Innovative Public Procurement (CPI), what are we talking about?

Innovative Public Procurement is a form of public procurement that responds to the needs of administrations when they cannot find what they need in ordinary bidding processes. In short, to buy something that either does not yet exist on the market (it must be done ex-process) or it is not known that it exists.

As reported by iTenderspro, this purchasing model, also known by its acronym CPI, arises at the end of 2018, as a way of hiring that aims to cover needs that are not resolved. With an example it is better understood: in Galicia an action was tendered in this way aimed at solving the problems produced through the dense fog on a Lugo highway. The weather prevented this road from being used normally many days a year and hence an innovative solution was needed to solve this problem.

One important caveat, the ICC it is not a new recruitment procedure, Rather, “innovative” refers to the fact that it aims to stimulate private innovation, the development of new products, services, processes … that satisfy public demand.

“This approach to public procurement is a fundamental tool for administrations to obtain solutions that are much more adjusted to real demands.”, Explains Gádor Espinosa, CEO of iTenderspro.

Warning, scroll to continue reading

What benefits does this hiring process have for companies?

It gives ground to companies and innovative SMEs, promoting its development and internationalization. In addition, for citizens, it improves public services by incorporating innovative goods or services that better serve the needs of citizens.”Adds Espinosa. There is no doubt: this type of purchase aims above all to promote innovation.

The ICC has three main modalities:

  1. Pre-commercial Public Purchase (CPP). It is a contracting of R&D services in which the public body shares the risks and benefits with the successful bidders.
  2. Public Purchase of Innovative Technology (CPTI). It is the most common, the purchase by the administration of a good or a service that does not yet exist but that can be developed in a reasonable period of time.
  3. CPI. The one we have described at the beginning of the article.

They all start with a preliminary market inquiry, the CPM. They are published ‘like mushrooms’ anywhere on institutional websites but really this first phase is not a tender. They are not buying anything yet. They are just asking. They have their deadline for submitting ideas and meeting dates, but there is no starting budget, because in this first phase we are still defining the solution together with the administration”, Clarifies Espinosa.

Steps for an SME to present itself through this procedure

Basically, presenting themselves to the CPMs and contributing their solutions, existing or to be manufactured. When the consultation process has finished, the administration will launch the purchase with a format that will depend on the level of research required. The most common are the following:

  • Competitive dialogue:It is normally used in large and complex projects where technical requirements cannot be defined in advance. For example, when organizations are not in a position to define the ideal means to satisfy their needs or evaluate the solutions that the market can offer. Also, when the contract cannot be awarded without prior negotiation due to complexity, legal or financial structure, or because of the risks associated with these”Explains Espinosa. “The bidding companies admitted to the dialogue will present a descriptive document, and there may be one or more rounds of dialogue. The general ideas are specified in this phase of dialogue. When the authority closes the dialogue, they will be able to present an offer based on their own solution for the defined needs. In the competitive dialogue procedure, any company can submit a request to participate, but only invited companies can participate in the dialogue.”.
  • Bidding procedure with negotiation: “The objective is the contracting of works, services or supplies that include elements of adaptation, design, innovation or other characteristics that make the award of the contract inappropriate without prior negotiation. Contrary to the competitive dialogue here, it is a prerequisite that the contracting authority specify from the outset the characteristics of the goods or services to be contracted. As in the previous one, only the invited economic operators will be able to present an initial offer that will be the basis for subsequent negotiations ”.
  • Association for innovation.It is used in cases where an innovative solution is required that does not yet exist on the market. In other words, here one or more companies associate and carry out research and development activities separately in order to create a new innovative solution ”.

Innovative Public Procurement also involves budgets with very varied amounts. It is ideal for startups and for small companies that want to manufacture new products under the protection of a safe first purchase.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *