THE NEW EU PROCURMENT DIRECTIVES: WHOLE LIFE COSTING AND DYNAMIC PROCUREMENT SYSTEMS FOR CIVIL ENGINEERING ORGANISATIONS, ARE THEY CONTRADICTORY?

Robert Eadie, Samuel Potts

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The EU Directive 2014/24/EU on public procurement, which regulates buying procedures for construction and civil engineering organisations, was altered in 2014. Two of the elements that were amended relate to allegedly contradictory principles. Firstly, a move away from capital cost to whole life costing has been suggested. Article 67, entitled ‘Contract award criteria’ establishes ‘Most Economically Advantageous Tender’ as the means of awarding a contract. Life-cycle costing or whole life costing and the best price/quality ratio are used to determine this. However, dynamic purchasing systems have also been included in the new regulations. These are electronic catalogues of goods and services. Electronic searches are carried out and awards are based on lowest price. The e-procurement section of the regulations was strengthened in advance of it being mandatory from April 2016. This paper examines the perceived impact on organisations who have tendered for Government contracts. A telephone sift reduced the overall numbers from 438 Northern Ireland organisations, prior to receiving 71 completed responses from 107 tenderers. The findings indicate DPS are little used in construction. However, the majority expect WLC to be a settled award criteria within 2 years of the EU Directive publication. Other criteria introduced such as technical competence, details of staff structure relevant to the contract, after sales service and delivery conditions are expected to have a substantial impact on contract awards. Директивата эа обществените поръчки на ЕС 2014/24/ЕС, която регламентира процедурите за закупуване на строителни и инженерни организации, се променя през 2014 г. Два от параметрите, които са изменени, са свързани с твърде противоречиви принципи. Първо е било предложено отдръпване от капиталовите разходи за целият период на остойностяване. Член 67, озаглавен "Критерии за възлагане" създава "Най-икономически изгодната оферта" като средство за възлагане на договор. Експлоатационния цикъл или целия периодна эа остойностяване на разходи, както и най-доброто съотношение цена/качество се използват за определяне на това. Въпреки това, динамичните системи за покупка са също включени в новите регламенти, а именно - електронни каталози на стоки и услуги. Електронните поръчки се извършват и наградите са базирани на най-ниската цена. Разделът за електронни обществени поръчки на регламентите се подсили преди да стане задължителен от април 2016 г. В настояшата работа се разглежда въздействието върху организациите, които са кандидатствали за държавни поръчки. Урез телефонна анкета е намален общият брой от 438 организации от Северна Ирландия, преди получаване на 71 завършени отговори от 107 участници в търга. Резултатите показват, че динамичните системи за покупка, използвани в строителството, са сравнително малко. Независимо от това, повечето очакват периодвт на остойностяване да бъде постоянен критерий за възлагане в рамките на 2 години от публикуването на Директивата на EU. Други критерии, като техническа компетентност, персонал по Договор, услуги след продажбата и условияза доставка, се очаква да имат съществено влияние върху възложените договори. Abstacts published separately from paper in another volume.
LanguageEnglish
Title of host publicationUnknown Host Publication
Pages31-35
Number of pages5
Publication statusPublished - 15 Sep 2016
EventIX International Conference on Civil Engineering Design and Construction (Science and Practice) - Varna Bulgaria
Duration: 15 Sep 2016 → …

Conference

ConferenceIX International Conference on Civil Engineering Design and Construction (Science and Practice)
Period15/09/16 → …

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EU
engineering
electronics
regulation
life cycle
sales
telephone
staff
costs

Keywords

  • Government Procurement
  • Civil Engineering Procurement
  • European Legislation
  • Whole Life Costing.

Cite this

@inproceedings{a3b49d6302d147e3b9561fce3a8b2cb4,
title = "THE NEW EU PROCURMENT DIRECTIVES: WHOLE LIFE COSTING AND DYNAMIC PROCUREMENT SYSTEMS FOR CIVIL ENGINEERING ORGANISATIONS, ARE THEY CONTRADICTORY?",
abstract = "The EU Directive 2014/24/EU on public procurement, which regulates buying procedures for construction and civil engineering organisations, was altered in 2014. Two of the elements that were amended relate to allegedly contradictory principles. Firstly, a move away from capital cost to whole life costing has been suggested. Article 67, entitled ‘Contract award criteria’ establishes ‘Most Economically Advantageous Tender’ as the means of awarding a contract. Life-cycle costing or whole life costing and the best price/quality ratio are used to determine this. However, dynamic purchasing systems have also been included in the new regulations. These are electronic catalogues of goods and services. Electronic searches are carried out and awards are based on lowest price. The e-procurement section of the regulations was strengthened in advance of it being mandatory from April 2016. This paper examines the perceived impact on organisations who have tendered for Government contracts. A telephone sift reduced the overall numbers from 438 Northern Ireland organisations, prior to receiving 71 completed responses from 107 tenderers. The findings indicate DPS are little used in construction. However, the majority expect WLC to be a settled award criteria within 2 years of the EU Directive publication. Other criteria introduced such as technical competence, details of staff structure relevant to the contract, after sales service and delivery conditions are expected to have a substantial impact on contract awards. Директивата эа обществените поръчки на ЕС 2014/24/ЕС, която регламентира процедурите за закупуване на строителни и инженерни организации, се променя през 2014 г. Два от параметрите, които са изменени, са свързани с твърде противоречиви принципи. Първо е било предложено отдръпване от капиталовите разходи за целият период на остойностяване. Член 67, озаглавен {"}Критерии за възлагане{"} създава {"}Най-икономически изгодната оферта{"} като средство за възлагане на договор. Експлоатационния цикъл или целия периодна эа остойностяване на разходи, както и най-доброто съотношение цена/качество се използват за определяне на това. Въпреки това, динамичните системи за покупка са също включени в новите регламенти, а именно - електронни каталози на стоки и услуги. Електронните поръчки се извършват и наградите са базирани на най-ниската цена. Разделът за електронни обществени поръчки на регламентите се подсили преди да стане задължителен от април 2016 г. В настояшата работа се разглежда въздействието върху организациите, които са кандидатствали за държавни поръчки. Урез телефонна анкета е намален общият брой от 438 организации от Северна Ирландия, преди получаване на 71 завършени отговори от 107 участници в търга. Резултатите показват, че динамичните системи за покупка, използвани в строителството, са сравнително малко. Независимо от това, повечето очакват периодвт на остойностяване да бъде постоянен критерий за възлагане в рамките на 2 години от публикуването на Директивата на EU. Други критерии, като техническа компетентност, персонал по Договор, услуги след продажбата и условияза доставка, се очаква да имат съществено влияние върху възложените договори. Abstacts published separately from paper in another volume.",
keywords = "Government Procurement, Civil Engineering Procurement, European Legislation, Whole Life Costing.",
author = "Robert Eadie and Samuel Potts",
note = "This was also a Paper given in the plenary session of the conference Reference text: Cabinet Office (2015) Government Response to the Consultation on UK Transposition of new EU Procurement Directives, Public Contracts Regulations 2015. (Available on-line at: https://www.gov.uk/government/consultations/transposing-the-2014-eu-procurement-directives [Accessed April 2016]). Crown Commercial Service (CCS, 2014a) Reform of the EU procurement rules – public sector. (Available on-line at: https://www.gov.uk/transposing-eu-procurement-directives [Accessed April 2016]). Crown Commercial Service (CCS, 2014b) A Brief Guide to the New EU Public Contracts Directive. (Available on-line at: https://www.gov.uk/transposing-eu-procurement-directives [Accessed April 2016]). Eadie, R. and Rafferty, S.(2014) Do corporate social responsibility clauses work? A contractor perspective’, International Journal of Procurement Management, Vol. 7, No. 1, pp.19–34. EC (2011), FINAL REPORT: Cross-Border Procurement above EU Thresholds, (Available on-line at: http://ec.europa.eu/internal_market/publicprocurement/docs/modernising_rules/cross-border-procurement_en.pdf [Accessed April 2016]). Eur-lex. (2004a), ‘European Union Directive 2004/17 on coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors’, (Available on-line at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:134:0001:0113:en:PDF [Accessed April 2016]). Eur-lex. (2004b), ‘European Union Directive 2004/18 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts’, (Available on-line at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0018:En:HTML [Accessed April 2016]). Eur-lex. (2014a), ‘Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts’, (Available on-line at http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0001.01.ENG [Accessed April 2016]). Eur-lex. (2014b), ‘Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC’, (Available on-line at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0065.01.ENG [Accessed April 2016]). Eur-lex. (2014c), ‘Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC’, (Available on-line at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0243.01.ENG [Accessed April 2016]). Hupponen, M., Gr{\"o}nman, K., and Horttanainen, M.(2015) How should greenhouse gas emissions be taken into account in the decision making of municipal solid waste management procurements? A case study of the South Karelia region, Finland, Waste Management, Vol 42, Pp 196-207. Khorana, S., Ferguson-Boucher, K., and Kerr, W. (2015) Governance Issues in the EU's e-Procurement Framework, Journal of Common Market Studies, Vol 53 (2), pp 292-310. Kingston, S. (2016), The Uneasy Relationship between EU Environmental and Economic Policies, and the Role of the CJEU. A version of this paper will appear in B. Sj{\aa}fjell and A. Wiesbrock, Sustainable Public Procurement (Cambridge University Press, Forthcoming). ; UCD Working Papers in Law, Criminology & Socio-Legal Studies Research Paper No. 13/2015. (Available on-line at http://ssrn.com/abstract=2686526 [Accessed April 2016]). Loosemore, M.(2016), Social procurement in UK construction projects, International Journal of Project Management, Vol 34 (2), Pp 133-144. Piga, G. and Tatrai, T. (2015), Public Procurement Policy, Oxon: Routledge. Rubin, A. and Babbie, E. (2009) Essential Research Methods for Social Work, USA: Cengage Learning. Sapountzis, S., Yates, K., Kagioglou, M. and Aouad G. (2009) ‘Realising benefits in primary healthcare infrastructures’, Facilities, Vol. 27, Nos. 3/4, pp.74–87. The Stationary Office (2015), The Public Contracts Regulations 2015, Available on-line at http://www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en.pdf [Accessed April 2016]. Verma, S. (2015), Life Cycle Costing in Defence Acquisition: The Challenges of Transforming Complex Aspirations into Factual Ground Realities in Trade, Law and Development Vol 7(1), pp 120-136.",
year = "2016",
month = "9",
day = "15",
language = "English",
isbn = "978-954-92866-7-0",
pages = "31--35",
booktitle = "Unknown Host Publication",

}

Eadie, R & Potts, S 2016, THE NEW EU PROCURMENT DIRECTIVES: WHOLE LIFE COSTING AND DYNAMIC PROCUREMENT SYSTEMS FOR CIVIL ENGINEERING ORGANISATIONS, ARE THEY CONTRADICTORY? in Unknown Host Publication. pp. 31-35, IX International Conference on Civil Engineering Design and Construction (Science and Practice), 15/09/16.

THE NEW EU PROCURMENT DIRECTIVES: WHOLE LIFE COSTING AND DYNAMIC PROCUREMENT SYSTEMS FOR CIVIL ENGINEERING ORGANISATIONS, ARE THEY CONTRADICTORY? / Eadie, Robert; Potts, Samuel.

Unknown Host Publication. 2016. p. 31-35.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

TY - GEN

T1 - THE NEW EU PROCURMENT DIRECTIVES: WHOLE LIFE COSTING AND DYNAMIC PROCUREMENT SYSTEMS FOR CIVIL ENGINEERING ORGANISATIONS, ARE THEY CONTRADICTORY?

AU - Eadie, Robert

AU - Potts, Samuel

N1 - This was also a Paper given in the plenary session of the conference Reference text: Cabinet Office (2015) Government Response to the Consultation on UK Transposition of new EU Procurement Directives, Public Contracts Regulations 2015. (Available on-line at: https://www.gov.uk/government/consultations/transposing-the-2014-eu-procurement-directives [Accessed April 2016]). Crown Commercial Service (CCS, 2014a) Reform of the EU procurement rules – public sector. (Available on-line at: https://www.gov.uk/transposing-eu-procurement-directives [Accessed April 2016]). Crown Commercial Service (CCS, 2014b) A Brief Guide to the New EU Public Contracts Directive. (Available on-line at: https://www.gov.uk/transposing-eu-procurement-directives [Accessed April 2016]). Eadie, R. and Rafferty, S.(2014) Do corporate social responsibility clauses work? A contractor perspective’, International Journal of Procurement Management, Vol. 7, No. 1, pp.19–34. EC (2011), FINAL REPORT: Cross-Border Procurement above EU Thresholds, (Available on-line at: http://ec.europa.eu/internal_market/publicprocurement/docs/modernising_rules/cross-border-procurement_en.pdf [Accessed April 2016]). Eur-lex. (2004a), ‘European Union Directive 2004/17 on coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors’, (Available on-line at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:134:0001:0113:en:PDF [Accessed April 2016]). Eur-lex. (2004b), ‘European Union Directive 2004/18 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts’, (Available on-line at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0018:En:HTML [Accessed April 2016]). Eur-lex. (2014a), ‘Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts’, (Available on-line at http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0001.01.ENG [Accessed April 2016]). Eur-lex. (2014b), ‘Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC’, (Available on-line at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0065.01.ENG [Accessed April 2016]). Eur-lex. (2014c), ‘Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC’, (Available on-line at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.094.01.0243.01.ENG [Accessed April 2016]). Hupponen, M., Grönman, K., and Horttanainen, M.(2015) How should greenhouse gas emissions be taken into account in the decision making of municipal solid waste management procurements? A case study of the South Karelia region, Finland, Waste Management, Vol 42, Pp 196-207. Khorana, S., Ferguson-Boucher, K., and Kerr, W. (2015) Governance Issues in the EU's e-Procurement Framework, Journal of Common Market Studies, Vol 53 (2), pp 292-310. Kingston, S. (2016), The Uneasy Relationship between EU Environmental and Economic Policies, and the Role of the CJEU. A version of this paper will appear in B. Sjåfjell and A. Wiesbrock, Sustainable Public Procurement (Cambridge University Press, Forthcoming). ; UCD Working Papers in Law, Criminology & Socio-Legal Studies Research Paper No. 13/2015. (Available on-line at http://ssrn.com/abstract=2686526 [Accessed April 2016]). Loosemore, M.(2016), Social procurement in UK construction projects, International Journal of Project Management, Vol 34 (2), Pp 133-144. Piga, G. and Tatrai, T. (2015), Public Procurement Policy, Oxon: Routledge. Rubin, A. and Babbie, E. (2009) Essential Research Methods for Social Work, USA: Cengage Learning. Sapountzis, S., Yates, K., Kagioglou, M. and Aouad G. (2009) ‘Realising benefits in primary healthcare infrastructures’, Facilities, Vol. 27, Nos. 3/4, pp.74–87. The Stationary Office (2015), The Public Contracts Regulations 2015, Available on-line at http://www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en.pdf [Accessed April 2016]. Verma, S. (2015), Life Cycle Costing in Defence Acquisition: The Challenges of Transforming Complex Aspirations into Factual Ground Realities in Trade, Law and Development Vol 7(1), pp 120-136.

PY - 2016/9/15

Y1 - 2016/9/15

N2 - The EU Directive 2014/24/EU on public procurement, which regulates buying procedures for construction and civil engineering organisations, was altered in 2014. Two of the elements that were amended relate to allegedly contradictory principles. Firstly, a move away from capital cost to whole life costing has been suggested. Article 67, entitled ‘Contract award criteria’ establishes ‘Most Economically Advantageous Tender’ as the means of awarding a contract. Life-cycle costing or whole life costing and the best price/quality ratio are used to determine this. However, dynamic purchasing systems have also been included in the new regulations. These are electronic catalogues of goods and services. Electronic searches are carried out and awards are based on lowest price. The e-procurement section of the regulations was strengthened in advance of it being mandatory from April 2016. This paper examines the perceived impact on organisations who have tendered for Government contracts. A telephone sift reduced the overall numbers from 438 Northern Ireland organisations, prior to receiving 71 completed responses from 107 tenderers. The findings indicate DPS are little used in construction. However, the majority expect WLC to be a settled award criteria within 2 years of the EU Directive publication. Other criteria introduced such as technical competence, details of staff structure relevant to the contract, after sales service and delivery conditions are expected to have a substantial impact on contract awards. Директивата эа обществените поръчки на ЕС 2014/24/ЕС, която регламентира процедурите за закупуване на строителни и инженерни организации, се променя през 2014 г. Два от параметрите, които са изменени, са свързани с твърде противоречиви принципи. Първо е било предложено отдръпване от капиталовите разходи за целият период на остойностяване. Член 67, озаглавен "Критерии за възлагане" създава "Най-икономически изгодната оферта" като средство за възлагане на договор. Експлоатационния цикъл или целия периодна эа остойностяване на разходи, както и най-доброто съотношение цена/качество се използват за определяне на това. Въпреки това, динамичните системи за покупка са също включени в новите регламенти, а именно - електронни каталози на стоки и услуги. Електронните поръчки се извършват и наградите са базирани на най-ниската цена. Разделът за електронни обществени поръчки на регламентите се подсили преди да стане задължителен от април 2016 г. В настояшата работа се разглежда въздействието върху организациите, които са кандидатствали за държавни поръчки. Урез телефонна анкета е намален общият брой от 438 организации от Северна Ирландия, преди получаване на 71 завършени отговори от 107 участници в търга. Резултатите показват, че динамичните системи за покупка, използвани в строителството, са сравнително малко. Независимо от това, повечето очакват периодвт на остойностяване да бъде постоянен критерий за възлагане в рамките на 2 години от публикуването на Директивата на EU. Други критерии, като техническа компетентност, персонал по Договор, услуги след продажбата и условияза доставка, се очаква да имат съществено влияние върху възложените договори. Abstacts published separately from paper in another volume.

AB - The EU Directive 2014/24/EU on public procurement, which regulates buying procedures for construction and civil engineering organisations, was altered in 2014. Two of the elements that were amended relate to allegedly contradictory principles. Firstly, a move away from capital cost to whole life costing has been suggested. Article 67, entitled ‘Contract award criteria’ establishes ‘Most Economically Advantageous Tender’ as the means of awarding a contract. Life-cycle costing or whole life costing and the best price/quality ratio are used to determine this. However, dynamic purchasing systems have also been included in the new regulations. These are electronic catalogues of goods and services. Electronic searches are carried out and awards are based on lowest price. The e-procurement section of the regulations was strengthened in advance of it being mandatory from April 2016. This paper examines the perceived impact on organisations who have tendered for Government contracts. A telephone sift reduced the overall numbers from 438 Northern Ireland organisations, prior to receiving 71 completed responses from 107 tenderers. The findings indicate DPS are little used in construction. However, the majority expect WLC to be a settled award criteria within 2 years of the EU Directive publication. Other criteria introduced such as technical competence, details of staff structure relevant to the contract, after sales service and delivery conditions are expected to have a substantial impact on contract awards. Директивата эа обществените поръчки на ЕС 2014/24/ЕС, която регламентира процедурите за закупуване на строителни и инженерни организации, се променя през 2014 г. Два от параметрите, които са изменени, са свързани с твърде противоречиви принципи. Първо е било предложено отдръпване от капиталовите разходи за целият период на остойностяване. Член 67, озаглавен "Критерии за възлагане" създава "Най-икономически изгодната оферта" като средство за възлагане на договор. Експлоатационния цикъл или целия периодна эа остойностяване на разходи, както и най-доброто съотношение цена/качество се използват за определяне на това. Въпреки това, динамичните системи за покупка са също включени в новите регламенти, а именно - електронни каталози на стоки и услуги. Електронните поръчки се извършват и наградите са базирани на най-ниската цена. Разделът за електронни обществени поръчки на регламентите се подсили преди да стане задължителен от април 2016 г. В настояшата работа се разглежда въздействието върху организациите, които са кандидатствали за държавни поръчки. Урез телефонна анкета е намален общият брой от 438 организации от Северна Ирландия, преди получаване на 71 завършени отговори от 107 участници в търга. Резултатите показват, че динамичните системи за покупка, използвани в строителството, са сравнително малко. Независимо от това, повечето очакват периодвт на остойностяване да бъде постоянен критерий за възлагане в рамките на 2 години от публикуването на Директивата на EU. Други критерии, като техническа компетентност, персонал по Договор, услуги след продажбата и условияза доставка, се очаква да имат съществено влияние върху възложените договори. Abstacts published separately from paper in another volume.

KW - Government Procurement

KW - Civil Engineering Procurement

KW - European Legislation

KW - Whole Life Costing.

M3 - Conference contribution

SN - 978-954-92866-7-0

SP - 31

EP - 35

BT - Unknown Host Publication

ER -