Experience in adopting framework agreements
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Transcript of Experience in adopting framework agreements
Experience in adopting framework agreements
Urbain BRUGGEMAN
Head of the Belgian Consultancy and Policy Office on Federal Public Procurement
EU Learning Lab 2006-11-10
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1. Introduction
• EU Directive 2004/18/EG of 31 March 2004
Framework Agreements (FA) possible for ‘classic public sector’
Many new possibilities for the public purchase services
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2. Questionnnaire• Questionnaire sent to all the
EU Learning Lab members
• Aims:
Collect information about application of FA
Share ‘good practices’
• Belgium leader of this project
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3. Reactions of the members• Completed questionnaire received
from:
– France– Ireland– Italy– Denmark– Cyprus– Hungary– Latvia– Sweden
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3. Reactions of the members
• Probable reason for not receiving any reaction of the other countries:
Directive not yet transposed in many EU countries (Belgium)
Too early for communicating experiences on FA
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3. Reactions of the members
• Cyprus:
Didn’t conclude yet FA for the 4 options
Intention to establish a working group with representatives of main
purchasers of the government sector
representatives of PPD
82. Reaction of the members
3.1. General Information
Country Institution Institution Governance Organization
FranceMinistère de l'économie, des finances et de l'Industrie ("Minéfi), Agence centrale des achats
Large Administration
Ireland Department of FinanceAuthority (National Public Procurement Policy Unit within the Department of Finance)
I taly Consip Central Purchasing Body
DenmarkStatens og Kommunernes Indkobs A/S (SKI)
Central Purchasing Body
CyprusPublic Procurement Directorate of the Treasury of the Republic
Authority
HungaryPublic Procurement Council (Közbeszerzések Tanàcsa)
Authority
Latvia Procurement Monitoring Bureau Authority
SwedenSwedish National Financial Management Authority
Central Purchasing Body
Belgium ABA Authority
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92. Reaction of the members
3.2. Options already adopted
Country Option 1 Option 2 Option 3 Option 4France x x xIreland x x
Italy xDenmark x x xCyprus
HungaryLatvia
Sweden x x x xBelgium
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102. Reaction of the members
3.3. Details about option 2
Country Products categories
France We do not implement this option
IrelandGuidelines have not been provided at this stage
Italy
DenmarkNo plans to establish agreements of this kind
CyprusHungary
LatviaSwedenBelgium
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112. Reaction of the members
3.4.1. Details about option 3 – Questions not answered
Not answered for option 3:
-Hungary-Cyprus-Latvia-Italy-Belgium
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122. Reaction of the members
3.4.2. Details about option 3 – Questions answered
Country 1. Product categories 2. Number of selected suppliersFrance Car fuel 3Ireland Photocopiers 5
>50 different framework agreements
Denmark>A broad spectrum of different products and services (computers, information technology peripherals, telecommunication, furniture, energy, office equipment, stationery, vehicles, hotel accommodation, air travel and food)
300 suppliers for 50 framework agreements
Sweden
Human resources for hire, translation and interpretation services, transportation of goods, domestic flight services
Usually 2 - 4
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132. Reaction of the members
3.4.2. Details about option 3 – Questions answered
Country3. The rationale adopted in choosing
the number of selected suppliers4. Duration of the FA
FranceThe main idea was to select three large networks of fuel stations so that the users always have a station nearby
18 months with an option for two one-year extensions
Ireland
Suppliers were sought for 6 black-and-white models and 1 colour model. The black-and-white models ranged from small desktop to large-volume models. One supplier was chosen for each lot, based on capital/copy charge costs of optional equipment supplied
Two years with an option to extend to a third year
Denmark
General rule: SKI chooses at least three suppliers per FA and typically between three and ten suppliers. Some types of FA result in up to 45 different suppliers
Between 24 and 48 months
SwedenNeeded capacity for buyer, supplier capacity, market structure, competition situation, type of goods/services
Usually 1 - 2 years with a one-year option
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142. Reaction of the members
3.4.2. Details about option 3 – Questions answered
Country5. The rationale adopted in choosing
the duration of the FA
6. Which selection criteria shall the Public Administration adopt in choosing one among
the selected suppliers
France
18 months is a practical minimum if you do not want to be permanently organizing tenders. Two more years possible if there are no major changes in the market
Geographic proximity
I reland
Photocopiers usually have a warranty of five years - there are products which do not become obsolete quickly, so it was important to set enough time to evaluate the operation of the suppliers and the market, in order to determine how to approach the market
For each lot, the supplier that scored best in the market scheme was chosen
Denmark
Market dynamics are very important as a rationale, as is - especially concerning information technology related products - obsolescence of the products or rather the need to include new technological breakthroughs
The public administrations choose the supplier who best meets their needs in an objective manner according to general rules of non-discrimination, etc…
SwedenType of goods/services, market structure, competition situation
The cascade method is a possible method but not the only one available or permitted according to the EU Commission. There may also arise situations where there is a need to deviate from the chosen method which is also permitted according to the Commission
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152. Reaction of the members
3.4.2. Details about option 3 – Questions answered
Country
7. How long, on average, are supply contracts between the single Public
Administration and the selected supplier?
FranceJust the few minutes needed to fill up the tanks
IrelandVaries according to requirements, usually two to three years for a common supply
DenmarkIt varies a lot but most often the supply contracts length is the same as the duration of the FA
Sweden Probably 2 years with one-year option
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162. Reaction of the members
3.4.4. Details about option 4 – Questions not answered
Not answered for option 4:
-Hungary-Cyprus-Latvia-Italy-Belgium-Ireland
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172. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Country 1. Product categories 2. Number of selected suppliersFrance Paper for printers and PCs (3 lots) paper: 4; PCs: 3 for each lot
Denmark
In connection to a number of the 50 FA mentioned for option 3, the possibility of reopening competition for those public administrations that may need it, has been included
SKI currently has contracts with just over 300 suppliers with regard to the 50 FA
SwedenThe co-ordinated procurement system in the central government runs a large variety of FA about 90 product areas.
Varies but is usually from 3 - 8. For IT consultancy services we have as many as 50. This is due to the fact that these suppliers are often small firms with a limited capacity and they serve many different agencies with many different needs.
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182. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Country3. Description of the rationale in choosing the number of suppliers
4. Duration of the FA
France
3 is the minimum number mandated by the procurement code. Above 4 it is hard to manage second stage competition
1. paper: 2 years plus one-year option; 2. PCs: three years
Denmark
General rule: SKI chooses at least three suppliers per FA and typically between three and ten suppliers. Some types of framework agreements - e.g. management consultancy - result in up to 45 different suppliers
Usually SKI 's FA last between 24 and 48 months
SwedenNeeded capacity for buyer, supplier capacity, market structure, competition situation, type of goods/services
Usually 2 years with a one-year option although this may vary
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192. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Country5. Description of the rationale
adopted in choosing the duration of the FA
6.1. Can the Public Administration reopen the competition only among a restricted group of
suppliers selected in the FA? If so, which is the rationale behind this option?
France
Three years seems a good balance between the necessity to give regularly an opportunity to new suppliers and the complexities of tendering procedures
All the suppliers must be consulted in each competition
Denmark
Market dynamics are very important as a rationale, as is - especially concerning information technology related products - obsolescence of the products or rather the need to include new technological breakthroughs.
Yes. I f only a restrited group of the suppliers can meet their specific needs.
SwedenType of goods/services, market structure, competition situation
According to the provision in the directive art 32: a) you only have to ask the suppliers capable of performing the contract. This usually means asking all the suppliers but can also apply to a selected number of the suppliers to the FA
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202. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Country6.2. How do you regulate the reopening of the competition?
6.3. Who reopens the competition? The Public Administration or the central purchasing body?
France There is a new competition every six months
The central body
Denmark
The conditions for reopening the competition are laid down in the contract that the suppliers agree to sign in connection to the FA. The conditions follow the rules laid down by the Directive 2004/18/EC.
The public administrations but assisted by SKI.
SwedenIt is usually regulated in the call for tender documents and in the contract for the FA.
The Public Administration
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212. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Country6.4. Which are the renegotiating
terms?
7. How long, on average, are supply contracts between the single Public Administration and
the selected supplier?
France Prices only
The different units of the Minéfi just issue orders according to their needs. They do not have to sign a specific contract before ordering, but strictly speaking in law each order constitutes a separate contract.
DenmarkPotentially all of the mentioned but focus is usually on the price.
I t varies a lot but most often the supply contracts length is the same as the duration of the FA.
SwedenThey can vary. Price is probably the most frequently used criterion followed by delivery time, associated services.
We have no idea. Most probably they are used for single purchases at different times.
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222. Reaction of the members
3.4.4. Details about option 4 – Questions answered
Only Sweden applies the following system:
-Central Purchasing body selects more than one offer in the first stage of the procedure-The customers of the CPB the selected firms,receive the definitive offer of the selected firms,evaluate the offers and award the contract.
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232. Reaction of the members
3.4.5. Details about the case – Questions not answered
The following countries did not give an answer for thequestions mentioned on the questionnaire for the case:
-Hungary-Cyprus-Italy-Belgium
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242. Reaction of the members
3.4.5. Details about the case – Questions answered
Country 1 Product category 2 Number of firms presented in the market
FranceSee complete presentation of the case seen during the Paris meeting in the Llab
See complete presentation of the case seen during the Paris meeting in the Llab
Denmark
SKI currently has around 50 different FA span a broad spectrum of different products and services. Examples are computers, information technology peripherals, telecommunication, furniture, energy, office equipment, stationery, vehicles, hotel accommodation
SKI curently has contracts with just over 300 suppliers with regard to the 50 FA
Sweden We have about 90 product areas Around 250 totally in the different product areas
Ireland Photocopiers 12 or 13
Latvia Supplies, paper
The answer depends on the definition of the market. Considering all those suppliers, who were potentially interested in supplying the pretty large amount of paper (of course not only from Latvia), the number could be pretty huge.
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252. Reaction of the members
3.4.5. Details about the case – Questions answered
Country 3. Number of firms submitting an offer4. Number of firms that awarded the FA and
rationale behind this choice
FranceSee complete presentation of the case seen during the Paris meeting in the Llab
See complete presentation of the case seen during the Paris meeting in the Llab
Denmark No answer
300 suppliers with regard to the 50 framework agreements. As a general rule SKI choooses at least three suppliers per FA and typically between three and ten suppliers. Some types of FA (e.g. management consultancy) result in up to 45 different suppliers.
Sweden No answer 3 - 8, sometimes moreIreland 10 Not clear on what this question means
Latvia 5First part (lot) of a subect of procurement - 4, second part - 2, third part - 2
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262. Reaction of the members
3.4.5. Details about the case – Questions answered
5 Duration of the FA and rationale behind this choice
6. How many times has the competition been reopened?
See complete presentation of the case seen during the Paris meeting in the Llab
See complete presentation of the case seen during the Paris meeting in the Llab
Usually SKI 's FA last between 24 and 48 months
No answer
Usually 2 years with one-year option although this may vary
We have no idea but it must be hundreds of times maybe even thousands of times
No answer No answer2 years (don't know for sure, but
probably the sense of such term is presumption that after 2 years a new agreement could be signed on more
advantageous conditions)
2
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272. Reaction of the members
3.4.5. Details about the case – Questions answered
Country7. Which is the duration of the specific
supply contract?
FranceSee complete presentation of the case seen during the Paris meeting in the Llab
DenmarkIt varies a lot but most often the supply contracts length is the same as the duration of the FA
Sweden No answer
Ireland No answerLatvia No answer
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