The Procura+

Manual

A Guide to Implementing
Sustainable Procurement
3rd Edition
The Procura+
Manual
A Guide to Implementing
Sustainable Procurement
3rd Edition
The Procura+ Manual
A Guide to Implementing Sustainable Procurement, 3rd Edition

Publisher:
ICLEI – Local Governments for Sustainability, European Secretariat

Authors:
Simon Clement, John Watt (ICLEI European Secretariat),
Abby Semple (Public Procurement Analysis)

Contributions:
Laura Carpineti (ARCA), Robert Kaukewisch (Directorate General Environment, European
Commission), Grit Körber (Federal Environment Agency, Germany), Catherine Weller
(Client Earth), Directorate General Internal Market and Services (now Directorate General
for Internal Market, Industry, Entrepreneurship and SMEs), Elba Estrada (Fair Trade
Advocacy Office), Angie Fyfe (ICLEI USA), Isabel Gómez Calleja (RENFE), Marcus Nyman
(on behalf of the ISEAL Alliance), Marco Glisoni (Arpa Piemonte), David Morgan (Cornwall
County Council), Anne-Marie Pieters, Peter Nohrstedt (SKL Kommentus AB), Maya de
Souza (Department for Environment, Food and Rural Affairs, United Kingdom), Natalie
Evans (City of London Corporation), Aure Adell (Ecoinstitut), Ioan Baciu (Rubin Meyer
Doru & Trandafir), Peter Defranceschi, Mark Hidson, Ashleigh McLennan, Philipp Tepper
(ICLEI European Secretariat)

Photos:
Cover: (1) © ICLEI Europe, (2) © iStock.com, temmuz can arsiray, (3) © dreamstime.com,
Denis Babenko | Back Cover: © ICLEI Europe | Pg 6-7: © dreamstime.com, Hilchtime |
Pg 104: Provided by City of Helsinki | Pg 105: ICLEI Europe | All other photos:
pixabay.com under Creative Commons CC0

Design:
www.emge-design.de

Copyright:
© ICLEI European Secretariat GmbH, Freiburg, Germany, 2016
All rights reserved. No part of this publication may be reproduced or copied in any
form of by any means without written permission of ICLEI – Local Governments for
Sustainability, European Secretariat.

Acknowledgements:
This publication has been produced as part of the SPP Regions project, which has
received funding from the European Union's Horizon 2020 research and innovation
programme under grant agreement No 649718.

The sole responsibility for any error or omissions lies with the editor. The content
does not necessarily reflect the opinion of the European Commission. The European
Commission is also not responsible for any use that may be made of the information
contained herein.

Print compensated Id-No. 1658694

www.bvdm-online.de
PREFACE6

CHAPTER I: INTRODUCTION8
1.1 What is sustainable procurement? 8
1.2 Public procurement of innovation  10
1.3 Sustainable procurement: the benefits 11
1.4 Opportunities under the 2014 Procurement Directives 14
1.5 Challenges and solutions 15
1.8 What this manual contains 18

CHAPTER II: MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION 20

2.1 Building the case for sustainable procurement 21
2.2 Gathering support 23
2.3 The Procura+ Management Cycle 28
Step 1 - Set scope and targets 29
Step 2 - Develop action plan 33
Step 3 - Implement action plan 39
Step 4 - Monitoring and reporting  40

CHAPTER III: THE PROCUREMENT PROCESS:

INTEGRATING SUSTAINABILITY AND INNOVATION 42
3.1 Pre-procurement 43
3.2 Deciding on the procurement process 49
3.3 Defining the subject of the contract (subject matter) 54
3.4 Selection / exclusion of bidders 54
3.5 Technical specifications 57
3.6 Award criteria 62
3.7 Contract performance clauses and management 63
3.8 Other considerations 65
3.9 The 2014 Directives: Reference 70

CHAPTER IV: THE REAL COSTS OF PROCUREMENT 72

4.1 Impact of each procurement stage on real costs 73
4.2 Assessing real costs in procurement – life cycle costing (LCC) 75
4.3 The evidence – the cost impact of sustainable procurement 78
4.4 Social responsibility and value 80
4.5 Taking an holistic view 81

CHAPTER V: KEY SECTORS FOR SUSTAINABLE PROCUREMENT 82

1. Construction 84
2. ICT 88
3. Cleaning 91
4. Food and catering services 94
5. Vehicles 98
6. Electricity 101

PROCURA+ EUROPEAN SUSTAINABLE PROCUREMENT NETWORK 104

What is the Procura+ European Sustainable Procurement Network? 104
Why join the Procura+ Network? 104
How to join Procura+ 106
Further information 106
 PREFACE
In the nine years since the last edition of the Procura+ Manual was published, much
has changed. Sustainable procurement has continued to develop and spread amongst
public authorities both in Europe and the rest of the world, so that it now forms part of
procurement policy in 56 countries.1 Sustainable procurement has also grown in both scope
– to encompass a wider range of environmental, social and economic issues, promoting
value for money in its full sense – and depth, as the knowledge and techniques developed
by frontrunners have been disseminated and standards raised. However, progress
towards more sustainable procurement has not been straightforward. The economic
downturn has severely limited public budgets in many countries and the resources, along
with the political will, to implement sustainable procurement have come under pressure.
While some governments have experienced the cost savings and competitive advantages
associated with sustainable procurement, work remains to be done to demonstrate its
benefits to others and to consolidate the progress already made.

This fully updated and revised edition of the Procura+

The Procura+ European Sustainable Manual aims to position sustainable procurement in the
Procurement Network current economic, political and legal framework. As with
previous editions, it acts as a central point of reference
Procura+ is a network of European public for public authorities and others wishing to understand
authorities and regions that connect, exchange and implement sustainable procurement. The lessons
and act on sustainable and innovation and experiences of Procura+ Network participants are
procurement. reflected in the pages that follow, together with the
findings of a number of recent large-scale studies and
These organisations collaborate through seminars, sector-specific initiatives. The Manual continues to offer a
webinars, working groups, twinning activities, clear overview of what sustainable procurement is, how
via e-mail and a dedicated discussion forum. In it can be implemented and what the costs and benefits
addition, many participate in related sustainable are. It is intended to be used both by those who are new
procurement projects and initiatives. to the field and those who are already familiar with the
key concepts, but are seeking examples of sustainable
More on the Network can be found on the website procurement in action and arguments to strengthen it
(www.procuraplus.org), and at the end of this within their own organisations.
manual.
This new edition comes at a significant juncture in EU
public procurement, following the transposition of the
2014 Procurement Directives2 by EU Member States.
One of the ambitions of the reform was to facilitate the strategic use of public contracts
to achieve broader societal goals. After a long negotiation process, the final texts of the
Directives offer significant new opportunities for sustainable procurement - especially
in terms of including social considerations, such as fair trade, in the award of contracts.
However, the vast majority of provisions related to environmental, social and innovation
aspects of tendering remain optional for contracting authorities to adopt. While rules
on life cycle costing and labels are intended to facilitate the transparent and fair use of
these tools, they may also add complexity. The role for initiatives such as the Procura+

1
O‘Rourke A., Leire, C. and Bowden T. (2013) Sustainable Public Procurement: A Global Review United Nations
Environment Programme. Based on a survey and desktop research, the study estimated that by the end of 2012,
at least 56 countries had adopted a national SPP/GPP policy in some form.
2
2014/23/EU (the Concessions Directive), 2014/24/EU (the Public Sector Directive) and 2014/25/EU (the Utilities
Sector Directive). References in the Manual are to the Public Sector Directive, however readers should note that
many of the same possibilities for SPP exist under the other two directives.
3
www.procurement-forum.eu
4
www.procuraplus.org

6
Network in assisting contracting authorities to apply these provisions in practice is clear:
direct support as well as exchange and networking help Procura+ participants to drive
sustainable procurement. Readers are invited to join the Procurement Forum3 in order
to share their tips or pose questions on the new rules.

Finally, it is worth noting that the technological framework for procurement has changed
more rapidly than the legal one - and the move towards fully electronic tendering under
the 2014 Procurement Directives means more change is on the way. The combination
of new legal and technological avenues for sustainable procurement and the ongoing
challenge of promoting long-term benefits over short-term barriers make this an exciting
time to be a participant of the Procura+ Network.4 We invite you to join us in this effort
to further the uptake of sustainable procurement and to adopt this Manual as part of your
organisation‘s procurement policy.

Join the movement!

Pekka Sauri Martine De Regge Mark Hidson

Deputy Mayor, Helsinki (Finland) Deputy Mayor, Ghent (Belgium) Global Director ICLEI‘s
Sustainable Procurement Centre
Vice-President of ICLEI - Local Vice-Chair, Procura+ European
Governments for Sustainability Sustainable Procurement Deputy Regional Director, ICLEI
Network Europe
Chair, Procura+ European
Sustainable Procurement
Network

7
 CHAPTER I
INTRODUCTION
1.1 What is sustainable procurement?

Sustainable procurement 5 means making sure that the products and services your
organisation buys achieve value for money on a life cycle cost basis and generate benefits not
only for your organisation, but also for the environment,6 society and the economy. To procure
in a sustainable way involves looking beyond short-term needs and considering the longer-
term impacts of each purchase. Sustainable procurement is used by both public and private
sector organisations to ensure that their purchasing reflects broader goals linked to resource
efficiency, climate change, social responsibility and economic resilience, for example. As
these aspects are often interlinked, it is useful to picture sustainable procurement as follows:

SOCIAL

Basic rights
Fair wages
Accessibility
Social inclusion

ENVIRONMENTAL ECONOMIC

Climate change life cycle costs

Water use Innovation
Energy Growth
Waste Employment
Fig 1. Sustainable
procurement impacts

8
 INTRODUCTION I

The examples given in the diagram above are not exhaustive. Other environmental impacts
related to the use of hazardous substances, raw material usage and the management
of natural resources exist in addition to greenhouse gas emissions. On the social side,
procurement may encourage a diverse base of suppliers, promote fair employment
practices and ethical sourcing, and foster training opportunities and community benefits.
Economic goals achievable through procurement include the creation of new jobs and
markets, as well as opportunities for small and medium sized enterprises (SMEs), in
addition to delivering value for money across the whole life cycle of a purchase. In the
language of economists, sustainable procurement is about “internalising the externalities”
and leading by example. It is about driving behaviour change by government taking the
lead and showing others what can be done.

At its most basic, sustainable procurement can mean buying energy efficient computers
or fair trade coffee. At its most comprehensive it means systematically integrating
sustainability considerations into the whole procurement
process, embedded in organisational policies, whether
purchasing goods, services or works and regardless of City of Barcelona, Spain
the type of contract or form of procurement procedure
followed (e.g. service contracts, centralised framework One of the founding participants of the Procura+
agreements, competitive dialogue or other 'non-traditional' Campaign, the City of Barcelona7 has been
procurement approaches). working on sustainable procurement since
2001, and in 2010 spent €43 million on green
Regardless of the scope of activities undertaken, there products and €92 million on “greened” services
is a need to understand the connections between (e.g. lighting, fountain maintenance). In 2013 it
environmental, social and economic aspects of adopted mandatory green criteria for vehicles,
sustainability, so that gains achieved in one area do not electricity, food and catering services and a range
come at an unacceptable cost to another. Some sustainable of other high priority procurement categories, e.g.
procurement approaches will generate multiple benefits - achieving 100% ecologically grown food supplies
for example energy-efficient products which save money worth €3.8 million.
and CO₂, or an innovative building design which improves
users‘ wellbeing while also making maximum use of natural
light, heating and cooling. In other areas, there may be a trade-off between benefits in one
category and costs in another. Procurers evaluate such trade-offs on a daily basis, and
they can be far from easy to manage.

For this reason it makes sense to adopt sustainable procurement as a policy, rather than
just as an ad-hoc practice, so that it can be supported, monitored and improved over time.
A sustainable procurement policy can also help to establish communication between the
users or commissioners of goods, works and services and procurers, to ensure needs are met
in a sustainable manner (see the Sustainable Procurement Policy section in Chapter II).

From defining your organisation‘s true needs, to setting appropriate technical specifications
and evaluation procedures, to monitoring contract performance and results, a sustainable
procurement policy will help by:

5
For the sake of simplicity the term sustainable procurement is used throughout the document. Although the
term sustainable procurement would also cover private sector procurement, the focus of this manual is on
procurement within the public sector. Many of the principles of course would apply to both private and public
procurement.
6
The terms green public procurement (GPP) and sustainable procurement are often used interchangeably
– however GPP considers only the environmental impacts of purchasing decisions, whereas sustainable
procurement considers all aspects of sustainability.
7
www.procuraplus.org/public-authorities/barcelona-city-council

9
 • Signalling commitment from the highest levels of your organisation

• Providing a consistent approach and common language which will be appreciated by

procurers, users and suppliers

• Linking sustainable procurement to other organisational goals and policies, as well as

important national or local priorities and policies

• Developing support functions, such as training programmes, guidance and standard

tendering procedures

• Ensuring sustainable procurement is monitored regularly and continuously improved

• Giving you an opportunity to view your procurement process in a different way

This Manual is designed to provide clear, easy-to-understand guidance on how to develop

a sustainable procurement policy and implement it in practice. It has been prepared by
people with years of direct experience in public sector procurement and expertise of
how to integrate sustainability considerations. The chapters contain practical advice,
examples and a management framework in the form of the Procura+ Management Cycle.
Particular focus is given to the possibilities under the 2014 Procurement Directives 8 to
take environmental, social and innovation aspects into account in tendering. The relative
costs and benefits of sustainable procurement in different sectors are also analysed, with
evidence from large-scale studies undertaken in recent years. Relevant resources and
criteria are highlighted throughout the Manual.

1.2 Public procurement of innovation

The concept of using public procurement to drive innovation on the market (commonly
referred to as public procurement of innovation (PPI) or innovation procurement)9 is gaining
considerable support and becoming a focal point for policy
at local, national and European level.
Find out more – procurement of innovation
A significant amount of research has been devoted to
In addition to the information given in this Manual, the topic, and dedicated agencies and support structures
dedicated guidance and a wealth of examples established. Innovation is understood in this context as the
and other resources on public procurement of implementation of a new or significantly improved product
innovation are available at (good or service) or process.10 It encompasses activities
which may be new to the public authority or sector, or to
www.innovation-procurement.org the market as a whole.

The concepts of sustainability and innovation are often

linked in procurement – indeed, it is the opinion of the authors that they must be
linked. There are strong links between innovation and more sustainable performance –
for example where new technology extends the lifetime of a product, or where better
access to information means services to people can be performed more effectively and
inclusively.

8
2014/23/EU (the Concessions Directive), 2014/24/EU (the Public Sector Directive) and 2014/25/EU (the Utilities
Sector Directive) – hereafter simply referred to as the 2014 Directives. References in the Manual are to the Public
Sector Directive, however readers should note that many of the same possibilities for SPP exist under the other
two directives.
9
The European Commission uses the term innovation procurement as an umbrella term for delivering deliver
solutions to challenges of public interest – covering both innovation (PPI) (for the procurement of solutions that
are nearly or already in small quantity in the market and do not need new R&D), and pre-commercial procurement
(PCP) (when there are no near-to-the-market solutions yet and new R&D is needed)
– see www.ec.europa.eu/digital-single-market/en/innovation-procurement
10
OECD (2005) Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data 3rd Edition.

10
 INTRODUCTION I
In seeking to identify more sustainable solutions to our procurement needs within the
context of deep cuts to public budgets we need to embrace and encourage innovation
on the market. If technical specifications, selection or award criteria suggest to bidders
that they are not expected to propose new, more sustainable ways of doing things, they
are unlikely to do so. At the same time, innovation must be placed within the context of
sustainability – with an assessment of environmental and social impacts a key part of any
development process.

1.3 Sustainable procurement: the benefits

Organisations implementing sustainable procurement report a range of benefits, including:

Meeting environmental policy goals

Procurement of construction, energy, transport and food has a particularly high carbon
footprint – but every purchase generates some greenhouse gases. Addressing the climate
impact of procurement is essential, not least due to
reporting requirements and binding emissions reduction
targets. Targeting early reductions may help to avoid costly Regensburg benefits from sustainable
supply chain disruptions or adaptation efforts later on. procurement

Natural resources such as water, energy, fossil fuels and Procura+ Participant City of Regensburg started
raw materials extracted or harvested from the earth implementing an Eco School Programme in 1999
account for a major part of procurement costs and impacts. to reduce water usage and waste production and
Sustainable procurement aims to promote conservation, has an adaptation programme for climate change
reuse and responsible management of these resources, in place. Its sustainable procurement activities
using renewable or recycled materials where possible and have saved 10 million Euros in energy and water
reducing waste. costs over a 15 year period.

Meeting other sustainability policy goals Read the Regensburg Procura+ Profile here.11
Government contracts have a demonstrated power to
influence employment and labour conditions in the local
region. Including apprenticeship requirements in a works
contract, or working with suppliers to ensure community benefits, for example, can
generate social returns. Reserving contracts for social enterprises or those which employ
at least 30% disabled or disadvantaged workers is also possible under the 2014 Directives.
Ensuring International Labour Organization (ILO) standards are met means that EU
workers are not undercut by workers from abroad working to unacceptable terms and
conditions.

At the global scale, promoting the concept of fair trade (explicitly highlighted within the 2014
Directives) as well as the ILO standards will help to promote fairer trading relationships
and safer working conditions.

Financial efficiency
A common assumption is that sustainable procurement costs you more – however
this does not stand up to scrutiny. Often differences in the purchase price between a
non-sustainable and sustainable alternative are negligible. Yet even where the sustainable
option costs more upfront, savings of energy, water and waste over the lifetime of the
product or service can provide significant financial savings. Sustainable procurement

11
www.procuraplus.org/public-authorities/regensburg/

11
 policies can also help to redefine procurement needs
Procurement of energy efficient Desktop- in a way which reduces overall costs – for example by
PCs and Displays reducing demand, implementing more efficient systems
or sharing resources with other organisations. Life cycle
Consip SpA12 launched a framework contract costing allows a more realistic appraisal of the total cost of
for computers (Desktop-PCs and Displays) to ownership of any asset, for example, by accounting for fuel
ensure an efficiency performance that is 60% consumption when vehicles are purchased or calculating
higher than computers produced according to energy use and the time period until replacement will be
the Energy Star Standard. Specifications and necessary for lighting.
award criteria disclosed the parameters on
energy efficiency and reduced noise emissions.
The total lifetime electricity cost savings were € Reputation
2,300,000 for the whole contract. Citizens are increasingly aware of sustainability issues and
expect public authorities to lead the way in adapting their
Read the whole case study here.13 consumption accordingly.

Pressure to implement sustainable procurement from

the general public through NGOs and advocacy groups is
growing as awareness of environmental and social issues continues to rise. The increased
availability of information, including about government contracts, can also create interest
in issues which were previously less visible, such as supplier practices in developing
countries.

Becoming a leader in this area can bring political benefits by demonstrating environmental,
social and economic advantages, as well as generating a positive atmosphere for employees
and contractors. The reverse is also true – if unsustainable procurement practices (such as
the procurement of goods produced using child labour, or contributing to deforestation)
are identified by local media, citizen groups or NGOs, this can have significant negative
consequences on an administration’s reputation.

Procura+ participants regularly win awards for their procurement:

• The Association of Flemish Cities and Municipalities (WSG) honoured Ghent for a
painting contract in 2016.14

• Kolding won the Danish Green Purchasing award for the procurement of hydrogen
vehicles.15

• Copenhagen’s green procurement policy contributed to it being awarded European

Green Capital 2014.16

Risk reduction
Organisations which actively implement sustainable procurement are less likely to be
caught out when it comes to compliance with environmental and social legislation which
applies to them directly or to suppliers. From energy-efficiency and product labelling, to
the use of hazardous substances and compliance with employment and tax laws - the list
of environmental and social legislation with which public authorities and their suppliers
must comply is long. No public body wants to be in the headlines for illegal dumping, food
contamination or the unethical treatment of workers at any stage in their supply chains. A
strong sustainable procurement policy will help to identify such risks and minimise them

12
www.consip.it/en/
13
www.gpp2020.eu/fileadmin/files/Tender_Models/GPP_2020_Tender_Model_-_Desktop_PCs_-_Italy_September_2015.pdf
14
http://www.sustainable-procurement.org/news/?c=search&uid=38e337e0
15
www.procuraplus.org/public-authorities/kolding
16
http://www.sustainable-procurement.org/news/?c=search&uid=62ec83bb

12
 INTRODUCTION I
during procurement and contract management. By contributing to a more professional
assessment and handling of risks, sustainable procurement can help reduce costs such as
those linked to litigation or contract termination.

Socially responsible procurement in Southeast Norway Health Region

Procura+ Participant Southeast Norway Health Region17 takes an active role

in ensuring acceptable working conditions and human rights for labour in their
supply chain. This involves visits and inspections to factories. Results include
a reduction in working hours for staff at an Indian textile factory, and much
improved conditions for workers in a medical glove factory in Malaysia who
previously had their passports removed, received low wages and worked in poor
conditions.

View their video here.18

Market transformation and innovation

With public procurement accounting for some 14% of GDP in Europe,19 the public sector
can be a major player when it comes to setting standards for products and services. One
of the purposes of the Procura+ Network is to provide a way for public authorities to
exchange practices and adopt similar approaches and criteria, joining forces to continually
‘raise the bar’.

Adopting and implementing a sustainable procurement policy which specifically targets

innovation helps to stimulate the local economy to develop marketable sustainable
solutions, and ensure your organisation benefits from new technologies and processes as
they develop. Where pre-commercial procurement or an innovation partnership is used,
it may also lead to commercial opportunities in the form of joint ventures or
licensing rights. It sends a message to suppliers that you are open to new
ideas and allows solutions to be shaped to your particular needs,
including your sustainability principles, as a customer.

A “quick win”
Whilst implementing a comprehensive sustainable procurement
strategy requires time and resources (see chapter II), in many
ways the implementation of sustainable procurement can be
a simple process offering immediate benefits. Procurement
is always happening within a public administration, and
given the amount of support available today it will often be
a rather straightforward process to include sustainability
considerations for many products and services.

The quality and availability of sustainable products and services

on the market continues to grow at a rapid rate, with costs coming
down accordingly. The wide coverage of environmental and social

17
www.procuraplus.org/public-authorities/southeast-norway-health-region
18
www.vimeo.com/112149202
19
European Commission (2015) Public Procurement Indicators 2013

13
 product labels at national and international levels (e.g. Organic, FSC/PEFC, 20 Nordic Swan,
Blue Angel, EU Flower, Fair Trade) offers a helpful path to implementing sustainable
procurement initiatives (see section on Using Labels in Chapter III).

There are now many examples of good practice detailing how public authorities have dealt
with challenges and found solutions when implementing sustainable procurement, which
can be replicated. A selection of examples can be found on the Sustainable Procurement
Platform21 and on the European Commission’s GPP website. 22

1.4 Opportunities under the 2014 Procurement Directives

The 2014 Directives open up a number of opportunities for sustainable procurement,

while maintaining the basic requirements of competition, transparency and equal
treatment. The reform is linked to the Europe 2020 strategy for smart, sustainable and
inclusive growth,23 which identified public procurement as one of the market based
instruments needed to achieve the 2020 objectives for employment, climate change and
energy sustainability, research and development, education and poverty reduction. 24

The 2014 Directives provide a wide range of opportunities to implement sustainable

procurement:

• Environmental, social considerations and innovation may be taken into account when
public contracts are awarded and performed, provided these considerations are linked
to the subject matter of the contract (i.e. they relate to the product/service/works being
bought or their process of production but not the supplier more generally).

• The ability to specify production methods (e.g. organic, electricity from renewable
sources, or chlorine-free bleaching) is confirmed.

• More detailed rules on the use of life cycle costing and use of environmental and social
labels are laid out.

• Compliance with the ILO core conventions and certain international environmental
conventions can also be ensured, with the possibility to exclude suppliers who cannot
demonstrate this.

• Fair trading conditions can be taken into account in award criteria.

• Many of the legal challenges which have confronted sustainable procurement have
been clarified – although some new ones may also appear.

The detailed provisions and what they are likely to mean in practice are discussed in detail
in Chapter III.

20
Forest Stewardship Council/Programme for the Endorsement of Forest Certification
21
www.sustainable-procurement.org/
22
www.ec.europa.eu/environment/gpp
23
COM (2010) Europe 2020: A strategy for smart, sustainable and inclusive growth
24
The specific targets adopted, and Europe‘s progress to date, can be seen at:
www.ec.europa.eu/eurostat/web/europe-2020-indicators/europe-2020-strategy

14
 INTRODUCTION I
1.5 Challenges and solutions

Although the benefits and opportunities of sustainable procurement are clear and widely
recognised, a number of specific technical challenges remain:

Lack of understanding of the benefits of sustainable procurement amongst politicians

and budget holders – Public procurement is subject to many pressures – from
cutting costs to meeting the demands of internal users and the public. If
there is little political support or resources available for sustainable
procurement, it can easily slip down the agenda. The potential
benefits outlined above are still often not well understood or
recognised by those with decision making responsibilities.

Solution: Participating in the Procura+ Network – or any of

the many other initiatives and projects taking place across
Europe – can greatly help to secure an ongoing political
commitment and visibility for sustainable procurement.
It can also help to identify relevant sources of funding.
Organising internal information workshops and sharing
best practice from other administrations can be very
helpful mechanisms to increase support. Chapter II presents
guidance on building the case and gathering support for
sustainable procurement.

Lack of clear definitions – Many procurement professionals still struggle

to define what an “environmentally and/or socially preferable” product or
service is, and how to include demands when publishing a tender opportunity.

Solution: The European Commission has recommended GPP criteria25 for 21 product/
service groups which may be used by any public authority in Europe. Many public
procurers also use the social and environmental criteria underlying sustainability product
labels and certification schemes for definitions. A number of other sources for criteria
exist nationally and internationally. Chapter III provides advice on specific sustainable
procurement techniques which can be used at each stage of the tender process, and
Chapter V gives an overview of sustainable procurement approaches for six high-priority
product groups. The Procura+ Network twinning programme26 and interest groups27
also offer an opportunity for public authorities to exchange on specific criteria used.

Changing the 'lowest price only' mindset – A key challenge identified by many public
sector organisations is changing perceptions regarding the true cost or value of a purchase
– particularly where only purchase price is assessed rather than life cycle costs. Working
with annual budgets, which do not incentivise long-term savings, and having budgetary
responsibility for different costs (purchase price and electricity consumption during use,
for example) split between different departments compound this issue.

25
www.ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm
26
www.procuraplus.org/twinning
27
www.procuraplus.org/interest-groups

15
 Solution: Providing simple information on the financial benefits of using life cycle costing
can help to overcome such perceptions, and many of the case studies contained within
the Sustainable Procurement Platform28 and on the European Commission’s GPP
website29 have information on overall financial cost impacts. Several tools for calculating
life cycle cost are now also available, such as the Clean Fleets LCC tool30 for vehicle
procurement, or the SMART SPP LCC tool31 for all forms of energy using products. More
information on this is provided in Chapter IV.

Missing market intelligence – The market for sustainable products and services is
developing rapidly, and many public sector organisations do not have the dedicated capacity
to keep up. It can be difficult to make a business case for sustainable procurement when
market intelligence is missing.

Solution: Preliminary market consultation, which may take several different forms,
is a good way to identify the costs, risks and benefits of sustainable and/or innovative
solutions in advance of publishing a tender opportunity. It can also contribute to a better
choice of procedures. Tips and techniques for pre-procurement, including detailed advice
on market engagement, are presented in Chapter III.

Inflexible procedures and attitudes – Most organisations have defined procedures and
processes in place to govern procurement – and these can sometimes be inflexible. Staff
can also be resistant to change and opening-up to innovative ideas and new suppliers. The
ease with which sustainable procurement can be integrated into these systems varies,
and may require high-level management decisions.

Solution: The simple Procura+ Management Cycle presented in Chapter II is designed

to help manage implementation effectively – a key part of this process is effective
involvement of and communication with all relevant internal stakeholders, and finding
incentives to implement sustainability. As a result of the change to the EU Directives, some
rethinking of processes and e-procurement systems will be necessary in any case, making
this a great time for change.

Lack of internal communication and support – Procurers need support from technical
experts and other internal units in order to get the best outcomes on sustainable
procurement. Existing communication structures may hamper this process, or may
discourage more long-term cooperation between teams.

28
www.sustainable-procurement.org/
29
www.ec.europa.eu/environment/gpp
30
www.clean-fleets.eu/fileadmin/files/documents/Publications/LCC_tool_Aug_2015/Clean_Fleets_LCC_tool_-_EN.xlsm
31
www.smart-spp.eu/index.php?id=7633

16
 INTRODUCTION I
Solution: Adopting a sustainable procurement policy as described in Chapter II can help
to establish the importance of communication and lines of responsibility. Cross-functional
teams can be a good way of addressing the various questions which may come up when
evaluating sustainability considerations – for example a team of engineers, accountants,
environmental officers, drivers and procurers would be well placed to advise on a tender
process for low-carbon vehicles.

Sharing solutions to sustainable procurement challenges

Procura+ Participants all face a variety of challenges and regularly share their
solutions with the network.

• Helsinki32 and Rotterdam33 both have a target for 100% sustainable procurement
for 2020. Not all departments in the cities are at the same level of delivering
sustainable procurement. Focused training and guidance for these departments
ensures that staff will be skilled to make procurement sustainable.

• RGO34 (Réseau Grand Ouest) finds that sustainable procurement is sometimes

considered to be a constraint rather than an opportunity. RGO as a network
overcomes this by sharing best practice, exchanging knowledge and working
together on sustainable solutions. This helps to change mindsets within the
individual public authorities.

• The coordination and expansion of the Barcelona City Council35 +Sustainable

City Council Programme (+SCC) to encompass the whole municipal institution
is one of their biggest challenges. Barcelona’s commitment is put into action by
providing council staff with appropriate technical support, awareness raising
and training activities, and networking. Find out more here. 36

Misinformation and misconceptions – Despite efforts to mainstream sustainable

procurement, it is still seen as a 'special interest' in some organisations. Common
misconceptions are that sustainable products, works, and services are inferior, cost more,
or are not readily available.

Solution: For sustainable procurement to succeed, the practical problems of raising

awareness, training and educating procurement professionals must be addressed. It will
also help to have a high-level champion or two for sustainable procurement – to help build
support for the benefits and overcome any challenges encountered.

32
www.procuraplus.org/public-authorities/helsinki
33
www.procuraplus.org/public-authorities/rotterdam
34
www.procuraplus.org/regional-networks/reseau-grand-ouest
35
www.procuraplus.org/public-authorities/barcelona-city-council
36
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue61_Case_Study_124_Sustainable_City_Barcelona.pdf

17
 The Procura+ Network – addressing the challenges

The Procura+ Network has introduced a number of exchange activities, designed

to help participants share the challenges faced, such as those presented above,
and develop common solutions:

• City twinning – facilitating in-depth peer-to-peer exchange between two

participants.

• Interest groups – bringing together participants to collaborate on a specific

sustainable procurement topic of common interest, such as market engagement,
or school catering procurement.

• Seminars and webinars – providing further opportunities for face-to-face, or

online communication on key issues.

Find out more about these activities here. 37

1.6 What this manual contains

Chapter II: Managing sustainable procurement in your organisation – presenting

a simple implementation model for ensuring the systematic inclusion of sustainability
considerations in procurement, including:

• preparation – how to build the case and gather support for sustainable procurement,
and;

• establishing targets, developing and implementing an action plan, and monitoring and
reviewing results.

Chapter III: The procurement process: Integrating sustainability and innovation –

offering clear guidance on how to integrate sustainability criteria into the procurement
process under the 2014 Directives – from preliminary market consultation to technical
specifications, selection and award criteria, and contract clauses.

Chapter IV: The real costs of procurement – an introduction to the concept of life cycle
costing (LCC), evidence regarding the costs of sustainable procurement and advice on how
to keep costs down.

Chapter V: Key sectors for sustainable procurement – an overview of sustainable

procurement approaches for six key products, works and services: construction, IT
equipment, cleaning products, food, vehicles and electricity – including information on
the available criteria.

Chapter VI: Procura+ European Sustainable Procurement Network – introducing the

aims and activities of the Network.

37
www.procuraplus.org/activities

18
 INTRODUCTION I

Other dedicated sustainable procurement resources

Since the publication of the last edition of this Manual in 2007, many new online resources
have become available to support the implementation of sustainable procurement. The
following are particularly useful:

• Sustainable Procurement Platform » www.sustainable-procurement.org

A one-stop shop for resources on sustainable public procurement (e.g. criteria,
guidance, case studies).

• The Procurement Forum » www.procurement-forum.eu

A space for procurers and related stakeholders to discuss, share and connect.
Documents, images and videos can be uploaded and questions or comments posted.
Users can also create groups to coordinate projects.

• Procurement of Innovation Platform » www.innovation-procurement.org

An online hub that helps public authorities, procurers, policy makers, researchers and
other stakeholders harness the power of public procurement of innovation (PPI) and
pre-commercial procurement (PCP).

• European Commission GPP website and Helpdesk » ec.europa.eu/environment/gpp

Criteria, guidance and examples, as well as policy and legal background on GPP. The
Helpdesk service exists specifically to assist public authorities and others who have
queries about implementing GPP. It is free of charge and the Helpdesk can be contacted
by e-mail ([email protected]) or telephone (+49 761 368 920).

• Sustainable Consumption and Production Clearinghouse » www.scpclearinghouse.org

The Sustainable Consumption and Production Clearing House is maintained by the
United Nations Environment Programme (UNEP) to provide information on the UN‘s 10-
year Framework of Programmes on Sustainable Consumption and Production. 38
It contains a number of resources specific to public procurement.

• Eafip (European Assistance for Innovation Procurement) Toolkit » www.eafip.eu/

toolkit
Eafip provides support to policy makers in designing PCP and PPI strategies, and to
procurers and their legal departments in implementing such procurements.

38
www.unep.org/resourceefficiency/Policy/SCPPoliciesandthe10YFP/The10YearFrameworkProgrammesonSCP.aspx

19
 CHAPTER II
MANAGING SUSTAINABLE
PROCUREMENT IN YOUR
ORGANISATION

This chapter presents the Procura+ Management Cycle which offers a simple, flexible,
yet comprehensive management system for implementing sustainable procurement in a
public authority.

Implementing sustainable procurement can start with some very simple steps, without
the need for a comprehensive strategy. However, having a well-developed management
system in place will help to ensure that sustainability is effectively and systematically
integrated into your procurement activities over the longer term – with clear targets,
responsibilities and continuous improvement.

The Procura+ Management Cycle has been developed building on the years of experience
of Procura+ participants in sustainable procurement implementation. It is not intended
as a one-size-fits-all model, as all administrations are different. It is rather designed to
provide some hints and tips to help shape your own management approach.

The advice provided here is relevant for any administration – whether just starting out
with sustainable procurement, or with many years of implementation experience.

20
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

1
Set
scope and Gathering
targets Support
4 2
Monitoring Develop
and Action
reporting Plan
Building
the case 3
Implement
action
plan

Fig 2. The Procura+ Management Cycle

2.1 Building the case for sustainable procurement

Introducing sustainable procurement into an organisation can be a daunting task. Where

do you begin? Who do you approach for advice and support? How do you convince colleagues
that this will benefit the organisation? Which departments will be responsible and responsive to
the new ideas? Is sustainable procurement being done in the organisation already?
Building
the case
An important first step in this process is to build the case for sustainable procurement by
showing how the organisation would benefit from formally implementing a wider reaching
sustainable procurement policy and strategy. This section outlines some of the benefits,
and techniques and strategies for doing this.

What are the benefits of sustainable procurement?

Getting buy-in for sustainable procurement from stakeholders, including key decision-
makers, budget-holders and procurement practitioners, is crucial for ensuring it is fully
implemented in an organisation. The first question most people will ask is: why should we
do this?

Making sure you understand the benefits of sustainable procurement is therefore essential.
Chapter I of this Manual outlined the wider benefits of sustainable procurement, which
include:

• meeting sustainability policy goals – on climate change, energy efficiency, air quality,
reducing unemployment and social exclusion etc.;

• increasing financial efficiency;

Find out more - the benefits of sustainable
• enhancing organisational reputation; procurement:

• reducing the risk of non-compliance with legislation; and

www.sustainable-procurement.org/why-spp/
• encouraging innovation and the development of www.ec.europa.eu/environment/gpp/benefits_
competitive sustainable solutions in your region. en.htm

21
 Are there any related policies?
Find out more – case studies available online
Sustainable procurement is a tool which can be used to
address a wide variety of policy goals – from supporting
There are many sustainable procurement case
small business development and getting the long-term
studies available online, where you can find
unemployed back into work, to achieving energy efficiency
examples relevant to your situation:
gains or enhancing sustainable urban mobility. Identify
existing policy goals which you can link to sustainable
• The GPP 2020 project published over 100
procurement implementation – both at the organisational
case studies39 on individual tenders, providing
and national level. These can help to gather support, and
quantified data on the CO₂ savings achieved.
potentially form the starting point of a full sustainable
• The European Commission has been publishing procurement policy (see Gathering support section below).
good practice examples 40 since 2010.

• The Procura+ Network has activity profiles 41 Does it work in practice?

on each participant that can act as a good A good way to demonstrate the effectiveness of sustainable
starting point. procurement is by presenting decision-makers with real-
life examples from other public administrations. Often
• Many more case studies can be found in the
when decision-makers see something work successfully in
Resource Centre42 of the Sustainable
a similar organisation, the perception of risk is lowered.
Procurement Platform.

What are we already doing?

Taking a step back and looking at the existing procurement systems and practices is a
good way to get started. Many organisations find that the basic foundations of sustainable
procurement are already in place. By speaking to people across the organisation who
are involved in procurement you may well discover previous purchases of sustainable
products/services or tenders that include sustainability criteria. Particularly in an
organisation that is more decentralised these examples may not be widely known. Being
able to showcase internal successes is a highly effective approach to gaining further
support and enthusiasm.

How is procurement organised?

The way the organisation is set up to procure goods and
Southeast Norway Health Region shows the services is an important factor in determining the approach
benefits of sustainable procurement to sustainable procurement, and important to properly
understand when building the case. Procurement structures
Procura+ Participant Southeast Norway and processes vary enormously from organisation to
Health Region first experimented with socially
43
organisation, and also often between product/service
responsible procurement to show management categories within the same organisation. How centralised
that sustainable public procurement is possible is procurement? Is there a dedicated central procurement
and, indeed, beneficial. The procurement team team and which purchases is it responsible for? Is a
continually aim to demonstrate the business case category management approach implemented (see box)?
for sustainable procurement so that it can be Are there specialised procurement staff, and what form of
applied in a wider way across the organisation. training do they receive? What is the relationship between
budget holders, end users and procurement staff, and what
influence does each group have within the procurement
process?

39
www.gpp2020.eu/low-carbon-tenders
40
www.ec.europa.eu/environment/gpp/case_group_en.htm
41
www.procuraplus.org/public-authorities
42
www.sustainable-procurement.org/resource-centre
43
www.procuraplus.org/public-authorities/southeast-norway-health-region

22
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II
Taking time to understand this picture allows you to identify sustainable procurement
influencers and champions. It is critical to make sure you have support from politicians,
policy-makers, procurers, and, in particular, financial decision-makers, as well as
potentially key suppliers. Where resources allow, it may be beneficial to carry out a more
thorough survey of procurement arrangements for individual product/service sectors –
see the Baseline Inventory under Step 1. By carrying out the survey, it will allow for a more
objective overview of where the critical paths to sustainable procurement implementation
may lie, and help you to focus your activities.

Category management

Categorising is the grouping of similar goods, services and works that are
purchased by an organisation, such as cleaning products or vehicles. Category
management is the process of managing these categories in a way that uses the
internal experience and expertise of users and buyers, and facilitates better
proactive planning such as analysing and engaging with the market.

This approach can allow a public authority to examine and act on the
sustainability of the entire spend in specific product/service areas, across
different departments. This examination can include looking at how the
organisation uses the products or services within the category and what
sustainability measures could be taken, and the sustainability of the marketplace
and individual suppliers.

Summary – Building the case for sustainable procurement

Before moving on to the next preparation activity:

1. What are the benefits of sustainable procurement to your organisation?

Have you prepared the case to take to decision- and/or policy-makers?

2. Have you identified any related policies which can be supported by

sustainable procurement?

3. Have you surveyed the organisational arrangements and identified

the procurement structures within the organisation? Where do the best
opportunities for implementation lie?

2.2 Gathering support

Having the necessary political support for the implementation of sustainable procurement
is critical to success. Experiences across Europe demonstrate very clearly that without
political backing it can be difficult for those committed to implementation to get effective
co-operation from other colleagues, particularly those in other departments.
Gathering
Support
Sustainable Procurement Policy
The existence of a written sustainable procurement policy provides a useful basis on
which to build a coherent, well co-ordinated, structured approach. Elected officials should
be responsible for maintaining political commitment to sustainable procurement. Without

23
 such policy efforts the process tends to be rather piecemeal and based on the personal efforts
of certain staff members. Furthermore, encouraging those with purchasing responsibilities to
include sustainability considerations in their procedures without clear policy statements can
prove difficult. A policy gives backing to those driving the process within an organisation.

Political backing through policies can take different forms:

• General commitment to implementing sustainable procurement – for example

a statement within a procurement policy committing the authority to consider
environmental and social issues in procurement.

• Commitment to implementing sustainable procurement within a related policy – for

example, as part of a climate change mitigation, or regional development policy.

• Comprehensive sustainable procurement policy – the preparation of a more

comprehensive approach, containing clear targets. This is a more effective way to
ensure sustainable procurement is adopted by those the policy is targeting (sustainable
procurement policy examples from the Procura+ Network can be found on the next page).

Polices can be overarching for the organisation, or specific to product/service categories

or departments.

Increased political support

The benefits of
and more resources
a sustainable available for sustainable
procurement policy procurement

A coordinated sustainable
All staff fully understand Budget holders
procurement plan is
the benefits of sustainable understand both the
created that crosses
procurement and are risks and opportunities of
departments and product
motivated to implement it sustainable procurement
or service categories

Stronger management of
Focused and established supply chains, through direct
A clear framework for
priorities for sustainable engagement, development
action and monitoring
procurement of market intelligence, and
sourcing strategies

Fig 3. The benefits of a sustainable procurement policy

It is useful to consider where your organisation currently is in terms of sustainable

procurement and sustainability policies in general, and where it wants to go. As
described in the Building a case section above, linking sustainable procurement to wider
sustainability (or other) policies can be a useful starting point. For example, Cornwall
Council drew upon the Council’s existing sustainability policy and considered it in relation
to their procurement ambitions (see box). They also asked themselves: where could
sustainable procurement contribute to the sustainability policy aims?

24
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

Policy examples from Procura+ Participants

• Kolding44 – a European frontrunner for sustainable procurement, first

implementing GPP in 1998. The GPP policy was revised in 2012.

• LIPOR 45 – involved in streamlining sustainable public procurement at

a national level in Portugal through communicating the benefits and
implications of LIPOR’s sustainable procurement policy.

• Oslo46 – responsible public procurement is one of the six sub-goals of the

Procurement Strategy. A revised Procurement Policy is valid from 2017.

• Barcelona City Council47 – sustainable procurement initiatives are detailed

in the +Sustainable City Council (+SCC) Programme, which is part of
Barcelona’s Agenda 21.

• Copenhagen48 – the CPH 2025 Climate Plan recognises procurement as

having a role to play in the transformation to a carbon neutral city.

• Cornwall Council49 – the Responsible Procurement Policy covers all areas of

procurement within Cornwall Council and influences the way goods, works
and services are sourced.

• Tampere 50 – the Environmental Policy, which was approved by the Tampere

City Council in 2012, covers objectives for SPP.

• Brussels Environment 51 – has had a Green Purchasing Policy in place since

2009.

• Aalborg 52 – Sustainable Procurement Policy translates the City’s

Environmental Policy and other requirements into concrete sustainability
commitments that are observed throughout the management of the entire
procurement process.

A sustainable procurement policy could also be linked to national policy where it exists, in
order to give it stronger backing at local or organisational level. This also involves looking
beyond specific sustainable procurement policy – it is possible to link an organisational
sustainable procurement policy to national policies that direct procurement towards
value for money, whole life costing, or other related approaches.

A sustainable procurement policy is something that is continually developed and revised,

so a first version is simply the start of the process of embedding sustainable procurement
into your organisation. As you become more experienced and skilled at implementing
sustainable procurement in different product and service sectors, and monitoring
and analysis becomes stronger, then the policy will evolve to match the sustainable
procurement level and ambition.

44
www.procuraplus.org/public-authorities/kolding
45
www.procuraplus.org/public-authorities/lipor
46
www.procuraplus.org/public-authorities/oslo
47
www.procuraplus.org/public-authorities/barcelona-city-council
48
www.procuraplus.org/public-authorities/copenhagen
49
www.procuraplus.org/fileadmin/user_upload/City_files/Cornwall/141016_RP_Policy_v0_29NT.pdf
50
www.procuraplus.org/public-authorities/tampere
51
www.procuraplus.org/public-authorities/brussels-environment
52
www.procuraplus.org/public-authorities/aalborg/

25
 Sustainable procurement policy in Cornwall, UK

In 2013 Procura+ Participant Cornwall Council53 launched a Corporate

Responsible Procurement and Commissioning Policy. The policy covers why
sustainable procurement is beneficial, who is responsible, and how sustainable
procurement is implemented and monitored. The policy includes areas such as:
• Purpose
• Scope
• Policy statement
• Key policy principles
• Communicating, monitoring and reporting
• Reviews

You can view the full policy here.54

Dialogue and communication

Whatever form of policy, strategy or commitment your organisation develops to gather
support and buy-in from across the organisation, it is important to have continual dialogue
with all those involved. People do not generally like change to their working practices,
so the more open and honest you are at the start of the sustainable procurement
implementation process and the more you can involve them, the more likely colleagues
are to support any changes.

Dialogue should involve all key stakeholders who would be involved in and/or influence
sustainable procurement implementation – both key decision makers and budget holders,
and those involved in day-to-day implementation.

A good starting point for internal discussions could be: what would sustainable
procurement ideally look like in my organisation? Talk to colleagues in procurement, in
financial departments, in the dedicated sustainability team if you have one. The following
prompts may help:

• What would success look like and how would it be measured?

• Where would sustainable procurement fit into our organisational structure?
• What resources would be required for implementing sustainable procurement?
• Would a sustainable procurement policy be required?

These questions will be covered in more detail later on, but considering them at this
early stage will help to engage others and strengthen the initial case for sustainable
procurement. This process will also help to consider what the gap is between where you
want to be and where you currently are regarding sustainable procurement. What is
achievable in the short-, medium- and long-term? What is realistic within your political
setting and with the resources available? The box opposite shows the experience of
Procura+ Participant Barcelona City Council as they continue to evolve their sustainable
procurement ambitions from focused programmes to wide-reaching policies.

Another important element of effective dialogue is to listen to colleagues’ concerns about

sustainable procurement. Typical uncertainties include perceptions that it will increase
53
www.procuraplus.org/public-authorities/cornwall
54
www.cornwall.gov.uk/responsibleprocurement

26
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

Evolving sustainable procurement ambitions in Barcelona City Council,

Spain

Procura+ Participant Barcelona City Council55 has evolved its Procurement

ambitions since it first made a commitment to purchasing green office
equipment in 2001 to its latest Policy in 2013. This was done with the support
of the Procura+ Network and Procura+ Strategic Partner Ecoinstitut.

• 2001 – Creation of the Green Office Programme, which supported the

introduction of environmental criteria in regular office supplies purchases.

• 2006 – Green Office Programme evolved to become the + Sustainable City

Council Programme. This was introduced to foster awareness of municipal
services and to build environmental, social and ethical criteria into
decision making processes. The city hosts the EcoProcura Conference.56

• 2010 – The Sustainable City Council Convention was launched. The

Convention was a participative process to not only evaluate past actions
but also to define common future objectives and actions and how to
achieve them.

• 2013 – Enactment of Municipal Decree for Responsible Public

Procurement. Integrating green requirements is now compulsory for
all contracting bodies tendering for 12 high priority procurement
categories.57

• 2015 – Barcelona City Council continues to evolve its sustainable and

innovation procurement through GPP 2020 58 case studies, co-hosting
the Procura+ Seminar 2015,59 and adopting Technical Instructions for
the Application of Sustainability Criteria (2015) for the 12 high priority
procurement categories.

their workload, concerns about their lack of sustainability experience, and worries about
the unknown or risks of opening-up to new suppliers. Making sure people are ready and
know what their responsibilities will be can be a big help at
this stage. This is also where workshops and training can
Find out more – regional and European
play a big role.
networking

Regional and European networking

The Procura+ Network60 provides participants
Exchanging with peers in other public administrations –
with direct, practical support, and also promotes
regionally, nationally and internationally – can be a great
participants achievements. The SPP Regions 61
way to get practical support in developing your approach
project is focused on developing sustainable
to sustainable procurement, as well as in understanding
procurement networks at the regional (sub-
challenges and identifying opportunities and effective
national level). Contact ICLEI on procurement@
strategies. Using networks to profile your successes on
iclei.org for more information.
a wider stage is also a useful tool for building internal
support – at both the political and technical level.

55
www.procuraplus.org/public-authorities/barcelona-city-council
56
www.ecoprocura.eu/barcelona2006
57
www.ajsosteniblebcn.cat/en/greening-of-contracts_3929
58
www.gpp2020.eu/low-carbon-tenders
59
www.procuraplus.org/events/procura-seminar-2015
60
www.procuraplus.org
61
www.sppregions.eu

27
 Regional networking in Réseau Grand Ouest, France

Procura+ Participant Réseau Grand Ouest 62 (RGO) is a sustainable procurement

network with around 100 members – all public authorities from the West of
France. RGO has working groups for specific sectors, which meet on regular basis
to support each other. This can include sharing of knowledge and ideas, good
practices and case studies, tender criteria, market activities, and measuring and
reporting methods. The network also offers sustainable procurement training
for elected officials and those in charge of purchasing budgets, raising awareness
of sustainable procurement and helping them to implement sustainable
procurement policies.

Summary – Gathering support for sustainable procurement

Before moving on to the Procura+ Management Cycle:

1. Have you mobilised political support for the sustainable procurement

changes?

2. Is there a sustainable procurement policy in place? If yes, is it sufficient to

help with implementation? If no, what other procurement or sustainability
policies can be linked to any new sustainable procurement Policy to make
sure it has influence?

3. What methods will you use for gathering support and making sure colleagues
are ready for the new approaches to procurement?

2.3 The Procura+ Management Cycle

The Procura+ Management Cycle presents a standard management approach – putting in

place an implementation strategy with established goals and action plan, implementing
that strategy, and then reviewing performance before starting again with the updating of
the strategy.

The model represents a standardised approach, but of course each administration has
different procedures and structures, as well as different levels of experience – therefore
this should be seen as providing flexible guidance rather than as a prescriptive model.
Steps 1 and 2 (set scope and targets, and develop an action plan), for example, will likely
happen at least partly in parallel. The results of these steps may be codified in a sustainable
procurement strategy document, or incorporated into a politically agreed sustainable
procurement policy, or they may remain as an internal blueprint for action.

62
www.procuraplus.org/regional-networks/reseau-grand-ouest

28
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II
Step 1 – Set scope and targets

The starting point for developing your sustainable procurement strategy is to set the strategic
direction by determining what your goals are. There are two central elements to this:

• Scope – which of your organisation’s procurement actions are covered by the strategy,
1
Set
in terms of: scope and
» Product/service category – which are you focusing on? targets
» Coverage – does it cover the whole organisation or only certain departments?

• Targets – what targets are you setting, and what key performance indicators will you
have for determining success?

Setting the scope

Public authorities buy an enormous range of goods, works and services. It is unlikely you
will be able to address all categories, at least initially. It is therefore an important first
step to identify priority categories. A number of factors should be taken into account,
including:

• environmental, social and economic priorities;

• the budgetary importance of certain product/service groups;
• level of skills and resources available for implementation;
• existing experience in procuring sustainably;
• significant contract renewals;
• market availability of sustainable alternative products/services at a competitive price; and
• political or legal drivers, such as national legislation or standards.

Determining which parts of the administration are covered by the strategy is also
an important consideration. You may wish to focus your activities on a particular
department(s) where your colleagues are particularly enthused about sustainable
procurement, or where there is already a track record in procuring sustainably and the
buy-in is there. Being able to demonstrate success within one department will make it far
easier to gain support for a roll-out across the administration at a later stage.
This will also allow you to test your approach, including potentially the
introduction of new monitoring mechanisms.

Having a detailed understanding of the current procurement

practices for specific product/service categories is an
important starting point in this selection process, setting
targets and also in establishing your Action Plan in Step 2.
The Baseline Inventory below presents a comprehensive
set of questions to be considered – both in relation to
the way in which procurement is carried out, and on your
current sustainability performance. It is likely that the
questions in the second of these sections will be challenging
to answer (particularly the last one), and this may be a good
opportunity to explore opportunities to establish appropriate
monitoring mechanisms.

Where time and resources allow you can carry out this survey for
a wide range of product/service categories across all departments, and
use the results to help select priority categories and organisational coverage.
Alternatively you may wish to carry out a more limited survey by making a pre-selection
of high potential categories and/or departments.

29
 Table 1: Baseline Inventory

Purpose These questions help to:

a) Identify who is involved in the decision-making

process for procurement, and therefore who should
be involved in sustainable procurement activities.

b) Identify whether long-term existing contractual

arrangements with suppliers are in place. If they are,
other product/service groups should be tackled first.

c) Set a baseline for your sustainable procurement

targets.

Questions 01) Who is responsible for the purchasing of the products/

– procurement service? Is purchasing centralised?

process
02) Who are the key budget holders (i.e. who make the final
budget and spending decisions?

03) Which departments use the product/service?

04) What influence does the department using the
product/service have on the procurement process,
including the characteristics of the product/service
bought?

05) If environmental and/or social aspects are considered
in procurement, who provides the criteria?

06) Who writes the tender documents?

07) Who is involved in evaluation of tenders?

08) Who manages the contracts?

09) Are there existing contracts in place with suppliers?
Until when do the contracts run?

10) What systems are in place for monitoring and
reporting on procurement (e.g. financial accounting
systems)? Could these systems be used to record
environmental and social data?

Questions 11) What is your current spending on the product / service?

– baseline
12) How many contracts are tendered annually?
performance
13) What proportion of your procurement includes
sustainability criteria – in terms of a) spending, and
b) number of contracts?

14) (If known) What are the quantified impacts of the

sustainability criteria applied (e.g. CO₂ savings, SMEs
supported, jobs created, reductions in particulate
emissions etc.)?

30
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II
Chapter V presents an overview of the sustainable procurement criteria which are
available for six key product and service groups:

1. Construction
2. ICT (information and communication technology)
3. Cleaning
4. Food and catering
5. Vehicles
6. Electricity

Due to the high environmental impacts and the availability of sustainable procurement
criteria, it is recommended that a sustainable procurement strategy includes one or more
of these groups.

The Basque Government’s Green Public Procurement Programme 2011-2014 (see box) was
the tool used to consolidate its green procurement activities. The Programme prioritised
certain product and service areas for more ambitious green targets than others, based on
previous initiatives. The case study of Barcelona City Council (in the Gathering support
section above) shows how the sustainable procurement Programme started with a focus
on office supplies and over time expanded to include 12 product categories.

Target setting
Clearly communicated targets are important in providing Basque Government Green Public
strong political support to those responsible for Procurement Programme (Programa de
implementation. They also clearly help to demonstrate Compra y Contratación Pública Verde) 2011-
your commitment to the general public and provide a 2014
framework for measuring progress.
Developed for departments and public
If your authority is developing a comprehensive sustainable companies of the Basque Government,
procurement policy, the targets set should ideally be this document sets out the goals, including
included directly in the policy document. environmental criteria in procurement
and contracting of certain product groups
If you already have a policy which does not contain specific in a sustainable manner. The Programme
targets, these can be set as internal operational targets, consolidated the work done so far in purchasing
but should be committed to from as high a decision-making and green procurement by the Basque
level as possible within your authority. Government through the Public Environmental
Management Company Ihobe 63 (a Procura+
If you have completed one full management cycle and have Participant).
reached this Step for the second time, many of your targets
are likely still valid. However, you should consider how the Evaluation of the Program concluded that for
targets can be increased in ambition and impact. If you are the second program launched in 2015, output
targeting new products/services you will of course need to targets must be a mix of common compulsory
set new targets for those. targets for certain prioritised product/service
groups and optional targets for other groups
To be most effective targets should be SMART: specific to each organisation. Having reasonable
but challenging targets motivates and drives
• Specific – target a specific area for sustainable procurement agencies to better perform.
implementation.

• Measurable – quantify (or at least involve) an indicator of

progress in sustainable procurement.

63
www.procuraplus.org/public-authorities/ihobe

31
 • Achievable – results can realistically be achieved, given available resources.
• Relevant – make sure the target(s) is linked to your sustainable procurement ambitions.
• Time-related – specify when the result(s) can be achieved.

Examples of possible product targets are provided in the box below.

Examples of sustainable procurement targets set by a public authority

The <Name of the authority> commits to the following targets:

• By 2017, ensure 50% of agricultural products and food come from organic
sources
• By 2018, ensure no purchased cleaning products contain dangerous substances
• By 2019, ensure 80% of public buildings meet high energy performance
standards
• By 2020, ensure 100% of newly purchased public buses meet ultra-low emission
standards
• By 2020, ensure 100% of new electronic office equipment is energy efficient
• By 2020, ensure 100% of electricity will be purchased from renewable resources
that created additional capacity

Procura+ Participant Rotterdam (see Figure 4), aligned its new sustainable development
strategy in 2015 with the Netherlands national policy to create an ambitious sustainable
procurement target.

Specific Time-related
The City of
Rotterdam
is committed
to 100% sustainable
procurement
from 2015
onwards.

Relevant Measurable and Achievable

Links to Rotterdam’s 2015 Rotterdam aim to include
Sustainability Strategy green criteria in all tenders

Fig 4. Setting sustainable procurement targets

How to set targets

• Use the Baseline Inventory information – This will indicate current status and should
help to indicate what realistic targets should be.

• Market research – It is important to have a good idea of what is available on the market
and at what cost. Where you are unsure it can be a good idea to carry out an open
technical dialogue with the market, investigating with potential suppliers and other
experts. You can find out more about engaging the market for sustainable procurement
in Chapter III, section 2 of this Manual.

32
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II
• Get advice from others with experience – A great deal of time can also be saved
by speaking to other public authorities who already have sustainable procurement
experience in that area. By joining Procura+, you will have easy access to experienced
professionals from right across Europe who can exchange and connect with you.

• Consider organisational factors – The level of centralisation in procurement can

influence the targets set. With highly centralised procurement it may be easier to ensure
all actions meet the new sustainability standards set. Where procurement responsibilities
are decentralised it is more difficult to both ensure all procurers have the necessary
skills to integrate sustainability demands, and to monitor whether this is being done.

Summary – Set scope and targets

Before moving on to the next step:

1. Have you selected the product/service groups or departments you will focus on?

2. Are your sustainable procurement targets SMART?

3. Have you secured and allocated resources (human and financial)?

Step 2 – Develop action plan

The Action Plan

The Action Plan is a concise, clear document tailored to the specific needs and purchasing
practices of your public authority. It should be communicated and made accessible to all
employees involved in all stages of the procurement process.

2
The Action Plan will provide clear, practical details on how the targets established in Step Develop
1 (and ideally included in a Sustainable Procurement Policy) will be achieved. Action
Plan
The scope and detail of the Action Plan will depend on the comprehensiveness of the
implementation approach being taken.

The Plan should ideally contain:

• the scope of your activities and the targets set, together with any political commitment
made by your authority;

• a description of the stakeholders to be involved;

• a description of the assigned responsibilities;

• a breakdown of the resources available;

• a description of the implementation measures and procedures;

• relevant progress indicators; and

• a time frame.

What actions should be covered?

This of course very much depends on the scope of the targets set by the authority. For
each target it must be carefully considered how this will be met. It will likely cover specific
actions, together with accompanying training and communication activities, for example:

33
 Procurement actions
At its heart, sustainable procurement means working with specific calls for tender. The
precise actions to be included will heavily depend on the scope of your strategy, and the
consequent procurement activities covered. Specific actions could include:

• identifying appropriate environmental/social purchasing demands, perhaps including

market research;

• incorporating these demands into actual tender documents;

• identifying opportunities for joint procurement (i.e. combining your procurement

actions with other authorities) to access cost and administrative savings when
publishing tenders, evaluating offers, and signing and maintaining contracts; and

• monitoring as well as reporting actions and results.

Workshops and training

Workshops can be great ways to both gather support for
sustainable procurement and ensure those responsible for
Training services
its implementation have the necessary skills. By providing
relevant people in an organisation with the knowledge and
ICLEI offers tailor-made training and capacity
skills to apply sustainable procurement, it is more likely
building services,64 with Procura+ participants
to be successfully put into action. External experts can
receiving a discount on the cost of these services.
be brought in to deliver workshops on specific areas of
sustainable procurement, such as market engagement or
life cycle costing. These experts can include experienced
procurement practitioners from other public authorities.
Brussels Environment delivers sustainable
procurement workshops, Belgium Working Groups
If the number of activities is large and a more comprehensive
Procura+ Participant Brussels Environment system is to be put in place, it can be effective to set
is the public administration that manages up a Working Group under a co-ordinator, involving
almost all environmental and energy matters representatives from different departments relevant to
within the boundaries of the Brussels-Capital implementation, e.g. purchasing, environmental, financial,
Region (BCR). The City has also developed a or communications. This will contribute to developing and
network of Brussels green public procurers implementing a sustainable procurement Action Plan. The
by setting up four workshops per year and by size and composition of the group will depend on the size
creating a website to centralise all relevant and structure of the public authority.
information about green procurement in general
and in Brussels. During the preparation of Developing incentives to procure sustainably
each workshop and training session, Brussels You might consider offering procurement practitioners
Environment is supported by experts to develop in the organisation incentives to procure sustainably.
a set of criteria for each topic. Workshops and training, as mentioned above, are always
popular as employees will feel like their skills and knowledge
Read the Brussels Environment Procura+ Profile are being invested in by the organisation. Other incentives
here.65 could include:

• integrating sustainable procurement into job

descriptions, including functions such as linking purchasing decisions to value for
money, whole life costing of procurements and including sustainable criteria;

• raising the profile of procurement and procurers in the organisation;

64
www.sustainable-procurement.org/support
65
www.procuraplus.org/public-authorities/brussels-environment

34
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

• salary reviews linked to sustainable procurement; and

• integrating sustainability into introductory and regular training

programmes received by procurers.

Communication
Sustainable procurement is most effective if there is a
clear understanding of what it is – and the reasons for its
introduction – among staff throughout the organisation and
among suppliers. It is important to ensure that colleagues
and external stakeholders, including suppliers, are kept
informed of the strategy and targets, and reminded of them
regularly. The following activities could be included:

• awareness raising activities for general staff – possibly

through seminars/roundtables, in-house newsletters, the
organisation’s intranet;

• communicating intentions to suppliers and providing the time and

information to adjust to new requirements, including perhaps hosting
seminars; and

• presenting activities to the general public.

Departmental cooperation for sustainable procurement in Barcelona

Provincial Council, Spain

Procura+ Participant Barcelona Provincial Council (Diputació de Barcelona)

has enacted a Resources Optimisation Programme. This has enabled increased
cooperation between the Environment Area and the Logistics Department –
the latter being responsible for most of the purchases and contracts as well as
for building renovation. Now all new contracts for cleaning services of Council
buildings incorporate sustainability criteria, as do contracts for multifunction
imaging equipment, and purchase or leasing of vehicles.

Read the Barcelona Provincial Council Procura+ Profile here.66

Monitoring performance
The ability to assess progress towards the targets set is of course critical in any strategy.
Determining what data needs to be collected, how, and by whom will be central to an
effective monitoring system. Information on the inclusion of sustainability criteria, let
alone the calculation of sustainability impacts, is typically not collected as standard
practice in most public organisations, so this will likely require adjustments to procurement
procedures – which talks in favour of initially piloting your sustainable procurement
activities in only a few departments (see Step 1).

Keeping track of progress and monitoring the achievements of the strategy and targets
should be carried out more than once per year.

66
www.procuraplus.org/public-authorities/barcelona-provincial-council

35
 Monitoring systems can vary from simple database records of when sustainable
procurement criteria have been included in procurements, through to systems that can
be linked to e-procurement platforms. The examples from Flanders and Metropolitan City
of Rome Capital in the boxes below show that monitoring systems, if used in the right way,
can also help to prompt and remind procurers to include sustainable criteria.

Digital GPP monitoring in Rome, Italy

In order to ensure they meet the objectives of their GPP Action Plan, Procura+
Participant Metropolitan City of Rome has created a digital GPP monitoring
system. This system, which links to an e-procurement platform, compels users to
include green criteria in procurements. The system allows Rome to:

• perform sample checks on the input of technical requirements;

• obtain real-time reports according to several parameters/criteria, including year,
amount, department, awarding procedure, product group;
• provide offices with assistance through a telephone helpdesk, an updated online
library containing laws and regulations, and a supporting guide; and
• give support on how to check GPP products, especially when there is no official
label.

The system allows Rome to both monitor progress and improve GPP knowledge
and awareness.

Read the Metropolitan City of Rome Capital Procura+ Profile here.67

Monitoring sustainable procurement in Flanders, Belgium

The Flemish Government has a 100% target for sustainable procurement by 2020
for product groups in which criteria are available. Monitoring is one of the biggest
challenges to achieving this goal. Procurement is dispersed among 640 personnel
across 12 divisions and 10 locations. Everyone in the organisation is a potential
procurer, with small orders (< €8,500) comprising 96% of all procurements. In
early 2015 they launched an IT monitoring system to capturing all the data of all
procurements. The system ensures that everyone procures through one portal,
which contains all product categories, products and associated sustainable
procurement criteria. It also includes products with no known criteria. Flanders
now knows which product and service areas to improve upon and is extending
the system to include PPI where possible.

For more details, read a presentation68 and report69 from The Flemish Government.

67
www.procuraplus.org/public-authorities/metropolitan-area-of-rome
68
http://procuraplus.iclei-europe.org/fileadmin/user_upload/Activities_files/Events/Webinar_May_2016/Verwimp.pptx
69
http://procuraplus.iclei-europe.org/fileadmin/user_upload/Activities_files/Events/Webinar_May_2016/Screening.docx

36
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II
Assigning responsibilities
Just as important as deciding on what actions to be put into practice and targets to achieve,
is identifying who should and could be responsible for implementing it. Getting the right
people involved early will increase the chance of the sustainable procurement strategy
getting off the ground successfully.

The Baseline Assessment in Step 1 should have helped you to identify procurement stakeholders
and departmental relationships in your organisation. Using this information, you can decide:

Emphasising departmental cooperation in sustainability strategy in Aalborg,

Denmark

In 2013, Procura+ Participant Aalborg established a Sustainability Strategy to be

implemented over three years. As part of this strategy, the City Council decided
to strengthen its efforts towards sustainable procurement and established a
corporation between its Environment and Procurement offices. Additionally,
the City adopted a procedure to integrate sustainability criteria into all tenders
carried out by the City. The criteria are laid down in the procurement policy
adopted in the City Council covering every tender in the City to ensure that every
single tender published today is requesting sustainable products and services.

Read more here70 and at Aalborg’s Procura+ Profile here.71

• Who is in a strong position to lead the sustainable procurement strategy?

• Who has some existing knowledge and experience of sustainable procurement?
• Which other influential stakeholders should be involved?
• Do you need to assign (or recruit) dedicated staff for this?
• What external expertise on sustainable procurement is required?

The Action Plan will need to clearly state:

• Who will be responsible for the overall co-ordination of sustainable procurement

efforts? Responsibility for co-ordinating all activities and ensuring declared targets are
met should be allocated to one person.

• Who will be responsible for actual implementation? The Action Plan should outline
specific tasks, and allocate clear responsibility for carrying these out. The process
of preparing environmental/social purchasing specifications will likely require the
expert input of a number of people (especially the environmental department and
procurement officers). Final responsibility for ensuring actual implementation will
however in all probability need to rest with the actual procurers.

The number of people involved will depend on the scope of activities to be covered and
the resources available within the authority. At the most basic level, one champion will
take full responsibility for co-ordinating the Management Cycle – of course they will need
to feel confident of receiving the support of their colleagues in doing so. The sustainable
procurement champion must be provided with a mandate to work with all stakeholders
across the organisation, including policy-makers, procurers, suppliers and, in particular,
financial decision-makers.
70
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue48_Case_Study102_Aalborg.pdf
71
www.procuraplus.org/public-authorities/aalborg

37
 Empowering a sustainable procurement champion to
Mapping roles and responsibilities in manage the change process and be the link between
Rotterdam, Netherlands those involved in the day-to-day implementation of the
sustainable procurement strategy and other stakeholders
Procura+ Participant Rotterdam works with the involved can be an effective strategy. The benefits of
principal that leading by example on sustainable mandating a sustainable procurement champion(s) include:
procurement starts with the budget holder,
procurement official and sustainability specialist. • becoming sustainable procurement leaders by example
All parties should take a deliberate approach and assisting in training of others;
to implementing green criteria by insisting on • identifying issues and dealing with them, or raising
transparency and using acquisition methods that them quickly to management;
go beyond the lowest bid method. The Rotterdam • gathering feedback on how much colleagues are
approach for modelling sustainable procurement embracing sustainable procurement;
processes highlights responsibilities assigned to • identifying emerging and unforeseen barriers to
actors and organisational structures. sustainable procurement implementation;
• assisting with managing resistance to change amongst
Find out more here,72 and read the Rotterdam colleagues; and
Procura+ Profile here.73
• acting as a central contact point.

The box below shows how the City of Ghent, a Procura+

Participant, is using the sustainable procurement champions
approach to implement its sustainable procurement
strategy.

Assigning sustainable procurement responsibilities in the City of Ghent,

Belgium

Procura+ Participant City of Ghent updated its sustainable procurement strategy

in 2014. This politically acknowledged Procurement Strategy expresses the strong
ambition to be a leading consumer by using its buying power as an instrument
to reach its strategic goals. The strategy includes seven focus areas (‘pillars’)
for sustainable procurement, which range from life cycle costing, to focusing
on innovation, to fair trade. A key member of staff from the city is assigned to
each of these pillars and is responsible for making sure the particular part of
the strategy is implemented. Manager’s Dashboards are in use to report the
results and outcomes of sustainable procurement for each of the strategic goals.
This approach gives ownership of sustainable procurement to the teams that
are making the procurement decisions and spreads awareness of the strategy
throughout the organisation at all levels.

Read the Ghent Procura+ Profile here.74

72
www.glcn-on-sp.org/fileadmin/user_upload/Publications/SP_Profiles/City_of_Rotterdam_GLCN_on_SP_Profile.pdf
73
www.procuraplus.org/public-authorities/rotterdam
74
www.procuraplus.org/public-authorities/ghent

38
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

Summary – Develop action plan

Before moving on to the next step:

1. Does the Action Plan provide clear, practical details on how the targets in the
policy will be achieved?

2. Have specific and relevant actions have been outlined in relation to the
targets?

3. Have responsibilities been allocated and ownership given to the right people?

4. Have timescales been set?

Step 3 – Implement action plan

Implementing the action plan will be different in each organisation, depending upon the
content of the plan. To keep the action plan on track it is good practice to:
3
Implement
Conduct and communicate regular updates action
Conducting regular updates of the action plan progress will help to both ensure it is on plan
track to meet the policy targets and encourage those tasked with its implementation to
continue to include sustainability in their procurement.

Carry out regular reviews

Meetings with the procurement team, management team and a dedicated sustainability
team should be carried out periodically. The meetings should focus on reviewing progress
made, challenges and potential solutions, and successes to be built upon.

These actions will also help link to the next milestone of monitoring and reporting and if
done regularly will make monitoring of sustainable procurement less resource intensive
and more effective.

For further advice on the practical inclusion of environmental and social demands
into specific procurement activities please see Chapter III of this Manual.

Summary – Implement action plan

Before moving on to the next step:

1. Make sure you are keeping regular updates and reviews of the
implementation of the sustainable procurement action plan.

39
 Step 4 – Monitor and report

This step serves to assess whether the targets previously set by the public authority have
actually been achieved, identify any problems encountered and develop solutions. It
should also be used as an opportunity for communicating progress and raising general
awareness to external stakeholders such as local users of public services, suppliers and
4 other public authorities.
Monitoring
and This should encompass:
reporting • a review of progress towards the targets set using the monitoring data collected by the
systems established in Step 2;

• an internal review to evaluate the actions implemented and the targets set; and

• communication of results to internal and external stakeholders.

Your internal review should look at a number of questions:

• Action plan – have all actions been implemented as planned? Were any key actions missing?
What barriers have been encountered, and what potential solutions may there be?

• Ambition – were the targets and actions too ambitious or not ambitious enough?

• Targets – are you on track with the targets? Have you achieved them? Is it time to make
new targets and aim to increase your sustainable procurement?

• Engagement – have colleagues and other departments been engaged by the policy and
plans? What could be improved to make sure they are more engaged or stay engaged?

The review could be informal as well as official, and the scope of the review will of course
depend on the scope of the activities undertaken.

The review process represents the end of the first cycle, at which point you should return
to Step 1, with a reassessment of the scope and targets of your strategy.

Need more advice on managing sustainable procurement?

Procura+ participants can benefit from receiving direct advice from ICLEI, and
exchanging with others in the Network.
www.procuraplus.org

40
 MANAGING SUSTAINABLE PROCUREMENT IN YOUR ORGANISATION II

Summary – Monitor and report

Before completing the Management Cycle and going around again:

1. Does the monitoring system tell you what you need to know in terms of
achievements, problems and potential solutions?

2. The internal review and data gathered should help you decide if you need to
develop new targets within Step 1.

1
Set
scope and Gathering
targets Support
4 2
Monitoring Develop
and Action
reporting Plan
Building
the case 3
Implement
action
plan

41
 CHAPTER III
THE PROCUREMENT PROCESS –
INTEGRATING SUSTAINABILITY
AND INNOVATION

Public procurement is a structured process, regardless of whether the EU Directives

apply. Most organisations have systems in place to ensure they are acting transparently
and obtain value for money. Staff training and electronic systems are normally central to
the way procurement is carried out, whether it is centralised or decentralised. This means
that there are specific procedures to govern the planning, competition and contract
management stages of procurement. For those with little background in procurement, it
can seem very complex and, at times, bureaucratic.

The good news is that the existence of defined procedures for procurement makes it easier
to effectively integrate sustainability considerations. Once an organisation has decided
to adopt a sustainable procurement approach in its procurement policy, the systems
already in place can be adapted to allow its implementation and tracking. This process
of 'mainstreaming' sustainability within existing procedures allows environmental, social
and economic considerations to become part of business as usual, for example by having
standard criteria or contract management clauses which address the key impacts of each
product or service purchased.

The same is not always true for public procurement of innovation (PPI). By its nature,
innovation involves changes to business-as-usual, and will also usually require new
procurement and contract management approaches. This may not apply in every case

42
 THE PROCUREMENT PROCESS III
– for example some organisations routinely use performance-based specifications and
so allow for innovation in every call for tender – but for the most part PPI implies some
redesign of existing procedures. Drawing this distinction does not however mean that
sustainability and innovation are mutually exclusive – in fact they are often complementary
as highlighted in the introduction. It merely means that the same approaches will not
always work and there is a need to consider what degree of innovation is involved to
decide on the best one.

The 2014 Directives76 offer a number of options for implementing sustainable procurement
and PPI, some of which are new. This Chapter is dedicated to exploring the possibilities
for sustainable procurement/PPI set out within the 2014 Directives, and highlighting
examples of how these can be applied in practice. At the end of the chapter some of the
most important articles are summarised in a table.

For the purpose of this section, the procurement process

has been divided into the following stages, broadly 2014 Procurement Directives
mirroring a standard procurement exercise:
This Chapter is dedicated to exploring the
• Pre-procurement possibilities for sustainable procurement/PPI set
• Deciding on the procurement procedure out within the 2014 Directives75, and highlighting
• Defining the subject of the contract (subject matter) examples of how these can be applied in practice.
• Selection/exclusion of bidders At the end of the chapter some of the most
• Technical specifications important clauses are summarised in a table.
• Award criteria
• Contract management

3.1 Pre-procurement

For both sustainable procurement and PPI, the pre-procurement stage is very important.
Procurement needs may be routine, occasional or one-off, but in each case a thorough
understanding of what is needed and how it will be used is essential. Equally important is
an understanding of the market from which it will be procured. For example, if it is intended
to award a contract for cleaning services you will need to know what user expectations are
for the service and what type of organisations are operating in the sector. This then allows
you to determine which sustainable cleaning services, products, methods and equipment
may be appropriate and the potential impact the contract may have on workers in the
sector.

Defining real needs

For both sustainable procurement and PPI the starting point should always be to assess
what your real needs are. Sometimes the most sustainable option will be to avoid procuring
anything. Thinking in terms of what outcome you wish to achieve (e.g. office heated to 20-
22°C), rather than a specific technical solution to achieve that outcome (3000W radiator),
can result in innovative, sustainable solutions. As the responsibility for determining
requirements will not typically be with procurers they will need to collaborate closely with
and maybe even challenge technical/user departments in order to develop functional
outcomes which can be correctly translated into an effective procurement exercise.

75
2014/23/EU (the Concessions Directive), 2014/24/EU (the Public Sector Directive) and 2014/25/EU (the Utilities
Sector Directive) –referred to here as the 2014 Directives. References in the Manual are to the Public Sector
Directive, however readers should note that many of the same possibilities for SPP exist under the other two
directives.
76
Directives 2004/24/EU for public authorities, 2004/25/EU for utilities, and 2004/23/EU for concessions

43
 Cleaning services in the City of Ghent, Belgium

Procura+ Participant Ghent is responsible for cleaning 340 premises, a service

which employs 450 people. The City was interested in introducing cleaning
products with a lower impact on the environment and human health.
Prior to the procurement, the City set up a controlled trial of products offering
lower life cycle impacts at several of its locations. Based on the results it decided
to adopt probiotic cleaning products within its current contract, while also
including provisions aimed at employing disadvantaged workers.

Read the Ghent Procura+ Profile here.77

It is also important to be clear regarding the sustainability goals you have right at the
beginning of the procurement process. In some cases it will be helpful to define these
quantitatively (e.g. by 2018, ensure 80% of office buildings meet high energy performance
standards), but this cannot so easily be done for all sustainability goals. Again, this will
likely need to be a collaborative process involving several departments, and in some cases
potential providers.

Having a clear picture of your real needs together with your sustainability goals will
provide you with a solid basis on which to build the procurement process to communicate
both internally and externally to potential suppliers, and helps in determining the most
appropriate procurement approach.

Accommodating kitchen needs in food procurement in Copenhagen,

Denmark

To help meet its target of 90% organic food for public catering, Procura+
Participant Copenhagen defines its needs with suppliers throughout the contract
process. This includes:

• Market dialogue prior to tenders – asking what the market can deliver and
writing the tenders accordingly.

• Diversity and seasonality – using seasonal diversity as criteria in the tender and
supplying an ‘all round’ version for all year where it is necessary.

• Sensory evaluation – food quality is hard to specify so a sensory evaluation

methodology has been developed and communicated with suppliers.

This approach allows the Municipality to innovate with a significantly reduced risk
of procurement or contract failure and meet their continually evolving needs.

Read the Copenhagen Procura+ Profile here.78

77
www.procuraplus.org/public-authorities/ghent
78
www.procuraplus.org/public-authorities/copenhagen

44
 THE PROCUREMENT PROCESS III
Learning from counterparts and networks
Once you have considered your organisation’s needs and priorities, it can be of significant
benefit to consult similar public authorities who have undertaken a similar procurement
– ‘reinventing the wheel’ is a waste of time and resources. In a progressive area such
as sustainable procurement and PPI, hurdles and uncertainties will be commonplace –
therefore working in collaboration with others, and sharing ideas and lessons learned can
be invaluable.

Participants in the Procura+ Network79 regularly share information on specific calls for tender
they have undertaken or are planning. Regional networks, such as those being established
within the SPP Regions project,80 are also an excellent forum for such practical advice.

Networking for sharing knowledge and ideas

As well as participating in the Procura+ Network, Brussels Environment 81 and

Réseau Grand Ouest 82 (RGO) both organise dedicated workshops and develop
criteria on sustainable procurement to support their own network members.
Members of the Capital Region Sustainable Procurement Network 83 in
Denmark work together on improving sustainability criteria. These criteria are
then used within framework agreements, which give network members access to
ready-made contracts at a better price than they could achieve alone. The Xarxa
Network 84 in Catalonia has a mentoring scheme for sustainable procurement,
providing practical support to newer members. It has become a reference point
for sustainable procurement in the region, enhancing the reputation of all the
network’s members.

Market engagement
The success of any procurement exercise will ultimately be determined by how the market
responds to your request. Effective engagement with potential suppliers prior to tendering
has several purposes:

1. Identify potential bidders and/or solutions

2. Build capacity in the market to meet the requirement(s)
3. Inform the design of the procurement and contract

Engaging the market can help you to:

Change and improve the way you plan and manage procurement by:

• discussing the outcomes needed and get feedback on your requirements – this can
inform the development of your final specification;

• splitting the work into different bundles to get the best value for money or better
outcomes;

• planning the optimal approach-to-market strategy; and

• flagging potential issues or problems with the project, or identify gaps in current
provision where innovation could be stimulated through public procurement.

79
www.procuraplus.org
80
www.sppregions.eu/home/
81
www.procuraplus.org/public-authorities/brussels-environment/
82
www.procuraplus.org/regional-networks/reseau-grand-ouest/
83
www.sppregions.eu/participating-regions/copenhagen-region
84
www.sppregions.eu/participating-regions/barcelona-region

45
 Improve your understanding of the market and help you to become a more intelligent
customer by:
• gathering information on how the market is structured and how it operates;

• discussing how your requirements may be presented so as to make them more

attractive to the market; and

• becoming better informed of any risks and issues.

Increase your trust and credibility with suppliers and become a customer of choice by:
• allowing the market to better understand your business and your needs;

• generating interest in your agency as a buyer; and

• improving relationships with suppliers.

Create the market conditions needed to deliver the best solution by:
• allowing suppliers time to plan and prepare to respond to a contract opportunity and
be ready to meet your demands;

• stimulating competition and innovation; and

• confirming that the proposed approach is, in general terms, acceptable to the market.

Help agencies to identify opportunities for sustainability and innovation by:

• helping to identify potential solutions to minimise the environmental impact of the
goods or services procured;

• testing the feasibility of your needs against what is available in the market, i.e. whether
or not a new approach is necessary;

Meeting suppliers together in the Réseau Grand Ouest network, France

The public authorities that form the regional network of Procura+ Participant
Réseau Grand Ouest (RGO) meet suppliers together as part of specific working
groups for different product and service sectors. These include energy, cleaning
products and construction. Meeting the suppliers is an opportunity for RGO to
show suppliers their interest in sustainable products and promote innovation.
The suppliers that RGO meets then receive a questionnaire. The communication
between the both parties is a major factor for the success of the tenders. The
suppliers meet individually with the RGO group for a conversation of around
one hour. They introduce their company and answer questions from the public
authorities.

“It’s very important to hear what suppliers have to say and hear about their
difficulties in their response to tenders. If public entities want to integrate
sustainable criteria, they have to be sure that the supply exists and is available,
otherwise the risk of an unsuccessful contract is increased.”
(Laurence Cesbron, RGO)

Read the RGO Procura+ Profile here.85

85
www.procuraplus.org/regional-networks/reseau-grand-ouest/

46
 THE PROCUREMENT PROCESS III
• confirming, through market reaction, that the scope and objectives of the procurement
provisions are sound and achievable; and

• finding out about new, innovative or alternative ways of meeting the requirements.

For suppliers, the key benefits of market engagement are:

• market-focused requirements (perhaps shaped or influenced by suppliers) are
conducive to greater participation in tender procedures;

• the chance to raise issues and queries about the public authority’s requirements at an
early stage, reducing time and overhead later on; and

• the chance to gain a valuable insight into the public authority’s wider programme,
requirements and priorities.

Supplier/buyers seminar in Cascais, Portugal

In order to bring together suppliers and buyers, The Municipal Council of Cascais,
the Cascais Energy Agency and the National Laboratory for Energy and Geology
(LNEG), a Procura+ Strategic Partner,86 organised an energy efficient lighting
seminar. The focus was on LED technology for public lighting, with an aim to:

• convey to potential suppliers information on purchasing intentions and the

generic initial requirements; and
• increase buyer knowledge on energy-efficient lighting and LED public lighting through
the various suppliers presenting their products, followed by a moderated debate.

Following this, one-to-one meetings were held with potential LED suppliers
identified by Cascais, to discuss products available on the market and the features
of the new technology, and the criteria developed so far. These discussions
helped to determine the tender specifications and reassure the authority that the
market could provide appropriate solutions.

Find more information on market engagement:

• SPP Regions report on market engagement 87 – providing detailed practical

advice on how to engage the market.
• INNOCAT market engagement best practice report 88 – with detailed case
studies describing the process of implementation.
• Webinar on market engagement 89 organised by the European Commission, DG
Environment.
• Find more resources about market engagement in the Resource Centre 90 of the
Sustainable Procurement Platform.

86
www.procuraplus.org/strategic-partners
87
www.sppregions.eu/resources
88
www.sustainable-catering.eu/publications
89
www.ec.europa.eu/environment/gpp/webinars_en.htm
90
www.sustainable-procurement.org/resource-centre

47
 Working with suppliers in LIPOR, Portugal

The Intermunicipal Waste Management of Greater Porto (LIPOR) has developed

a Code of Conduct (COC) for suppliers to promote the principles of the Human
Rights Declaration and fundamental ILO Conventions. During tendering, all
bidders are asked to commit to the COC by signing a ‘Commitment Declaration’.
LIPOR invites suppliers to an annual Socially Responsible Public Procurement
(SRPP) workshop where the COC, tender criteria and verification schemes are
discussed. Suppliers are encouraged to give testimonies about the impact of the
application of the Code. LIPOR recommends that suppliers also work with all of
the supply chain and partner suppliers in order to increase socially responsible
production. Recent assessments indicate that LIPOR’s recommendations are
accepted and applied by all suppliers.

Read Procura+ participant LIPOR’s case here 91 as part of the LANDMARK

project’s Good Practice in SRPP publication.92

Table 2: Methods of informing the market

Pre-Procurement During Tender Post Tender

• Publish forward • Brief suppliers who • Let suppliers know

procurement plan (e.g. have submitted a who has been
Annual Procurement response successful, including a
Plan) • Brief short-listed contract award notice
• Attend trade shows suppliers • Debrief suppliers,
• Attend Meet the • Hold a question and ask questions
Buyer events for any and answer session about how the process
interested suppliers – or send a list of worked for them
• Issue a Request for all questions and
Information their answers to all
• Call a ‘show-and-tell’ suppliers
to allow suppliers to
explain their proposed
solutions
• Meet with industry
bodies
• Meet with a group
of key suppliers or
a range of suppliers
individually
• Sound out the market
• Provide a pre-tender
briefing to suppliers
who are interested in
a contract opportunity

91
http://procuraplus.iclei-europe.org/public-authorities/lipor
92
www.landmark-project.eu/fileadmin/files/en/latest-achievements/LANDMARK-good_practices_FINAL.pdf

48
 THE PROCUREMENT PROCESS III

You can engage with the market at any time, from the early pre-procurement phase, during
a tender and at any other time during a procurement process. There is no limitation on
when you can engage, as long as you:

• are fair, open and transparent;

• record discussions;
• take steps to ensure your integrity, for example, giving the same information to all suppliers; and
• give equal access to all suppliers and treat all suppliers the same.

3.2 Deciding on the procurement process

Once you have gathered sufficient information and identified the scope for sustainable
procurement or innovation to be targeted in a contract, the approach to be taken to
the procurement process can be defined – which type of
procurement procedure to use, how it should be carried out,
and what kind of contract is needed etc. Most procurement Electric ferries in Norway
will involve a competitive process. If the contract is valued
above the EU threshold,93 this is the stage where the EU The Norwegian Directorate of Public Roads,
Procurement Directives begin to apply.94 An advertisement responsible also for Fjord transport, opted to
(notice) will need to be placed in the Official Journal and the use a competitive dialogue in order to explore
rules for each stage of the chosen procedure followed. innovative solutions for the design, build and
operation of a low environmental impact
The approach selected depends on many factors including vessel with prospective ferry operators, ship
the time available, market size and organisational builders and engineers. The consortia were
preferences. However, it is worth keeping in mind that incentivised to invest in innovation as all pre-
certain procedures – those with greater flexibility – may be qualified bidders got a lump sum payment to
better suited to including new sustainability or innovation compensate for their time and efforts. Even
objectives, but may also require additional time and skills. though the tender was technology-neutral,
the winning offer was for a full battery electric
Flexible procedures ferry, due to the allocation of award criteria to
Some procedures, such as the competitive dialogue, energy efficiency and associated emissions.
will involve meeting with bidders which can be a good
opportunity to discuss sustainability and innovation Read more here.95
aspects, understand their approach and communicate
your priorities. Four procedures allowed under the 2014
Directives offer enhanced flexibility:

• If you are procuring research and development (R&D) services, you may be able to make
use of an exemption to the Directives and apply pre-commercial procurement (PCP).

• The innovation partnership 96 procedure is specifically designed to cover the full

innovation cycle from R&D through to piloting and purchase on a commercial scale of
new products or services.

93
These change regularly. The latest thresholds may always be found on the website of the European
Commission: www.ec.europa.eu/growth
94
Although the Directives only apply to the procurement of contracts above certain value thresholds , below
these thresholds procurement procedures must always comply with the basic principles of transparency, equal
treatment, proportionality and non-discrimination outlined in the Treaty of the European Union.
95
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue42_Case_Study88_Norway_Ferry.pdf
96
2014/24/EU - Article 31

49
 • The competitive dialogue 97 procedure allows you to meet with bidders to progressively
refine your requirements, especially where it is not possible to write a specification in
advance.

• The competitive procedure with negotiation 98 gives the public sector more freedom
to negotiate with bidders where contracts involve elements of design or innovation, or
in other defined circumstances.

Each of these procedures, and the conditions under which they may be used, are discussed
in detail with explanatory diagrams in Public Procurement of Innovation: Guidance for
Public Authorities.99 The Eafip Toolkit100 also provides a great deal of practical advice.

Encouraging innovation in Helsinki Region Environmental Services Authority

Procura+ Participant HSY (Helsinki Region Environmental Services Authority)

uses innovative public procurement procedures to support local innovation. HSY
is part of the strategic project Resource Wise Helsinki Region, supporting the
development of material recycling by networking with companies and launching
pilots with them. HSY can provide SMEs with innovation and development
platforms, located in real operational environments. Companies can then pilot
their technologies on the platforms. Successful pilot co-operation can result
in purchases later, boosting the SME’s entrance to domestic and international
markets.

Read the HSY Procura+ profile here.101

Encouraging SMEs to bid

Providing greater opportunities for small and medium sized enterprises (SMEs) to bid can
be important in terms of innovation, competitiveness, environmental impact and local
economies.

Although it is not permitted to make direct reference to a preference for SMEs in

procurement, there are approaches which help encourage SMEs to apply for public
procurement. For example:

• hold widely advertised open days or meet the buyer events to inform potential suppliers
about where opportunities are advertised, how the procurement process is structured,
and what tender documentation is required;

• minimise the complexity of tender documentation, as submitting tenders can often be

an unnecessarily cumbersome and bureaucratic process;

• divide contracts into smaller lots to make contract requirements more achievable to
SMEs (and less attractive to bigger companies);102

97
2014/24/EU - Article 30
98
2014/24/EU - Article 29
99
www.innovation-procurement.org/about-ppi/guidance
100
www.eafip.eu/toolkit/
101
www.procuraplus.org/public-authorities/helskinki-region-environmental-services
102
Under the 2014 Directives it is required to explain why a contract has not been divided into lots. National
governments may also choose to make the division of contracts into lots mandatory for certain types of contract.

50
 THE PROCUREMENT PROCESS III
• limit the number of lots which will be awarded to any one bidder, based on objective
and non-discriminatory criteria which must be established in advance;103

• allow for a longer period of time for the submission of expressions of interest and
tenders; and

• commit to paying SME invoices on time, or even early to help with cash flow.

Buy or lease? Product or service?

Alternatives to the direct purchase and ownership of products – such as lease or
lease/purchase arrangements – are increasingly common in the public sector. Such
approaches often make sense when dealing with expensive equipment in sectors with
rapid technological change, such as the IT sector, and leasing contracts for public vehicle
fleets are also becoming more common. However alternative ownership models may be
applicable in a range of different sectors.104 Alternative contractual arrangements, such
as energy performance contracting (EPC)105 for building renovation works, also offer
considerable advantages for public authorities, in reducing the need for upfront costs,
and the risks associated with introducing new technology. EPC has the added benefit of
incentivising energy efficiency and conservation by contractors, as is the case with so-
called ‘design, build, operate, maintain’ contracts.

Energy performance contracting for swimming pools in Rotterdam,

Netherlands

Procura+ Participant Rotterdam awarded an Energy Performance Contract (EPC)

using the competitive dialogue procedure for the renovation, operation and
maintenance of municipal swimming pools. The award of the contract was based
on the energy savings offered by the bidders and the maintenance costs.

The contract terms required guaranteed energy savings, building condition and
comfort, all subject to penalties.

The winning contractor guaranteed 34% energy savings across the nine swimming
pools included in the contract. The contractor receives a financial bonus for
energy savings of over 34% each year or cumulative penalties if they fall short.

This is one of the many SCI network’s Snapshot106 examples. Read the Rotterdam
Procura+ Profile here.107

Leasing and new contractual arrangements can be very effective approaches for:

• reducing upfront costs;

• incentivising continuous sustainability improvements;
• allowing the quicker uptake of new technology; and
• shifting some risk from the procurer to the supplier.

103
2014/24/EU - Article 46
104
See for example a 2015 report on Product-Service Systems (PSS) developed for the United Nation's 10 Year
Framework Programme on Sustainable Public Procurement (10YFP SPP) -
www.unep.org/10yfp/Portals/50150/10YFP%20SPP/3A_Technical%20report.pdf
105
Energy performance contracting is an innovative contractual approach whereby the costs of energy efficiency
improvements are financed by the energy savings achieved. For more information visit: www.enpc-intrans.eu
106
www.sci-network.eu/fileadmin/templates/sci-network/files/Resource_Centre/Guide/SCI-Network-Snapshots-www.pdf
107
www.procuraplus.org/public-authorities/rotterdam

51
 Such approaches may involve more complex financial arrangements, and it is important
to ensure a life cycle cost108 comparison between different options is carried out as part
of the tender process and/or within market engagement activities. These alternative
contractual models may also require more resources in terms of contract management.

Variants
Allowing some flexibility around specifications can be a good way of encouraging the
market to propose innovative and sustainable solutions. One means of doing this is to
allow variants – solutions which meet your minimum requirements but in a different
way to that envisioned in the detailed technical specification. This method also helps to
minimise the risk of a low number of compliant bids or unfeasibly high prices. For example,
if you are purchasing vehicles and are uncertain whether electric, hybrid or alternative-
fuelled options may be suitable, you can allow these to be proposed as variants. The
minimum requirements in terms of safety, ergonomics, features and warranties would
be specified in your tender documents. Variant bids would then be assessed against the
same award criteria as you apply to non-variant bids, allowing you to compare costs,
quality and environmental performance and make a decision about which fuel/propulsion
technology is best. Some guidance on the use of variants can be found within the Guide to
the community rules on public procurement of services109 published by the European
Commission.

Frameworks, central and joint purchasing

Many authorities pursue sustainable and innovative
Joint procurement in Sweden procurement alone, but its power can be magnified if it
forms part of aggregated procurement – where more
Procura+ Participant Malmo combined than one buyer, supplier or contract is involved. Larger
resources with 44 other Swedish municipalities volumes of demand can help incentivise suppliers to meet
to implement socially responsible procurement requirements, especially where there are up-front costs
in three product categories. This included the involved in attaining certification or auditing supply chains,
joint development of a code of conduct, follow for example.
up questionnaires and the funding of on-site
inspections, which each individual authority In addition, joint procurement and purchasing through central
would not have been able to finance alone. purchasing organisations112 allows smaller authorities,
or those with fewer resources, to access the sustainable
Read more in the LANDMARK project Good procurement expertise offered by larger organisations
Practice in Socially Responsible Public or those with more developed sustainable procurement
Procurement.110 Read Malmo’s Procura+ profile policies. Centralised procurement may substantially improve
here.111
the capacity of the contracting organisation and may also
lead to a greater professionalisation of procurement, and
ensure that good procurement practices are applied.

Aggregated procurement is not always the right solution and can have its drawbacks too
– it may be harder to find solutions that meet all users' needs and it can also be more
difficult to involve smaller suppliers. However as these instruments form a key part of

108
Applying life cycle costing in procurement means calculating the total cost of an asset from the point of
purchase through the use phase and end-of-life costs. See Chapter IV for more information
109
www.ec.europa.eu/internal_market/publicprocurement/docs/guidelines/services_en.pdf
110
www.landmark-project.eu/fileadmin/files/en/latest-achievements/LANDMARK-good_practices_FINAL.pdf
111
www.procuraplus.org/public-authorities/malmo
112
2014/24/EU - Articles 37 and 38

52
 THE PROCUREMENT PROCESS III
procurement strategies for many organisations, it is worth considering the particular role
which they can play in sustainable procurement/PPI.

Joint procurement of LED lighting in Portugal

Procura+ Participant OesteCIM coordinated the creation of the Portuguese

West Region Energy and Environmental Agency, as well as the Regional Public
Procurement Central Unit and contributed to the application process for funding
an LED street lighting regional project among 12 municipalities. The procedures
developed allow price reductions between 20% and 60%, with potential savings of
more than €70,000. Read the OesteCIM Procura+ profile here.113

Trials and demonstrations

If new products or methods are being proposed as part of the contract, it may make sense
to have a trial period or request samples prior to making a decision.

Trials are very widely used in the transport sector by public authorities that want to try out
alternative vehicle technologies, as final investments will be very costly. Manufacturers
are also keen to test their newly developed prototypes in real life situations, so vehicle
trials can be of mutual benefit and at the same time drive the introduction of innovative,
cleaner solutions. It is important to recognise however that contracting authorities are
not allowed to limit the participation in any tender procedure to only those products
which have been trialled.

New methods and materials for uniform procurement in Rawicz, Poland

Rawicz hospital carried out a pilot innovation procurement project concerning

the purchase of hospital uniforms. Consultation with staff allowed an outcome-
based specification to be developed, which was used in a competitive dialogue.
The successful bidder is supplying uniforms which incorporate an innovative bio-
based material and offer a lower life cycle cost than the old uniforms. Read more
here.114

Trialling electric buses in Vienna, Austria

Full electric buses were trialled in Vienna to explore the potential for using the
existing tram infrastructure to power these zero emission vehicles.

Read more about this case115 and others in the Clean Fleets project’s case study
collection.116

113
www.procuraplus.org/public-authorities/west-intermunicipal-community
114
www.procurement-forum.eu/resource/download/635/ppi-platform-guide-new-final-download.pdf
115
www.clean-fleets.eu/fileadmin/files/Clean_Fleets_case_study__Vienna_-_Final.pdf
116
www.clean-fleets.eu/case-studies

53
 3.3 Defining the subject of the contract (subject matter)

As the Procurement Directives are principally concerned with how you buy, rather than
what you buy, contracting authorities have a considerable amount of scope in determining
the subject matter (i.e. the title) of their call for tender.

The 2014 Directives continue to require that all specifications and award criteria are clearly
“linked to the subject matter” of the contract. Referring to your sustainability objectives
directly in the subject matter is useful in making this link clear. It is also an effective way to
communicate your ambition to the market – to indicate that you are taking sustainability
seriously in the tendering process.

Organic police uniforms in Zürich, Switzerland

In 2012, Procura+ pioneer Participant Zürich, Switzerland used “Procurement of

100% organic cotton police shirts” as subject matter for a uniform tender, which
was successfully delivered.

The full case study can be found here.117 Read the Zürich Procura+ profile here.118

Examples of subject matter:

• Provision of sustainable catering services for schools.

• Supply of low emission vehicles.
• Construction of a low energy office building.

3.4 Selection/Exclusion of bidders

The selection stage of a tendering process can be important for signalling the use of
sustainable procurement or PPI and for evaluating the previous experience and technical
capacity which different companies have to carry out these aspects of the contract. For
example, in a construction contract at selection stage you can assess the previous record
of contractors in delivering sustainable and innovative works, as well as their health and
safety record, compliance with fundamental labour laws and use of an environmental
management system.

The 2014 Directives allow contracting authorities to both:

• exclude companies from tendering for not meeting certain conditions (exclusion
criteria); and

• select the most suitable companies to bid based on technical ability and previous
experience in relation to the subject matter of the contract (selection criteria).

117
www.ec.europa.eu/environment/gpp/pdf/casestudy8.pdf
118
www.procuraplus.org/public-authorities/zurich/

54
 THE PROCUREMENT PROCESS III
Both sets of criteria provide opportunities for pursuing sustainability goals, as outlined below.

Exclusion criteria – Compliance with fundamental labour and environmental law119

The 2014 Directives make it mandatory for contracting authorities to exclude a potential
bidder where it is aware that it has been convicted for child labour or other forms of
human trafficking offences.

In addition, they are allowed to exclude companies which have been convicted of
breaching environmental, social and labour law. This includes EU and national law,
collective agreements and a list of international conventions set out in Annex X of Directive
2014/24/EU. The Annex contains the eight fundamental conventions of the International
Labour Organisation and four environmental conventions relating to hazardous waste,
persistent organic pollutants, hazardous chemicals and pesticides, and the protection
of the ozone layer. Depending on the national transposition of the 2014 Directives,
contracting authorities may also be able or obliged to impose the same conditions on
major subcontractors.

With larger contracts (such as construction works) involving multiple subcontractors, or

for supply contracts with complex global supply chains, it may also be advisable to include
compliance with these standards within contract performance clauses, and to put in place
an appropriate monitoring mechanism. More on this is included in the section on contract
performance clauses below.

Selection criteria – Technical ability and previous

experience120
At selection or ‘pre-qualification’ stage you can apply
specific criteria to evaluate candidates' suitability to pursue Types of selection criteria:
the professional activity, economic and financial standing • Assessing bidders’ qualifications and experience
and technical and professional ability. with relevant construction techniques and
materials for the construction of a low energy,
This can include requirements for bidders to demonstrate low environmental impact building.
their ability to carry out the contract in a sustainable
• Assessing bidders’ qualifications in green cleaning
manner – however this must be proportionate to the
techniques for a cleaning contract.
specific requirements (i.e. technical specifications) of the
contract. According to the European Commission’s Buying • Assessing bidders’ experience in providing

Green Guide121 this means “you should tailor your approach organic and seasonal menu options for a school
to the specific requirements of the contract, including its catering contract.
value and the level of environmental risk involved. For • Assessing the environmental management
example, the range of environmental selection criteria systems which bidders have in place for a
applied for a works contract will normally be greater than waste collection service contract (see more on
for a simple supply contract, unless the supplies present a environmental management systems below).
particular environmental risk, e.g. chemicals or fuel which
• Assessing bidders’ ability to track products
must be safely stored.”
throughout complex global supply chains,
and monitor compliance with the ILO core
Annex XII sets out the only types of evidence122 which
conventions, for example in a major clothing
can be requested in respect of selection criteria, which
supply contract.
includes reference to previous work, technical expertise,
environmental management measures, and also supply

119
2014/24/EU - Articles 18, 57 and Annex X
120
2014/24/EU - Article 58 and Annex XII
121
www.ec.europa.eu/environment/gpp/buying_handbook_en.htm
122
2014/24/EU - Article 60(1) and 60(4)

55
 chain management and tracking systems. Remember that bidders must be allowed to rely
upon the capacity of other entities, such as subcontractors, to meet these criteria, if they
can prove that these will be available for delivery of the contract.

Environmental management systems123

Environmental management systems such as EMAS124 or ISO 14001125 can be a useful
way for candidates to demonstrate, during the selection phase, their ability to deliver the
environmental aspects of a contract. These systems set out the environmental standards
which must be met for a particular activity or business sector, with compliance being
audited by an independent third party. It is important to check that any certificates
presented relate to the specific activity or activities which the contract concerns.
Compared to the 2004 Directives, there is now a broader
ability to request environmental management systems for
any contract where this would be proportionate – including
Social criteria in technical specifications supply contracts. The same applies to energy management
systems (EnMS) such as ISO 50001.
The 2014 Directives make it clear that social issues
within supply chains (such as labour conditions Under the 2014 Directives it is possible to demand that
or fair trade principles) may be addressed in both the environmental management system is third party
the award criteria 127
and contract performance verified, unless the candidate objectively has no access to
clauses.128 However for technical specifications the the schemes during the time limits for reasons which are
situation is more ambiguous. not attributable to them (see the section on Using Labels
below), and where they can prove that the alternative
Whilst Article 42 of Directive 2014/24/EU on measures they have in place are equivalent to the third-
technical specifications explicitly states that party certification requested. Such demands may,
environmental characteristics may be addressed, however, create a barrier to SME inclusion in the tender
social characteristics are not mentioned. process, given the time and cost requirements of acquiring
such a certified system. Including this requirement would
A conservative interpretation of the Directive therefore need to be assessed on a case-by-case basis.
would be that social characteristics cannot
therefore be addressed here – an alternative Alternatively, contracting authorities can set award criteria to
interpretation would be that, as they are not assess the specific environmental management measures
specifically excluded they may still be addressed. that are proposed for the carrying out of the contract (see
section 6 below).
This second interpretation would be supported
by several of the Recitals at the beginning of Subcontractors126
the Directive (e.g. 74, 95, 99) which indicate the For certain contracts a significant part of the work or value
intention to allow procurers the flexibility to clearly involved will come not from the main contractor but from
pursue sustainability goals. other companies in its supply chain. The 2014 Directives
recognise the important role which subcontractors can play in
This guide cannot provide a legally watertight public contracts and the opportunities for SMEs at this level.
interpretation on this point, and it is likely that legal
clarity on this point will only come through court From a sustainability perspective, there are two particularly
rulings. If in doubt, only apply social criteria in the important provisions relating to subcontractors. The first
award phase. is that compliance on the part of subcontractors with the
fundamental labour and environmental laws mentioned in

123
2014/24/EU - Article 62
124
www.ec.europa.eu/environment/emas/index_en.htm
125
www.iso.org/iso/iso14000
126
2014/24/EU - Article 71
127
2014/24/EU – Article 67
128
2014/24/EU – Article 70

56
 THE PROCUREMENT PROCESS III
the exclusion criteria section above has to be ensured in public procurement. For works
contracts and services to be carried out on site, you must require the names and contact
details of all subcontractors, in order to ensure compliance with this condition. This would
allow for establishing a direct monitoring system. The second is that arrangements may
be put in place for the direct payment of subcontractors, either automatically or upon
request. This more direct relationship allows a greater degree of oversight. Both of these
provisions may help to ensure that sustainability considerations are enforced down the
supply chain, with better visibility and accountability at each level.

3.5 Technical specifications

Technical specifications129 translate the subject matter of the contract into concrete,
measurable requirements that the product/service/works must fulfil. These requirements
are compulsory therefore if an offer does not comply with them it must be rejected.

Contracting authorities have a wide variety of options for addressing sustainability

criteria in the technical specifications. The 2014 Directives have clarified that technical
specifications can relate to sustainability impacts at any stage of the life cycle of a product
and it is not necessary for them to define qualities of the finished product only.

There are three choices for how to formulate technical specifications in calls for tender:130

i) in terms of performance or functional requirements, including environmental

characteristics;
ii) by reference to standards, common technical specifications or references, or;
iii) by a combination of these approaches.

For a goods supply contract, types of specifications you could consider are, for example:

• Performance of the product in use – e.g. CO₂ and harmful pollutant emissions from
vehicles, energy consumption of IT products, fumes from harmful chemicals in cleaning
products.

• Disposal/recyclability of the product – e.g. whether products contain mercury, or are

separable into easily recyclable components.

• Delivery of the product – e.g. delivery outside peak hours, using low emission vehicles.

• The origin of materials used in manufacture – e.g. timber from sustainably managed
forests, food from organic agriculture, use of recycled material.

• Production methods – e.g. electricity coming from certified renewable sources, totally
chlorine free (TCF) bleaching process for paper.

For a service contract, you could consider:

• Consumption of resources in performing the service – such as energy and water.

• Waste/emissions generated – e.g. CO₂ emissions from transportation requirements or

type of vehicle used, non-recyclable waste generated.

129
2014/24/EU - Article 42
130
2014/24/EU – Article 42.3

57
 • Use of products – e.g. use of organic/fair trade produce for a catering service, use of
non-toxic products for a cleaning service, use of energy/water efficient equipment.

• Working conditions – e.g. employment of disadvantaged groups, payment of agreed

minimum wage tariffs.

For works contracts, specifications can relate to, for example:

• The performance of the construction – e.g. energy performance of a building,

accessibility for disabled people, indoor climate.

• The way in which the works are carried out – e.g. minimising of waste and noise from
construction sites, optimising material delivery schedules to lessen traffic disruption,
energy/water efficiency of machinery.

• The materials used in construction – e.g. use of renewable and/or recycled materials,
restriction of harmful or unrecyclable materials, efficient use of material.

In all cases, requirements must be related to the subject matter of the call for tender
(i.e. they must relate to the contract in question and not to the general sustainability
performance of the supplier), must be clearly verifiable, and must afford equal access to
bidders (so they cannot restrict competition for example by including requirements that
could only be met by bidders from one company, country or region). Where standards are
referred to, equivalent standards must also be accepted.

Determining which criteria to use

As procurers cannot be expected to have detailed knowledge of the sustainability impacts
across the life cycles of all the goods, services and works they procure, it is important to be
able to make use of external assistance and information sources. Many public authorities
involve their environmental/sustainability departments directly within the procurement
process, in proposing technical specifications and award criteria, and possibly assisting in
verification and evaluation of offers – particularly for bigger contracts, or those identified
as high risk.

Although sustainable procurement remains primarily a voluntary mechanism, for certain

specific sectors there are mandatory requirements for some levels of government, for
example:

• The EU Energy Star Regulation (106/2008) obliges central government bodies and
agencies to buy products at least complying with the Energy Star requirements.

• The Clean Vehicles Directive (CVD) (2009/33/EC) requires all public authorities to take
energy efficiency, CO₂ emissions and harmful local exhaust pollutants into account
when purchasing road vehicles.131

• The Energy Performance of Buildings Directive (EPBD) (2010/31/EU) requires all new
buildings occupied and owned by public authorities from 31 Dec 2018 to be “nearly
zero-energy” buildings.132

Performance-based specification
A performance-based specification (often also called outcome-based or functional
specification) is one which describes the performance to be achieved by the procured

131
The Clean Fleets guide on the procurement of clean and energy efficient vehicles provides advice on
implementing the CVD
132
For guidance on sustainable and innovative procurement for public construction projects please see the SCI-
Network Guide.

58
 THE PROCUREMENT PROCESS III
solution, rather than specifying the exact product or service which will achieve this. In
other words it focuses on your actual needs, and lets the market suggest the best way
in which these needs may be met, without being technically prescriptive. This type of
approach is a key tool in the promotion of innovative solutions in procurement.

Using performance based specifications to procure innovative data analysis

system for the London Fire Brigade, UK.

In order to understand current performance the London Fire Brigade procured

a telematics and equipment tagging system to collect and analyse data from
the vehicles. Performance based specifications were included in the invitation
to tender through the detailed description of the functionality and outcomes
needed, without prescribing how this functionality should be achieved.

Two companies were appointed to develop and install data collection systems as
pilots, and flexibility within the contracts allowed certain technology challenges to
be resolved through creative and innovative solutions.

Read more in the FIREDuP project report.136

Drafting a technical specification by using outcome-based

Sector specific guidance:
specifications requires careful attention – it is important to
strike the right balance between leaving enough room for The Clean Fleets guide133 on the procurement
the supplier to propose innovative solutions while at the of clean and energy efficient vehicles in
same time being precise enough to permit the award of the compliance with the CVD.
contract. It is important to define the exact performance
• The SCI-Network Guide134 on sustainable
which will be measured, and how this will be measured.
and innovative procurement for public
Furthermore, both the drawing up of performance-based
construction projects.
specifications and the evaluation of tenders may require
additional (and potentially external) expertise within the • European Commission recommended
procurement team. GPP criteria135 for a wide range of typical
product/service/works categories.
Using labels137
• Advice on six high priority product/service
There are many product labelling and certification systems
groups in Chapter V of this manual.
existing globally designed to indicate that labelled products
meet certain environmental and/or social standards. For • Participants in the Procura+ Network may

procurers, unlikely to have detailed knowledge on life cycle approach ICLEI for assistance in developing

environmental and social impacts of every product or sustainability and innovation criteria for

service they procure, labels can be invaluable tools. tender documents.

A wide range of labels exist, however the ones which are

of greatest use for procurement are those which have
underlying criteria set by an independent body, are based on life cycle considerations
and are monitored by a third party auditing process (often referred to as Type I or Type
I-like labels according to ISO 14 024).138 These are highly transparent and reliable sources
133
www.clean-fleets.eu/fileadmin/files/documents/Publications/Clean_Fleets_Guide_-_Final__ June_2014_.pdf
134
www.sci-network.eu/fileadmin/templates/sci-network/files/SCI-Network_Guide_01.pdf
135
www.ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm
136
www.bit.ly/2deRB93
137
2014/24/EU - Article 43
138
For a definition of different types of environmental and sustainability labelling systems please visit:
www.unep.org/resourceefficiency/Consumption/StandardsandLabels/Eco-abelling/tabid/101342/Default.aspx

59
 Using labels to procure sustainable printing services in Zurich, Switzerland

Procura+ Participant Zurich switched from buying or renting machines to a

service model for copying, printing and scanning. The following labels (or their
equivalents) were accepted as evidence to demonstrate the sustainability of the
products used in the service:

• Declarations/labelling regarding the energy consumption of the equipment

• Quality labelling
• Certifications for environmental and social/labour standards (ISO 14001,
SA 8000)
• Ecolabels (Blue Angel, Energy Star, etc.)

The procurement of the service has enabled the City to drastically reduce its costs
and the amount of print materials it produces.

Read more here139 and at Zurich’s Procura+ profile page here.140

of information about the environmental and/or social characteristics of goods, works

or services. Some focus on one particular sector (e.g. FSC and PEFC for timber, MSC for
fisheries), whilst others cover a large range of product and service sectors (e.g. EU Flower,
Blue Angel or Nordic Swan).

Labels may be used in two different ways as part of procurement:

• to define the technical specifications, award criteria or contract performance clauses;
• to verify compliance with technical specifications, award criteria and contract clauses.

The 2014 Directives provide an enhanced ability to refer to and require labels, provided
they are appropriate to define the characteristics of the goods or services being purchased,
and:

(a) they only concern criteria which are linked to the

subject matter of the contract;
Note: Whilst the 2014 Directives make it clear that
(b) the criteria for the label are verifiable, and non-
both environmental and social characteristics
discriminatory;
can be addressed at any stage of the life cycle
of a product in the award criteria and contract (c) they are established using an open and transparent

performance clauses, it is more ambiguous procedure in which all relevant stakeholders, including

regarding the specifications. A conservative government bodies, consumers, social partners,

interpretation would be that only environmental manufacturers, distributors and non-governmental

and not social characteristics can be addressed organisations, may participate;

in the specifications (see box on social criteria in (d) they are accessible to all interested parties; and
technical specifications above).
(e) they are set by a third party over which the economic
operator applying for the label cannot exercise a
decisive influence.

139
www.ec.europa.eu\environment\gpp\pdf\news_alert\Issue53_Case_Study108_zurich_output_management.pdf
140
www.procuraplus.org/public-authorities/zurich

60
 THE PROCUREMENT PROCESS III

Most Type I and Type I-like labels will meet conditions (b) to (e), however this would need
to be reviewed by the contracting authority before use.141

It will also be necessary to determine whether they also have criteria which are not
specific to the product or service being purchased (requirement (a) above), such as general
management requirements. For this reason, it is important to always review the criteria
underlying a given ecolabel (most are available free online) prior to referring to it in tender
documents.

Where all the above conditions are met, you can use the underlying criteria of the label to
establish the environmental and/or social technical specifications, award criteria and/or
contract performance clauses, and require the label to verify compliance.

There are two further conditions with regards to verification:142

1. You must also accept other labels that confirm that the works, supplies or services
meet equivalent label requirements.

2. If the tenderer can demonstrate that it had no possibility of obtaining the specific
label or an equivalent label within the time limits, for reasons not attributable to
themselves, they must be allowed to provide alternative proof, such as a technical
dossier.

Where the label to be used meets requirements (a) to (e) above, the following approach
may be used in a call for tender:

Technical specifications:

All products must meet the criteria of Label X, included in Annex Y.143

Verification:

Label X certification for the offered products must be provided.

Other labels which demonstrate compliance with the same or very similar criteria

141
Following the 2014 Directives, many organisations running ecolabels will also be producing information on the
compliance of their label with these criteria.
142
Both of these conditions offer the potential for different interpretations, and certainty may only come
following official legal rulings:
Condition 1:
• How to define “other labels”. Our interpretation would be: other labels that also meet conditions (b) to (e) in the
list above.
• How to define “equivalent label requirements”? A likely interpretation is that other labels with identical or very
similar underlying requirements must also be accepted as proof of compliance
Condition 2: The definition of time limits is not clear – this could refer to the time between publishing a tender
opportunity (or a PIN where the label requirement is specified) and receiving bids. It could alternatively be
argued that provided a label was available on the market where the tender opportunity is published for a
sufficiently long time (e.g. 2 years), then any economic operator would have had the opportunity to obtain the
label.
143
It may be sufficient to provide a link to a website where the criteria are available, but it is more secure to
provide the criteria directly with the tender documentation

61
 of Label X will also be accepted, provided that:
(a) the criteria for the label are verifiable, and non-discriminatory;

(b) they are established using an open and transparent procedure in which
all relevant stakeholders, including government bodies, consumers,
social partners, manufacturers, distributors and non-governmental
organisations, may participate;

(c) they are accessible to all interested parties; and

(d) they are set by a third party over which the economic operator applying
for the label cannot exercise a decisive influence.

If the tenderer can demonstrate that it had no possibility of obtaining the

specific label or an equivalent label within the time limits, for reasons not
attributable to themselves, alternative proof will also be accepted, such as a
technical dossier.

Where the underlying criteria of a label also include criteria which are NOT specific to
the product or service being purchased (i.e. not directly linked to the subject matter
of the contract – for example a general environmental management system for the
manufacturer), you may not require the label. However you may still refer to those
underlying criteria which DO relate to it and accept the label as one of the forms of proof
of compliance with these specific criteria.

3.6 Award criteria

At the award stage, all bids which are compliant with the
minimum technical specifications are evaluated against
Call for tender example – combined a specific set of award criteria144 – these may be a mix of
specifications and award criteria: cost and quality criteria. The 2014 Directives specifically
mention the possibility of including environmental, social
• Specification: All vehicles shall have maximum and innovation characteristics in the quality evaluation
emissions of 115g CO₂/km. of bids. As with specifications, award criteria can relate to
production processes or any other stage of the life cycle –
• Award criteria version 1: 5 points will be awarded
for example the way in which raw materials are sourced,
for vehicles with emissions of lower than 105g
energy or water consumption during use, and the end-of-
CO₂/km. 10 points will be awarded for vehicles
life recyclability or biodegradability of a product. As with
with emissions of lower than 95g CO₂/km.
specifications, labels may be used to define and prove
• Award criteria version 2: Up to 10 points will be compliance with award criteria (see section on using labels
awarded for vehicles with emissions lower than above).
those required in the technical specifications.
Exact points will be determined on a Unlike the pass/fail nature of technical specifications, award
proportional scale between offers which meet criteria allow the possibility for contracting authorities to
the minimum requirement (which will receive 0 progressively reward better performance, or for points to
points) and the offer with the lowest emissions be awarded if specific thresholds are reached/conditions
(which will receive 10 points). met. Using award criteria in this way gives contracting
authorities a useful mechanism to test what performance

144
2014/24/EU Article 67

62
 THE PROCUREMENT PROCESS III
is achievable and challenge the market to deliver the best solution. It is also useful for
balancing environmental and social objectives against cost and general quality.

During the award stage costs may be assessed based on purchase price alone145 or overall
cost-effectiveness – which includes the possibility for life cycle costing146 as set out in
Chapter IV.

Award criteria may readdress characteristics included in the specifications (as in the
vehicle example above), or they may be introduced for the first time here. It is important
to ensure that award criteria are linked to the subject matter of the contract, and the
criteria and evaluation methodology are clearly communicated in tender documents. The
2014 Directives make no distinction between environmental and social award criteria and
so both can be treated in the same way. Addressing fair trade in procurement is examined
in a separate section below.

As an alternative to setting pass/fail selection criteria during the selection stage, the 2014
Directives specifically also allow award criteria to address the organisation, qualification
and experience of staff assigned to perform the contract, where the quality of the staff
assigned can have a significant impact on the level of the performance of the contract.147
However, this may only be assessed either in the selection phase or the award phase – not
in both.

Award criteria may also evaluate proposed environmental management measures.

Suppliers could be assessed on method statements on how they would address certain
environmental issues when carrying out the contract – such as CO₂ reduction or waste
management. The proposed actions could then be integrated into the final contract
together with the appropriate performance indicators and associated penalties or bonus
payments (see contract performance clauses and management section below).

3.7 Contract performance clauses and management

As highlighted above, many of the impacts which sustainable procurement aims to address
will only arise during the delivery of a contract – particularly for services and works. The
gains from sustainable and innovative procurement can often only be realised if they are
reflected in the way a contract is performed and managed.148 Often this may fall outside
of the immediate role of those who have awarded the contract, so it is important that two
elements are considered in advance.

The first is the use of robust terms and conditions which address the specific sustainable
procurement/PPI aspects of a contract and provide for effective remedies in the event
that they are not delivered. For example, in a construction contract you may wish to
include conditions relating to the employment of apprentices, management of resources
and waste on site, transport and noise. For a catering service contract, it makes sense to
include contract terms relating to the management of food and packaging waste. Such
terms should be highlighted in your tender documents, to ensure that bidders have
provided for any associated costs or planning requirements. The 2014 Directives’ rules
on contract performance clauses are not as prescriptive as those which apply during the

145
Although the 2014 Directives require award to be made based on the most economically advantageous tender
(MEAT), this may still be determined based on price alone (2014/24/EU - Article 67.2)
146
2014/24/EU - Article 68
147
2014/24/EU – Article 67.2(b)
148
2014/24/EU - Article 70

63
 procurement process itself, however they must be linked to the subject matter of the
contract and cannot be subject to substantial changes during the term of the contract.

Sustainable procurement of office supplies in Ghent, Belgium

Procura+ Participant Ghent tendered for a new four-year framework contract for
paper and office supplies. All products in the tender included green criteria and
technical specifications. Contract performance clauses included a requirement
for a reduction in deliveries by 85% (from daily to once or twice monthly). Extra
points were also awarded for greener solutions, which resulted in sustainable
packaging options offered in tenders. The tender achieved lower CO₂ emissions
from the decrease in delivery frequency and new packaging options.
Find out more here149 and read the Ghent Procura+ Profile here.150

The second is a realistic appraisal and allocation of the time and resources which will be
available to monitor performance. Specific individuals should be given the responsibility
of making sure each requirement is met. For bigger purchasing bodies this function may
sometimes be contracted out to a specialist external organisation. Social, environmental
and innovation aspects of contracts can be complex and require an ongoing dialogue with
the appointed contractor, to ensure you are realising your objectives.

Engaging with the contractor to mutually agree on performance levels before the contract
begins reduces ambiguity and ensures buy-in from both sides, especially if incentives are
offered alongside penalties.

An example of the above approach can be found in Bristol City Council’s call for tender151
for waste collection trucks.

Table 3: Translating tender criteria into contract clauses to monitor and manage
performance.

Award criteria Contract performance Verification

clause

Points are awarded Contractors must Quarterly submission of

according to the % fuel submit reports on fuel receipts
savings bidders declare mileage and fuel type at
that they will make, over the end of each quarter
and above the target for all vehicles involved
% saving set by the in the service delivery.
contracting authority. Penalties are given for
falling below this target
fuel savings threshold.

149
www.ec.europa.eu/environment/gpp/pdf/Buying-Green-Handbook-3rd-Edition.pdf
150
www.procuraplus.org/public-authorities/ghent
151
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue33_Case_Study71_Bristol_Business_case.pdf

64
 THE PROCUREMENT PROCESS III

Social responsibility standards in Oslo, in Norway

Procura+ Participant Oslo requires that all of its suppliers follow either the
eight ILO Fundamental Conventions on the freedom of association and right
to collective bargaining, forced labour, discrimination and child labour, or the
broader ten principles of the United Nation’s Global Compact, which include
human rights, labour, environment and anti-corruption standards.
Failure to comply with these can result in breach of contract with the
municipality. In 2013 Oslo established a framework agreement for monitoring
compliance which can also be used by all other Norwegian public bodies.

Read more about this, and other success stories published by the LANDMARK
project here.152

A carefully drafted contract and, where appropriate, service level agreement, will help
to allocate responsibility and any risk associated with non-performance. Many public
authorities have standard terms and conditions which allocate most of the risk associated
with contracts to the supplier, but you should consider whether these are appropriate
if you really want to encourage innovation or better environmental, economic and
social performance. For example, if you want a contractor to actively contribute to your
organisation's target for CO₂ reductions, you need to have clear contractual provisions
and define how outcomes will be measured. The incentives or penalties which will apply
under the contract should also reflect your sustainability and innovation goals.

3.8 Other considerations

The 2014 Directives allow further new opportunities to incorporate sustainability

considerations:

Addressing fair trade in procurement

The concept of fair trade is specifically referred to in the recitals of the 2014 Directives, outlining
that award criteria or contract performance clauses may relate to the supply or utilisation
of fair trade products in the course of the performance of the contract to be awarded.

152
www.landmark-project.eu/fileadmin/files/en/LANDMARK_Success_Stories_2014_-_eng.pdf

65
 Buying Sustainable Timber Guide procurement criteria for fair trade

Award criteria:

Products supplied under this contract must be produced according to the

following principles of fair trade, endorsed by the European Parliament
Resolution on Fair Trade and Development (2005/2245(INI)):

a) A fair producer price, guaranteeing a fair wage, covering the costs of

sustainable production and living. This price needs to be at least as high as
the Fair Trade minimum price and premium where they have been defined
by the international Fair Trade associations for the specific product(s) in
question.

b) Part payments to be made in advance if so requested by the producer.

c) Producers are involved in standard-setting.

d) Transparency and traceability throughout the supply chain to guarantee

appropriate consumer information.
e) Conditions of production respecting the eight International Labour
Organization (ILO) Core Conventions.

f) Respect for the environment, protection of human rights and in particular

women's and children's rights and respect for traditional production
methods which promote economic and social development.

g) Capacity building and empowerment for producers, particularly small-scale

and marginalised producers and workers in developing countries, their
organisations as well as the respective communities, in order to ensure the
sustainability of fair trade.

h) Support for production and market access for the producer organisations.
i) Awareness-raising activities about fair trade production and trading
relationships, the mission and aims of fair trade, and about the prevailing
injustice of international trade rules.

j) Monitoring and verification of compliance with these criteria, in which

producer organisations must play a greater role, leading to reduced costs
and increased local participation in the certification process.

k) Regular impact assessments of the fair trade activities.

For the avoidance of doubt, application of the above principles will be assessed
only in relation to the specific production arrangements proposed for the
contract in question.

66
 THE PROCUREMENT PROCESS III
There are some slight variations in definitions of fair trade used by different labelling and
certification systems. However, the set of principles outlined in the European Parliament
Resolution of Fair Trade and Development (2005/2245(INI)) provides a useful reference
point.

Where you wish to address fair trade in procurement, it is important to ensure the criteria
are directly linked to the subject matter. The sample wording below is based on that
presented within the Buying Sustainable Timber Guide (page 17).153

Verification:

Tenderers must provide evidence that these principles are met. This may
include the possession of the Fairtrade label, or products demonstrated as
being imported and distributed by Fair Trade Organisations (recognised by the
World Fair Trade Organisation). Other forms of third party verification will also
be accepted.

Contract performance clause:

The contractor must supply proof of the fair trade origins of the products
used in carrying out the contract. This may include the possession of the
Fairtrade label, or products demonstrated as being imported and distributed
by Fair Trade Organisations (recognised by the World Fair Trade Organisation).
Other forms of third party verification will also be accepted.

Reservation of certain contracts154

One way of addressing the social impact of procurement is to reserve certain contracts
for competition by enterprises which have a specific social mandate. There are two ways
of doing this under the 2014 Directives – both of which are optional for Member States
to implement. The first is to reserve contracts for competition by sheltered workshops
or employment programmes where at least 30% of the employees are disabled or
disadvantaged.155 The main aim of the organisations must be the social and professional
integration of such persons.

The second option is to reserve contracts for social, health, cultural or other specific
services for competition by enterprises with a public service mission linked to the activities
in question.156 There are specific requirements regarding the treatment of profits and the
ownership structure of such enterprises, and contracts awarded in this way cannot exceed

153
www.sustainable-timber-action.org/fileadmin/files/STA_Toolkit/Buying_Sustainable_Timber_-_STA_Guide__Nov_2013.pdf
154
2014/24/EU - Articles 20 and 77
155
This resembles a provision which was in the 2004 Directives, however, it has been expanded to include all
categories of disadvantaged workers (the term is not defined in the 2014 Directives).
156
Article 77 of Directive 2014/24/EU lays down the conditions which must be met by such enterprises

67
 three years or be awarded to an enterprise which has benefitted from the reservation in
the past three years.

Where either of the two reservation options is being used, this must be indicated in the
OJEU notice.

Social, health and cultural services157

One of the criticisms of the 2004 Directives was that the rules were often unsuitable for
services which are governed less by market considerations and more by social needs. A
response to this can be found in Title III of the Public Sector Directive (2014/24/EU), which
sets out a lighter regime for certain social, health and cultural services along with various
other categories. Separate rules and principles apply to the award of these contracts, for
example:

• A higher threshold of €750,000 applies for these contracts.

• A contract notice/PIN and award notice must be published above this threshold, but the
detailed procedures set out in the Directives do not apply.

• National legislation may establish rules for award of these contracts, ensuring
that contracting authorities can take into account "quality, continuity, accessibility,
affordability, availability and comprehensiveness of the services, the specific needs
of different categories of users, including disadvantaged and vulnerable groups, the
involvement and empowerment of users and innovation."

Achieving social value in the Scottish Crime Campus, UK

The Scottish Crime Campus project, with a value of £65 million, was completed
in November 2013. The aim of the project was to improve efficiency and bring
together four of Scotland’s crime fighting organisations in one location while also
benefitting the community. The project aimed to create opportunities for 16-19
year olds, address displaced apprentices and cater for SMEs. The procurement
ensured that these objectives were achieved by taking sustainable procurement
into account, at every stage of the tender process.

The full case study is available here.158

Fully electronic tendering

Under the 2014 Directives all public procurement will have to be fully electronic by
October 2018 – central purchasing bodies have an earlier deadline of April 2017.159 The
transition to full e-procurement is highly relevant for sustainable procurement and PPI for
three reasons. First, it is expected to facilitate participation in calls for tender by a greater
and more diverse range of enterprises, given the specific rules on access to electronic

157
2014/24/EU - Articles 74-76
158
www.scotland.gov.uk/Topics/Government/Procurement/casestudies/GartcoshCaseStudy
159
i.e. tender opportunities will be advertised online, and tenders must be submitted electronically

68
 THE PROCUREMENT PROCESS III
tools used in procurement. Second, it will require e-procurement providers to adapt their
systems to reflect the new rules, which may also prove an opportunity to include further
functions to implement and track sustainable procurement criteria. Third, it will reduce
the amount of paper and transport involved in tendering, as all documents will now have
to be sent electronically unless a specific exemption applies. The adoption of a separate
directive on e-invoicing will support this last development further. More information can
be found on the European Commission’s website,160 and in the March 2016 GPP News
Alert.161

Sustainable procurement and e-procurement systems

For sustainable procurement to be effectively mainstreamed, e-procurement

systems must facilitate and track its use. For example, e-procurement systems
should enable users to:

• identify contracts which have sustainable procurement or PPI elements (e.g.

through use of keywords or tick boxes);

• choose from relevant criteria and contract terms;

• evaluate performance against the chosen criteria;

• apply life cycle costing; and

• generate reports on specific criteria or objectives (e.g. % of contracts including

energy-efficiency requirements).

E-procurement systems also have the ability to foster a more collaborative

approach to sustainable procurement/PPI, by giving suppliers better access to
information on contracts.

eProcurement in Växjö, Sweden

Procura+ Participant Växjö, Sweden, implemented an e-purchasing system that

has helped streamline the procurement process, making huge efficiency savings
and allowing both price and quality benefits of products, such as compliance with
ecolabel requirements, more easily identifiable.

Read more in the GPP News Alert162 and at Växjö’s Procura+ participant page
here.163

160
www.ec.europa.eu/growth/single-market/public-procurement/e-procurement_en
161
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue59_NewsAlert_March.pdf
162
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue32_NewsAlert_Interview.pdf
163
www.procuraplus.org/public-authorities/vaxjo

69
 3.9 The 2014 Directives – Reference

Table 4: The table below gives references to the appropriate articles164 in the 2014 Directives,
for the opportunities outlined above.

Procurement Opportunities to address sustainability and innovation

Stage

Definition of • Reservations for workshops employing disadvantaged or

contract disabled workers, or for non-profit social enterprises (Articles 20
and 77)

• Lighter regime for social, health, cultural and other specific

services (Title III - Articles 74-76)

• Division of contracts into lots to facilitate SME participation

(Article 46)

Choice of • Preliminary market consultation (Article 40)

procedure
• Innovation partnership, competitive dialogue or competitive
procedure with negotiation (‘flexible procedures’) to help target
sustainable procurement/PPI (Articles 29-31)

• Frameworks, central and joint purchasing to pool demand

(Articles 33, 37 and 38)

• Fully electronic tendering (Article 22)

Selection/ • Compliance with fundamental labour and environmental law

exclusion (Article 18/Annex X)

• Exclusion for child labour, human trafficking or non-payment of

tax or social security (Article 57)

• Technical ability and evaluation of previous experience (Article

58 and Annex XII)

• Environmental management measures (Article 62)

Technical • Production processes and methods (Article 42)

specifications
• Functional or performance based specifications (Article 42)

• Accessibility or design for all users (Article 42)

• Environmental or social standards (Article 42)

• References to labels (Article 43)

• Use of variants to allow alternative solutions

(Article 45)

164
Article numbers refer to the Public Sector Directive (2014/24/EU) but similar provisions appear in the Utilities
Directive and, in some cases, the Concessions Directive.

70
 THE PROCUREMENT PROCESS III

Award • Environmental, social and innovation characteristics (Article 67)

criteria
• Life cycle costing (Article 68)

• References to labels (Article 43)

• Possibility to limit number of lots awarded to one bidder (Article

46)

• Rejection of abnormally low tenders (Article 69)

Contract • Environmental or social conditions for performance

performance (Article 70)

• Compliance by subcontractors with fundamental

labour and environmental law (Article 71)

• Possibility for direct payment of subcontractors

(Article 71)

Need more advice on integrating sustainability into your tender procedures?

Procura+ participants can benefit from receiving direct advice from ICLEI, and
exchanging with others in the Network.

www.procuraplus.org

71
 CHAPTER IV
THE REAL COSTS OF PROCUREMENT

Assessing the real costs of procurement means calculating the total cost of an asset, from
the point of purchase right through to the use phase and including the end-of-life costs.
The life cycle costing (LCC) approach considers:

• Acquisition costs – purchase price (or leasing costs), and other one-off costs such as
installation/infrastructure costs and training costs.

• Operation costs – e.g. energy/water consumption, consumables, or waste generation.

• Maintenance and repair costs.

• Disposal costs (or remnant value).

Further costs can be added which are not borne directly by the purchasing organisation
but by society at large. These costs are often referred to as environmental and social
“externalities”.165

In an ideal world, we would be able to calculate the true cost – economic, social and
environmental – of every purchase we make. Unfortunately, most public sector
organisations are still faced with budgets which prioritise upfront purchase price over
longer-term costs, and which may ignore social or environmental costs altogether. These
problems can be exacerbated if one department (or organisation) purchases a product,
service or work but another is responsible for its operation, maintenance and disposal.
Such a scenario presents the so called 'split incentive' problem.

165
To this list the costs of the procurement process itself could also be added – particularly relevant where more
complex procedures, such as competitive dialogue, or in-depth market research are applied.

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 THE REAL COSTS OF PROCUREMENT IV
The 2014 Directives are designed to encourage an increase in the use of LCC in public
procurement, and provide clear guidelines for how this should be applied. The purpose of
this chapter is to identify tools and techniques which will help you to move towards a more
realistic and sustainable evaluation of costs in procurement. It will cover the following
topics:

• how different elements of the procurement process can influence real cost;
• assessing real costs in procurement – life cycle costing (LCC);
• monetising environmental and social externalities; and
• the evidence – the financial impact of sustainable procurement.

4.1 Impact of each procurement stage on real costs

There are many considerations which will determine the real cost of a contract, and many
of these occur at an early stage of the procurement process – before the cost of offers
is evaluated. The table below provides a brief overview of some of these. Naturally the
underlying conditions in the market are also important – if no suppliers are willing to
deliver sustainable and innovative solutions then even the best-designed tender process
will not help. Fortunately there are a decreasing number of sectors in which this will be
the case.

Table 5: Impact of procurement stages on real cost

Steps/Decisions Impact on Real Costs

Pre-procurement stage

Needs assessment • Sets scope and nature of requirements.

Assessing real needs in terms of
outputs will allow a more flexible, and
potentially cost-effective response from
the market

Market consultation • Identifies potential solutions and

gathers intelligence on their potential
cost impacts

Central or joint procurement • May create economies of scale

• May reduce cost of the procurement
process itself, by sharing these between
participating authorities

Definition of contract

Contractual model – e.g.: • Definition of contract

• Service vs. supply (e.g. for software or • Can affect pricing and incentives,
printing) how attractive the opportunity is to
• Contract vs. framework (single or contractors, and the contractors’ ability
multiple suppliers) to invest in sustainable procurement or
• Duration of contract or framework PPI

73
 Division into lots • Increases competition by enabling SMEs
to bid

Choice of procedure

Type of procedure and time frames: • Determines field of competition, the

• OJEU level call for tender or local/ number of likely submissions and the
national (if below threshold) quality of those submissions
• Open or multi-stage procedure
• Time periods for expressions of interest
and tenders

Use of flexible procedures such as • Can help to understand real costs and
competitive dialogue tailor requirements closely

Selection/Exclusion

Selection based on technical capacity • Targets companies most suitable

and experience to deliver sustainable procurement
requirements in a cost-efficient manner

Technical specifications

Standards vs. outcome based • Determines room for innovation, and

Allowing variants flexibility for the market to determine
the most efficient means to achieve the
desired outcome

Energy/ fuel efficiency specifications • Reduced operational costs

Requiring closed loop systems i.e. goods • Has the potential to reduce disposal
returned to supplier at end of life costs

Award criteria

Use of LCC to compare bids • Allows real costs to be assessed (see

section on LCC below)

Quality criteria on energy/fuel efficiency • May lead to reduced operational or

and/or disposal aspects disposal costs, depending on weighting
given and bids received

Contract performance

• Incentives or gainshare for savings • Both parties can benefit financially from
linked to sustainable procurement e.g. sustainable procurement savings
energy performance contracts

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 THE REAL COSTS OF PROCUREMENT IV
4.2 Assessing real costs in procurement – life cycle costing (LCC)

Whilst the above aspects will have a clear impact on real costs, LCC is a method for directly
calculating and comparing the real costs of different alternatives for use in procurement
decision making. LCC is typically used at two stages of a procurement exercise:

• Planning – to assess the real cost impact of alternative options to determine the scope
of a call for tender (e.g. comparing alternative vehicle technologies/fuels for a bus call
for tender).

• Tender evaluation – directly comparing the life cycle costs of different bids.

LCC vs. LCA

Life cycle costing (LCC) is sometimes confused with life cycle assessment (LCA) –
however they are very different.

Where LCC calculates the costs of a product throughout its life cycle (which can
include giving a monetary value to environmental externalities), LCA assesses
the environmental impacts, such as greenhouse gas emissions, over the life
cycle.

Both aspects are of course important for the application of sustainable

procurement. However, whereas LCC can easily be applied by procurers, LCA
requires a lot more time and specialist expertise. It is therefore worth making
use of already existing LCA comparisons, such as those used in the preparation
of ecolabel criteria.

What does LCC Cover?

When using LCC to determine cost during tender evaluation the 2014 Directives166 lay out
clear rules for how this should be carried out and what may be included.

The following costs may be taken into account, whether they are borne by the contracting
authority or other users:

(I) costs relating to acquisition;

(II) costs of use, such as consumption of energy and other resources;
(III) maintenance costs;
(IV) end of life costs, such as collection and recycling costs; and
(V) costs imputed to environmental externalities linked to the product, service or
work during its life cycle (e.g. greenhouse gases and other pollutant emissions,
or other climate change mitigation costs) if their monetary value can be
determined and verified.

There are three broad approaches to evaluating cost in tendering:

1. Lowest price
This remains the most common method for determining cost in tender evaluation,
however the 2014 Directives aim to encourage an increase in the use of LCC.

166
2014/24/EU - Article 68

75
 2. Direct cost LCC/total cost of ownership (TCO)
This approach, considers only those costs borne directly by the contracting authority over
the period of ownership (i.e. costs (i) to (iv) in the list above).

This is the most common form of LCC, and is applied as a matter of course in the private
sector. Although it remains relatively rare in the public sector (for the reasons outlined in
the introduction), its use is increasing. It is of particular relevance in sectors where a large
proportion of costs are related to operation – such as vehicles, buildings or lighting.

3. LCC including “externalities”

This approach includes all costs from (i) to (v) from the list above – it requires giving a
monetary value to environmental externalities, such as CO₂ emissions, resource use or
local air pollutants, which is then directly added to the cost calculation.

This approach remains very rare within public sector procurement, however increasingly
strict environmental legislation and ambitious targets will likely change this situation.

There are certain exceptions. In the UK, the CRC Energy Efficiency Scheme, which limits
the CO₂ emissions of large public authorities (with an associated emissions trading
scheme), has given a financial value to CO₂ emissions which are therefore sometimes
taken into account in procurement. The Clean Vehicles Directive (see box) also presents a
methodology for monetising environmental externalities.

Implementing LCC in tendering

Clean and Energy Efficient Vehicles The 2014 Directives also lay out conditions related to how
Directive 2009/33/EU requires public authorities LCC is implemented in tendering. You must indicate the
to take energy and emissions into account when methodology which will be used for LCC in your tender
procuring road transport vehicles. This can be done documents, and specify the data which is to be submitted
by addressing these considerations in technical by bidders. The method chosen must:
specifications and/or contract award criteria.
(a) be based on objectively verifiable and
non-discriminatory criteria;
Where award criteria are used, there is an option to
(b) be accessible to all interested parties;
monetise the costs of certain emissions (CO₂, NOx,
(c) not require more than a reasonable effort from
particulate matter, NMHC) and the energy or fuel
bidders in terms of data submission; and
costs of vehicles during their operational lifetime.
(d) follow any common, mandatory EU method for
Values are provided for the cost of different types
calculating LCC which applies in the sector.168
of emission and lifetime mileage assumptions.
The objective of these conditions is to ensure transparency
See the Clean Fleets guide to procuring clean and and equal treatment where LCC is used. It is within the
efficient road vehicles 167
for more information. interests of procurers and suppliers/ service providers to
ensure that the rules for LCC calculation are clear in tender
documents. This will reduce the time taken to clarify and
confirm costs at the tender evaluation stage.

A number of different LCC tools and methodologies are available for the procurement of goods, works
and services – particularly for the direct cost LCC approach. Where a mandatory method does not
exist, it is also possible for you to develop your own methodology, provided these conditions are met.169

167
www.clean-fleets.eu/fileadmin/files/documents/Publications/Clean_Fleets_Guide_-_Final__ June_2014_.pdf
168
Currently the only example of this is the methodology outlined in the Clean Vehicles Directive (2009/33/EU),
but this may change in coming years.
169
2014/24/EU – recital 96. This also states, however, that such methodologies should not be set up specifically
for a particular public procurement procedure. Although this is not repeated in Article 68 on LCC, this would
encourage the development of tools to be used over the longer term for more than a single procurement exercise.

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 THE REAL COSTS OF PROCUREMENT IV
In choosing between methodologies, the most important considerations in addition to
ensuring the above conditions are met are:
• the transparency of the methodology;
• the ability of bidders to provide the information requested; and
• the ability of the authority to assess and verify the information received.

The appropriate methodology to apply may depend on the specific call for tender. Not every
category of costs will be relevant or significant for every contract – for example if you are
purchasing services there may be no end-of-life costs. Once you have identified your needs
and the main environmental and cost impacts you want to consider, there are a number of
sources and tools you can consult on LCC. A selection of these is highlighted below.

Table 6: LCC Tools and Resources170

SMART SPP Guide and Excel Tool171 A Microsoft Excel (R) tool specifically
designed to calculate LCC and CO₂ in
public procurement, with accompanying
guidance and examples.

Clean Fleets LCC tool172 A tool to calculate LCC for vehicle

purchases, which incorporates the
methodology of the Clean Vehicles
Directive for monetising externalities.

SEAD lighting costs calculator173 Tools to evaluate the light quality, energy
consumption, and life cycle costs of
indoor and street lighting alternatives.

LCC for sustainable construction174 Methodology for LCC in construction

developed on behalf of the European
Commission, together with guidance and
examples.

Harvard University LCC calculator175 LCC calculator for new construction,

renovation, equipment replacement and
other projects.

Buy Smart Tools176 A general LCC calculation tool produced

by the Berliner Energieagentur (Berlin
Energy Agency) within the Buy Smart
project, together with specific tools for
the product groups: lighting, vehicles,
domestic appliances, IT and green
electricity.

170
New tools are being developed all the time. For an up-to-date list please visit the Sustainable Procurement
Platform, which contains a large database of tools and resources on SPP: www.sustainable-procurement.org
171
www.smart-spp.eu/
172
www.clean-fleets.eu/fileadmin/files/documents/Publications/LCC_tool_Aug_2015/Clean_Fleets_LCC_tool_-_EN.xlsm
173
www.superefficient.org/Tools/Street-Lighting-Tool.aspx
174
www.bit.ly/LCCconstruction
175
www.green.harvard.edu/topics/green-buildings/life-cycle-costing
176
www.gpp-proca.eu/downloads/calculation-tool/

77
 4.3 The evidence – the cost impact of sustainable procurement

There are an increasing number of documented examples demonstrating the savings which
can be achieved when energy consumption or other life cycle costs are taken into account. A
few of these are presented in the boxes below. Further examples may be found in the Examples
of GPP in Practice found on the European Commission’s GPP website. Several large scale
studies have been conducted to study the wider evidence base, focusing on the application of
environmental criteria in calls for tender across Europe. A study conducted in 2009 found an
average of 1.2% reduction in life cycle costs and 25% reduction in CO₂ emissions based on the
application of GPP criteria for nine product and service groups in seven EU countries.177 In a
2011 study, roughly half of the respondents reported that costs increased, while the other half
reported that costs remained constant or decreased when GPP or innovation requirements
were included in calls for tender. For socially responsible procurement, 34% of respondents
reported constant or decreasing costs, whereas 21% reported cost increases. For all three
forms of sustainable procurement (green, social and innovation), only a small number of
respondents (<10%) reported difficulty attracting suitable offers.178

Authority: Helsinki City Council, Finland

Subject matter: Framework contract for energy efficient IT equipment and

services

Approach to real costs: The tender was divided into five lots which covered
desktop computers (standard and power models), laptops/notebooks and
computer monitors, and all lots included services. Approximately 10,000
computers are purchased each year by the City. Environmental criteria used
were developed on the basis of sound market practices. Market dialogue (done
by meeting up with potential suppliers) activities pushed the ambition level of
the criteria. The GPP 2020 calculator179 for office ICT equipment was partly used
throughout the tendering process to estimate the energy consumption and
operating costs of office equipment and the savings with Energy Star.

Results: The total purchases made from the framework contract are expected to
yield energy savings of 27% and cost savings of €72,000 over the lifetime of the
products – offsetting a total of 172 tonnes of CO₂ equivalents.

Read the full case study here180 and view Helsinki’s Procura+ Profile here.181

177
Pricewaterhousecoopers, Significant and Ecofys (2009). The product groups included in the study were
cleaning services, construction, electricity, catering and food, gardening, office IT equipment, paper, textiles and
transport. The cost and CO2 impacts were calculated based on comparison of non-green or standard products
and green products as defined under the EU GPP criteria.
178
Essig, M., Frijdal, J., Kahlenborn,W. and Moser, C. (2011). Strategic Use of Public Procurement in Europe: Final
Report to the European Commission. Brussels, Belgium: European Commission, Directorate-General Internal
Market and Services at pgs 23-24.
179
www.gpp2020.eu/low-carbon-tenders/measuring-savings
180
www.ec.europa.eu\environment\gpp\pdf\news_alert\Issue59_Case_Study120_ICT_Helsinki.pdf
181
www.procuraplus.org/public-authorities/helsinki

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 THE REAL COSTS OF PROCUREMENT IV

Authority: Eastern Shires Purchasing Organisation (ESPO) on behalf of Cambridge

City Council

Subject matter: LED lighting for a multi-storey underground car park

Approach to real costs: Cambridge City Council identified the potential for
significant cost savings by replacing the lighting in one of its multi-storey car parks.
The car park operates 24 hours a day throughout the year and was previously lit
by 200+ metal halide lights rated at 150 W. An Electrical Design Consultant was
employed to review the system and draw up a specification to replace it with light-
emitting diodes (LEDs).

Following a market engagement exercise tenders were invited, with the following
award criteria being used:
• Price

• Recycling and re-use

• Energy savings (including energy usage in watts and energy savings (%)
compared with the traditional style lights)Robustness

• Warranty period

Results: The successful bidder provided a high-quality LED lighting solution, good
installation service and competitive pricing – the cost of £77,100 represented a 35%
saving against the initial budget.

Read the full case study here.182

In terms of costs and product availability, some organisations may worry that including
sustainability criteria will make it more difficult for small and medium sized enterprises
(SMEs) to participate. Research on this question does not support that view, instead
suggesting most SMEs see green criteria as offering a basis on which they can compete
effectively. A 2013 Eurobarometer survey of SMEs from across Europe found that of those
who had bid for public contracts including GPP criteria, 77% per cent said that they did not
experience any difficulty with these requirements, while 21% reported some difficulty.183
Many SMEs see sustainable and innovative procurement as a key business opportunity.

Overall, research carried out to date is broadly supportive of the idea that sustainable
procurement will not, on average, lead to increased costs or decreased availability of
products or services. Another point which emerges from the studies is that, as levels
of sustainable procurement increase in a country, cost savings are more likely to arise
as product availability improves. It can still be difficult to predict the effect which
sustainable procurement criteria will have in an individual call for tender. For this reason,

182
www.smart-spp.eu/fileadmin/template/projects/smart_spp/files/Case_studies/EN_ESPO_SMARTSPP_Case-Studies.pdf
183
European Commission (2013) Flash Eurobarometer 381:SMEs, Resource Efficiency and Green Markets, pg 73

79
 it is recommended to address questions about costs and product availability at the pre-
procurement stage, for example through market consultation or testing. If concerns
remain about the impact on cost or product availability, then sustainable procurement
criteria may be best included at the award stage (e.g. by applying LCC or awarding points
for innovation, environmental or social characteristics) to allow you to fully evaluate any
impacts on costs and make a decision which takes this into account. Variants can also be
allowed in technical specifications so that you can compare environmentally or socially
preferable alternatives.

Costs vs. risks

It is often said that public sector organisations are risk-adverse, and in many cases they
have good reason to be. No procurement department wants to be responsible for a
legal challenge or a failed contract. In some cases however, the risks of not engaging in
sustainable or innovative procurement may be underestimated. These include:

• Increased costs linked to waste and resource use

• Delays to contract performance due to poor environmental/social management
• Risks to reputation and support from citizens
• Being left behind as new technology is developed

While it is not always possible to assign a cost to these risks, they should be considered
at the planning stage of procurement or when a ‘business case’ needs to be made for
sustainable procurement.

4.4 Social responsibility and value

Social responsibility can be more difficult to assess from a cost perspective, and some
would argue that it is more important than numbers. Certain socially responsible
procurement measures such as a requirement for contractors to pay a decent
or living wage may come with a direct cost, which can be evaluated
within the tender process. Many organisations also have a more
holistic understanding of the impact of their procurement on
the communities they serve, which allows them to take social
value into account when contracts are awarded. For example,
the purpose of a works contract may be in part to help
secure employment for disadvantaged workers, with gains
expected to result in the reduction in demand for benefits
or social problems linked to unemployment. In other cases
the design and specification of a website which is fully
accessible to disabled users may incur some upfront costs,
but will reduce the need for other special arrangements to
reach these citizens.

Approaches such as calculating the Social Return on Investment

(SROI) have gained ground in both the public and private sectors.
SROI involves an assessment of the overall impact of activities and
the social value created. It can be used to compare different options for
investment or procurement, by assigning financial costs to these impacts and
values according to established accounting principles.

Guidance and tools for SROI calculation are available here

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 THE REAL COSTS OF PROCUREMENT IV

The United Nations Environment Programme has also developed Guidelines for Social Life
Cycle Assessment of Products, which are available here.

4.5 Taking a holistic view

One of the purposes of adopting a sustainable procurement policy is to allow your

organisation to take a broader and longer-term view of value for money. This may
involve challenging existing budgetary and procurement practices, although the legal
framework is becoming increasingly supportive of these changes. Methods such as LCC
and evaluating SROI can often be more effective if contractors are consulted and allowed
to feed in to the process. Other teams and departments within the organisation may also
be able to feed in data, particularly where they will be using the goods or services being
purchased. LCC and SROI may not transform procurement overnight, but they can be
refined over time so that they help to deliver your organisation’s sustainable procurement
objectives. A comparison might be made with approaches such as category management
or investment in professional training for procurement staff – they are not ‘quick fixes’ but
strategies which bear fruit over time, provided the support and expertise is available to
carry them out. The same view should be taken of sustainable procurement when costs
are being considered.

Need more advice on life cycle costing?

Procura+ participants can benefit from receiving direct advice from ICLEI, and
exchanging with others in the Network.

www.procuraplus.org

81
 CHAPTER V
KEY SECTORS FOR SUSTAINABLE
PROCUREMENT

This section presents an overview of sustainable procurement approaches to be considered,

together with links to guidance and sustainable procurement criteria available in Europe,
for six key product and service groups:

1. Construction 2. ICT (information and 3. Cleaning

communication technology)

4. Food and catering 5. Vehicles 6. Electricity

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
In addition to accounting for a large proportion of public sector spending, these product
and service groups are also responsible for a high proportion of the environmental, and in
some cases social, impacts of procurement. Individual organisations may wish to prioritise
certain product groups, or to implement sustainable procurement across all of them.
Examples are given of how public authorities have successfully applied sustainability
criteria in each of these sectors. The criteria listed are just some of the sets available – for
a full listing go to the Sustainable Procurement Platform184 and search for the product
or service you are buying.

Sustainable procurement criteria are designed to be inserted directly into tender

documents and are usually accompanied by notes or guidance on their application. To
be compliant with the EU procurement rules, they should avoid any brand names or
proprietary processes, be capable of an objective assessment and be accompanied by
information about how compliance or performance can be demonstrated (e.g. an ecolabel
or technical report from the supplier). Sustainable procurement criteria may relate to any
stage of the procurement process but technical specifications and award criteria are the
most commonly targeted areas. The role of these different stages of the procurement
process in delivering sustainable procurement is discussed in Chapter III of this Manual.

The criteria presented here can generally be used in any relevant procurement processes
– keep in mind that if you are using the open procedure then any selection criteria will
need to be assessed on a pass/fail basis. Choice of criteria for an individual call for
tender will depend upon your organisation's level of ambition, priority areas and existing
levels of sustainable procurement implementation as well as information about market
structure and capacity gathered at the pre-procurement stage. There is no 'one-size-
fits-all' approach, but some common and successful criteria for implementing sustainable
procurement are identified here.

184
www.sustainable-procurement.org

83
 1. Construction

Impacts
The construction sector in Europe accounts for about 10% of GDP and one in fifteen
jobs.185 It is also responsible for about a third of greenhouse gas emissions resulting from
human activity, and uses more than half of the raw materials extracted from the earth.186
Although new buildings have become more energy and water efficient, the operational
phase still accounts for the majority of life cycle environmental impacts associated
with buildings. Roads also require a large amount of materials and energy to maintain.
Waste, land use and impacts on transport add to the overall environmental footprint of
construction activity.

The human impact of construction is difficult to overstate. Upstream in the supply chain,
those employed in extracting construction materials are often subjected to unethical
working conditions. Mining and quarrying can be associated with the exploitation of
workers including children,187 and unsustainable timber harvesting impacts not only
on the natural environment but also the surrounding communities.188 Injuries and
even death are still common on Europe's construction sites, with exposure to hazardous
substances, noise and impacts on health and wellbeing for those who build and occupy
structures being of particular concern. Employment equality in the construction sector is
also a problem, with a large observed gender pay gap and issues regarding the treatment
of migrant workers in particular. Cost pressures in construction supply chains have
also seen deterioration in the availability and quality of training and apprenticeships.189
Accessibility for all users also remains an ideal rather than a reality.

The good news is that the public sector has a lot of power to influence practices in the
construction industry and obtain better environmental, social and economic outcomes. It
is also a key area for pursuing innovation, both in the design of works and the processes

185
European Construction Industry Federation (2013) Construction in Europe: Key Figures, Activity 2012
186
Eco-Innovation Observatory (2011) Resource-efficient construction – The role of eco-innovation for the
construction sector in Europe, Eco-Innovation Thematic report.
187
International Labour Organistion: Mining and Quarrying www.ilo.org/ipec/areas/Miningandquarrying/lang--en/index.htm
188
Sustainable Timber Action (STA) Project Toolkit: www.sustainable-timber-action.org/toolkit/
189
On these impacts see Martinuzzi, Kudlak, Faber and Wiman CSR Activities and Impacts of the Construction
Sector RIMAS Working Papers No. 1 of 2011.

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
used to finance, operate and maintain them. Given the high upfront costs associated
with construction procurement and the long-term impacts associated with each decision
taken, it makes sense to prioritise sustainable procurement and PPI in this sector.

Table 7: Sustainable procurement approach in construction tender calls

Procurement Stage190 Examples of sustainable procurement criteria

Exclusion • Exclusion for violation of laws or failure to pay tax or

social security

Selection • Environmental management systems for contractors

• Experience with sustainable design and construction,

use of lower-impact materials and methods, design
for all users and renewable energy systems (if
relevant)

• Professional qualifications related to the above

aspects

• Health and safety record

Technical specification • Minimum standards for energy and water efficiency of

final construction

• Use of lower-impact materials and methods

• Handling of hazardous substances, and energy and

water use on site

• Waste reduction and management

• Noise, transport and site management

Award criteria • Energy or water efficiency which is better than the

minimum specified

• Attainment of a third-party sustainability certification

(e.g. BREEAM, Passive House)

• Use of environmentally preferable materials (e.g. low-

VOC paints and finishes to improve indoor air quality)

• Life cycle costing, including monetised emissions

where possible

Contract performance • Fulfilment of all sustainability commitments from

specification and tender, reporting on actual
emissions, energy and water use performance

190
Note: Construction procurement can be a highly complex process and a variety of different procurement
and contractual models may be followed – a key question is the extent to which the design and construction
(and potentially also management of the completed facility) are integrated. The appropriate place within the
procurement process to address the suggestions included in the table will largely depend on the model followed.
For more information please see the SCI-Network Guide - Procuring innovative and sustainable construction

85
 • Training and employment conditions e.g. payment of a
living wage, creation of apprenticeships

• Ensuring compliance with health and safety, and labour

law on site

• Conformance with International Labour Organisation’s

fundamental conventions throughout the supply chain
for construction materials

Available criteria and guidance191

• EU GPP criteria and background reports for construction, and for thermal insulation,
hard floor coverings, wall panels, combined heat and power (CHP), indoor and outdoor
lighting, toilets and urinals, sanitary tapware and waste water infrastructure. (All EU
languages)

• SCI-Network guidance, case studies, tools, technology profiles and other resources
for the procurement of innovative and sustainable construction. (EN, DE, NL, IT, FI)

• Sustainable Timber Action (STA) guide for public authorities wishing to procure
sustainable timber products along with case studies, fact sheets, training material,
guidance for other stakeholders, and reports. (EN)

• LANDMARK legal guidance and good practice examples on verifying socially

responsible supply chains. (EN, CA, DE, ES)

• RESPIRO guide on socially responsible procurement of building construction works.

(EN, FR, DE)

• Austrian GPP criteria for buildings and civil engineering works. (DE)

• IHOBE - Basque Environment Agency criteria for buildings and construction. (ES,EU)

• Barcelona City Council Technical Instructions for the Application of Sustainability

Criteria in Public Works Projects. (EN, CA, ES)

• Belgian Guide to Sustainable Procurement including criteria for buildings and

energy. (FR, NL)

• Danish criteria for construction materials including district heating pipes, paint, cables
and wiring and sustainable timber. (DK)

• Dutch criteria for new build and renovation, demolition, earthworks, preparation
of building sites, remediation/soil decontamination, management and maintenance
services, etc. (NL, EN)

• German Environment Ministry criteria for new build and renovation projects,
building materials, insulation, wall and floor coverings, indoor and outdoor lighting
and heating installations. (DE)

• Swedish Environmental Management Council (SEMCo) criteria for buildings

and property including new build, renovation and conversion, road construction,
professional kitchens, timber and other building materials. (SE, EN)

• United Kingdom Government Buying Standards for new build and major refurbishment
projects, heating, cooling and lighting, paints and varnishes, rainwater harvesting,
sanitary fittings, windows and wood products. (EN)

191
For more criteria updates, go to www.sustainable-procurement.org

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V

Recycled asphalt for Hamburg's Sustainable congress and concert

roads, Germany centre in Tampere, Finland

The City of Hamburg saved 30% on The Tampere Hall Congress and
costs in a road resurfacing contract Concert Centre,194 which is owned
– while also significantly reducing by the Procura+ Participant Tampere,
environmental impacts. The City is the first in the Nordic countries to
specified the use of an innovative be awarded with the Nordic Ecolabel.
process to use 100% reclaimed asphalt In 2015, Tampere Hall also won the
pavement (RAP) for road surfaces, Sustainable Public Purchaser contest.
which lead to: Efforts are made to constantly
improve energy efficiency and waste
• lower energy input management. Menus are planned
• reduced need for bitumen according to the carbon footprint of
• lower CO₂ and other emissions food. Tampere Hall prefers fair trade
• improved health conditions for staff and organic products, as well as locally
• less nuisance for residents near sourced food. Environmental ozone
inner-city construction sites and water is used in the cleaning. Noxite
• less wear and tear on mixing plants air-purifying roof membranes are
used in the roof coverings. Tampere
The technique was fully tested prior Hall's premises are cooled with district
to tendering for quality and durability, cooling which uses water from nearby
and the five companies submitted Lake Näsijärvi.
bids. The positive results achieved by
Hamburg have led other German cities Read the Tampere Procura+ profile
to take an interest in the use of 100% here.195
RAP.

A full case study available here,192 one

of a collection of EU GPP Helpdesk
Examples.193

192
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue28_Case_Study60_Hamburg_recycled_asphalt.pdf
193
www.ec.europa.eu/environment/gpp/case_group_en.htm
194
www.tamperehall.com/ecological-footprint
195
www.procuraplus.org/public-authorities/tampere

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 2. ICT

Impacts
All public authorities use ICT equipment and most will procure it at some point. Whether
this is through a large centralised framework or a smaller value one-off purchase, lease or
service contract, it is important to consider the life cycle impact of the computers, screens,
imaging devices, servers, telephones and other ICT devices which we use every day. The
raw materials and energy which go into producing these items are a growing burden on
our earth's resources, while the energy they use during their lifetime and the way they are
upgraded, recycled or disposed of add to their environmental footprint. The presence of
certain hazardous substances in ICT equipment is of concern to many buyers.

The human impact of ICT equipment arises both during production, use and disposal. In
some cases conflict minerals or poor labour standards create supply chain risks which
sustainable procurement should address. There is also the question of ergonomics and
design for all users – with many organisations realising the benefits in terms of productivity
and employee health and wellbeing which well-designed ICT equipment can bring. The
default settings or instructions which accompany ICT equipment can also be important –
for example if printers have double-sided printing as the default this will save on paper.
The ability to upgrade ICT equipment instead of replacing it can save money at the same
time that it reduces waste, and the ability to recover and recycle components reduces
end-of-life impacts.

Where ICT requirements are outsourced, for example as part of a managed service contract,
it is important that minimum sustainable procurement requirements are identified at
the outset. The ability to progressively enhance these standards, for example as newer
energy-efficient equipment becomes available, should also be included in outsourced ICT
contracts. Contractual incentives such as sharing savings from reduced energy demand or
better life cycle management of ICT can help secure delivery.

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
Table 8: Sustainable procurement approach in ICT tender calls

Procurement Stage Examples of sustainable procurement criteria

Subject matter • Replacement of standard desktop computers with

laptops or thin client solutions (to lower energy
consumption)

Technical specification • Maximum energy consumption in use and standby

modes (e.g. EnergyStar criteria)

• Use of cloud computing/thin client solutions

• Maximum permissible levels of certain toxic or

hazardous substances

• Default settings which minimise energy consumption

• Default double-sided printing for imaging equipment

• Design for upgrade and disassembly (e.g. labelling of

all internal components)

Award criteria • Energy performance better than the specified

minimum levels

• Meeting the product-related criteria of ecolabels such

as TCO, Blue Angel or Nordic Swan

• Life cycle costs taking account of consumables and

monetised emissions

Contract performance • Compliance by main contractor and subcontractors

with ILO core labour conventions and international
environmental conventions

• Training in correct use of equipment and energy

management

• Replacement or upgrade of components

• Collection and recycling of used equipment at its end-

of-life

Available criteria and guidance196

• EU GPP criteria and background report for Office IT Equipment and Imaging Equipment.
(All EU languages)

• Sustainable United Nations background report, guidelines and criteria for computers
and monitors and imaging equipment. (EN)

• Topten procurement guidelines and sample tender documents for computer monitors,
inkjet and laser printers and multifunctional devices. (EN)

89
 • LANDMARK legal guidance and good practice examples on verifying socially
responsible supply chains. (EN, CA, DE, ES)

• Austrian GPP criteria for computers and imaging equipment. (DE)

• IHOBE - Basque Environment Agency criteria for ICT equipment. (ES,EU)

• Barcelona City Council Technical Instructions for the Application of Sustainability

Criteria to Computer Equipment. (EN, CA, ES)

• Belgian Guide to Sustainable Procurement including criteria for keyboards, displays,

projectors, desktops, laptops, printer cartridges, network services etc. (FR, NL)

• Dutch criteria for audiovisual equipment, hardware, networks/infrastructure, telephone

services & equipment, printing services, reproduction equipment and printer cartridges.
(NL, EN)

• German Environment Ministry criteria for desktops, portable computers, thin clients,
displays, printers, multifunctional devices, projectors, teleconferencing, whiteboards,
data storage, etc. (DE)

• Swedish Environmental Management Council (SEMCo) criteria for audiovisual

products, computers, displays and telephony products. (SE, EN)

• United Kingdom Government Buying Standards for computers, displays, printers,

multifunctional devices, scanners and workstations. (EN)

German Federal Procurement Joint procurement of energy

Agency (Beschaffungsamt) efficient ICT in Estonia

As part of the GPP 2020 project, in A joint framework agreement of PCs

2013 the Procurement Agency of the and computer monitors involving
Ministry of the Interior ran a call for nine Estonian entities was carried out
tender for energy efficient thin client by the Estonian Centre of Registers
computer systems. The framework and Information Systems (RIK) in
contract covers the purchase of some March 2012. The tender requirements
50,000 thin clients and is expected included numerous sustainability
to result in energy savings of 5,000 demands, such as Energy Star 5.0 and
tonnes of oil equivalent and CO₂ TCO’5.0, and a portion of the award
savings of over 29,500 tonnes. criteria were given to lower energy
consumption in operating mode.
The full case study is available here197
as part of the GPP2020 low carbon PCs bought under this contract are
tender models collection.198 estimated to generate energy savings
of 20-30% compared to non-green
product alternatives. RIK found that
the market was able to meet the
sustainability requirements. The
technical market dialogue in the pre-
procurement phase proved to be a
useful approach.

Download the full case study here,199

one of a collection of EU GPP Helpdesk
Examples. 200

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V

3. Cleaning

Impacts
Cleaning products and services are consumed by almost all public authorities, whether
cleaning is provided in-house or contracted out. The main environmental impacts
associated with cleaning are the production and use of chemicals, packaging and
consumables (e.g. paper products), and the way in which waste and recycling are handled.
Energy and water consumption, and in some cases the use of transport and fossil fuels,
can also be important – and addressing these considerations will help to reduce costs.
Staff training can improve the efficiency and ecological performance of cleaning services,
and should form part of an environmental management system in this area. Use of
concentrated products can help to reduce packaging and the associated transport –
however staff training on appropriate dilution is essential.

Cleaning services are typically low-paid and can also involve the exposure of workers to
high levels of substances which have adverse health impacts. The effect of anti-social
working hours on family life and the safety of workers who may be working late and
in isolated settings are of concern in some cases. Jobs in cleaning or maintenance are
sometimes seen as a way of integrating disadvantaged workers into the economy, and
certain contracts or tasks may be identified as suitable for this. An important aspect
of cleaning contracts can be managing the expectations of users and ensuring good
communication to avoid unnecessary cleaning tasks.

196
For more criteria updates, go to www.sustainable-procurement.org
197
www.gpp2020.eu/fileadmin/files/Tender_Models/GPP_2020_BeschA_Tender_Model_Thin_Clients.pdf
198
www.gpp2020.eu/low-carbon-tenders
199
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue37_Case_Study79_Estonia.pdf
200
www.ec.europa.eu/environment/gpp/case_group_en.htm

91
 Table 9: Sustainable procurement approach in cleaning tender call

Procurement Stage Examples of sustainable procurement criteria

Exclusion • Exclusion for violation of laws or failure to pay tax or

social security.

Selection • Reservation of contracts for enterprises employing

disadvantaged workers.

• Operation of an environmental management system

for cleaning services, including e.g. chemical storage
and dilution.

• Previous experience in managing environmental

and social aspects of cleaning contracts.

Technical specification • Use of products which are free from harmful

solvents or substances.

• Requirement to use recycled and/or reusable

packaging wherever possible and provide dosing
instructions.

• Dilution on site to minimise transport and packaging

requirements.

Award criteria • Use of cleaning techniques which reduce water and

energy consumption.

• Reduction in packaging and disposable cleaning aids.

• Proposals for managing waste and recycling.

• Use of products which meet product-related

ecolabel criteria (e.g. EU Ecolabel).

Contract performance • Training in eco-friendly cleaning techniques.

• Monitoring of chemical use and dosage.

• Meeting targets for reduction of waste or increase in

recycling rates.

• Payment of living wages and rostering which

respects family life.

• Handover of data to enable transfer of undertakings

(if relevant).

Available criteria and guidance201

• EU GPP criteria and background report for Cleaning Products and Services. (All EU
languages)

201
For more criteria updates, go to www.sustainable-procurement.org
202
www.ec.europa.eu\environment\gpp\pdf\news_alert\Issue51_Case_Study107_Porto_waste_management.pdf
203
www.procuraplus.org/public-authorities/lipor
204
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue39_Case_Study82_Luxembourg_cleaning_products.pdf
205
www.ec.europa.eu/environment/gpp/case_group_en.htm

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
• Sustainable United Nations background report, guidelines and criteria for cleaning
products and cleaning services. (EN)

• Austrian GPP criteria for cleaning products and services. (DE)

• Barcelona City Council Technical Instructions for the Application of Sustainability

Criteria to Cleaning and Waste Collection in Buildings. (EN, CA, ES)

• IHOBE – Basque Environment Agency criteria for cleaning products and services.
(ES,EU)

• Belgian Guide to Sustainable Procurement including criteria for cleaning and hygiene
products and services, hand dryers, dry cleaning, sanitary paper etc. (FR, NL)

• Dutch criteria for cleaning services and public spaces cleaning services. (NL, EN)

• German Environment Ministry criteria for cleaning products and services, pest
control, hand dryers and sanitary paper. (DE)

• Swedish Environmental Management Council (SEMCo) criteria for cleaning services,

chemical and technical products, laundry and textile services. (SE, EN)

• United Kingdom Government Buying Standards for cleaning services, all-purpose

cleaners, window cleaners, sanitary cleaners, laundry and dishwashing detergents. (EN)

Sustainable cleaning services in Green Cleaning in Luxembourg

Porto, Portugal

Procura+ Participant LIPOR’s In 2013, the City of Luxembourg carried

procurement of sustainable cleaning out an open tender for the provision of
services aimed to optimise costs cleaning products & services for three
and increase efficiency of the of the City’s theatres. Green criteria
previous service. Environmental were taken into consideration at an
requirements were applied during early stage, with the Environmental
the selection phase, including Protection Office assisting in
declaration of experience, evidence the preparation of the technical
of employee training and certification specifications. The winning company
of environmental standards. Green was required to supply samples of any
technical specifications included new product prior to using it. In order
exclusion of substances listed in to ensure that the products continued
REACH Regulation, maximum limits to meet the established criteria, the
on phosphorus in products and City reserved the right to randomly
other specifications regarding how test any of the cleaning products at
products are packaged and used in the any stage of the contract, with the
execution of the service. company being obliged to provide an
alternative product or be subject to a
The final result was a two year contract fine.
with the lowest priced service provider
who met all of LIPOR’s environmental Download the full case study here, 204
and social demands. The experience is one of a collection of EU GPP Helpdesk
one which LIPOR aims to replicate for Examples. 205
future contracts.

Download the full case study here202

and read the LIPOR Procura+ profile
here. 203

93
 4. Food and catering services

Impacts
After energy and transport, food is the sector with the biggest impact on our climate –
responsible for over 10% of greenhouse gas emissions in Europe. 206 This only accounts for
the direct emissions associated with agriculture and food processing, to which those from
transport, storage and food waste should be added. Roughly one third of food produced
for human consumption is lost or wasted globally, which amounts to about 1.3 billion
tonnes per year. 207 Food waste alone is responsible for roughly the same amount of CO₂
equivalent emissions across Europe as those emitted by an entire country such as Romania
or the Netherlands each year. 208 Some food categories – such as meat and certain dairy
products – have a particularly high climate impact and reducing consumption in these
categories by substituting less carbon-intensive foods may be considered.

Indirect impacts from food production include deforestation, pollution of soil and water,
land use change and impacts on wildlife – whether our food is produced in Europe or
abroad. At the consumer level, in addition to the problem of food waste there is the
packaging and energy needed to keep food fresh and safe. Overall, from farm to fork (and,
sadly, to bin) food is costly for the earth. However responsible agricultural practices can
also have a positive impact on the environment. The use of organic or other sustainable
farming and fishing practices can contribute to biodiversity and the long-term availability
of natural resources to support food production.

On the social side, many public sector organisations are committed to paying a fair price
for their food and ensuring that labour standards are acceptable. This includes both the
purchase of fair trade products and improving working conditions for those who work
in cultivation, food processing or catering. Some sustainable procurement policies may
also seek to address the health and quality aspects of food, for example by ensuring
nutritional standards are met and respecting dietary restrictions, whether for health,

94
 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
religious or ethical reasons. Food safety, quality and traceability may also be seen as part
of sustainable procurement in this area.

Table 10: Sustainable procurement approach in food and catering tender calls

Procurement Stage Examples of sustainable procurement criteria

Exclusion • Exclusion for violation of laws or failure to pay tax or

social security.

Selection • Operation of an environmental management system

for catering services, including e.g. energy and waste
management.

• Previous experience in managing environmental and

social aspects of food production or service contracts.

• Reservation of contracts for enterprises employing

disadvantaged workers or sheltered companies.

• Food safety record and procedures (e.g. HACCP).

Technical specification • Provision of food and beverages from organic

agriculture.

• Use of packaging from recycled or renewable sources

which can be reused or recycled after use.

• Use of cleaning products and equipment (e.g.

dishwashers) which meet specified environmental
standards.

• Availability of tap water, half portions and vegetarian

options.

Award criteria • Provision of menus which are healthy, varied and use
sustainable food e.g. seasonal fruit and vegetables.

• Higher percentage of food from organic agriculture than

specification.

• Use of tea, coffee, sugar or other products which meet

fair trade criteria.

• Approach to reducing food and packaging waste.

Contract performance • Training of staff to support sustainable practices.

• Meeting targets for reduction in waste or increase in

recycling rates.

• Payment of living wages and rostering which respects

family life.

• Handover of data to enable transfer of undertakings (if

relevant).

206
European Environment Agency (2014) Greenhouse gas emissions share by sector in EU28, 2012
207
Joint study by the Swedish Institute for Food & Biotechnology and FAO ,2011
208
European Commission (2010) Preparatory study on food waste across the EU27, at page 16.

95
 Available criteria and guidance209
• EU GPP criteria and background report for Food and Catering Services. (All EU languages)
• Sustainable United Nations background report, guidelines and criteria for cafeterias,
food and kitchen equipment. (EN)
• INNOCAT Publication Sustainable Public Procurement of School Catering Services -
A good practice report. (EN)
• Fair Trade Advocacy Office including news, latest updates and guidelines.
• Austrian GPP criteria for food (direct purchase and service contracts). (DE)
• IHOBE - Basque Environment Agency criteria for catering services and vending
machines. (ES,EU)
• Barcelona City Council Technical Instructions for the Application of Sustainability
Criteria to Food Services. (EN, CA, ES)
• Belgian Guide to Sustainable Procurement including criteria for food and catering
services, catering equipment and disposables, water coolers and beverage vending
machines. (FR, NL)
• Dutch criteria for catering, catering equipment and beverage vending machines. (NL, EN)
• Swedish Environmental Management Council (SEMCo) criteria for food and catering
services. (SE, EN)
• United Kingdom Government Buying Standards for food and catering services. (EN)

Organic Food in French School Meals Sustainable school catering in Rome

The City of Lens specified that 20% of The Municipality of Rome has been
the food supplied to its ten schools gradually improving the sustainability
had to be organic, and that one fully and innovation aspects of its school
organic meal was to be served each catering services since 2001. One call
week. Variant offers of higher than for tender achieved impressive results
20% content were also invited. Tenders with 69% of all food served in schools
were evaluated on: being organic. Providing nutritional
meals that are low in meat content
• variation of menus and variety of and are served on earthenware and
dishes depending on the age of the other reusable materials (instead of
diners and their expectations; plastic) has significantly contributed
• nutritional balance of menus; to lowering the environmental impact
• quality of action plan for dealing with of the school meal service – which
issues of food security and crisis delivers 144,000 meals daily through
management; 550 school centres.
• production method of all food items
included in meals; and Cutting out plastic alone has achieved
• quality of policy on the traceability of savings of approximately 1,800 tonnes
all food products and verification of of waste over an annual school year. In
accuracy. addition, municipal dieticians carry out
quality checks of the food on a daily
The outcome was less than 8% cost basis to ensure that the terms of the
increase over non-organic food and contract are continuously respected.
also provided very good quality meals. Download the full case study here. 212

209
For more criteria updates, go to www.sustainable-procurement.org
210
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue41_Case_Study87_Lens_catering.pdf
211
www.ec.europa.eu/environment/gpp/case_group_en.htm
212
www.ec.europa.eu\environment\gpp\pdf\news_alert\Issue14_Case_Study34_Rome_food.pdf

96
 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V

Full case study available here, 210 one

of a collection of EU GPP Helpdesk
Examples. 211

97
 5. Vehicles

Impacts
Vehicles are purchased or used by many public authorities, and will play a role in the delivery
of other contracts such as for construction, landscaping, waste management, social care,
facilities management and highways maintenance. Specialised vehicles such as buses and
waste collection trucks are examples of market sectors where public demand may be
particularly influential in moving towards lower emissions and greater fuel efficiency. Under
the Clean Vehicles Directive contracting authorities are obliged to take energy efficiency and
tailpipe emissions of CO₂, NOx, PM and NMHC into account as a minimum. A comprehensive
sustainable procurement approach will also take account of other factors, including full
‘well-to-wheel’ analysis of fuel-related emissions including production, distribution and
consumption, as well as the raw materials used to construct vehicles, their life-time mileage,
maintenance needs and end-of-life disposal characteristics.

The gains associated with sustainable procurement in this sector are financial as well
as environmental. Savings on fuel and, in many cases, vehicle tax, can be substantial
when cleaner and more efficient vehicles are chosen. Further savings can be realised
by rationalising fleet requirements and making the most of eco-driving and innovative
technologies such as telematics and satellite navigation to reduce wear and tear and
unnecessary mileage. On the innovative end of the market, electric, hybrid, biogas,
hydrogen and other alternative fuel technologies are making inroads within public fleets.
The human and economic benefits in terms of better air quality and, where existing
patterns of vehicle use are challenged, reduced traffic congestion, are considerable. In
addition to the public authority’s own fleet, procurers can exercise further influence on
sustainable urban transportation patterns by also setting demands relating to the use
of low emission vehicles in the delivery of goods and services procured by the authority.
An increasing number of public authorities have, for example, established urban freight
consolidation centres to reduce traffic related to goods deliveries. To optimise impact,

98
 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
vehicle procurement should be undertaken as part of a broader integrated mobility
strategy where possible.

Table 11: Sustainable procurement approach in vehicle tender calls

Procurement Stage Examples of sustainable procurement criteria

Exclusion • Exclusion for violation of laws or failure to pay tax or

social security.

Technical specification • Maximum levels of CO₂ and other emissions (e.g. Euro
6/VI standards) and noise.

• Minimum levels of fuel/energy efficiency.

• Gear shift indicators, fuel consumption and tyre
pressure monitors.

• Design requirements for end-of-life disassembly and

recycling.

• Possibility to propose electric, hybrid or alternative

fuelled vehicles.

Award criteria • Use of lower-impact materials for vehicle construction.

• Life cycle costing including monetised emissions and

fuel costs.

• Maintenance programmes which reduce environmental

impact.

• Bi-fuel or flexi-fuel capacity.

Contract performance • On-road tests to confirm real emissions and fuel

performance.

• Extension of warranty to reflect successful eco-driving

programmes.

Available criteria and guidance213

• EU GPP criteria and background report for cars and light-duty passenger vehicles, buses
and waste collection trucks. (All EU languages)

• Clean Fleets reports, case studies and procurement advice on clean and energy-efficient
vehicles. (EN)

• Sustainable United Nations background report and criteria for vehicles. (EN)
• Topten procurement guidelines and sample tender documents for highly efficient cars
and vans. (EN)

• Austrian GPP criteria for vehicles. (DE)

• IHOBE – Basque Environment Agency criteria for vehicles. (ES,EU)
• City of Barcelona Technical Instructions for the application of sustainability criteria to
vehicles. (EN, CA, ES)

213
For more criteria updates, go to www.sustainable-procurement.org

99
 • Belgian Guide to Sustainable Procurement including criteria for vehicles. (FR, NL)

• Dutch criteria for service cars, school transport, special purpose passenger transport,
vehicle maintenance services, moving services and heavy-duty motor vehicles. (NL, EN)

• German Environment Ministry criteria for passenger and specialised vehicles,

including busses. (DE)

• Swedish Environmental Management Council (SEMCo) criteria for vehicles. (SE, EN)

• United Kingdom Government Buying Standards for cars, vans, buses and bus services,
waste collection trucks and services. (EN)

Enhanced Environmentally Friendly Joint procurement of EVs & PHEVs in

Buses in Baia Mare, Romania Sweden

The City of Baia Mare in Romania Stockholm City Council approved an

awarded a five year contract to lease Electric Vehicles Strategy, aiming to
30 new, enhanced, environmentally become one of the world’s leading
friendly (EEV) solo standard buses and clean vehicle cities by 2030. A joint
eight trolleybuses. Following market procurement for the purchase of
consultation, it was recognised as electric (EV) and plug-in hybrid electric
being realistic to require new buses (PHEV) light duty vehicles was initiated
to be equipped with EEV engines, the by the city of Stockholm and the state-
least polluting engine available on the owned utility company Vattenfall to
Romanian market in 2012. demonstrate Sweden’s purchasing
potential to manufacturers and give
A combination of technical market a necessary boost. A buyers
specifications and award criteria group of almost 300 public and private
were used to take fuel efficiency and organisations was established.
emissions into account:
The joint procurement exercise
1. Technical specifications – Minimum provided the added benefit of
standard: EEV for diesel buses. reducing overall administrative costs
2. Award criteria – points awarded for for participating organisations and
lower fuel consumption, based on ensuring that smaller municipalities
the SORT test cycle. with less resources would have access
3. Costs – life cycle costing model to such vehicles, as bidders may not
used, including acquisition price, fuel otherwise be interested in such small
consumption and maintenance. calls for tender. By May 2013, 300
vehicles had been bought from under
Accessibility for disabled users was this framework contract.
also guaranteed through low floors,
a platform and a suspension system Read the full case study here, 216
permitting the vehicles to bend at amongst the other Clean Fleets
kerbs. project Examples. 217

Full case study available here, 214

along with other Clean Fleets project
Examples. 215

214
www.clean-fleets.eu/fileadmin/files/documents/EEV_buses_in_Romania_-FINAL.pdf
215
www.clean-fleets.eu/case-studies
216
www.clean-fleets.eu/fileadmin/files/CF_case_study_sweden_04.pdf
217
www.clean-fleets.eu/case-studies

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V

6. Electricity

Impacts
The generation of electricity is responsible for more greenhouse gas emissions than any
other single activity. Public authorities are significant energy purchasers through the
operation of hospitals, schools, offices, street lighting etc. Due to this market share, a shift
in public demand towards electricity from renewable or lower-emission sources can send
a signal to the market that investing in these technologies is a good long-term prospect.
This shift also helps to promote energy security and reduce dependence on volatile and
high prices of energy generated from fossil fuels.

Whilst demanding electricity to be generated from renewable sources (and requiring

Guarantee of Origin (GO) certificates to prove it) is a positive market signal, there is
currently substantially more demand for renewable electricity than supply. Many of the
GO certificates available come from existing generating capacity – often decades-old large
hydropower schemes. Promoting “additionality” (i.e. the construction of new renewable
electricity generating capacity) is advisable where possible. Approaches being explored
include limiting the age of the power plants supplying electricity, requiring the company
to invest a certain proportion of its profits in new generating capacity, or demonstrating
that the contract leads to a certain provable reduction in CO₂ emissions over its duration.
However the extent to which these models are applicable under the 2014 Directives is still
being explored.

Investment in energy efficiency measures and, where possible, in efficient local energy
generation is equally important to reduce impacts. Many public sector organisations also
benefit from reduced energy bills due to the development of renewable or high-efficiency
generation on site, for example from biomass boilers, combined heat and power units,
solar panels or other installations. In other cases an external energy services company
(ESCO) may be engaged in the form of an energy performance contract for a building or

101
 group of buildings. Under this model, the ESCO pays for and manages upgrades and is
reimbursed through the savings realised on energy costs over a number of years.

Table 12: Sustainable procurement approach in electricity tender calls

Procurement Stage Examples of sustainable procurement criteria

Exclusion • Exclusion for violation of laws or failure to pay tax or

social security.

Selection • Previous experience and technical capacity to deliver

electricity from renewable sources (where appropriate
and to the levels required).

Technical specification • Provision of a minimum percentage of electricity from

renewable sources.

• Minimum efficiency levels for energy installations such

as combined heat and power or cogeneration.

• Ability to feed locally generated electricity (e.g. from

solar panels) into grid (where appropriate).

• Provision of additional energy audit/advice services.

Award criteria • Provision of a higher percentage of electricity from

renewable sources.

• Efficiency levels for energy installations which exceed

the minimum specified.

• Discount or credits for energy fed into grid from

local installations. Consider the promotion of new
generating capacity. 218

Contract performance • Verification of proportion of electricity from renewable

or low-emission sources using Guarantee of Origin
certificates.

• Reporting on energy consumption and advice on

energy efficiency measures.

218
See section on “additionality” above

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 KEY SECTORS FOR SUSTAINABLE PROCUREMENT V
Available criteria and guidance219
• EU GPP background report and criteria for electricity and combined heat and power. (All
EU languages)

• Austrian GPP criteria for electricity. (DE)

• Barcelona City Council Technical Instructions for the Application of Sustainability

Criteria to Electricity Supplies. (EN, CA, ES)

• Belgian Guide to Sustainable Procurement including criteria for electricity, heat

pumps, wood pellets, solar panels etc. (FR, NL)

• Dutch criteria for electricity. (NL, EN)

• German Environment Ministry criteria for electricity. (DE)

• Swedish Environmental Management Council (SEMCo) criteria for electricity and

lighting. (SE, EN)

A Framework for Energy Efficiency Buying 100% renewable electricity

in Italy in Turku, Finland

Consip acts as a central purchasing Procura+ Participant Turku, Finland

body for the Italian public sector. wished to specify electricity of 100%
Consip’s first National Framework renewable origin for their most recent
Contract for Public Lighting services call for tender. External consultants
is used by around 150 Italian public were used to carry out a market
authorities and has lead to €30 million consultation. Expert advice on
in reduced costs thanks to energy methods to verify energy company
savings of 20% – 10,600,000 kWh/ claims about green electricity was
year, equating to over 5,000 tonnes of also sought as it was the first time
CO₂. It covers both energy supply and the City had set these requirements.
integrated services for road lighting, The supply contract successfully
using the Energy Performance Contract began in 2013 and guarantee of
(EPC) model. origin certificates are used to monitor
compliance.
Consip’s approach to energy efficiency
was discussed in more detail as part Download the full case study here, 222
of a GPP2020 project 220 webinar – the one of a collection of EU GPP Helpdesk
presentation can be found here. 221 Examples. 223

Need more advice on any of these sectors?

Procura+ participants can benefit from receiving direct advice from ICLEI, and
exchanging with others in the Network.

www.procuraplus.org

219
For more criteria updates, go to www.sustainable-procurement.org
220
www.gpp2020.eu
221
www.gpp2020.eu/fileadmin/files/Webinars/Consip_s_Approach_to_Energy_Efficiency_FINAL.pdf
222
www.ec.europa.eu/environment/gpp/pdf/news_alert/Issue34_Case_Study72_Turku_renewable_energy.pdf
223
www.ec.europa.eu/environment/gpp/case_group_en.htm

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 PROCURA+ EUROPEAN SUSTAINABLE
PROCUREMENT NETWORK

What is the Procura+ European Sustainable Procurement

Network?

We are a network of more than 40 European public authorities that connect, exchange and act
on sustainable and innovation procurement. Our combined knowledge and experience allows
us to provide advice, support and publicity to any public authority that wants to implement
sustainable and innovation procurement. The Procura+ Network joins forces to champion
sustainable and innovation procurement at the European level. Joining the Procura+ Network
is a great way to learn from the experiences of others, replicating successful strategies and
avoiding common pitfalls. Membership of the Network gives each participant a stronger
individual voice while promoting sustainable procurement on the European stage.

Pekka Sauri, Deputy Mayor of Helsinki, Chair of Procura+ Network

The Procura+ Network is managed by ICLEI’s Sustainable Economy and Procurement Team
and consists of a network of national partners and participant cities, as well as towns,
regions and networks with an interest in sustainable procurement. These organisations
collaborate during meetings, seminars, webinars, via e-mail and via a dedicated discussion
forum. In addition, many participate in related sustainable procurement projects and
initiatives.

Why join the Procura+ Network?

Work together
Collectively develop policy and criteria on specific areas related to sustainable procurement
in thematic Interest Groups.

Get together
Share experiences at the annual Procura+ Seminar and through regular webinars.

Build relationships
Create strong links with other procurement professionals through the Procura+ Twinning
programme.

Receive expert advice

Access the Procura+ Helpdesk for individual advice and support with policies, strategies,
ongoing and upcoming tenders.

Win awards
The Procura+ Awards showcase the sustainable and innovation procurement achievements
of participants on the international stage.

104
Share achievements
Share plans and publicise successes with an individual participant webpage and regular
newsletters.

Keep up-to-date
Get the latest criteria and policy developments, as well as opportunities to engage in
dialogue, at European policy level.

Furthermore, Procura+ Participants receive the following benefits:

Discounts for international events and Procurement Services

Attend free of charge (or at a reduced rate) seminars, workshops and conferences where
new trends and experiences on sustainable procurement are presented. Participants
can attend study tours and may be offered travel grants to attend events. Furthermore,
receive a 25% discount on ICLEI’s Procurement Services. 224

Priority for project participation and speaking at events

Receive priority in joining project consortia and proposals developed by ICLEI's
Sustainable Economy and Procurement team and speaking at ICLEI events
such as the EcoProcura conference series. 225

Representation and advocacy

Gain internal and external support for sustainable
procurement. The network is also aimed at raising political
awareness at all levels, and the results generated by
Procura+ are used to lobby for further support for the
concept of sustainable and innovation procurement at the
national and international level.

ICLEI has been involved in the topic of sustainable

procurement since 1996 and has a strong voice on the
European and international stage. ICLEI has been supporting
the work of the European Commission regarding sustainable
and innovation procurement. ICLEI is a member of the European
Commission’s Green Public Procurement Advisory Group, 226 is co-
founder and Vice-Chair of the International Green Purchasing Network
(IGPN) 227 and co-leading a global collaborative framework that aims at fostering
worldwide adoption of sustainable procurement – the 10 Year Framework Programme
on SPP. 228

From the early Procura+ pioneers – Kolding, Denmark;229 Zurich, Switzerland;230 and
Barcelona City Council, Spain;231 to those that have more recently achieved international
recognition such as Helsinki, Finland232 and Ghent, Belgium233 – public procurement which
incorporates sustainability and innovation can achieve real value for the public purse.

224
www.sustainable-procurement.org/support
225
www.ecoprocura.eu
226
www.ec.europa.eu/environment/gpp/expert_meeting_en.htm
227
www.igpn.org
228
www.bit.ly/10YFPonSPP
229
www.kolding.dk
230
www.stadt-zuerich.ch/gud/de/index/umwelt/umweltpolitik/oekologische_beschaffung.html
231
www.ajsosteniblebcn.cat/ca
232
www.hel.fi
233
www.gent.be

105
More specifically, participants have found that participating in the Procura+ Network can
support them in:

• addressing greenhouse gas emissions, the use of hazardous substances, raw material
usage, and management of natural resources;
• encouraging a diverse base of suppliers, promoting fair employment practices and
ethical sourcing, and fostering training opportunities and community benefits; and
• creating new jobs, new markets and opportunities for small and medium sized
enterprises.

What do procurers say?

“It is not just the expert help that is useful, it is the chance to engage with other
procurers that makes the network strong.” Perttu Pohjonen, Helsinki

“It is good to bring together ideas with other countries and municipalities. For
example, our procurement of electric vehicles was made possible through advice
from other Procura+ participants.” Tania Secchi, Comune di Cremona

“Procura+ provides us with valuable links at European level for assistance on

sustainable procurement criteria and policy.” Laurence Cesbron, RGO

“The annual meetings are very valuable. Face to face contact with fellow
procurement practitioners is great for exchanging knowledge and experience.”
 Beat von Felten, Stadt Zürich

How to join Procura+

Any public or semi-public authority or agency, of any size and any level of experience,
can join the Procura+ Network. Regional networks of public organisations working on
sustainable procurement can also join collectively.

The application form is available for download at: www.procuraplus.org

Further information

For more information visit the website at www.procuraplus.org, or contact the Sustainable
Economy and Procurement team by e-mail at: [email protected].
"The practical steps included in the manual, with the focus on the
2014 Procurement Directives, are a great reference point for making
sure I am approaching SPP the right way in my day-to-day work."
– David Morgan (Cornwall County Council)

"I would recommend this manual as starting point for any

organisation, both public and private, that wants to be more
sustainable and innovative in their procurement approaches."
– Katja Kardikova (City of Oslo)

"Even though our administration has been doing sustainable

procurement for many years, I found information and ideas in the
manual that help us to improve and evolve." 
– Patrizia Giancotti (Metropolitan City of Rome)

The Procura+ Manual provides clear, easy-to-understand guidance

for any European public authority on how to implement sustainable
procurement. It includes:
• practical advice on how to integrate sustainability into procurement;

• a model for systematically implementing sustainable procurement – the

Procura+ Management Cycle;
• an exploration of the possibilities for sustainable and innovation
procurement set out within the 2014 Directives, including how they can be
applied in practice;
• key guidance on sustainable procurement approaches for six high-priority
product groups – construction, IT equipment, cleaning products, food,
vehicles and electricity; and
• links and references throughout the text to good practice examples from
around Europe, more detailed information on the product groups covered
and a variety of further implementation tools.

www.procuraplus.org
[email protected]