Brussels, 26/10/2011 (Agence Europe) - Simpler, more legally clear, more inclusive and more flexible public procurement rules which make it easier for small and medium-sized enterprises (SMEs) to tender by making it possible to award contracts not just to the lowest bidder but to those offering the greatest environmental or social benefits. That is what the European Parliament (EP) called for on Tuesday 25 October in passing the report by Heide Rühle (Greens/EFA, Germany) on the modernisation of public procurement, ahead of the European Commission's presentation of proposals in December of this year.
The EP calls in particular for greater clarity and legal security in the scope of the directives on public procurement and in the definitions they contain. It also calls for simplification of current rules, which impose tedious and costly red tape on companies submitting a tender. With the expansion of e-procurement, MEPs propose setting up an EU-wide “electronic procurement passport” proving that the holder complies with EU rules on public procurement. Other measures to remove administrative barriers could include use of self-declarations of compliance and requesting original documents only from the shortlisted candidates or the successful tenderer. A European pre-qualification system should be helpful “if it is kept simple, cheap and easily accessible for SMEs”.
MEPs note that SMEs win only 31% - 38% of public procurement contracts by value - much less than their overall share in the economy (52% of combined turnover) suggests they should. SME involvement is often restricted by the scale of the contracts, “too big to enable SMEs to participate in the procurement procedure”. For that reason, the EP suggests that small businesses could submit a collective tender and share contracts. This would enable them, for example, to make economies of scale. Parliament also encourages awarding authorities to make greater use of dividing public contracts into lots, to give SMEs a better chance of bidding and increase competition. MEPs also ask the Commission to assess whether further rules on the award of subcontracts are needed, for example, on the establishment of a “chain of responsibility”, specifically to avoid SME subcontractors being subject to conditions worse than those applicable to the main contractor.
Parliamentarians say that the “lowest price” criterion should no longer be the determining factor in the award of contracts and that it should be replaced by that of the most advantageous tender in terms of economic, social and environmental benefits, taking into account the entire life-cycle costs of the good, service or work. Broadening the criteria, and systematically admitting alternative bids would also enable bidders to propose new solutions and thus make public procurement, which accounts for some 17% of EU GDP, into a real driver for innovation and help obtain the goals outlined in the EU 2020 strategy.
MEPs call on the Commission to reassess “the appropriate level of thresholds for supply and services contracts, and if necessary raise them”. (FG/transl.rt)