Select Committee on European Scrutiny Twenty-Eighth Report


PROCUREMENT PROCEDURES IN THE WATER, ENERGY AND TRANSPORT SECTORS


(21472)
10346/00
COM(00) 276

Draft Directive on the co-ordination of the procurement procedures of
entities operating in the water, energy and transport sectors
Legal base: Articles 47(2), 55 and 59 EC; co-decision; qualified majority voting
Document originated: 10 May 2000
Forwarded to the Council: 11 July 2000
Deposited in Parliament: 27 July 2000
Department: Trade and Industry
Basis of consideration: EM of 3 October 2000
Previous Committee Report: None but see paragraph 21.1 below
To be discussed in Council: 30 November 2000
Committee's assessment: Politically important
Committee's decision: Cleared

Background

21.1  On 29April 1998, we reported[53] on a Commission Communication on public procurement in the European Union. This followed an earlier Green Paper in 1997, Public Procurement in the European Union: exploring the way forward. That Communication included the Commission's intention to bring forward amending directives on public procurement.

The document

21.2  This document is the Commission's proposal for amending and replacing Directive 93/38/EEC, as amended by Directive 98/04/EC, on procurement by contracting entities operating in the water, energy, and transport and telecommunications sectors. The purpose of the proposal is to simplify and clarify the existing Directive and to bring it up to date, for example to take account of market changes such as e-commerce and the gradual liberalisation of the water, energy, transport and telecommunications sectors. Additionally, the Commission proposes some re-drafting and re-structuring in the interests of user-friendliness. In her Explanatory Memorandum of 3 October 2000, the Minister for Energy and Competitiveness in Europe at the Department for Trade and Industry (The Rt. Hon. Helen Liddell) says that the main substantive amendments are:

    "—  a revised definition of special or exclusive rights based on a decision of the European Court of Justice;

    "—  exclusion of operators in the telecommunications sector from the scope of the Directive on the basis that progress towards the liberalisation of that sector is virtually complete throughout the Member States;

    "—  the introduction of a general mechanism under which the Commission can exclude other sectors from the application of the Directive when it is established that, in the area in which they operate, they are exposed directly to competition in a market to which access is not limited;

    "—  extension of existing provisions on the debriefing of candidates and tenderers to entities not also subject to the World Trade Organisation (WTO) Government Procurement Agreement;

    "—  retention of the existing exclusion for deregulated bus operators in the UK and of the alternative régime for oil and gas exploration and exploitation in the UK; and

    "as in the proposal for the public sector Directives (10345/00):

    "—  more scope for electronic purchasing methods, with commensurate reductions in minimum timescales for responses when electronic communications are used;

    "—  modification of the rules on 'technical specifications' to give greater emphasis to the principle of mutual recognition and the need to consider offers of equivalent goods or services, if they meet the user's needs;

    "—  a strengthening of the requirement to make the relative weighting of 'award criteria' known in advance;

    "—  express provision for environmental characteristics to be taken into account in assessing the economic advantage of bids;

    "—  simplification of the financial thresholds above which the Directive applies;

    "—  the introduction of a new EC nomenclature, the Common Procurement Vocabulary (CPV) for classifying goods, works and services; and

    "the incorporation of provisions on the award of designs contests, as presently found with public sector Directives."

21.3  We report separately on the Commission's proposal for amending the public sector Directives, to which the Minister refers (see paragraph 20 in this Report).

The Government's view

21.4  The Minister says: —

    "The Government supports the Commission's proposals to simplify and clarify the Directive but will wish to ensure that unintended changes are not made. The Government welcomes the proposal to exempt the telecommunications sector from the scope of the Directive, and to cover the procurement of telecommunications services instead in both the public and utilities sectors.

    "The Government supports the proposal for other sectors to be exempted as liberalisation takes place over time. The Government would, however, prefer a mechanism under which the contracting entities and their Member States can themselves apply the criteria for exclusion.

    "The Government welcomes the proposal to put electronic documents on a par with written documents and the proposed provision for environmental characteristics to be included in the criteria for establishing the economic advantage of offers. It considers, however, that the proposals on disclosing the relative weighting of contract award criteria are not yet as flexible as they need to be to ensure that value for money can be secured efficiently. Care will also be needed to ensure that accompanying proposals for the adoption of the CPV nomenclature and for the Commission to take decisions on the format of notices do not result in unauthorised sub-delegation.

    "Broadly speaking, however, the proposals are consistent with the Government's policy of seeking measures which are effective in opening markets without imposing unnecessary burdens or constraints.

    "A regulatory impact assessment is not required. The proposals do not place any burdens directly on suppliers (including service providers and contractors). On the contrary, increased scope for electronic commerce, shorter time-scales, standard notices and a Common Procurement Vocabulary should improve efficiency for both purchasers and suppliers, including small and medium sized enterprises for whom ready access to usable market data and inexpensive communication systems are recognised as being very important. The gradual exclusion of sectors, as market forces come to bear on them as a result of liberalisation and exposure to competition, will also ensure that the Directive does not apply unnecessarily."

21.5  As regards progress, the Minister thinks that a Common Position in the Council seems unlikely before the Spring of 2001, with a view to adoption of the proposed directive by the end of 2002, in line with the conclusions of the Lisbon European Council in March of this year.

Conclusion

21.6  We note the Government's general support for this proposal, and that it should facilitate and improve procurement in the areas covered. The Government will, no doubt, pursue the points of concern to it in Council discussions. We expect to see an amended version in due course. Meanwhile we have no questions to raise and clear the document accordingly.



53  (18975) 6927/98; see HC 155-xxvi (1997-98), paragraph 12. Back


 
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