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Implemented by The promotion of Socially Responsible Public Procurement through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November 2019 European Economic and Social Committee, Rue Belliard 99, 1040 Brussels Room JDE 62 10.30–11.00 Registration – Coffee 11.00–11.30 Welcome and opening remarks Ms Ariane Rodert, President EESC Section for Single Market, Production and Consumption Ms Marzena Rogalska, Director for ‘Single Market for Public Administrations’ in DG GROW Ms Natalia Martínez Páramo, Head of Unit for COSME, Executive Agency for Small and Medium-sized Enterprises (EASME) 11.30–12.30 Promoting Socially Responsible Public Procurement: common trends identified in national legislation. Moderated by Ms Valentina Caimi, Project Manager, AEIDL Introduction to the Buying for Social Impact project – actions, tools produced and main results Ms Valentina Caimi, Project Manager, AEIDL Key findings from the transposition of social provisions of the EU Directive into national legislation Ms Valentine de Francquen, EQUAL Partners Mr Luigi Martignetti, Secretary General, REVES Aisbl and Mr Alexander Elu, Policy Adviser, AEIDL The participation of social economy enterprises in public procurement Mr Víctor Meseguer, Director of Social Economy Europe Questions and answers 12.30–13.30 Lunch (Atrium 6 th floor)

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Page 1: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Implemented by

The promotion of Socially Responsible Public Procurement

through social economy enterprises

Results and recommendations from the Buying for Social Impact project

Monday, 18 November 2019

European Economic and Social Committee, Rue Belliard 99, 1040 Brussels

Room JDE 62

10.30–11.00 Registration – Coffee

11.00–11.30 Welcome and opening remarks

Ms Ariane Rodert, President EESC Section for Single Market, Production and Consumption

Ms Marzena Rogalska, Director for ‘Single Market for Public Administrations’ in DG GROW

Ms Natalia Martínez Páramo, Head of Unit for COSME, Executive Agency for Small and

Medium-sized Enterprises (EASME)

11.30–12.30 Promoting Socially Responsible Public Procurement: common trends identified in national

legislation.

Moderated by Ms Valentina Caimi, Project Manager, AEIDL

Introduction to the Buying for Social Impact project – actions, tools produced and main

results

Ms Valentina Caimi, Project Manager, AEIDL

Key findings from the transposition of social provisions of the EU Directive into national

legislation

Ms Valentine de Francquen, EQUAL Partners

Mr Luigi Martignetti, Secretary General, REVES Aisbl and Mr Alexander Elu, Policy Adviser,

AEIDL

The participation of social economy enterprises in public procurement

Mr Víctor Meseguer, Director of Social Economy Europe

Questions and answers

12.30–13.30 Lunch (Atrium 6th floor)

Page 2: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

13.30–15.30 How to make Socially Responsible Public Procurement work in practice?

Section I: Bringing together public buyers and social economy enterprises to release the

full potential of SRPP

Moderated by Mr Alexander Elu, Policy Adviser, AEIDL

Ms Malika Kessous, Head of Socially Responsible Public Procurement, Directorate

of Public Procurement, Ministry of Economy and Finances, France

Ms Dalma Kittka, Head of Department of Public Procurement, Municipality of

Budapest

Questions and answers

Section II: The pursuit of social aims through reserved contracts

Moderated by Ms Patrizia Bussi, Director of ENSIE

Mr Álvaro Porro, Commissioner of Social Economy, Local Development and Food

Policy, Barcelona City Council

Mr Gordon Hahn, The novelty of reserved contracts in Sweden, Gordon Hahn

Questions and answers

Section III: Mainstreaming social considerations in public procurement processes

Moderated by Ms Dorotea Daniele, Senior Expert, DIESIS

Mr Adam Gromnica, Public Procurement Unit, Ministry of Labour and Social Affairs

of the Czech Republic, The promotion of Socially Responsible Public Procurement

in the Czech Republic through ESF

Mr Pierre Goffart, Directorate General for Sustainable Development of the

Wallonian region, The use of flexible social clauses in Wallonia

Questions and answers

15.30-16.15 Public procurement as a vehicle to build a social Europe

Panel discussion moderated by Mr Luigi Martignetti, Secretary General, REVES Aisbl

Mr Giuseppe Guerini, Member of the EESC Group III and President of CECOP

Mr Pierre Karleskind MEP, Vice-President of the Internal Market and Consumer

Protection committee

Ms Laura Jones, Board Member, Social Services Europe

Ms Ulla Engelmann, Head of Unit for Advanced Technologies, Clusters and Social

Economy, European Commission, DG GROW

Questions and answers

16.15-16.30 Concluding remarks

Ms Ulla Engelmann, Head of Unit for Advanced Technologies, Clusters and Social

Economy, European Commission, DG GROW

Mr Giuseppe Guerini, Member of the EESC Group III and President of CECOP

16.30 End of day

Page 3: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 4: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of socially responsible public procurement through social economy enterprises Buying for social impact project

Valentina Caimi, BSI Project Manager, AEIDL

Brussels, 18 November 2019

Page 5: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Objectives of the BSI project

Encouraging contracting authorities to use

public procurement to pursue social goals

Increasing the capacity of social economy

enterprises to take part in public

procurement procedures and to access

new markets

https://www.aeidl.eu/docs/bsi/index.php

Page 6: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Consortium

European Association for Information on Local Development (AEIDL)

European Network of Cities and Regions for the Social Economy (REVES)

DIESIS COOP

Social Economy Europe (SEE) and

the European Network of Social Integration Enterprises (ENSIE)

Page 7: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Geographical scope – 15 EU Member States

Page 8: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Two strands of work

Desk research on: how the new public procurement directive was transposed at national level, identification of good practices on SRPP, and a mapping of the capacity of social economy enterprises in accessing markets

Organisation of awareness raising and training events in the 15 EU countries

Page 9: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Deliverables

1 EU level matrix: legal explanation of the social provisions of Directive 2014/24/EU (by Equal Partners)

15 matrices: legal analysis of the transposition of the Directive in national laws

15 mapping reports of the public procurement & social economy ecosystems

Good practice publication (under finalisation)

Available at: https://www.aeidl.eu/docs/bsi/index.php/bsi-buying-for-social-impact/bsi-library/bsi-deliverable

Page 11: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Good practices identified

Page 12: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Good practices

Page 13: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Good practices – procurement procedures

Page 14: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Good practices – procurement procedures

Page 15: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Findings – main challenges

Insufficient knowledge by the public sector of SEE and in which markets they could participate

Public sector’s tendency to “stay on the safe side”

Social economy not well developed in some MS

Page 16: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Three main recommendations

Good transposition and legal framework are not enough

Need to improve the knowledge and the capacity of CAs and SEE by the means of training seminars, help desks, support structures, facilitators, capacity building projects that provide advice and information

Political will is needed, as well as national networks of legal experts specialised in SRPP

Page 18: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 19: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BUYING FOR SOCIAL IMPACT – BSI 18.11.2019 – Valentine de Francquen

17

Page 20: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of socially responsible public

procurement through social economy entreprise

GENERAL PRESENTATION ILLUSTRATING THE SOCIAL PROVISIONS OF THE DIRECTIVE 2014/24

18 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 21: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The EU matrix of the social clauses of Directive 2014/24 Two objectives

19

1st : This matrix provides for a legal comparative analysis of social clauses of the Directive 2014/24/EU.

2nd : It served to realise a comparative legal analysis between the relevant provisions of the EU Directive, the transposition laws and existing practices in different EU Member States

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 22: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Focus on 4 key areas

1. Reserved contracts (art. 20 and 77)

2. Social considerations (art. 42, 67 and 70)

3. Preliminary market consultations, Division into lots, and subcontracting as a way to increase SEE's participation in PP (art. 40, 46 and 71)

4. Light regime (art. 74-76)

20 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 23: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

1. Reserved contracts (art. 20 and 77)

Reserved contracts (art. 20)

1) Member States may reserve the right to participate in public procurement procedures to sheltered workshops and “social economic operators”*

2) AIM : foster participation of procurement contracts for sheltered workshops and economic operators active in social and professional integration of disabled or disadvantaged persons.

3) Optional transposition

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- Sheltered workshops or - economic operators

active in social and professional integration

of disabled or disadvantaged persons*

at least 30 % of the employees of those

workshops, economic operators or

programmes are disabled or

disadvantaged workers

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 24: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

1. Reserved contracts (art. 20 and 77)

Reserved contracts for certain services (art. 77)

1) Member States may provide that contracting authorities may reserve the right for organisations to participate in procedures for the award of public contracts exclusively for specific health, social and cultural services

2) Optional transposition

3) If transposed : i. The “public service mission organisation” must fulfill 4 criteria

1. Objective : public service mission (as education, health, etc.)

2. Profits : reinvested to achieve the oragnisation’s objective or, if distributed, based on participatory considerations;

3. Participatory structure

4. Not being awarded a contract for the service within the past 3 years

ii. Maximum duration is 3 years

iii. Call for competition has to make reference to the concerned article

22 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 25: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

2. Social considerations (art. 42, 67 and 70)

23

Design phase

•Article 42 : Technical specifications

•Article 67 : Contract Award criteria

Execution phase

• Article 70 : Conditions for performance of contracts

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 26: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

2. Social considerations (art. 42, 67 and 70)

24

Technical specifications (Article 42)

1) = characteristics required of a works, service or supply.

2) Conditions :

i. TS must be linked to the subject-matter of the contract and proportionate to its value and its objective

ii. TS shall be drawn up so as to take into account accessibility criteria for persons with disabilities or design for all users [except in duly justified cases]

3) Transposition is mandatory

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 27: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

2. Social considerations (art. 42, 67 and 70)

25

Contract award criteria (Article 67)

1) Award to the « Most economically advantageous tender » based on one of those three award criteria

i. price or cost, ii. cost-effectiveness approach and iii. the Best Price-Quality Ratio - BPQR social considerations can be

included

2) Conditions for award criteria : i. Linked to the subject-matter of the public contract ii. Weighting must be indicated in the procurement documents

3) Transposition is mandatory

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 28: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

2. Social considerations (art. 42, 67 and 70)

26

Conditions for performance of contracts (Article 70)

1) Conditions : i. Linked to the subject-matter of the public contract

ii. Indicated in the call for competition or the procurement documents

2) Considerations : economic, innovation-related, environmental, social, of employment-related

3) Transposition is mandatory

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 29: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

3. Preliminary market consultations, Division into lots, and subcontracting as a way to increase SEE's participation in pp (art. 40, 46 and 71)

Preliminary market consultations (article 40)

1) Before lauching a procedure

2) Opportunity to conduct preliminary consultations

relating to the social aspects of the procurement 3) Conditions :

i. not have the effect of distorting competition ii. and not result in a violation of the principles of non-discrimination and

transparency

27 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 30: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

3. Preliminary market consultations, Division into lots, and subcontracting as a way to increase SEE's participation in pp (art. 40, 46 and 71)

Division into lots (article 46) 1) Objective :

2) Obligation to justify the decision not to subdivide the PP into lots

3) Transposition is mandatory, and MS may go further by extending the scope of the obligation

28

Facilitate the participation in PP of

1. civil society organisations (CSOs), 2. social economy enterprises (SCEs) and 3. small and medium sized enterprises (SMEs).

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 31: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

3. Preliminary market consultations, Division into lots, and subcontracting as a way to increase SEE's participation in pp (art. 40, 46 and 71)

Subcontracting (article 71)

1) Subcontract -> facilitates involvement of SMEs, including social economy enterprises

2) Obligation for National authorities :

Art. 18 (2) obliges Member States to ensure that in the performance of public contracts, economic operators comply with applicable social and labour law

3) Transposition is mandatory

29

to ensure that subcontractors comply with the obligations referred to in Article 18(2).

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 32: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

4. Light regime (art. 74-76)

Concerns services listed in Annex XIV:

Particular procurement regime dedicated to public contracts for social and other specific services when they are equal to or greater than € 750.000.

Transposition is mandatory

30

such as social services, health services, educational services …, that are endowed with particular characteristics such as limited cross-border interest, distinctive goals, and can address users in a vulnerable situation and openly contribute to social cohesion and inclusion, as well as to the enjoyment of fundamental rights.

VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 33: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

4. Light regime (art. 74-76)

Specific Rules : 1) Art. 75 softens the obligation of advertising

2) Art. 76 requires MS to organize a specific award procurement procedure for public contracts

i. put in place rules taking into account a list of requirements to be met by contracting authorities, among which:

o the specific needs of different categories of users, including disadvantaged and vulnerable groups

ii. those rules must comply with general principles of procurement (transparency and equal treatment of economic operators).

31 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 34: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Thank you!

Valentine de Francquen

EQUAL PARTNERS

[email protected]

32 VALENTINE DE FRANCQUEN - EQUAL PARTNERS

Page 35: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 36: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

An overview of the transposition of social provisions in Directive 2014/24/EU on Public Procurement Alexander Elu, AEIDL Luigi Martignetti, REVES

Page 37: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Flexibility at the heart of Directive. No homogeneous transposition as a result.

Directive has triggered change across Europe but PP tradition counts

Aim of this exercise

What do we mean by a more or less ambitious transposition of SRPP provisions?

Note: ‘More social’ transpositions are key to advance SRPP but not enough

Page 38: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved contracts (art. 20)

Option

Threshold

≥50% CZ (PWD only), EL (only for certain specified Greek legal forms), FR, HR

≥30% DE, DK, EL, HU, IE, IT, LV (PWD only), NL, PL, SE

No indication of minimum share RO

Interaction with art. 77

Page 39: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved contracts for social and other specific services (Art. 77)

• Need to be a registered SE operator: EL, LV

• Reinvestment of all profits RO

• Confusion with art. 20: EL

• Extension of 3-year exclusion if an EO has been awarded a contract belonging to services covered as a whole by the article (not by the contract in question): FR

• Not transposed by CZ, DE, HU and SK

Page 40: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved contracts: main findings

• Uncertainties concerning the definition of « disadvantaged persons » - dealt with through reference to national regulations or to EU definitions

• (difficult) interaction with GDPR – dealt with through national/regional registers

• Challenging interaction between employment services and contracting authorities – dealt with thoguh «interface» services

• Challenges in transposition of art 77, excluding certain kind of SE players – dealt with through framework legislation

Page 41: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Considerations – Art 67 award criteria

Lowest price only

FR: for highly standardised products only

IT: possible for works <2M and highly standardised supplies&services

NL: obligation to justify its use

CZ: shall not be used in competitive dialogues and specified public services

HR: weight of price not higher than 90%

PL: limited, also when weight of price >60%

BPQR shall be used to assess the MEAT (DE)

obligatory for specific contracts (IT)

develops social aspects to assess BPQR (EL)

Page 42: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Considerations (contd.)

Art. 70 Conditions for the performance of contracts

employment of workers belonging to vulnerable population groups EL, HU, PL

facilitation of social and/or work integration EL, HU

combatting discrimination EL, HU

promote gender equality EL, FR

Life cycle of a product or building FR

Art. 18(2) Principles of procurement

Page 43: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Considerations – main findings

• Main focus on employment clauses; dealt with using ethical-type clauses among selection criteria or training clauses among execution criteria

• Scarce presence of models of social clauses; dealt with through national guidelines

Page 44: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Lots, subcontracting and preliminary market consultations Art. 46 Division of contracts into lots

Obligation to divide: DE, EL (only for Central Purchasing Bodies)

Division as a principle (unless necessary or exceptions apply): FR, NL

Depending on feasibility (SME capacity): RO

Justification for not subdividing into lots

HR: obligation applied to high-value contracts only

PL: not transposed.

Page 45: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Lots, subcontracting and preliminary consultations (contd)

Art. 71 Subcontracting

Direct payments to subcontractors

Obligation established: FR, HR

Obligation of CAs to pay for outstanding debts in the remuneration of subcontractors: PL

Option not transposed: DE, SE

Page 46: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Lots, subcontracting and preliminary consultations (contd)

Art. 40 Preliminary market consultations

Mandatory for high value contracts HR

Obligation to share information given to EO (DK, LV); also information obtained from EO (SK)

Avoid competition distortion (RO) and ground for exclusion if advantage has been obtained (FR)

Page 47: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Lots, subcontracting and preliminary consultations – main findings

• Little use of division into lots, where not compulsory – dealt with through market consultation procedures

• Scarce readiness of SEs to join in partnerships to respond to procurements – dealt with through capacity building accompanying schemes for social economy players

Page 48: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Special regime for social and other specific services

Arts. 74-76 • Transposition following closely directive: DE, HR

• Mandatory above threshold: DE, DK, HU, HR, IE, NL, PL, RO…

• Mandatory for services above and below threshold: EL, CZ

• Light regime ‘may’ be applied: LV (equal and above), FR (above and below)

• Best value for money is the ONLY award criterion: IT, PL, RO

• Taking into account the specificities of the services: IT (obligation), CZ (partial transposition of some specificities)

Page 49: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Special regime for social and other specific services – main findings

• Low valorisation of quality over price – dealt with through national guidelines

• Use of only limited kind of quality criteria, mainly related to staff qualification – dealt with through list of suggested criteria at national level

Page 50: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Thank you for your attention!

[email protected]

[email protected]

Page 51: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 52: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The participation of social economy enterprises in public procurement

18 November 2019,

Social Economy Europe

Page 53: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Social Economy in the European Union

According to the European Economic and Social Committee, in the European Union we have 2.8 million social economy enterprises and organisations, employing 13.6 million people and accounting for 8% of the EU’s GDP.

Page 54: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Geographical scope

Page 55: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Social Economy ecosystem in France

Social and Solidarity Economy is currently recognised as an essential component of economic and social life, but its roots are ancient and plural.

There are in France 221 325 SSEs, employing 2.37 million employees, 10.5% of total employment, 15% of total women’s employment and +25% of employees since 2000.

Main forms of the social economy: cooperatives, mutuals, associations, foundations and commercial companies of the social and solidarity economy.

SSEs operate as stated in the French SSE Law, in all the domains of human and economic activity.

For the main sectors of activity, the French SSE represents: 60% of jobs in the social action sector; 57% of jobs in the sports and recreation sector; 30% of jobs in the financial and insurance sector; 26% of arts and entertainment jobs; 11% of jobs in the health sector.

Page 56: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

SEEs access to SRPP in France

Most SSEs in France are SMEs. Although SMEs represent 99% of all French’ enterprises, in 2013 they represented only 58% of public procurement and 30% of the value of public contracts. In general terms, there is a need to explain to public buyers the broad field represented by the French SSE. Indeed, buyers often tend to restrict the SSE to insertion clauses.

There is a request to go beyond the valorisation of the socioprofessional integration of “vulnerable groups” in the framework of public procurement, including tools to support the social or “societal” added value of social economy enterprises and organisations.

Page 57: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Social Economy ecosystem in Italy

The concept of social economy, or the part of it corresponding to the Social Business Initiative, in Italy is often used interchangeably with the concept of the Third Sector (Third Sector Code of 2017), although the latter limits the field, excluding non-social cooperatives.

Legal forms:

- social cooperatives and social enterprises.

- associations and foundations characterized by significant economic activity and non-social cooperative enterprises oriented towards the pursuit of a general interest.

Page 58: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact Fields of activity of SEEs & access to public

procurement in Italy Social work integration activities. In this case, the sector of activity itself is of lesser importance than the purpose of the company.

The health sector, with the provision of both assistance services to the national health service and direct care.

Culture, sport and recreation. In this sector there are both social cooperatives that manage cultural goods and services on behalf of public administrations, and social cooperatives that carry out their own activities, sometimes in partnership with other private subjects.

Environmental activities which include activities aimed at protecting the environment.

-some sectors traditionally considered typical for social enterprises are evolving in the two opposite directions of opening up to non-social economic operators and reinstitutionalisation;

-social enterprises are gaining ground in sectors in which the relationship with administrations, and above all that based on service bargaining, is less relevant, if not marginal.

Among the sectors that have seen the flourishing of social economy enterprises in recent years, we can cite, for example, social agriculture, the management of community services, but also the management of dedicated financial services (think of the emergence of subjects specialised in micro-finance or impact financing in recent years).

Page 59: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

BSI – Buying for Social Impact

Social Economy ecosystem in Germany

The roots of social economy in Germany include the associative and welfare tradition, the cooperative movement, the tradition of mutuals, work integration social enterprises (WISE) and the philanthropic tradition.

The term Sozialunternehmen (‘social enterprise’25) has been in use in Germany for only 15 years, but the roots of the social economy go back some 150 years. Back to social-missiondriven economic actors, such as social businesses operated by trade unions (Gemeinwirtschaft) and church-operated social establishments.

Main forms: traditional associations, welfare organisations, operational foundations, cooperatives, mutuals and “new styles social businesses.

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BSI – Buying for Social Impact Fields of activity of SEEs & access to public

procurement in Germany There is a broad scope of activities of social economy enterprises (SEE):

• social housing (mostly cooperatives);

• work (inclusion and integration);

• financial services and insurance (cooperative banks and mutuals); and

• production and delivery of energy.

However, the German welfare system and the fact that most German SEE qualify as public benefit organisations, which are restricted to an approved list of activities they can perform, mean that the majority of social enterprises are active in the social sector. That includes old age homes, foster-care homes, hospitals and lately, outpatient care.

The growing demand for social services and other goods like renewable energy, affordable housing and fair and ecological foods offer potential opportunities for new social enterprises.

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Access to public procurement for SEEs in Germany

Interviews conducted with key German stakeholders indicate that many civil servants have been reluctant to make use of the new provisions of the 2014 Directive i.e. reserved contracts for welfare/social economy organisations and sheltered workshops. Since they are not always familiar with the related legislation, there is a proposal to establish central procurement offices that can provide advice and support.

Capacity-building of civil servants seems fundamental to the implementation of social procurement legislation and to a stronger cooperation with social partners.

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Social Economy ecosystem in Ireland

There is no legal definition for ‘social enterprise’ in Ireland. Although, the 2019 National Social Enterprise Policy for Ireland defines as a social enterprise as “an enterprise whose objective is to achieve a social, societal or environmental impact, rather than maximizing profit for its owners or shareholders”.

A 2013 Forfás Report estimated there are 1,400 social enterprises are operating in the state, employing between 25,000 – 30,000 people, generating a total income of approximately €1.4 billion.

Main legal forms: Company Limited by Guarantee, charities and for the wider social economy: credit unions, housing and agricultural cooperatives etc.

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Fields of activity of SEEs

The 2019 National Policy for Social Enterprises categorises five main types of social enterprises in Ireland:

-Work Integration Social Enterprises (WISEs)

-Enterprise Development social enterprises which support the creation of other enterprises (e.g. through the provision of office space and facilities),

-‘Deficient Demand’ social enterprises which seek to meet a demand for goods and services within a community where there is insufficient demand for the operation of a regular market due to inherent economic and social disadvantage or low density of population,

-Environmental social enterprises which focus on environmental sustainability,

-Social enterprises contracted with the public sector to deliver public services in disadvantaged areas and communities

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SEEs access to public procurement in Ireland

Need of further support and training on how to legally carry out socially-conscious practices.

While limited support is available to public bodies, the newly adopted OGP policy on social considerations summarises the tools available, such as:

-Reserving contracts for sheltered workshops and economic operators

-Breaking larger contracts into more manageable lots

-Using proportionate and socially-driven selection and award criteria

-Incorporating community benefit clauses into contractual performance criteria

-pre-market engagement activities to inform the market of upcoming competitions and to make procurers aware of social enterprise offerings in the market place

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Social Economy ecosystem in Romania

Law on Social Economy entered into force in July 2015, aiming to regulate the social economy field and to establish measures to promote and support the social economy (Art. 1(1)).

The law regulates also the conditions that must be observed by a social enterprise and respectively a social insertion enterprise in order to be certified by public authorities (Art. 1(2)) (certificate with a 5 years validity).

Social economy is defined as “the collection of activities organised independently of the public sector, which serve a general interest, the interests of a community and/or personal non for profit interests through the increase of the employment rate amongst vulnerable groups and/or the production and provision of goods, provision of services and/or the execution of works” (Art. 2(1)).

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Social Economy ecosystem in Romania

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Fields of activity of SEEs in Romania

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SEEs Access to public procurement

The most frequent situation where social enterprises have been present in the public procurement procedures was connected to the reserved contracts concluded for sheltered workshops. Although, since 2017 obstacles have been observed.

In practice, social services are not subject to public procurement.

Need to further use the instruments available for SRPP.

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Social Economy ecosystem in the Netherlands

Nowadays, the social economy in fact is considered as The Dutch social enterprise sector. This has been relatively limited in size until recently. Important institutions were the sheltered work companies, that by the end of 2015 offered jobs for approximately 103 000 employees with a larger distance to the labour market.

These sheltered work companies still do have the majority of paid jobs for employees that have a larger distance to the labour market, but their share decreases gradually each year. By the end 2017, the number of employees was 87 200.

Since 2010 we have been noticing an important dynamism of the social economy.

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SEEs fields of activity in the Netherlands

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SEEs access to SRPP in the Netherlands

Besides the need for a further growth of the sector the following actions might be helpful:

- Carrying out market research: there might be more social firms/enterprises than expected and/or there might be social firms/enterprises from other regions or even from other Member States that might be interested in tendering;

- The social firms/enterprises have to organise themselves per sector to show that there are enough companies to apply for a contract.

Sectors that were mentioned during the interviews that might be of interest for social procurement are: Food and catering, Cleaning, Parking services for bicycles, Postal delivery.

Sheltered work companies are also active in the field of city cleaning and public garden maintenance. Emphasis on the major importance of private markets.

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Social Economy ecosystem in Poland

Social economy was defined in the National Programme for Social Economy Development (KPRES) as an area of civic activity which, by means of economic and public interest activities, contributes to: professional and social integration of persons at risk of social marginalisation, job creation, provision of social services of general interest and local development.

Big hopes regarding the project of SSE Act.

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Social Economy ecosystem in Poland

In the social economy sector, a total of 365 900 people are employed, of which 235 200 people are employed in cooperatives (various types), 1 900 people in Mutual Societies, and 128 800 people in non-governmental organizations (associations, foundations). These statistics do not include non-profit limited companies;

Social cooperatives are the most popular legal form of a social enterprise in Poland. There were 1,845 social cooperatives registered in the Register of Entrepreneurs in December 2018.

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Social Economy ecosystem in Poland- Fields of activity

a) Gastronomic, hotel and restaurant activities close to 19%, of which gastronomy services were most often offered

b) Activities related to administration and support activities (18%), this is largely related to the development of green areas (7%) or offering of cleaning services (5%).

c) Activities related to industrial processing 13%, most often the production of ready meals and dishes (2%).

d) Service activities related to health care and social assistance (12%), including support without accommodation for elderly people and people with disabilities (5%) and services related to day care for children (3%).

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SEEs access to SRPP in Poland

A question of size: PPL only applies to awarding of the public contracts which estimated value exceeds EUR 30,000

One of KPRES objectives (National Social Economy Programme) is to create jobs in social economy entities which provide general interest services in local communities through the implementation of socially responsible public procurement.

SEEs still need support in the field of public procurement in relation to seeking the possibilities of applying for public contracts, creating competitive offers and actively participating in the contract award procedure

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Social Economy ecosystem in Greece

• 2016 SSE Law: “Social & Solidarity Economy” is legally defined as “the sum of economic activities which are founded on an alternative organization of the relations in production, distribution, consumption and reinvestment, based on the principles of democracy, equality, solidarity, cooperation and respect to the human being and the environment.”

• Main forms: social cooperatives and worker cooperatives (under SSE law)

• In August 2018, 1.090 enterprises were appearing registered with the “Social Entrepreneurship Registry” of the Ministry of Labour, Social Insurance & Social Solidarity

Page 77: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Economy ecosystem in Greece

• 2016 SSE Law: “Social & Solidarity Economy” is legally defined as “the sum of economic activities which are founded on an alternative organization of the relations in production, distribution, consumption and reinvestment, based on the principles of democracy, equality, solidarity, cooperation and respect to the human being and the environment.

• Main forms: social cooperatives, worker cooperatives (under SSE law) and KoiSPE (civil coop dedicated to the work integration of people with mental health problems.

• In August 2018, 1.090 enterprises were appearing registered with the “Social Entrepreneurship Registry” of the Ministry of Labour, Social Insurance & Social Solidarity

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SSEs access to SRPP

• Regarding potential fields of activity, there seems to be a wide spread belief that social enterprises could make ideal providers for the public purchasers in the sectors of educational services, social care services and health care services, because public authorities are in desperate need for innovative solutions in order to reconcile huge social needs with strict fiscal constraints.

• In parallel, awarding authorities are highly hesitant to outsource social services.

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Social Economy ecosystem in Denmark

• In Danish the corresponding word for “social enterprise” is “socialøkonomisk virksomhed”, meaning “social economy enterprise” in direct translation. There does not exist an officially recognised corresponding Danish term for the EU-definition of a “social economy enterprise”, which includes social enterprises as well as associations, mutuals and cooperatives.

• Fields of activity: Employment & social services, educational services, cultural activities & services, food and agricultural products, hotel, restaurants and tourism, construction, demolition and related services + Consultancy services, specifically IT-consultancy, recycling and upcycling, cleaning services, catering and canteen etc.

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SEEs access to SRPP in Denmark

• The field of social and employment services has a special interest for social enterprises.

• According to the mapping made by the Committee for Social Enterprises in 2013, 78 per cent of the companies identified had a social or employment purpose as their main objective. In 2017 the percentage of social and employment services exposed to competition through procurement varied from 13.1 to 62.4 per cent across the 98 municipalities. In certain fields, many social enterprises have reported that they find themselves competing against quite similar services offered by publically-owned institutions.

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Social Economy ecosystem in Latvia

• Latvian law: From 1 April 2018, social enterprises are limited liability companies with social enterprise status if they fulfil certain criteria. Companies which conduct an economic activity that creates a positive social impact (e.g. provision of social services, formation of an inclusive civil society, promotion of education, support for science, protection and preservation of the environment, animal protection etc.).

• Diversity of legal forms: associations, foundations or regular business companies

• In 2018 there were 27 organisations that obtained the social enterprise status. There are also about 200 organisations that could be considered as social enterprises, but due to the fact that until 2018 there was no legal definition and official registry of social enterprises, a precise number of other organisations which can be considered as social enterprises is unknown.

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Fields of activity of SEEs in Latvia

• Social enterprises operate in various sectors including, but not limited to: providing social and health services for elderly people or persons with disabilities, by running a day care centre, social care centre; providing catering services by creating jobs for persons with special needs or excluded persons (persons with disabilities, refugees, ex-prisoners); providing online platform services to support elderly people in nursing homes, social care centres; providing bookkeeping services by creating a work place for long-term unemployed persons and lone parents; producing health care equipment for persons with disabilities; producing eco-friendly packages; producing clothing; promoting environmental and nature protection by running a zero-waste café/shop; and providing education services for persons with special needs and the persons that support them.

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SEEs access to SRPP

• No formal obstacle to the access of SEEs to SRPP

• Lack of knowledge and development of SEEs

• Importance of raising awareness among contracting authorities on the tools for SRPP

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Social Economy ecosystem in Sweden • Recently the Swedish Government adopted a new “Strategy for social

enterprises - a sustainable society through social entrepreneurship and social innovation”. This strategy broadens the definition and concept of social enterprise to include a wider perspective.

• Legal forms: cooperative (economic association), non-profit association, religious community, limited company, limited company with distribution restriction and foundation forms to carry out their activities.

• Social economy enterprises have activities in a variety of sectors. Most organisations operate in Housing, social and societal development (29 per cent), followed by Recreation and culture (25 per cent) and education which includes popular education associations (20 per cent).

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SEEs access to SRPP in Sweden

• IoP (social public partnership) is at the moment experimented in Sweden in order to secure a legal base for social innovation partnership between the public and social economy.

• This is still under development, but may be seen as a contract between the public sector and a social economy enterprise in areas that are not subject for procurement.

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Initial findings – Next steps

difficulty in introducing and applying the new possibilities foreseen by the directive: e.g. the special regime, reserved contracts based on art. 20 (e.g. DE, DK, SE, NL etc.) or difficulty to implement it above the threshold (PL, IT)

use of social considerations is less problematic, although mainly employment clauses

low level of knowledge of the new provisions especially at regional and local level

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Initial findings - challenges

Social economy not well developed in some MS

Insufficient knowledge by the public sector of SEE and in which markets they could participate

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The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

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Achats de l’Etat : les engagements ESS

Conférence BSI « La promotion des achats

publics socialement responsables aux

travers des entreprises de l’économie

sociale et solidaire »

Commission européenne, lundi 18 novembre 2019

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L’organisation des achats de l’Etat : la DAE en

quelques mots

Direction interministérielle à compétence nationale créée le 03 mars 2016

à la suite du SAE

Définit, sous l’autorité du Premier Ministre, la politique des achats de

l’Etat (hors achats de défense et de sécurité)

Périmètre des achats de l’Etat et de ses EP

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Les objectifs des achats de l’Etat : les axes de

performance

La performance économique (le gain achat)

L'accès des PME à la commande publique

Les achats d’innovation

La performance environnementale

L’achat socialement responsable

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Les achats responsables de l’Etat

Une gouvernance interministérielle

Un pilote : le pôle achats responsables

Un travail en réseau au niveau national : les référents ministériels, les

correspondants en région et au sein des EP, des instances de pilotage

transversale

Une approche stratégique et opérationnelle

La définition et le pilotage des orientations stratégiques => politiques

publiques et doctrines

La définition et la mesure de la performance (objectifs/indicateurs)

L’accompagnement des acheteurs => rédaction des considérations RSE

dans les stratégies d’achat et les cahiers des charges

Le développement des compétences (formations, rencontres, colloques,

productions d’outils et de guides, …)

La représentation de la DAE auprès de l’écosystème achats

responsables

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Les achats responsables de l’Etat : l’approche sociale

Insertion par l’activité

économique

Secteur adapté et

protégé

Autres structures de

l’ESS agrées

Jeunes décrochés

scolaires

Egalité

femmes/hommes

Autres dispositions:

commerce équitable,

éthique, etc

Appui au secteur de

l’économie sociale et

solidaire

Appu

i politiq

ue

Pacte de croissance ESS

FREC

Instruction ministérielle

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L’accès des acteurs de l’ESS aux achats de l’Etat

Clause sociale d’insertion

par l’activité économique

Les marchés réservés

Attribution classique

Mise à disposition de personnes

éloignées de l’emploi, personnes

en situation de handicap

Structures d’insertion

Structures du handicap

Structures d’insertion

Structures du handicap

Structures agrées ESS

Développement de l’activité

économique du secteur ESS

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Importance des études amont et de la veille permanente : la phase de

sourcing et de parangonnage est essentielle

L’accès des acteurs de l’ESS aux achats de l’Etat : les

actions de l’acheteur

Sourcing qualifié

Allotissement fin

Choix des acteurs de l’ESS

(marchés réservés)

Bourse à la co-traitance

Rencontres B to B

Consultation sites internet

Salons – speed meeting

Capacité des acteurs de l’ESS

Pas de mise en concurrence

des familles d’acteurs

Liberté des opérateurs

économiques

Communication sur les projets

achat

Publication programmation

Guichet unique

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Le développement des achats aux acteurs de l’ESS

ENJEUX Nb de marchés (7%)

Volume d’achat (25 M€)

Diversification segments d’achat /

métiers en tension - profils

Méconnaissance acheteurs /

acteurs ESS – idées reçues

Dimensionnement marchés

FREINS

LEVIERS ACTION Rencontres acheteurs/ EESS

Conventions acheteurs/EESS

Formations

Objectifs dédiés MP/EESS

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Information des entreprises: les actions de l’Etat

Page de la DAE

Programmation quadriennale des achats de L’Etat

https://www.economie.gouv.fr/dae/programmation-des-achats-letat

Guichet unique pour les entreprises

https://www.economie.gouv.fr/dae/guichet-unique-achats-letat

PLACE

bourse à la co-traitance pour les GME

https://www.marches-publics.gouv.fr/docs/outils-esr-

2017/place/Bourse_cotraitance_mode_emploi6.pdf

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Merci de votre attention

Malika Kessous

Responsable du pôle achats responsables

Direction des achats de l’Etat

[email protected]

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The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

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The Municipality of Budapest Department of Public Procurement

dr. Dalma Kittka Head of

Department

THE BUDAPEST JOURNEY REGARDING SOCIALLY RESPONSIBLE

PROCUREMENTS

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101

Responsible and Value creating Strategy

Responsibility and Creating values

The Capital of Hungary Livable city environment

The largest municipality Enviroment-friendly solutions are preferred

Public duties Innovation is supported

Raising awareness

Social responsibility Sensitization and encouragment of the Setting examples market

Creating strategies Cutting costs and emmission

local municipalities Creating jobs

big buyers Supporting and motivating young individuals employees

Targeted trainings for civil servants

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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102

Commitment of the City of Budapest

Motivation

Memberships

CEPPI

First steps

Transforming the inner regulations

Pilot procurements

Thematic training program

Involvement of the big public buyers

Running projects

Climate-KIC:

• CLIM-EV-Proc

• E-ZEMCON

BIG BUYERS initiative and pilot

The green, sustainable, innovational and responsible procurement strategy of Budapest

Buying for Social Impact

Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles

Dr. Dalma Kittka

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103

2015 New Act on Public

Procurement

CEPPI

2018-2019

Transformation of the inner regulation

Trainings

Invitation in the BIG

BUYERS initiative

Detailed database of the sustainable and

green aspects used in procurements

Best value Electronical procedure New possibility for

exclusion Kbt. 63. § (1) a)

2020 The green, sustainable,

innovational and responsible procurement strategy of

Budapest

New conception for the procurements under the pp

threshold

Introducing the cycle management of procurements

Thematical trainings

Active participation of the public buyers in Bp

Preparation of the Strategy

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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104

Integrating social values and aspects in the Sustainable, green, innovational and responsible

Strategy of Budapest

Raising awareness equal opportunities and equal treatment social values

3 STANDS

increasing cost effectiveness

supporting smes

supporting innovation

general environment protection

creating a healthier, livable city environment

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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105

Why the Strategy is needed

Aims of the development plans Realization

Public Procurement

• PP is a TOOL and an OPPORTUNITY

• - raising awareness

• - motivation of the market

• - realization of long term development plans

such as smart city conceptions

reduction of the environmental impact

protection of values

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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106

Tools to realize responsible and value creating procurements

Total transformation of the regulation and the organisational structure

Long term planning, focusing on the strategic aims

Cycle management of procurements

Measure the benefits

Prior market consultations

Winning the decision makers and the employees (regular trainings, picking the low hanging fruit)

Personalized toolkit

Recording the results

Proper financial planning and ensuring the sufficient funds

Targeted market research, consultation with market operators

„Celebrate and share success”

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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107

Preferring social aspects throughout fulfilment of public duties

Legal background: Hungarian Act on local municipalities – Act 189/2011 Rules for the organization and operation of the Municipality of Budapest Reg. Nr. 53/2014. (XII. 12.)

Socially relevant public duties to be fulfilled by the Capital:

• City cleaning services;

• Ensuring social services;

• Supporting and ensuring doing sports;

• Public lighting, maintaning cemeteries;

• Public transportation;

• Social care of homeless people;

• Basic health-care, services aiming healthy lifestyle;

• Ensuring and maintaning the child care system;

• Rehabilitation of homeless people, general prevention.

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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108

The role of the City Hall

The City Hall is responsible for

- the preparation and realization of the decisions of the General Assembly

- planning, preparing and fulfilling the procurements of the City Hall and the Municipality

- influencing and controlling the Big Public Buyers of Budapest

- control and confirmation of the fulfilment of contracts

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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109

Good practices of the City Hall Basic Principles of equal opportunities and equal treatment Prohibition of discrimination Respecting human dignity National, ethnical and cultural diversity as a value Partneship, cooperation

Aims regarding equal opportunities and equal treatment

Supporting employees with disabilities or special needs

Development of work conditions and circumstances

Accessibility

Equal treatment and equal opportunities throughout recruitment

Supporting young employees: Budapest Grant Program

Training programs and systems

Family friendly Employer 2018

Protection of heathy

Helping the transitional period to retirement

Development the conditions and circumstances of of client management

INTEGRATION in PROCUREMENTS

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

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Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

Good Practices of Big Buyers in Budapest 1.

FŐKÉTÜSZ Kft. – cleaning services Details of the public procurement:

KÉ number: 18891/2017;

• Subject of the work contract: Cleaning services at the seat and the premises of the tendering authority

• Award criteria 1:

„Does the tenderer have a cooperation agreement concluded with a roma public interest foundation, which is registered for at least 3 years and

Does the tenderer undertake to employ roma employees who are registered as disadvantaged persons during the contract period

And does the tenderer undertake to ensure that the number of these employees are at least 8% of the whole staff?

weight: 20

• Award criteria 2:

Price without VAT; weight: 80

• Submitted tenders: 4

• Number of the tenderers who met the social requirement: 2

• Valid tender: 1

• Legal remedy: 0

• It was a successful procedure, the contract was concluded

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Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

Good Practices of Big Buyers in Budapest 1.

FŐKÉTÜSZ Kft. – cleaning services

Experiences of the public procurement:

Negative experiences:

Only 2 tenderers met the social requirements out of 4

Only 1 of them was able to verify the criteria

Positive experiences:

The procedure was beneficial

The tendering authority is absolutely satisfied with the fulfilment of the cleaning services

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112

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

Good Practices of Big Buyers in Budapest 2. Budapest Transport Corporation – purchasing uniforms

Details of the public procurement:

KÉ number: 2013/134;

Subject of the delivery frame contract: Delivery of winter and summer uniforms for employees

Evaluation criteria 1:

• Social aspect: The fulfilment of the contract was within the protective job program

• Shall be reserved for sheltered employment

Experience:

„The quality of the products were sadly under the quality of the professional products due to the uneven sewing, nevertheless, the conception truly served a great purpose”

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113

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

Good Practices of Big Buyers in Budapest 3. Centre for Budapest Transport – Establishment of a P+R parking lot

Details of the public procurement:

KÉ szám: 15977/2019;

Subject of the contract: Refurbishment and building a new P+R parking lot

Award criteria: Employment of disadvantaged employees, maximum 2 persons

Weight: 0,5

in case of no offerings due to: 0 point

- In case of undertaking 2 disabled employees: 100 points;

- Between 0 and 2 disbled employees the method is the following:

P = the number of points given for the examined issue

A = the number of disabled employees

P = (A / 2) × (P max - P min) + P min

The public procurement is running a the the moment

Questions have arrived due to the social aspects

The date of submission had to be prolonged

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114

Buying for Social Impact Socially responsible public procurements in Budapest

18 November 2019, European Economic and Social Committee, Bruxelles Dr. Dalma Kittka

Good Practices of Big Buyers in Budapest 4. BVA Budapest City Image Kft. – Establishment of the integrated playing park and

playground in Csepel Details of the project:

• 3 elements:

purchase of equipment for the integrated fitness park

purchase of toys for the integrated playground

design and building constructions regarding the integrated

playground

• Under public procurement threshold

• + social aspects:

professionals with disabilities were involved in the planning

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115

Thank You for Your kind attention!

dr. Dalma Kittka

[email protected]

Page 118: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 119: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

THE PURSUIT OF SOCIAL AIMS THROUGH RESERVED CONTRACTS:

BARCELONA CITY COUNCIL

Álvaro Porro González Commissioner of Social Economy, Local Development and Food Policy. Barcelona City Council

Page 120: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

1. A general framework of Social Public Procurement Policy in Barcelona City Council

2. Social Public Procurement Guide

3. Special Employment Centres for Social Initiative purposes and Insertion Companies

4. Instruction for Reserved Contracts

5. Complementary actions for Reserved Contracts

6. Social Clauses Advising Service

7. Best Practice Example

OUTLINE

Page 121: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Working towards a Responsible Public Procurement Model:

Social Clauses

Public Procurement considered as a public policy at the

service of the main public policies to promote a new social

and economic model.

Social and environmental efficiency are included in the

contract’s subject matter trying to promote real social

responsibility in public purchasers.

The final social and environmental clauses are the result

of a dialogue with representative stakeholders

(purchasers, trade unions, networks...)

119

EUROCITIES- Social Clauses in Public Procurement

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Annual Work Plans 2018, 2019

(Guidelines, purposes and further actions)

RESULTING ACTIONS

Mayoral Decree on Sustainable Public Procurement

(24/04/2017)

Training plan in social public procurement

(since May 2017)

Innovative public procurement guide

(20/11/2017)

ICT public procurement guide

(20/11/2017)

Social Procurement and Human Rights Guide

In collaboration with Human Rights Organisations (16/11/2017)

“Tax Havens” Decree

(19/05/2016)

Price formula instruction

(22/06/2017)

COMPLEMENTARY ACTIONS

INSTRUCTION FOR RESERVED CONTRACTS

(13/05/2019)

SICE: Integrated Electronic Contracting System

Tender platform + electronic contracting file.

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For workers directly related to public

contract execution:

► Fair salaries

The labour agreement increment as a selection criteria

► Employment stability

Selection criteria

► Labour Agreement maintenance

Contract performance clauses

► Workforce subrogation

Contract performance clause in public service management and other relevant contracts.

►Gender equality

Contract performance clause that requires each bidder to present a Gender Equality Plan

► Functional Diversity

Clause that requires normative accomplishment.

►Work life balance

Contract performance clause that requires each bidder to present a work/life balance plan.

► Subcontractor’s payment

Contract clause in case of delays in payment by the main purchaser.

► Balanced valuation (prize and quality)

Limited price relevance.

ECONOMIC RIGHTS

SOCIAL RIGHTS

LABOUR RIGHTS..

► Social and Solidarity Economy

Mandatory outsourcing

►Ethical Public Procurement

Measures promoting Social Responsible enterprises (ethical code for tenderers)

►Fair Trade (production and distribution respecting labour rights (ILO core convention)

►City Council Decree Regarding public suppliers and tax haven.

NEW ECONOMY PARADIGM

EVIROMENTAL RIGHTS

►Environmental technical instructions

Technical specifications including environmental criteria

More sustainable city council

http://www.ajsosteniblebcn.cat/es

Clauses promoting labour, economic, environmental and social

rights.

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Green Clauses Results

Page 125: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Public Procurement Guide (2016) This guide specifies social inclusion, gender equality and social justice measures designed to encourage the award of work, supply and service contracts to companies and professionals that perform public contracts with a business model base on decent wages, stable employment with health and safety protection, environmental sustainability and ethical behaviour.

• Reserved Contracts Within the framework of the annual municipal reservation agreements and depending on the subject matter of the contract, consideration shall be given to tendering by means of contracts reserved for special work centres and social integration enterprises.

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Special Employment Centres (SEC) Companies that provide paid work to people with disabilities in order to give them access to the labour market. The objective of these centres is to carry out productive work and ensuring that their workers are properly paid and have enough support services to achieve maximum autonomy, therefore, there is a social objective.

Insertion Companies (IC) Commercial society, worker owned company or cooperative which, lawfully constituted, it carries out any activities of producing goods or providing services. The main aim of the company is the socio-labour integration of people in a situation or at serious risk of social exclusion. The objective is to integrate these people who are excluded from the traditional systems of employment by offering them a job and the necessary training and support to improve their conditions of employability, and to facilitate their access to the labour market.

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Instruction for reserved contracts (2019) It includes a new category of Special Employment Centres for Social Initiative purposes (SEC)

and its accreditation process. It clarifies the possibility of reserving only lots and not the whole contract, also specifically for

Special Employment Centres for Social Initiative and Insertion Companies. Makes it mandatory the subrogation of workers in cases of reserved contracts of SEC.

It regulates and limits the weight of price in the bid valuation process. It provides criteria for evaluating the proposal of support, monitoring and training to the

people involved in the implementation of the contract. It explains how a minor contract can also be considered as a reserved contract. Direct

contracting is reserved to the extent that it is intended for an entity that works with people in risk of social exclusion or integration of people with disabilities.

Page 128: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Social Clauses Advising Service

Advising the units and departments of the City Council for the annual

fulfilment of the objectives of reserved contracting

Monitoring reserved contracts

Interacting with Special Employment Centres (SEC) or Insertion Companies

(IC)

Online directory of social economy enterprises including SEC and IC

Promoting and strengthening social and solidarity economy

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Online directory of social economy enterprises including SEC and IC

Page 130: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Subcontracting social economy enterprises: may be established as a contract performance condition in municipal public procurement

Revision of the price weighting formula

Division of Contracts into Lots

Pilot project to evaluate social, environmental and participation performance indicators of 30 companies contracted by the City Council to provide services-for-persons

Complementary actions

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Some achieved results of the reserved contracts (2018)

Total of minor contracts: 603

Total value: 2.683.312,86 €

Primary objective:

9.000.000,00 €

Total of major contracts: 81

Total value: 7.591.060,43 €

Objective achieved: 10.274.373,29 €

Final objective for 2019: 10M €

Page 132: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

A Best Practice Example

Subject matter of the contract City Council’s Department

Contract budget URL

Gardening conservation and cleaning service for the Pegasus Park. Reserved contract for the labour insertion of groups with special employment placement difficulties, including sustainable public contracting measures.

Ecology, Urban Planning and Mobility Area. Municipal Institute of Parks and Gardens

695.022,41 € (excluding VAT) 2 years

https://contractaciopublica.gencat.cat/ecofin_pscp/AppJava/ca_ES/notice.pscp?idDoc=50460160&reqCode=viewCn

AWARD CRITERIA

SCORE (100)

AUTOMATIC CRITERIA 60

Economic offer /price 35

Use of sustainable vehicles 5

Working hours of the professional staff engaged in the support of the people involved in the implementation of the contract

20

VALUE JUDGMENT 40

Proposal of support, monitoring and training to the people involved in the implementation of the contract

20

Proposal of coordination and methodology of the service 20

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Thanks for your attention!

Comments are very welcome Contact:

• Álvaro Porro González [email protected]

• Hiring unemployed people with particular job-placement

difficulties and social-exclusion problems clause: [email protected]

• Subcontracting with social-economy enterprises clause:

[email protected]

Page 134: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 135: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Novelty of reserved contracts in Sweden GORDON HAHN, CEO SERUS / CHAIRMAN

COOMPANION

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Procurement Sweden - SE • €67 Billions

• "Roadmap for public procurement"

• National Agency for Public Procurement

• Social Consideration

• Dialogue

• Division of Contracts

• Reserved Contracts (article 77 (2019) Article 20 (2016))

Page 137: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved Contracts (art. 77)

• No procurement is made

referring to this article in

Sweden yet.

• Interest is shown from public

side

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Reserved Contracts (art. 20)

Page 139: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved Contracts (art. 20)

Municipality of Söderhamn

Dialog

ue

Tendering education

Page 140: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Reserved Contracts (art. 20)

Procurement Center of Dalarna

• 7 procurements with reserved contract

• Bid won by Work Integrated Social Cooperatives

• Public Curtain Laundry, Fruit baskets e.g.

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Reserved Contracts (art. 20)

Municipality of Vindeln • Public cleaning in the municipal owned elderly care housing

• 50 % of work force to have documented disabilities

• Samhall won the bid

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Reserved Contracts (art. 20)

Municipality of Vänersborg

• Gardening, cleaning outdoor cleaning

• Vocabulair – enterprise instead of company

• Work integrated social cooperative ServiceKompaniet won the bid

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Reserved Contracts (art. 20)

City of Gothenburg • Trial work

• Procured as a frame agreement with several WISEs

• Dialogue, mapping

• Several others to be done

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Reserved Contracts (art. 20)

Municipality of Halstahammar

• home care services

• Deadline for bid = 2019 10 23

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Reserved Contracts (art. 20)

Sweden public employment service

• Work training places (in Gävleborg) with ambition to be nationwide

• Dialogue with WISES

• Report and strategic national ambition to reserve contracts to WISEs

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144 144

SERUS www.serus.se

[email protected]

0046 768 78 76 77

Page 147: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

Page 148: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Adam Gromnica Ministry of Labour and Social Affairs of the Czech Republic

The promotion of Socially Responsible Public Procurement through European Social Funds

Brouxelles, Belgium, EU November 18th, 2019

The promotion of Socially Responsible Public Procurement in the Czech Republic through ESF

How to develop SRPP?

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SRPP in the Czech Republic

Page 150: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Czech Republic - National approach

Act No. 134/2016 Coll., on public procument (as amended)

almost fully allows RPP/SPP/GPP... (special conditions for participation or qualitative criteria)

Resolution No. 531 dated 24 July 2017 - Guidelines for the Application of Responsible Public Procurement and Commissioning Applied by the Public Administration and Local Authorities.

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„Socially Responsible Public Procurement“

Responsibilities

o Ministry of Regional Development: Act on public procurement

o Ministry of Finance: 3E and central purchases

o MoLSA: (Socially) Responsible Public Procurement

o Ministry of Environment: GPP

o Ministry of Commerce and industry: SME‘s, CSR, Circular Economy

o Ministry of Justice

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MoLSA – pillars of SRPP

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Project „Socially Responsible Public Procurement“

2016 – 2020 – with an objective to include the principles of RPP/SPP in everyday practice in Czech public procurement

Methodological support, advice, consultation, long-term cooperation with contracting authorities, exchange of best practice examples, etc.

Page 154: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Project „Socially Responsible Public Procurement“ 2016 - 2019

8 topics: 1) employment of disadvantaged people, 2) practical employment experience, apprenticeships and retraining, 3) decent working conditions, 4) SMEs, 5) social enterprises, 6) fair conditions in supply chains, 7) ethical purchasing, 8) environmentally friendly solutions.

3 comprehensive methodologies and other materials published

100 events (conferences, seminars, WSs) on RPP (for more than 3 thousands participants), incl. 4 annual conferences

More than 50 articles, newsletter, LinkedIn, FB, eLearning, etc.

Initiatives in sustainable aspects in centralised purchases

Page 155: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

2019 – current state of SPP

General understanding of SPP, new opportunities and topics emerge

Increasing number of contracts with some type of RPP

Increasing number of contracting authorities open to adopt principles of RPP into their procurement policies

Regular meetings of Ministries on SPP

Challenges and barriers

o controlling mechanisms (EU funds) – unpredictable, question of non-monetary and subjective award criteria or „other than usual“ conditions;

o emphasis on administrative rules (instead of outcomes or best value);

o lack of knowledge of SE market and capacities

Page 156: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

MoLSA – strategy for RPP 2014 - 2019

2014: Strategy of Responsible Public Procurement for MoLSA 3 priorities: o socially responsible public procurement, o environment-friendly solutions, o diversity in the supply chains

Internal regulation: principles of RPP/SPP + checklist

A huge number of public contracts with RPP/SPP aspects: supplies of office equipment, facility management, supplies of food and material aid, sustainable events and promotional items, etc.

2019 – updates, challenge: extension to the whole organization

Page 157: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

MoLSA – Leading by example

Social enterprises involved in the supply chains for conferences (catering for the events/conferences)

Canteen provider Reserved contracts Employment conditions in tenders (printing services)

Page 158: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

Project „Supporting Implementation and Development of socially responsible public procurement“ Ministry of Labour and Social Affairs www.sovz.cz/en

Adam Gromnica, [email protected]

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The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact

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21/11/2019

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Service public de Wallonie | SPW Secrétariat général

Social Clauses in Public Procurement

Experience in Wallonia

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Service public de Wallonie | SPW Secrétariat général

Background

Context: high unemployment rate

• 1996: first experience of social clauses in Wallonia

Gradually abandonned (lack of political support)

• 2013: relaunch of a global reflexion on social clauses

for work public procurements with all the stakeholders

• 2019: New context - manpower shortage in the

construction sector…

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Service public de Wallonie | SPW Secrétariat général

Stakeholders

Contracting Authorities

- Regional - Local - Social housing

companies

Social Economy Entreprises - Federation of

social economy companies

Construction Companies

- Walloon Federation of

Construction Companies

Designed as a partnership between:

Training/ employment organisation - Employment Agency - Training Agency

- Education Ministry

Appointed as « facilitators »

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Service public de Wallonie | SPW Secrétariat général

Working of the « flexible social clause »

Winning tenderer

Contracting authority

Training of interns x hours of

training for max x €

Subcontracting to social economy

(integration) % € of the awarded

procurement

Facilitator •Helps to look for trainees or social economy entreprises •Helps for the procedure

Facilitator •Helps for the drafting of the clause •Calibrates the social effort according to the type of work

Execution phase Drafting phase

Social clause in performance conditions

or/and

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Service public de Wallonie | SPW Secrétariat général

Monitoring system – key results

Implementation report every 6 months

Data provided: between January 2014 and December 2018.

Indicators (since 2014) December - 2018

Total Procurement with Social Clauses 442

Amount of contracts with social clause € 398.660.418,44

Trainees on public procurement 410

Contracts concluded with social economy entreprises

75 6 20 50

128

182 218

259

333

391

442

Total Public Procurement with Social Clauses

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163

Service public de Wallonie | SPW Secrétariat général

Monitoring system – key results

Drafting [PERCENTAG

E]

Execution phase

[PERCENTAGE]

Executed [PERCENTAG

E]

Total Public Procurement with Social Clauses (442)

Fully executed

[PERCENTAGE]

Partially executed

[PERCENTAGE]

Not executed

[PERCENTAGE]

Execution rate of the social clause (out of 129)

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Service public de Wallonie | SPW Secrétariat général

Monitoring system – key results

Mandatory 68%

Voluntary 27%

Unknown 5%

Voluntary or mandatory insertion of social clauses

- November 2013: mandatory for régional building procurement and social housing >1.500.000€

- July 2016: mandatory for regional building public procurement and social housing >1.000.000€

- Septembre 2017: mandatory for regional infrastructure public procurement (road)

- Soon: mandatory for subsidised public procurement

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Service public de Wallonie | SPW Secrétariat général

Monitoring system – key results

* « Training through work » entreprises: provide training, in real work situations for trainees with integration difficulties (“disadvantaged persons“ ) ** Integration entreprises: companies with a specific social goal of long-term integration a of disadvantaged or severely disadvantaged persons. *** Sheltered workshops: companies aiming at the professional integration of people with disabilities

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Service public de Wallonie | SPW Secrétariat général

Conclusion

• 5 years after: impact more and more visible

• Spirit of partnership and involvement of all

stakeholders = key to success

• High political support – 5 ministers involved

More and more mandatory

Financing the « facilitators » (yearly budget: 130.000€)

Each public procurement counts!

Page 169: The promotion of Socially Responsible Public Procurement ......through social economy enterprises Results and recommendations from the Buying for Social Impact project Monday, 18 November

The promotion of Socially Responsible Public Procurement through social

economy enterprises

Results and recommendations from the BSI project

Brussels, 18 November 2019

#Buying4SocialImpact