Big Public Buyers Meeting Brussels, 6th December 2017
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1 Big Public Buyers Meeting Brussels, 6th December 2017 Joint cross-border public procurement Legal aspects of joint cross-border procurement Prof. Gabriella M. Racca Full Professor of Administrative Law University of Turin Copyright 2017 G. M. Racca 1
2 Joint cross-border procurement Legal aspects Transnational Adm. Procedures Administrative cooperation AGREEMENT establishing the European purchasing group PROCUREMENT SELECTION Award CONTRACT EXECUTION Rome I : conflict-of-law rules European Territorial Cooperation Group Applicable law? Applicable law? -Selection -Remedies Copyright 2017 G. M. Racca, University of Turin Applicable law? 2
3 DIRECTIVE 2014/24/EU of 26 February 2014 DIFFERENT MODELS Of COOPERATION Art. 39, Procurement involving contracting authorities from different Member States (par. 2) 1 model Wholesaler Intermediary CPBs of one EU Member State OPEN THE MARKET can offer ACTIVITIES C. A. (FAs that include SMEs ) C. A. C. A. CPB to other Member States CAs C. A. A Member States shall not prohibit Copyright 2017 G. M. Racca
4 DIRECTIVE 2014/24/EU of 26 February 2014 Art. 2, Definitions, par. 14 DIFFERENT MODELS (14) CENTRALISED PURCHASING ACTIVITIES means ( activities conducted on a permanent basis, in one of the following forms: Buying, stocking and reselling (a) the acquisition of supplies and/or services intended for contracting authorities; Wholesaler 1 model (b) the award of public contracts or the conclusion of framework agreements for works, supplies or services intended for contracting authorities; Intermediary Copyright 2017 G. M. Racca
5 Implementation of 2014 EU Directives Procurement involving contracting authorities from different Member States UK Public Contracts Regulations 2015, art. 39 FRANCE Ordonnance n , 23 July 2015, marchés publics, art. 26 Décret n relatif aux marchés publics Décret n relatif aux marchés de défense ou de sécurité wide implementation (3) Contracting authorities SHALL BE FREE to use centralised purchasing activities offered by central purchasing bodies located in another member State. wide implementation Les acheteurs PEUVENT recourire à une cetral d achat sittuè dans un autre Etat Membre restrictive implementation ITALY ONLY wholesaler d.lgs. 18 April 2016, No. 50, art. 37, par. 13 e art Copyright 2017 G. M. Racca
6 DIRECTIVE 2014/24/EU of 26 February 2014 DIFFERENT MODELS Art. 39, Procurement involving contracting authorities from different Member States (par. 4, 1 st subpar.) 2 model The allocation of responsibilities and the applicable national law shall be referred to in the procurement documents for jointly awarded public contracts. CPB CPB Joint procurement Award procedure Execution of the contract CPB Framework agreement only between those contracting authorities clearly identified for this purpose in the call for competition or the invitation to confirm interest (Dir. 24/2014, art. 33, par. II). Copyright 2017 G. M. Racca
7 DIRECTIVE 2014/24/EU of 26 February 2014 DIFFERENT MODELS Art. 39, Procurement involving contracting authorities from different Member States (par. 5) 3 model Joint Legal Entity EGTC European Grouping of Territorial Cooperation CPB Applicable law? CPB CPB CPB CPB Agreement between CPBs M.S. where EGTC has its registered office M.S. where EGTC is carrying out its activities Undetermined period, limited to a certain period of time, Certain types of contracts, one or more individual contract awards Copyright 2017 G. M. Racca
8 Art. 39, Procurement implicating contracting authorities from different Member States - par. 3 HAPPI PROJECT: 2 model AGREEMENT establishing the European purchasing group Innovative Solutions for Healthy Ageing CP B CP B CP B CP B CP B Award procedure Common contract documents Closed FRAMEWORK AGREEMENT without commitment to buy Execution of the contract French Law Copyright 2017 G. M. Racca, University of Turin National Law
9 central purchasing body (F) central purchasing body (UK) central purchasing body (IT) central purchasing body (BG) central purchasing body (Lux) French legal institute of GROUPEMENT DE COMMANDE delegation to buy (harmonization of clauses) INTERMEDIARY Partners INTERMEDIARY Copyright 2017 G. M. Racca Any hospital in Europe
10 European Health Public Procurement Alliance PROCUREMENT EXPERTISE, HEALTHCARE PERFORMANCE Current members France United Kingdom Germany Italy Switzerland Belgium Luxembourg Norway Portugal Copyright 2017 G. M. Racca
11 Big Public Buyers, Demand Aggregation Also CROSS-BORDER Lots strategies TERRITORIAL lots FUNCTIONAL lots DIFFERENT VALUE lots TECHNICAL lots Limits Lots for which may be submitted a tender Lots that may be awarded to the same tenderer EU Directive 2014/24, art. 46, Division of contracts into lots Copyright 2017 G. M. Racca 11
12 Case law: e.g. Italian claims of suppliers Italian Adm. judges Health Waste (ASR Torscana) TAR Toscana, No of 2016 NO ANNULMENT award procedures: Security services (Consip S.p.A.) T.A.R. Lazio, No of 2016 Cons. St., No of 2017 YES Services for schools (Roma Capitale) T.A.R. Lazio, No of 2017 YES Legal services (Consip S.p.A.) Cons. St., No of 2017 YES Copyright 2017 G. M. Racca Cleaning services for hospitals (IntercentER) Cons. St. No of 2017 YES 12
13 Lots Strategy: an Italian case Cons. St., V, 6 March 2017, No Consip S.p.A Italian National CPB Award procedure for the security services (35% of the relevant market) for public entities 13 territorial lots in Italy The State Council considers disproportionate and unreasonable the restriction of competition due to the size of the lots set by Consip S.p.A.!! The division into lots of a contract, may be subject to the evaluations of the administrative judge in terms of reasonableness and proportionality but also the adequacy of the preliminary activity for the definition of the procurement strategy. Copyright 2017 G. M. Racca
14 Title II-Chapter II: Techniques and instruments for e- and aggregated procurement (art.33-39) wh. 59 Individual contracting authority vs. - voluntary cooperation - contractual model of cooperation (alliances) - consortia model - corporate model - Central Purchasing Body - wholesaler - intermediary Cross-border Aggregated purchasing Public-Public co-operation Collusion risks? Sharing risks of innovations 14 Copyright 2017 G. M. Racca, University of Turin
15 Procurement involving contracting authorities from different Member States- The Directive specifies that a Member State shall not prohibit its contracting authorities from using centralised purchasing activities offered by central purchasing bodies located in another Member State, thus specifying the European Union law s GENERAL PRINCIPLE related to the establishment of a single market and the protection of competition inside of it. This PRINCIPLE assumes relevance with regards to SUPRANATIONAL public procurement. In accordance with the same GENERAL PRINCIPLE, it is established that the provision of centralised purchasing activities by a central purchasing body located in another Member State shall be conducted IN ACCORDANCE WITH THE NATIONAL PROVISIONS of the Member State where the central purchasing body is located. Copyright 2017 G. M. Racca, University of Turin
16 DIRECTIVE 2014/24/EU, Art. 39, Procurement involving contracting authorities from different Member States The legal basis for such COOPERATION among Member States administrations has been founded by NATIONAL LEGAL TRADITIONS in the agreements among such administrations. The Directive recovers this tradition providing that, except for the existence of international treaties, the AGREEMENTS AMONG ADMINISTRATIONS must provide that the CORE elements of such LEGAL RELATIONSHIP have to be defined in an agreement among contracting authorities. AGREEMENTS among public administrations provided by general laws on administrative activities ADMINISTRATIVE COOPERATION Copyright 2017 G. M. Racca, University of Turin
17 NETWORKS among central purchasing bodies from different Member States Possible models: 1) Possibility of adhering to framework agreements concluded by contracting authorities of different Member States 2) Coordinated Award Procedures Definition of common contractual documents (Peppol); Common rules for Award and choices for the Execution Phase 3) Set up of joint cross-border bodies FAs - different possible calloffs? 17 Copyright 2017 G. M. Racca
18 HAPPI - Healthy ageing public procurement of innovation An innovative crossborder joint public procurement in EU in the healthy ageing sector Copyright 2017 G. M. Racca Forthcoming BOOKS forthcoming In 3 languages - English - French - Italian BOOK PROJECT Public Contracting and Innovation: Lessons Across Borders G. M. Racca C. R. Yukins (eds. by) Bruylant, 2018
19 BOOK PROJECT Public Contracting and Innovation: Lessons Across Borders G. M. Racca C. R. Yukins (eds. by) Part I. Innovation in procurement organizations and in cross-border procurement Part II. Innovation in award procedures Part III. Innovation in the subject matter of the contract Copyright 2017 G. M. Racca 19
20 Thank you for your attention! Prof.ssa Gabriella M. Racca Full Professor of Administrative Law University of Torino 20
21 References G. M. RACCA, Collaborative procurement and contract performance in the Italian healthcare sector: illustration of a common problem in European procurement, in Public Procurement Law Review, 2010, , accessibile anche tramite Social Science Research Network in G. M. RACCA, Aggregate models of public procurements and secondary considerations, in R. CARANTA e M. TRYBUS (eds), The Law of Green and Social Procurement in Europe, Djøf Publishing, Copenhagen, 2010, G. M. RACCA - S. PONZIO, La mutualisation des achats dans le secteur de la santé publique: les centrales d achat et les accords-cadres dans une perspective comparative, in Droit Administratif, n. 7/2011, 7-12; G. M. RACCA, R. CAVALLO PERIN E G. L. ALBANO, Competition in the execution phase of public procurement in Public Contract Law Journal, 2011, Vol. 41, n. 1, , accessibile anche tramite Social Science Research Network in G. M. RACCA, D. CASALINI, Competitive dialogue in Italy, in S. ARROWSMITH - S. TRUMER, Competitive dialogue, Cambridge University Press, Cambridge, 2012, ; G. M. RACCA, G. L. ALBANO, Collaborative Public Procurement and Supply Chain in the EU experience, in C. HARLAND G. NASSIMBENI - E. SCHNELLER, Strategic Supply Management Sage Publications, Londra, 2013, ; G. M. RACCA, The Risks of Emergencies in Public Procurement, in Journal of Public Finance and Public Choice, 2013, 105 e ss.
22 - G. M. RACCA R. CAVALLO PERIN, Material Amendments of Public Contracts during their Terms: From Violations of Competitions to Symptoms of Corruption, in European Procurement & Public Private Partnership Law Review, 4/2013, ; - G. M. RACCA, The electronic award of public procurement, in M. COMBA S. TREUMER (a cura di), Award of contracts in EU Procurements, DJØF Publishing, Copenhagen, 2103, ; - G. M. RACCA C. R. YUKINS (eds) Integrity and Efficiency in Sustainable Public Contracts. Balancing Corruption Concerns in Public Procurement Internationally, Bruylant, Bruxelles, 2014; - G. M. RACCA, Joint Procurement Challenges in the Future Implementation of the New Directives, in F. LICHÈRE R. CARANTA S. TREUMER (a cura di) Modernising Public Procurement: the New Directive, DJØF Publishing, Copenhagen, 2104, ; - G. M. RACCA - R. CAVALLO PERIN G. L. ALBANO, Public Contracts and International Public Policy Against Corruption, in M. Audit- S. W. Schill (eds. by) Transnational Law of Public Contracts Bruylant, 2016, 845 e ss.; - G. M. RACCA, The role of third parties in the execution of public contracts, Bruylant, fothcoming. Other references at:
23 NEXT CHALLENGES Development of nationally customized PPI2Innovative tools for SMART Health, Energy and ICT Objective: to develop PPI2Innovate Tools WP leader: UNITO WP participants: All partners Partners Central Transdanubian Regional Innovation Agency Nonprofit Ltd. (CTRIA) DEX Innovation Centre (DEX-IC) Municipality of Lublin (LUBLIN) University of Torino (UNITO) Piedmont Region (PIEMONTE) ICT Technology Network Institute (ICT TN) Ministry of Public Administration (MJU) Somogy County Government (SOMOGY) Croatian Agency for SMEs, Innovations and Investments (BICRO) Rzeszow Regional Development Agency (RRDA) Country Hungary Czech Republic Poland Italy Italy Slovenia Slovenia Hungary Croatia Poland Copyright 2017 G. M. Racca
24 Public Procurement Regulation in the EU and in its Global Context MA/Pg Dip Our distance learning Procurement Regulation Postgraduate Diploma, MA has been specifically designed for professionals wishing to expand their knowledge and understanding of EU procurement law and regulation, while also placing that system within its wider international context. The course is particularly suitable for lawyers in private practice or in the public sector, in house legal advisers and officials dealing with practice or policy in the procurement field as procurement specialists who wish to add further legal experience to their practical experience.
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30 Master di II livello in Strategie per l efficienza, l integrità e l innovazione nei contratti pubblici SEIIC Strategies for the efficiency, integrity and innovation in Public contracts Copyright 2017 G. Racca, Università degli Studi di Torino
31 Scientific committee Prof. Gianmaria Ajani Rettore dell Università degli Studi di Torino Dott. Gian Luigi Albano Consip S.p.A. Prof. Valter Cantino Ordinario di Economia Aziendale Prof. Roberto Cavallo Perin Ordinario di Diritto Amministrativo Dott. Michele Corradino Componente Autorità Nazionale Anticorruzione Prof. Carlo Emanuele Gallo Ordinario di Diritto Amministrativo Prof. Alberto Gianola Ordinario di Diritto Privato Comparato Prof. Bernardo G. Mattarella Ordinario di Diritto Amministrativo Prof. Francesco Merloni Componente Autorità Nazionale Anticorruzione Prof. Ida Angela Nicotra Componente Autorità Nazionale Anticorruzione Prof. Nicoletta Parisi Componente Autorità Nazionale Anticorruzione Prof. Gabriella M. Racca Ordinario di Diritto Amministrativo Prof. Laura M. Scomparin Ordinario di Diritto Processuale Penale Prof. Alberto Zito Ordinario di Diritto Amministrativo Copyright 2017 G. Racca, Università degli Studi di Torino
32 Master di II livello in Strategie per l efficienza, l integrità e l innovazione nei contratti pubblici SEIIC Strategies for the efficiency, integrity and innovation in Public contracts In distance learning III edition Pre-registrations December 2017 Start March 2018 Copyright 2017 G. Racca, Università degli Studi di Torino
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