sustainable public procurement

2nd International Expert Meeting – 10-Year Framework of SCP, Open Seminar 9 September 2005, San Jose, Costa Rica

Eveline Venanzoni, Ecological Purchasing Service 1 Swiss Agency for the Environment, Forests and Landscape

sustainable public procurement



Outline► Sustainable development strategy

► Integrated Product Policy IPP

► Implementation of the Sustainable Development Strategy

► Sustainable public procurement (ecological, economic and social dimensions)

► Sustainable aspects within the existing Federal procurement law BoeB/VoeB

► Case studies

► Conclusions

► Success factors



Sustainable Development Strategy 2002

Measure 4: Introduction of an integrated product policy IPPTo ensure that the principles of sustainable development are also put into practice in relation to products (goods and services), the Federal Council supports the introduction of an integrated product policy (IPP). Through the creation of a more favourable national and international framework, the Federal Council is seeking to shift public sector and consumer demand towards products that meet high economic, environmental and social standards. Throughout their life cycle (planning, production, use and disposal), products and services are to comply with stringent economic, environmental and social requirements. .....

Area of action: financial policy



Planning Raw Material Production Procurement Use Disposal

Government/ Administration (regulation)environmental policy, procurement policy, economy and trade policy, finance policy, agricultural policy, product liability and standards policy, development policy, social policy, energy policy, transport policy, etc.

ProductLife Cycle Approach

Civil society (supply and demand side) manufacturing industry, financial world, trade and industry, consumers

Integrated Product Policy IPP



Implementation of the 2002 Sustainable Development StrategySub-area Public Procurement

• Clarification of the legal room for manoeuvre (overall control: Secretariat of the Procurement Commission)

• Creation of optimal conditions: revision of the Federal Law and Decree on Public Purchasing BoeB and VoeB (overall control: Secretariat of the Procurement Commission)

• Making available tools, guidelines, information and training: GIMAP - an interactive handbook, new training concept, ecological product criteria (overall control: Competence Centre for Public Procurement)



Sustainable Public Procurement means:

respecting the four public procurement principles ▪ Transparency▪ Equal treatment▪ Promotion of competition ▪ Efficient spending of public money (30 billions

CHF/year)

when taking into account Environmental, social and economic criteria

Sustainable public procurement is broadly accepted and welcomed by the different stakeholders.



Environment Society Economy

Art. 12 BoeBTechnical specifications

Art. 21 BoeB

Award criteria

Art. 9 BoeB Selection criteria (EMS)

Art. 8 BoeB,conditions for participation

(for domestic bidders)

Art. 21 BoeBAward criteria

Sustainable aspects within the existing procurement law

The economically most advantageous bid has to be awarded!Best value for money.



Art. 8 BoeB, conditions of entry (for domestic bidders)

Instruments for the implementation of

• Self declaration (declaration of conformity) through the supplier

• General terms and conditions: Contract penalty

• Controlling instruments

Measures for not complying with Art. 8 BoeB

• Revocation of the award

• Exclusion from the procedure

• Demand of the fixed penalty



Compliance with Conditions of Employment,Occupational Health and Safety Regulations, and

Gender Pay Equity Provisions: Declaration by the Supplier(Sector: printing industry)

I hereby confirm, as an executive officer, that our company(name and address:)__________________________________________________________________________________________________________________________

and also the subcontractors or sub suppliers engaged by the companycomply with the Conditions of Employment, Occupational Health and Safety Regulations, and Gender Pay Equity provisions listed below:

Beschaffungskommission des BundesCommission des achats de la ConfédérationCommissione degli acquisti della ConfederazioneSwiss Federal Procurement Commission



Conditions of Employment: Articles 201–224 of the collective bargaining agreement (GAV) between Viscom, representing employers, and comedia and Syna, representing employees(2005–2008). This includes the provisions relating to the following areas:reciprocal rights and obligations, working hours, shift work, overtime, brief absences from work, leave, public holidays, other paid leave, sick pay, maternity pay, accident pay, educational leave, pay during military service, employment, temporary employment, dismissal, remuneration principles, minimum wage levels, adjustments to pay, 13th month’s salary, supplements, meal allowances.Occupational Health and Safety Regulations: Federal Act on Employment in Industry, Trade and Commerce (Employment Act; SR 822.11) and the Federal Act on Accident Insurance (UVG; SR 832.20).Gender Pay Equity: Federal Act on Equality between Women and Men (Gender Equality Act; SR 151.1).

Place and date: ___________________________________Legally valid signature:___________________________________



Controlling instrument for the monitoring of pay equity in public procurement practices

• Pilot phase in five companies completed

• Promoting direct responsibility and self-assessment for companies accompanied by regular inspections

• Prerequisite for the self-monitoring is an in-depth knowledge of statistics. Federal bodies provide experts at request.

Summary: http://www.un.org/esa/sustdev/sdissues/consumption/spp_web_info.htm



Art. 12 BoeB, technical specifiactions


• Ecological product criteria (recommendations)- stationeries (G/F)http://www.bbl.admin.ch/bkb_kbob/beschaffungswesen/00254/00256/00508/index.html?lang=de

- all purpose cleaners (fall 2005)- procurement of sustainable grown timber (G,F) http://www.bbl.admin.ch/bkb_kbob/publikationen/00631/index.html?lang=de -> Nr. 2004/2

• Mandatory standards - ICT procurement standard (G,F) http://internet.isb.admin.ch/internet/informatikstandards/standardindex/01737/index.html?lang=de&verz4=gesamt

- ICT operation standard (G,F)http://internet.isb.admin.ch/internet/informatikstandards/standardindex/01738/index.html?lang=de&verz4=gesamt



Art. 21 BoeB, award criteria


• Life cycle costing, whole life costing, (TCO)

- price

- service costs- maintenance costs- costs of replacement parts- disposal costs

Consider time span to make the bids comparable!



Legal framework

Organisations

Economics

TrendsProjectsEthics / Corruption

Strategies

Procurement principles

Training and further education of the purchasers

►New training concept

►Teach the teachers

►Pilot courses (under way)

►Regular courses fall 05



Resource and environment management of the federal administration (RUMBA)

The environmental quality of the centrally purchased goods influences significantly the environmental performance of the federal agencies.

request from the procurement body to purchase products and services that are less harmful to the environment (e.g. ICT equipment, stationeries, heating, catering, buildings)



Case study 1:

Sustainable timber purchasing

Step 1 Parliamentarian Initiative

Step 2 Response of the Swiss Federal Council

Step 3 Draft recommendation for purchaser

Step 4 Call for tender

Step 5 Award



Case study 1 (continued)

Step 4 Call for tender (cladding of a new administrative building)

• Call for tender published on 02/07/2003

• Technical specification: Minimum amount of timber (spruce 80%, larch 50%, douglas 20%) that meets the criteria of one or several of the three labels FSC, PEFC, Q

• Award criteria: Additional offered amount rated under the Award criteria Environment

• Award criteria: Environment 40%Price 30%Delivery date 20%References 10%




Step 5 Award

• Award published 17/10/2003

• The economically most advantageous bid had100 % of the offered timber labelled (FSC or Q)



Case study 2:Production of T-Shirt 90Armasuisse Center for Military and Civilian systems

Basic conditions Article 2323.1 For performance in Switzerland supplier shall comply

with Art. 8 BoeB (industrial safety provisions, working conditions at the place of performance, the equal treatment of women and men with respect to their salary.Supplier undertakes to comply with the conventions 29, 87, 98, 100, 105, 110 (Articles 85-88), 111, 135, 138, 182 of ILO and with the UN-Conventions

regarding children’s rights.




Basic conditions Article 2323.1 Purchaser or an institution instructed by him shall be

entiteld to carry out a social audit at any time and without any prior announcement.

23.2 Should supplier not comply with the rules of procedure (23.1) he shall owe a contractual penalty amounting to 10% of the contract price, with a minimum of 3000 and a maximum of 100.000 CHF.



Case study 3:Production of combat boots (Swiss official gazette of commerce: publication 08.08.2005)

Basic procedural principles (4.4 of the call for tender):“Generally the awarding authority places public orders only with companies which comply with at last the following six core conventions of the International Labour Organisation ILO”: • Minimum Age (C138)▪ Worst Form of Child Labour (C182)▪ Forced Labour (C29) and Abolition of Forced Labour (C105) ▪ Equal Remuneration (C100)▪ Discrimination (Employment and Occupation) (C111)▪ Freedom of Association and Protection of the Rights to Organise and Collective Bargaining (C98)



Case study 3 (continued):

Documentation asks for:Self declaration by the supplier:Environment / ecology: • EMS• Legal compliance with environmental law• Further efforts concerning minimization of emissionsSocial aspects: • compliance with the six ILO core conventions

Self declaration for all manufacturers in the supply chain



Case study 3 (continued):

Award criteria:Quality 70%Price 25%Technical appreciation 5% If the supplier can

prove that the requirements of Technical Specification

A.79.0001 "Limits for Harmful Substances in Textiles and Leather" are met.



Conclusions

Sustainable Public Procurement is already possible!There should be formulated and adopted minimal sustainable criteria to be met by all suppliers as “entry preconditions” to the global market:

• Legal compliance in it’s own country• Compliance with international agreements/treaties (e.g.

ILO core conventions)



SD strategy / commitment

Centralised procurement organisation

Conducive legal framework

Leading procurement body

Interdisciplinary co-operation of competent partners

Raising awareness of all stakeholders involved in public

procurement

Handbooks, practical aids, ecological product criteria

Training of the purchasers

International collaboration and information

Success factors for sustainable public procurement



• BKB (Federal Procurement Commission): www.admin.ch/beschaffung (G,F)

• SAEFL Swiss Agency for the environment, products section: www.produkte-umwelt.ch (G,F,I,E)

• Swiss Sustainable Development Strategy 2002: www.are.admin.ch/are/en/nachhaltig/strategie/index.html (G,F,I,E)

• GIMAP Interactive guide on public procurement: www.gimap.ch (G,F)

• Information on Eco-Labels: www.labelinfo.ch (G)• KBOB: www.kbob.admin.ch (G,F,I)• RUMBA (EMS in Federal Administration): www.rumba.admin.ch

(G,F,I)• IGöB Interest group on ecological purchasing (goods and services):

www.igoeb.ch (G,F) • KöB: (Ecological construction)www.eco-bau.ch (G,F)

G: German; F: French; I: Italian; E: English

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Links



Gracias y Pura Vida!

sustainable public procurement

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