Solution - Ekonomiaspoleczna.pl

A Cost-Benefit-Analysis Model for Socially Responsible
Public Procurement
Side Event to the Active Europe Conference
Florian C. Kleemann, Michael Essig
[email protected]
Kraków, 06/09/2011
I. Background & Solution: why develop
a CBA Model for SRPP
Background
Situation
Objective
of the contract
Challenge
Public procurement is seen as a major
instrument for implementing political
objectives. The consideration of social
aspects is not yet as widely used.
CBA-SRPP model: focus on micro level only
Modelling a Cost-Benefit Analysis
(CBA) for socially responsible public
procurement
Development of a practical tool to be used by
public buyers to identify the economically most
advantageous offer (MEAT).
Measurement of SRPP aspects
(=macro effects): Cost and benefit
effects of SRPP not measurable (due
to external effects) in a methodically
sound way
How to integrate SRPP aspects into the
procurement decision and how to measure
SRPP aspects by public buyers?
CBA-SRPP model to identify the
economically most advantageous offer
(MEAT).
Solution
CBA-SRPP
Guideline
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06.09.2011
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II. SRPP CBA Model: Scope
Objective
of the contract
The Public procurement process
Demand
Management
Awarding
Contracts
Market Research
Fe s tl eg u ng
Ve rg a b ev e rfah re n /
Ve rö ffe ntl i ch u ng
Challenge
Ers te l l un g /Ve rs a nd
Ve rd i n gu n gs u n te rl ag en
Ei n g a ng
d . An ge b ote
Ei g n u ng sp rü fun g
Execution
We rtu n g sp h as e
Au s wa h l Ang eb o t
The Awarding Contracts Process
Decide on
procurement
Procedure, and
Announcement
Preparation/
Distibution of
Bidding documents
Receiving bids
Supplier
evaluation
Assessment of
Tender responses
Solution
CBA-SRPP
CBA-SRPP
model
Guideline
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06.09.2011
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II. SRPP CBA Model: Approach
Political level
Objective
Political goal: Promotion of CSR in public sector environment
Public Procurement acitivities are recognised as an instrument to
implement CSR aspects
of the contract
Administrative
level
Challenge
Solution
CBA-SRPP
Guideline
= public buyers
 considering
SRPP aspects
in their
procurement
decisions
Comparing two procurement alternatives
Criteria,
e.g.
Supplier 1
Supplier
2
Award of the contract
Cost
10,000€
10,500€
supplier 1
SRPP
?
?
?
Question 1: how to
measure social efforts
of suppliers on an
operative level?
Question 2: how to
integrate social efforts in
the procurement
decision?
Identifying the Economically Most Advantageous Tender
(MEAT)
 Public buyers guideline
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II. SRPP CBA Model: CSR Dimension
Objective
SRPP and corresponding factors in monetary terms not measurable in a
methodologically sound way
of the contract
7 SRPP dimensions (benefits) incl. corresponding factors identified:
Challenge
Solution
1
Promoting “Employment Opportunities”, e.g. youth employment
2
“Decent Work”, e.g. child labour
3
Promoting “SMEs”
4
“Supporting Social Inclusion and Promoting Social Economy Organizations”
5
Taking into account “Fair or Ethical Trade” issues
6
Promoting “Accessibility and Design for All”
7
Seeking to achieve wider voluntary adherence to “CSR”
CBA-SRPP
Guideline
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06.09.2011
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II. SRPP CBA Model: Solution
Objective
of the contract
Challenge
Solution
CBA-SRPP
Guideline
CBA-SRPP model developed is combination of a scoring model and the
checklist procedure
• To be used for the procurement award decision (as opposed to specification
stage or pre-qualification)
• Allows a multidimensional assessment
• That means: several objectives are considered in the evaluation of the
procurement object
• Objectives: decided upon by public buyer, e.g. quantity, quality, price, and the
requirement of adherence to social standards
• Public buyer decides on the importance of the objectives
• Objectives are weighted and multiplied with a point value ( measuring
SRPP)
• Supplier with highest scoring index is supposed to conform best to criteria
determined
 The CBA SRPP model offers a comprehensive decision basis as well
as argumentative support if a bid is chosen that has a higher price,
yet respects social aspects and thus scores a higher value
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III. Summary: SRPP CBA Model
Background
• Social considerations play important role in policies
• Public Procurement common instrument for implementing policies
 Socially responsible public procurement not using ist potential
Complication
• Legal dominance for public procurement
• Clear limitations to SRPP in EU Public Procurement Framework
 Lack of practical tools for buyers to integrate CSR in public procurement
Solution
• A hands-on usable tool for public buyers
• Clear application focus in public tender evaluation
• Customizable scoring model
Remaining Challenges
 Verification of adherence to social standards => legal uncertainty,
complication of bid evaluation, application of labels
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BACKUP
Background: Conceptual Analysis
Legal Framework
SRPP Measurement Instruments
• WTO Procurement Law no barrier if
fundamental principles respected
• Principles of EC Treaty to be respected
(e.g. non-discrimination)
• EU public procurement directives
explicitly mention CSR aspects
• ECJ has clarified application of policy
objectives’ criteria in PP
• Private sector is quicker to adopt social
considerations, e.g. due to not being
bound to public procurement law
• Broad research on potential
measurement instruments, tools or
concepts (total of 49 identified)
• Checked on applicability in SRPP
measurement
o ability to measure cost or benefit
o used in procurement context,
o used in public sector context
 11 matches
• Final model relies on selection of the 11
matches, could be expanded as needed
Application in the model
• Consideration of legal norms at all times
• Application of measurement instruments based on comprehensive previous research results
 CBA-SRPP model: helping to identify the Economically Most Advantageous Offer (MEAT)
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Background: Testing
Approach
Key Results SRPP in general:
• Contractual objective: conduct test with one public
institution
• Limited specific experience exists within public
organisations on SRPP (mostly fair trade, child
labor)
• Identified and contacted organisations from PPRC's
and ICLEI’s network (criteria: public institution,
experience with – preferably social – public
procurement)
• After agreement on participation, model was sent,
explained and then left to the testers. Feedback was
collected via semi-structured interview, minutes sent
for quality assurance
• Interview questionnaire contained questions on
SRPP in general and specifically on the model
• 4 institutions participated in the test (Local
government, NGO [2], Public research institute)
• Lack of knowledge also on bidders’ side
• Political/ public management support is a key
success factor in promoting SRPP
SRPP Evaluation Model
• Model was well received and judged as very useful
for further promoting SRPP
• Few hints on naming/ wording and formatting have
been provided and integrated
• Evaluation of adherence to (social) standards, e.g.
using certificates remains challenging
• A few comments on “complexity” have been
received, yet the model is designed for general
applicability, at the cost of simplicity
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06.09.2011
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