GPP Training toolkit 4. Needs Assessment

1. GPP Training toolkit4. Needs Assessment

2. Module 4: Needs Assessment GPP Training Toolkit Module 2: Strategic Aspects of GPP Module 1: Introduction Module 5: Circular Procurement Module 6: Market Engagement Module 7: Operational (Key sectors for GPP) Module 3: Legal Aspects of GPP Module 4: Needs Assessment

3. Content of Module 4 • What is needs assessment? • User consultation • Why we are buying – needs statement • What we are buying • Who we are buying for • How much we are buying • How we are buying – flexible contracts • Further resources Module 4: Needs Assessment

4. What is needs assessment? • GPP is not just about buying environmentally preferable goods/services – it is about reducing the overall impact of government procurement • One of the most obvious ways to do this is by reducing demand for goods, services and works • Needs assessment is about: • Avoiding unnecessary purchases • Ensuring what is purchased meets requirements • Designing procurement and contracts to allow flexibility over time Module 4: Needs Assessment

5. User consultation • The users of a procurement may be internal to the buying organisation or external (e.g. citizens) • In order to ensure purchases are appropriate to their needs, users must be consulted • This should take place prior to the start of the procurement, and may continue during the tender process/contract execution stage Module 4: Needs Assessment

6. Why we are buying: needs statement • Prior to launching a tender, the reason for the purchase must be clear (not just “because we bought it last year”) • It should be possible to summarise the need in a simple statement which confirms if alternatives to purchasing have been taken into account, e.g. resource sharing, repairs/upgrades, leasing • This statement may also be useful for the procurement business case • It should be open to challenge on environmental grounds Module 4: Needs Assessment

7. What we are buying: the subject-matter • Needs assessment and user consultation help to define the subject-matter of the contract • This tells the market what you are buying and will include: • Whether the contract is for supplies, services or works • The title and short description of the contract • The relevant CPV codes(for an OJEU tender) • The subject-matter is important because it determines the scope of GPP criteria you apply Module 4: Needs Assessment

8. What we are buying: the specification • Needs assessment helps to choose the most appropriate specification – whether based on functional requirements or on standards • Avoids the ‘copy and paste’ approach • Like the needs statement, specifications should be open to challenge on environmental grounds, as well as to ensure that they are not overly restrictive, allow SMEs to compete, etc. Module 4: Needs Assessment

9. Performance/Output-based specifications • Performance, or output-based specifications describe the need you wish your procurement to fulfil, rather than prescribing exactly how you want this done • Allows suppliers to determine the most effective and efficient way to meet this need – and propose innovative solutions with environmental benefits • Example: define office lighting requirements in terms of lumens required in different rooms at different times, not in terms of the number of lighting fixtures or wattage required Module 4: Needs Assessment

10. Who we are buying for: joint procurement • Joint procurement can save resources create a stronger demand for green goods + services • As part of the needs assessment, consider whether any of the following applies: • Can you buy from an existing framework or contract? • Can you set up a framework or contract that will be used by others? • Can you conduct a joint procurementwith one or more other authorities? Module 4: Needs Assessment

11. How much we are buying • OJEU tenders require you to estimate the total quantity or scope in advance • This does not form a contractual commitment to buy that volume • Needs assessment can help to estimate a realistic quantity or range without going beyond it • This applies to services and works as much as supplies Module 4: Needs Assessment

12. How we are buying: flexible contracts • Contracts and frameworks normally last for several years and needs can change over this time • Contract terms should be sufficiently flexible to allow adjustments to volume, frequency etc. • They may also include a ‘best available technology’ or ‘continuous improvement’ clause to drive environmental innovation • Framework agreementsare particularly good for allowing flexibility in purchasing Module 4: Needs Assessment

13. Further guidance Innovation Procurement Guidance (2018) Procura+ Manual (3rd edition, 2016) Buying Green (3rd edition, 2016) Circular Procurement Guidance(2017) Good Practice Examples GPP Helpdesk For further support on GPP, contact the EU’s free Helpdesk Toolkit developed for the European Commission by ICLEI - Local Governments for Sustainability Module Author: Public Procurement Analysis Owner, Editor: European Commission, DG Environment, 2019 Photos: courtesy of Pixabay.com under Creative Commons CCO Disclaimer: This toolkit is an indicative document of the Commission services and cannot be considered binding to this institution in any way. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of theinformation in this document. Module 4: Needs Assessment