Government Procurement - Public Administration Committee Contents


Annex: Committee's visit to Brussels

Programme for visit

Wednesday 30 January 2013
UKREP Ambassador's Residence Briefing with Jon Cunliffe, Permanent Representative to the European Union, UKREP and Martin Jones, Counsellor, UKREP

Thursday 31 January
UKREP Building

Avenue d'Auderghem 10

1040 Brussels

Mr Constantijn van Oranje, Deputy Head of Neelie Kroes Cabinet, and Mr Jean-Francois Junger, Deputy Head of Unit for Public Services in the Directorate for Communications Networks, Content and Technology (DGCNET)
UKREP Building

Avenue d'Auderghem 10

1040 Brussels

Mr Jonathan Faull, Director General for Internal Market and Services Directorate General (DG MARKT), and Ms Joanna Szychowska, Head of Public Procurement Unit in DG MARKT
European Parliament

Rue Wierzt

1000 Brussels

Andreas Schwab, MEP for Baden-Wrttemberg and member of the Internal Markets and Consumer Protection Committee (IMCO)
European Parliament

Rue Wierzt

1000 Brussels

Working lunch hosted by Dennis de Jong, MEP for the Netherlands and member of the Internal Markets and Consumer Protection Committee (IMCO), and staff
European Parliament

Rue Wierzt

1000 Brussels

Martin Callanan, MEP for North East England
UKREP Building

Avenue d'Auderghem 10

1040 Brussels

Mrs Elisabetta Zanon, Director of the NHS European Office
UKREP Building

Avenue d'Auderghem 10

1040 Brussels

Anna Constable, Adviser, Internal Market Department Business Europe

Summary of findings

  • Problems that individuals and organisations raised in relation to procurement included the complexity of the rules; burdensome processes; a lack of clarity around processes; and a tendency to be risk averse in carrying out procurements.
  • There were a number of actions suggested that could help to improve procurements. These included avoiding the need to re-compete should a procurement need to be run a second time; the use of e-auctions; and increased informal discussion and market consultation.
  • Whilst many would have liked to see EU procurement thresholds raised, it was accepted that these thresholds were hard to change. There was also some opinion that raising the thresholds could preclude small businesses from competing for contracts across borders.
  • E-procurement is an important focus for the European Commission. The target of 100% e-procurement by 2016 is a stretching one.
  • The UK wins 17% of foreign contracts which are let across the EU, the second most successful EU state (Germany wins 26%). By some measures, some other EU countries are more successful at "buying local". For example, 3% of UK contracts (by value) go to companies from other EU states, compared to only 1.5% in France.
  • The majority of smaller contracts tend not to be traded cross-border. Concern was raised as to whether procuring authorities could break contracts into small pieces, in order to award to contracts to national companies.

  • There was a perception that the UK tends to act in a more risk averse way in order to minimise non-compliance. It appears to be a two stage issue; the first when enshrining EU rules into national legislation and the second when procurers are risk averse in their application of the rules.
  • The new provisions under the Social Values Act 2012 present a number of opportunities to take into consideration a range of factors in procurements, to look at the whole life cycle of a contract, goods or service. Some however are concerned that the Act will result in protectionist tendencies and a reduction in cross border trade.



 
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Prepared 19 July 2013