In Norway, public agencies procure goods and services for close to 58 billion Euros every year. Innovative Procurements is a new method for public procurements. In Innovative Procurements requesting pre-defined solutions from the market is discouraged. Instead, needs and functions are communicated to the market, which in turn responds on how to best solve this.
Through Innovative Procurements, mapping and defining needs are emphasized, the market is invited for dialogue, and challenged to come up with smart solutions.
In this video you are briefly introduced to the Norwegian method of Innovative Procurements. This video demonstrates three very different processes in which Innovative Procurement as a method has been applied: Stavanger municipality/ F5IT; Hias/ Nærenergi; and Undervisningsbygg/ Caverion. The video also illustrates the different gains achieved in the form of positive environmental impacts; increase in the number of jobs with firms involved in these innovations; and lastly, reduction in the overall costs for the public procurer.
The National Programme for Supplier Development is set up to accelerate innovations and development of new solutions through the strategic use of public procurement, while at the same time contributing to new market opportunities for these innovations.
The programme is a joint collaboration by three significant entities with unique strengths, networks and focus areas – representing both the public and private sector.
Difi (Agency for Public Management and eGovernment) provides pertinent support in developing relevant tools and guidance on public procurement in general as well as on innovative public procurement in particular which is of tremendous support “on the ground”.
Norwegian Association of Local and Regional Authorities (KS) naturally provides the link to both local and regional authorities and stimulate actors in the direction towards innovative public procurements; they also provide inputs into strategic areas for us as a programme to pursue (e.g. upcoming procurements which may have a significant potential for climate-smart solutions); as well as systematically sharing lessons learned through various fora.
Confederation of Norwegian Enterprise (NHO) provides the link to the private sector actors. Our Programme secretariat is hosted by NHO which gives us direct access to relevant suppliers within specific sectors.
– rigging the market potential from the onset to allow scale:
While pilots and prototypes are pre-requisites for innovation, we have seen several barriers and bottlenecks to the spread of new and often very good solutions. To remedy this, the programme has started to bring public buyers together which may have a common agenda and similar challenges. In doing so, the needs are mapped jointly, and once identified and defined, the market and relevant suppliers are invited for dialogue on how to solve this through joint procurement processes. In having established often larger markets for the new solutions already, the market sees the market potential for serial production more clearly and a much-needed predictability is established. The programme is facilitating and brokering several joint procurement initiatives in the areas of health, digitalization and to address climate change. Already we see the contours of what purchasing-power can achieve when it is used strategically, jointly, as well as through a good and thorough collaboration with relevant suppliers. These processes are in fact very good examples of public-private partnerships.
Facilitating and brokering in 5 Innovation Partnerships:
With the new public procurement process Innovation Partnership being introduced with the ratification of the new Law on Public Procurement in January 2017, new and exciting possibilities for improvements and innovations are definitely present. The National Programme for Supplier Development has been facilitating the first Innovation Partnership where Stavanger is in the lead. Furthermore, our Programme is now involved in facilitating and brokering four new exciting and forthcoming Innovation Partnerships:
- Municipality of Stavanger: «Devices for the elderly to allow more activization and increased independence»: 22 pre-qualifications and 18 bids received
- Østfold Hospital: «Patience-centred cancer care» – currently mapping needs
- Municipality of Oslo and Sunnaas Hospital: «Patience-centred care – stroke patients» – currently mapping needs
- Nye veier AS – «Reducing accidents in tunnels – a zero vision» – currently mapping needs
- Municipality of Bergen: «Digitalization in public buildings» – currently mapping needs