Innovation, public procurement, public procurement for innovatoin, PPI, ProcuraMed, Interreg euro MED
PROMINENT MED project – Portuguese pilot
PROMINENT MED project (Interreg euro MED programme) is a notable example of Public Procurement for Innovation (PPI) in Portugal, showcasing how a competitive dialogue process can be used to address complex energy efficiency challenges in historic buildings.
Challenges addressed
The renovation sought to improve air quality, increase the use of renewable energy and enhance overall system efficiency. However, due to the building’s architectural characteristics and regulatory constraints, traditional energy solutions were not viable. This complexity led to the selection of a competitive dialogue procedure, allowing companies to propose innovative solutions tailored to the unique needs of the project.
The major difficulties were related to the fact that in Portugal and as part of the current National Reform Program, the promotion of a Public Procurement Program for Innovation is very recent. This fact made it harder to find national experts on PPI and to deliver the Market Consultation. The procedure took longer when compared with common procedures. The constraints were overcome due to a significant communication campaign.
Main objectives
The project aimed to renovate historical buildings, one of them in Mértola Town Hall building, which houses a Roman Museum.
External resources
Facts
Project type Studying and Testing
Partners The project was developed in Portugal by IrRADIARE and CIMBAL, project partners.
Dates 2020
Funding The project total budget was 2.697.049€, divided among nine project partners. The budget allocated to Portugal´s pilot actions was 200.000€. Staff resources were a key aspect to deliver the project.
Project description
PROMINENT MED project, funded by Interreg MED Programme – aimed to improve the quality of public services, activating a market demand, triggering industry to scale up its production chain to bring products on the market, taking into consideration specific criteria in the process.
The project´s objectives were:
- Setting up a transnational network among quadruple helix actors (public authorities, research sphere, enterprises cluster and civil society) dealing with specific matters of application of PPI to the Energy efficiency advanced material;
- Promote the application of the PPI as a key tool for unlocking innovation potential and promoting the market uptake of innovative solutions applied to the sectors of Energy efficiency and advanced material.
- Attract investments in order to improve the energy performance of public buildings in order to increase the quality social economic sustainable growth of the territories and the increase of enterprises’ competitiveness with the related impact on the labour market.
During the project, companies were supported by the project partners to improve their procurement process taking into consideration new award criteria.
PROMINENT MED project highlights how Public Procurement for Innovation can drive sustainable development by encouraging tailored, high-quality solutions. It demonstrates that the competitive dialogue procedure is an effective tool for overcoming regulatory and technical challenges in historic building renovations while promoting energy efficiency and sustainability.
The selection of a competitive dialogue procedure allowed companies to propose innovative solutions tailored to the unique needs of the project and the process was divided into three phases:
- The first phase, lasting 30 days, focused on the qualification of candidates. To participate, companies had to demonstrate experience in energy efficiency projects, previous involvement in renovations of historic buildings, possession of a qualified technical team, technological capacity, an organised project structure and quality control certification. These criteria were evaluated based on experience (40%), human resources (25%), technological capacity (15%), organisational model (10%), and quality control (10%).
- The second phase, also lasting 30 days, involved dialogue between the contracting authority and the qualified candidates. This phase allowed for the discussion and refinement of technical solutions before final proposals were submitted.
- The final phase, lasting 40 days, consisted of proposal submission, evaluation, and awarding of the contract. The most economically advantageous proposal was selected based on the best quality-price ratio, with 90% of the evaluation focused on technical quality and only 10% on price. Key evaluation factors included technical quality (35%), innovation (20%), potential for energy consumption reduction (25%), and performance guarantees (10%).
Impact and results
The main objective was to learn and to make possible the implementation of a new procurement procedure in the context of small-sized municipalities and therefore enable other municipalities to do it.
The assessment was made through innovative award criteria and considered the bidder’s information provided, the innovation of the proposal, and the innovative solutions. Among the relevant criteria, greenhouse gas reduction, in the context of the municipal building’s refurbishment, was very relevant. The market engagement was successful,l and so the pilot was fully implemented. The procurement procedure was based on technical criteria, and the criteria were valued at only 10%. Typically, this procurement procedure is fully based on price. The procurement platform used to undertake all the procedures was adapted due to the existence of this specific procedure and is now ready and available for such procurement procedures.
