External Consultation Workshop20 May 2015, Vienna (A)

Giacomo SommaProject coordinator

Welcome!

Participants list

Organisation First nameFamily name

Working Group 1"PPI approaches, IPR

& legal aspects"

Working Group 2"Major PPI challenges

& mitigation plans"Working Group 3

"PPI and (Cooperative) ITS"

Social Dinner20 May 2015

(19:30)ASFINAG Bernhard Jelinek X XAustriaTech Bianca Kapl X XAustriaTech Martin Russ - - - XBundesbeschaffung GmbH Stefan Wurm X -CTAG José M. Martínez X XÉARDA János Agócs Kiss X -ÉARDA Roland Csehi X -ÉARDA Melinda Mátrai X X -ERTICO Giacomo Somma X XFinnish Transport Agency Kari Hiltunen X XHighways England Ian Chalmers X XXITS Bretagne Imad FHAIL X XLIST Christophe Feltus X -Hungarian Innov. Agency András Hlács X -North Denmark Region Lasse Stender X XNorth Denmark Region Svend Tøfting X -Regione Liguria Cristina Battaglia X XRegione Liguria Jacopo Riccardi X XRegione Liguria Silvia Risso X XSwedish Transport Admin. Annica Roos X -TOPOS / CEREMA Jean-Philippe Méchin X XVTT Satu Innamaa X XTotal 7 7 8 15

Objectives and agenda

P4ITS objectives

P4ITS: a Thematic Network to prepare the ground for Public Procurement of Innovative

solutions (PPI) for Cooperative Intelligent Transport Systems and Services (C-ITS)

1. Create a European network dedicated to public procurement of innovation for C-ITS

2. Provide the conditions for mutual learning and training for the network members

(experience exchange, including good practice, identification of barriers/problems and

workable solutions/mitigation measures)

3. Set up an external consultation process (to reach beyond the P4ITS consortium)

4. Raise awareness about the topic and the network (e.g., publishing proceedings,

dissemination in congresses and via electronic media)

5. Propose key recommendations (guidelines) for PPI in C-ITS

6. Consolidate the project into a sustainable longer-term network

National / federal administrations

•AustriaTech•Finnish Transport

Agency• ITS Sweden

(Associate: Swedish Transport

Administration)

Regional authorities•North Denmark

Region•Flanders Region

•Észak-Alföld Regional development agency

• ITS Bretagne•Regione Liguria•Topos Aquitaine

(Associate: CETE du Sud-Ouest)

Road operators•ASFINAG

•OHL Concesiones

Research partners•CTAG•VTT•LIST

Coordinated by ERTICO-ITS Europe

Cities•Vigo

•Verona

from 11 countries:

Austria, Belgium, Denmark, Finland, France, Hungary, Italy, Luxemburg, Spain, Sweden, UK

P4ITS consortium

Associated partners•Highways England

• ITS Spain

External consultation & feedbackObjectives:

• Interact with external stakeholders and collect feedback on P4ITS Discussion paper• Input the consolidated feedback in the network's work plan

March-April 2015 – Online questionnaire• Discussion paper & questionnaire published on the P4ITS website• Invitation sent to identified external stakeholders (public procurers)• Collection and first analysis of responses to the online questionnaire

20 May 2015 – Workshop in Vienna• Presentation of Discussion paper & preliminary feedback gathered through the questionnaire• Discussion with external stakeholders on key network topics (to get the feedback and opinions)• Reality check on the first conclusions of the network

June-July 2015 – Identification of potential enablers & discussion topics update• Based on feedback received, identify PPI enablers remaining realistic in the scale of their potential

achievement (e.g., aligning competition laws in all MS is not considered as a realistic enabler)• Identify which points could be effectively addressed through a concerted approach and which will have

realistically the highest impact, thus leading to update network discussion topics

http://p4its.eu/external-consultation

Agenda09:30 Arrival of the participants

10:00 – 10:10 Opening and welcome

10:10 – 10:20 Workshop objectives & agenda (G. Somma, ERTICO - ITS Europe)

10:20 - 10:45PPI - Experiences and Strategies in the Mobility Sector (Martin Russ, AustriaTech)

Questions & Answers (10 min.)

10:45 – 11:10Eco-AT Project – European Corridor – Austrian Testbed for Cooperative Systems (Peter Meckel, ASFINAG)

Questions & Answers (10 min.)

11:10 – 11:30 Coffee break

11:30 - 12:00P4ITS Discussion Paper& Online Questionnaire (G. Somma, ERTICO - ITS Europe)

Questions & Answers (15 min.)

12:00 – 13:00 Lunch

13:00 – 15:00

(coffee break at 14:00)

3 parallel Working Groups:

PPI approaches, IPR & legal aspects(moderator: L. Stender, North Denmark Region; rapporteur: G. Somma, ERTICO - ITS Europe)

Major PPI challenges and mitigation plans – PPI guidelines(moderator: Bianca Kapl, AustriaTech; rapporteur: Bernhard Jelinek, ASFINAG)

PPI and (Cooperative) ITS(moderator: Satu Innamaa, VTT; rapporteur: José M. Martinez, CTAG)

15:00 – 15:30 WG summary by the rapporteurs (10 min. each)

15:30 – 16:00 Final considerations and conclusions

19:00 Network dinner

P4ITS Discussion Paper

Innovation Procurement: complementarity PCP - PPI

• PCP: contracting authorities to steer the development of solutions towards concrete public sector needs, whilst comparing / validating alternative solution approaches from various vendors research, development, validation

• PPI: contracting authorities to act as launching customer / early adopter / first buyer of innovative commercial end-solutions (goods or services) newly arriving on the market (pilot) deployment

Source: http://ec.europa.eu/digital-agenda/en/innovation-procurement

PPI flow chart

TRL - Technology Readiness Level

TRL definition (Horizon 2020 - C(2013) 8631)TRL 1: basic principles observed - Basic research. Pre-conceptTRL 2: technology concept formulated - Concept and

application formulated.

TRL 3: experimental proof of concept - Applied research. First laboratory tests completed; proof of concept.

Material solution analysisTRL 4: technology validated in laboratory - Small scale (“ugly”)

prototype built in a lab environment.TRL 5: technology validated in relevant environment - Large

scale prototype tested in intended environment.Technology development (component)

TRL 6: technology demonstrated in relevant environment - tested in intended environment close to expected performance.

Technology development (system)

TRL 7: system prototype demonstration in operational environment - pre-commercial scale.

Engineering and manufacturing development

TRL 8: system complete and qualified - First of a kind commercial system. Manufacturing issues solved.

Production and deployment

TRL 9: actual system proven in operational environment - Full commercial application, technology available for consumers.

• Pre-commercial procurement (PCP) encompasses R&D services up to prototyping or first test production stages (i.e. the development of limited prototypes and/or test products, but not the acquisition of larger volumes of resulting end-solutions on a commercial scale. (pg. 20)

• The innovation process encompasses R&D and later phases such as preproduction, production, distribution, training, market preparation and new organisational or marketing methods. (pg. 5)

Source: “Guidance for public authorities on Public Procurement of Innovation” available at www.innovation-procurement.org

Which TRL?

TRL range for PCP ? 3-5 2-7

TRL range for PPI ? 6-7 5-9

PPI flow chart with TRL

TRL 1Basic

principles observed

TRL 2Technology

concept formulated

TRL 3Experimental

proof of concept

TRL 4Tech. validation

in lab (small scale prototype)

TRL 5Tech. validation

in relevant environment (large

scale prototype)

TRL 6Technology

demostration in relevant

environment

TRL 7System/prototype

demonstrationin operational environment

TRL 8System

complete and

qualified

TRL 9Actual system

proven in operational

environment

P4ITS questionnaire onInnovation Procurement

Participants to the questionnaire

32 respondents:

• Countries: 13 (Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Spain, Sweden, Turkey and UK)

• Organisations: public authorities, transport & road operators, innovation agencies, associations, research establishment, consultants, providers/suppliers

• Sectors: Transport / ITS, works / supplies / services, health, ICT

• Public Procurement Experience: 25 yes, 7 no.

• Interest in P4ITS network: 17

• Interest in questionnaire results: 21

• Interest in attending the workshop: 15

Is the PPI flowchart clear?

Answered: 32 Skipped: 0• Comments:

– 3: Reformulate question “are any new or additional requirements needed” - term “functional” not clear

– 1: Revise flowchart referring to Guidance for PAs on PPI (pg. 18)

– 2: Border between PCP and PPI as well as R&D and innovation is not always clear

– 1: RFI/RFQ is only the starting point and doesn't guarantee success of the whole process

– 7: TRL reference not clear, or not appropriate (e.g., software services), or different scaling is used

– 2: Use of dotted lines and TRL colors not clear

– 1: real-life examples would help understanding better the flowchart

PPI experienceAnswered: 29 Skipped: 3

• Approaches knowledge / experience:

– Other approaches suitable for catalysing innovation procurement: Yes (9), No (20)

PCP, Competitive dialogue, Integrated Procurement, Project financing, Competitions for the best idea, BIM tech

• Experience with PPI as described in Chapter 2.2 of the P4ITS Discussion paper:

– Yes (8), No (14), Not heard (7)

– Tenders or PCP

– PP (especially including PPI) becomes more and more difficult due to abundant ever moving formal requirements of PP legislation and jurisdiction. Especially the further evolution of procured systems is difficult since not all needs can be anticipated at initial procurement. Reasonable behaviour of the supplier is not enough for justifying additional procurements from the same supplier whereas full open procurement of such extensions is not really feasible. Due to evolving jurisdiction even "lessons learned" are often not useful. There is more formal / legal overhead than technical / user-side innovation required.

Approach Yes No Never heard

Prior Information Notice (PIN) and market consultations 11 16 5

Using functional specifications in your technical specifications 17 11 2

Allowing the suppliers to offer variants 16 11 2

Using the principle of Total Cost of Ownership (TCO) as award criteria 8 15 6

Joint procurement with other stakeholders 14 13 2

Risk sharing between procurer and supplier / provider 9 16 4

Key PPI aspectsAnswered: 8 Skipped: 24

• Are IPR aspects taken into account?

– Yes (5), No (1), Don’t know (2)

– Contractual agreements with supplier / provider; difficult to deal with in case of disputes.

• Challenging aspects of PPI & recommendations:

– Defining relevant problems or unmet needs.

– Specific knowledge of this topic; preliminary project processing capacity, according to industrial methods.

– The state should be clear about the specs. The rules should be clear, possibly set with universities and possible supplier associations.

– The legal framework, its interpretation and other inherent elements (e.g., liability, understanding of requirements by the supplier, user acceptance, system evolution, technical progress/obsolescence, etc.). Simplification of the legal framework and more stability / room for reasonable judgment (in general for PP but possibly in particular for PPI by exceptions).

– Moving a product or service from prototype / demonstrator to commercial readiness.

– Understanding the whole procurement process (supplier management, claim handling, contract management, reporting....), not just the bidding phase. PP is not just bidding; this is important, but it is only the starting point. The attitude is a challenge as well (e.g., lawyers should advise on what law allows to do rather than what is not allowed). Involve procurers in the idea phase to support the process (e.g., choice & use of the correct bidding method to support procuring innovations.

– Procuring authority to be "first mover" in relation to new technology / solutions. The new rules on the negotiated procedures in the new procurement directive might help. Always use market consultations before drafting or issuing our technical specifications to avoid disregarding solutions that you don't know.

PPI and (cooperative) ITSAnswered: 20 Skipped: 12

• Any experience? Yes (7), No (10), Don’t know (3)

• Is there any risk or difficulty factor specific to PPI in this particular sector?Rating from 0 (no particular sector related risk) to 5 (high risk when procuring ITS solutions)

• Is there any other risk / difficulty factor specific to PPI in the (cooperative) ITS sector?

– Contractor's bankruptcy (exclusivity), liability in case of failures.

Next steps

Next steps

June-December 2015:• Trigger in-depth discussion on the updated identified barriers, or new topics identified

• Prepare draft key recommendations/guidelines

Analysis of the updated discussion points/enablers• The network will hold a meeting (Helsinki, 15-16 Sep. 2015) to:

– process external feedback and provide a possible answer to realise the enablers

– have a close look at the latest PPI experiences and actual cases

– look at the legal context, evolved with the entry into force of the new public procurement directives

Towards the delivery of recommendations• The network will hold a meeting (Genoa, 2-3 Dec. 2015) to:

– identify items where a consensus and a consolidated approach can be reached, and can have a positive impact for the market deployment of (cooperative) ITS

– define a draft structure of the recommendations and the rationale behind.

Final Event @ the ITS WC in Bordeaux on Tuesday, 6 October 2015 at 13:30 - 15:00 CET

http://www.itsworldcongress.com/bordeaux-2015/

Setting up a longer term network on PPI

MG.8.3-2015 – Facilitating market take-up of innovative transport infrastructure solutions

• Specific challenge: deployment of highly innovative infrastructure solutions at integrated system level

• Type of action: Public Procurement of Innovation (PPI) Cofund

• Scope: actions should lead to the improvement and capacity building in the field of public purchasing of innovative solutions in transport infrastructure leading to implementation of best available solutions on cross-border TEN-T network and other business cases representative of typical European situations. Proposals should be driven by clearly identified procurement needs of infrastructure owners (the procurers), including life-cycle and cost-benefit assessments and environmental impacts under the life-cycle perspective, and should effectively control budget across various European regions. The work should contribute to the revision / development of relevant standards and regulatory framework, and to study strategies oriented to favour the innovation in transport sector. Good practices should be made available for replication.

• Expected impact: serve as pilot projects; allow for a better coordinated dialogue between procurers and suppliers; contribute to competence building in the sector; build a coherent basis for progressive step changes to regulation, standardisation and public procurement practices fostering innovation and sustainability in transport infrastructure.

• Call funding: total budget 18,5 Million euro (1 to 5 Million euro per project, but request can be higher); 20% funding rate.

• Call details: one-stage proposal submission; opening 24-06-2015; deadline 15-10-2015.

http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/topics/2647-mg-8.3-2015.html

TM2.0: “Enable Interactive Traffic Management”

Expected outcomes:• Build upon deployment of connected travellers to achieve convergence

of mobility services and traffic management. • Focus on individual travellers, collective mobility objectives, legacy

and business opportunities.

Facts:• Today, traffic management plans (TMP)

are not part of the dynamic traffic information delivered to the vehicles

• Individual vehicle behaviour (from the route guidance system) is not made available to the traffic management system

TM2.0 is an ERTICO Innovation Platform launched by Tomtom and Swarco-Mizar. The 15 founding members are key stakeholders from public and private sectors.

Interested?

Co-financed by the

European Union

Competitiveness and

Innovation Programme

ICT-PSP

The network will provide interested public authorities and road operators with the opportunity to follow the activities.

Contact:P4ITS CoordinatorGiacomo Somma

ERTICO – ITS Europeg.somma@mail.ertico.com