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Procurement of Innovative Technologies and Research Bill


Procurement of Innovative Technologies and Research Bill

1

 

A

Bill

To

Make provision in relation to the awarding by government departments and

agencies of research and development contracts for innovative technologies;

and for connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

1       

Purposes of Act

(1)   

The purposes of this Act are—

(a)   

to facilitate the identification of requirements for innovative new

technologies with the potential to enhance the effectiveness of

government departments and agencies in meeting value for money and

5

strategic objectives, and

(b)   

to facilitate the solicitation and commissioning by government

departments and agencies of research and development contracts with

industry for the development and trialling of technologies and

solutions capable of meeting those objectives.

10

(2)   

The activities undertaken in pursuance of this Act shall be known as the

Genesis Programme.

2       

Furtherance of purposes of Act

(1)   

It shall be the duty of the Secretary of State to further the purposes of this Act

by taking such steps as he deems expedient to support and promote the

15

Genesis Programme.

(2)   

Subject to subsection (3), the Secretary of State may by order prescribe any

government department or agency for the purposes of this Act.

(3)   

It shall be the duty of the Secretary to prescribe under subsection (2) any

government department or agency which, in his opinion, has an annual

20

research and development budget of more than £20 million.

(4)   

The Schedule to this Act has effect in relation to any prescribed body.

 
Bill 12554/1
 
 

Procurement of Innovative Technologies and Research Bill

2

 

(5)   

The Secretary of State may make regulations amending or varying the

provisions of the Schedule.

(6)   

In this Act “prescribed body” means a government department or agency

which has been prescribed by an order under subsection (2).

3       

Report on operation of Act

5

(1)   

Two years after the coming into force of this Act, and every two years

thereafter, the Secretary of State must publish an evaluation report on the

operation of this Act.

(2)   

Each report published in accordance with subsection (1) must contain—

(a)   

aggregate statistics for each prescribed body on solicitations and

10

contracts awarded (number and value by phase);

(b)   

an assessment of conformity with this Act and any associated

guidelines;

(c)   

aggregate statistics for each prescribed body showing the number and

volume of awards by company, together with a list of any companies to

15

which awards have been made more than once;

(d)   

case studies and aggregate measures of commercial or economic

impact;

(e)   

any recommendations for improvements to the Genesis Programme;

(f)   

any other matter which the Secretary of State considers appropriate.

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4       

Orders and regulations

(1)   

The power of the Secretary of State to make an order or regulations under this

Act is exercisable by statutory instrument.

(2)   

A statutory instrument containing regulations under section 2(5) may not be

made unless a draft of the instrument has been laid before and approved by a

25

resolution of both Houses of Parliament.

(3)   

A statutory instrument containing—

(a)   

an order under section 2(2), or

(b)   

regulations under paragraph 8(4) of the Schedule,

   

is subject to annulment in pursuance of a resolution of either House of

30

Parliament.

5       

Short title, commencement and extent

(1)   

This Act may be cited as the Procurement of Innovative Technologies and

Research Act 2006.

(2)   

This Act shall come into force at the end of a period of eighteen months

35

beginning with the day on which this Act is passed, unless the Secretary of

State by order appoints an earlier day.

(3)   

This Act extends to Northern Ireland (as well as to England and Wales and

Scotland).

 
 

Procurement of Innovative Technologies and Research Bill
Schedule — Procurement of Innovative Technologies and Research — The Genesis Programme

3

 

Schedule

Section 2(4)

 

Procurement of Innovative Technologies and Research — The Genesis

Programme

1          

A prescribed body which has an annual research and development budget

of more than £20 million must allocate at least 2.5 per cent of its budget for

5

disbursement as contracts (“Innovation Contracts”) with industrial

companies to research, develop and trial innovative technologies with the

potential to improve the body’s effectiveness, meet its objectives or

discharge its obligations.

2     (1)  

Innovation Contracts must be solicited and awarded within the framework

10

defined by this Act subject to the relevant EU Procurement Directives.

      (2)  

Departmental processes must accord with such detailed guidelines as may

be issued by the Secretary of State from time to time.

3     (1)  

A prescribed body must announce at least twice each year the fields in which

it is interested in receiving submissions.

15

      (2)  

Each solicitation must include requirements specifications in accordance

with this Act.

4          

The fields covered by solicitations shall be determined by the prescribed

body concerned in relation to relevant factors, including—

(a)   

the body’s objectives;

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(b)   

the body’s technology strategy;

(c)   

the timing of potential commercial implementation.

5          

Contracts must be solicited and awarded only for—

(a)   

technical feasibility studies,

(b)   

technology demonstrators,

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(c)   

prototype products and systems, or

(d)   

technology evaluation projects.

6     (1)  

Each solicitation must be prepared by a project manager with sufficient

expertise to—

(a)   

define the requirement (typically at the functional level, taking

30

account of the adequacy of existing solutions),

(b)   

evaluate submissions,

(c)   

manage contracts from a customer perspective, and

(d)   

assess deliverables.

      (2)  

Where appropriate, the task referred to in sub-paragraph (1) may be

35

undertaken in conjunction with an end user of the technology, who may

be—

(a)   

a person within the prescribed body concerned, or

(b)   

a person or an organisation carrying out activities funded by the

body or under the direction or guidance of the body.

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Procurement of Innovative Technologies and Research Bill
Schedule — Procurement of Innovative Technologies and Research — The Genesis Programme

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7          

Requirements may be either at the system or the component level, but in

each case must be defined so that if the requirements are met, in the view of

the project manager, the technology would—

(a)   

give significant performance improvements over existing,

commercially available technologies or solutions;

5

(b)   

overcome major constraints or limitations of existing, commercially

available technologies or solutions; or

(c)   

enable applications or objectives to be achieved which are not

currently addressed (adequately or at all) by existing, commercially

available technologies or solutions.

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8     (1)  

The value of any Innovation Contract shall not exceed £500,000 except in

prescribed circumstances.

      (2)  

Contracts of less than the EU threshold value (“Type 1 Innovation

Contracts”) may only be awarded to United Kingdom companies.

      (3)  

Except as specified in paragraph 9, contracts above the EU threshold value

15

(“Type 2 Innovation Contracts”) may be awarded to any EU business in

accordance with the relevant EU Procurement Directives.

      (4)  

In sub-paragraph (1), “prescribed” means prescribed by the Secretary of

State by regulations.

9          

Contracts of all sizes awarded in the field of defence, other contracts raising

20

issues of security and secret contracts awarded under the Genesis

Programme may, at the discretion of the awarding body, be restricted to

United Kingdom companies.

10    (1)  

Prescribed bodies shall publish solicitations in two rounds each year at

intervals of not less than 6 months and not more than 8 months.

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      (2)  

The number and total value of solicitations for each year should be such as

to ensure competition both among companies making submissions and

among fields.

11         

The criteria used by prescribed bodies for evaluating submissions for Type

1 Innovation Contracts shall include—

30

(a)   

relevance to the body’s aims and objectives;

(b)   

relevance to the body’s technology strategy;

(c)   

the level of innovation entailed;

(d)   

the quality of science or technology;

(e)   

the company’s record in carrying out previous Genesis Programme

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contracts, if any, taking account of the level of risk associated with

research and development projects.

12         

The criteria used by prescribed bodies for evaluating submissions for Type

2 Innovation Contracts shall include—

(a)   

relevance to the body’s aims and objectives;

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(b)   

relevance to the body’s technology strategy;

(c)   

the level of innovation entailed;

(d)   

the quality of science, technology or engineering;

(e)   

the company’s record in carrying out previous Genesis Programme

contracts, if any, taking account of the level of risk associated with

45

research and development projects;

 

 

Procurement of Innovative Technologies and Research Bill
Schedule — Procurement of Innovative Technologies and Research — The Genesis Programme

5

 

(f)   

the probability of the company’s meeting the requirements

specifications, assessed according to previously successful contracts

in the relevant field for public bodies in the United Kingdom or

another member State;

(g)   

the likelihood of commercialisation, further research and

5

development funding from a third party, or subsequent purchases or

research and development funding from the prescribed body.

13         

There shall be no restriction on the number of Innovation Contracts which

may be awarded to a company in any one year, but the effectiveness with

which past contracts have been undertaken or exploited further

10

commercially may be taken into account in awarding future contracts.

14         

Each prescribed body participating in the Genesis Programme must—

(a)   

ensure that processes for solicitation, award of innovation contracts

and evaluation of deliverables are timely, efficient and accessible,

and

15

(b)   

provide the Secretary of State with such information as he

determines to be necessary for the preparation of reports to be

published under section 3.

15         

Each prescribed body participating in the Genesis Programme must

maintain a website devoted to its participation in the Programme on which

20

it must publish the following information on solicitations and awards—

(a)   

announcements of future solicitations, timetables and procedures,

together with guidelines for submissions;

(b)   

details of requirements specifications and timetable;

(c)   

names and addresses of companies awarded contracts, together with

25

the title and value of the contract (which information shall be

published within 5 days of the award);

(d)   

the total number and value of contracts awarded following each

solicitation.

16    (1)  

Requirements specifications must be published at least 8 weeks before the

30

deadline for submissions.

      (2)  

Contracts must be awarded within 8 weeks of that deadline.

17    (1)  

Unless sub-paragraph (2) applies, any intellectual property generated

during a contract shall belong to the contracting company.

      (2)  

This sub-paragraph applies if the prescribed body has contributed

35

intellectual property to the project and has indicated that in the

requirements specification.

      (3)  

If sub-paragraph (2) applies, the prescribed body may negotiate a royalty

with the contracting company.

18         

A prescribed body which is unable to comply with the requirements of

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paragraph 1 of this Schedule must inform the Treasury and the Secretary of

State at least 3 months before the end of the relevant financial year in order

that an appropriate proportion of its budget may be reallocated to other

prescribed bodies for funding additional Innovation Contract submissions

during the remainder of that financial year.

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19         

In this Schedule—

“the EU Procurement Directives” means—

 

 

Procurement of Innovative Technologies and Research Bill
Schedule — Procurement of Innovative Technologies and Research — The Genesis Programme

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(a)   

Directive 93/97/EC, as amended by Directive 97/52/EC,

(b)   

Directive 93/36/EC, as amended by Directive 97/52/EC,

(c)   

Directive 92/50/EC, as amended by Directive 97/52/EC,

(d)   

Directive 93/38/EC as amended by Directive 98/4/EC, and

(e)   

Directive 89/665/EC as amended by Directive 97/52/EC.

5

“the EU threshold value” means the minimum threshold value for the

time being established under the EU Procurement Directives.

 

 

 
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Revised 8 February 2006