief • Let suppliers know the reason/s their proposal was unsuccessful • Address any concerns of suppliers • Ask for feedback on your process • ‘Win-review’ with successful supplier • Remind suppliers that going beyond any sustainability requirements and specifications within the bid is encouraged and welcomed Module 6: Market Engagement 19

Managing risks Understand the risks associated with market engagement • Unfairly advantaging one supplier • Accusations of favouritism • Engaging in a way that disadvantages a group of suppliers • Shaping your specification or requirement in favour of one potential supplier or solution • Failing to protect a supplier’s intellectual property rights or commercially sensitive information Module 6: Market Engagement 20

Managing risks Simple steps to manage the risks • Be fair, open and transparent • Plan how and when you will engage with the market • Make the process clear to all suppliers and manage expectations • Treat all suppliers equally – do not discriminate • Share the same information with all suppliers • Keep records of your meetings • Be clear with suppliers as to what will and will not be shared as part of the market engagement process Module 6: Market Engagement 21

Further guidance Market Engagement Best Practice Report (2018) Buying Green (3 rd edition, 2016) Procura+ Manual (3 rd edition, 2016) GPP Helpdesk For further support on GPP, contact the EU’s free Helpdesk Toolkit developed for the European Commission by ICLEI - Local Governments for Sustainability Module Author: ICLEI – Local Governments for Sustainability Owner, Editor: European Commission, DG Environment, 2019 Photos: courtesy of Pixabay. com under Creative Commons CCO Disclaimer: This toolkit is an indicative document of the Commission services and cannot be considered binding to this institution in any way. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in this document.