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PROCURING A CIRCULAR
ECONOMY
TAIEX-REGIO Workshop On Setting The Most Economically
Advantageous Tender Criteria In Public Procurement Contracts
15-16 November 2016
Dr Mervyn Jones
Sustainable Global Resources
United Kingdom
STRATEGIC PROCUREMENT PRINCIPLES
Freedom of choice what to buy
Subject matter link maintained
Inclusion of process of production
Labels can be required
Green procurement
Production process
Labels
Life-cycle costing
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INNOVATION/QUALITY TOOLS
UNDER NEW DIRECTIVES
Technical specifications
Detailed description
Functional requirements
Variants
x
Award criteria
Lowest price
Most economically advantageous tender
x
Procedures
Pre-Commercial Procurement
Competitive dialogue
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MEAT
Most Economically Advantageous Tender
(MEAT) becomes the sole award criterion to
be assessed on the basis of:
a) price, or
b) cost, using a cost-effectiveness approach such as lifecycle costing, or
c) the best price-quality ratio (BPQR)to be assessed on
the basis of award criteria linked to the subjectmatter of the contract.
i.e., whichever criterion is used, always
economic element
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ENCOURAGING CIRCULAR PRODUCTS
Best Price-Quality Ratio (BPQR):
Price and/or cost
plus Other Criteria, (including qualitative, environmental and/or
social aspects, linked to the subject matter of the public contract
in question).
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BENEFITS OF A CIRCULAR EU ECONOMY
European Union
€600 billion
Denmark
GDP 0.8–1.4%
7,000-13,000 jobs
United Kingdom
~€30 billion
200,000 jobs
France
GDP 0.33-0.66%
100,000 jobs
Spain
GDP 0.33-0.66%
100,000 jobs
Sources: EU, Ellen McArthur Foundation, Club of Rome, TNO, WRAP
Finland
GDP 0.33-0.66%
15,000 jobs
Sweden
3% trade balance
15,000 jobs
The Netherlands
€7,3 billion
54,000 jobs
CIRCULAR PROCUREMENT OPPORTUNITIES
HIERARCHY OF PROCUREMENT ACTIONS
Hierarchy of actions to use
assets and resources more
efficiently, e.g.:
Specifications for (e.g.
buildings)
• sourcing, e.g.
minimise additives,
recycled content
• lower in-use impacts,
e.g. carbon impacts,
asset management
• Disposal options e.g.
take-back
Disposal
Purchasing
Use
RETHINKING OUR APPROACH
Circular
procurement
Products
Buy
Supplier
Waste
contracts
Use
User
Waste
Waste
Dispose
manager
Resources
Product as a service
Buy – sell back
Buy - resell
Catering
Company clothin
Company cars
ICT hardware
Furniture
Town hall Brummen
CIRCULAR CLIENTS
Circular procurement depends on the
ambition of the organisation,
translated into policy through the
proactive effort of the clients and
budget holders.
Circular procurement
needs circular clients!
CREATING CIRCULARITY
• Stimulate circular propositions from the
market by our demand
• Test ambition of budget holder
• Specify the reuse after our usage
• Procure different:
- performance based and functional
- new contracts:
product service systems - buy sell back - buy resell
THANK YOU
Mervyn Jones
Sustainable Global Resources, UK
[email protected]