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News & Press Releases - Fair procurement for the public sector

24 March 2020 Fair procurement made easy: the Digital Allocation Tool

Procurement procedures contain their pitfalls. The inclusion of minimum social and environmental standards often does not make things easier. But even with little experience, a fair award is feasible. Together with lawyer André Siedenberg, FEMNET has developed a digital award tool: an online decision-making aid for all those who want to procure fairer.

Provide practical support

This digital procurement tool is located on the website of the Compass Sustainability. It is intended to provide concrete, practical support for municipalities. It provides decision support for issues that are relevant even before the opening of a procurement procedure: In what public procurement framework do I move? Do I purchase goods from sensitive product groups? What are the fair alternatives to my needs? The allocation tool is very easy to use: It is designed in interview mode. The tool asks questions and provides answer options. With each click, the procedure is better tailored to the individual case. This is because: Each municipality and each procurement process is different.

For a fair award in seven steps

In a series of a maximum of seven decision-making steps, the awarding tool examines how social and environmental sustainability criteria can be included in the planned call for tenders. The tool handles the following aspects:

1. Procurement framework
2. Product group
3. Availability Quality mark
4. Availability Providers and products
5. Economic procurement
6. Choice of type of procedure
7. Follow-up

From legal framework to quality marks

First, the legal framework for the procurement procedure is clarified: Should federal laws be applied? Or the federal state? In some cases, there are also regulations at the municipal level. The second step is to address the needs: The tool asks for the product groups to be procured. If products from more than one product group are purchased, several passes through the award tool are recommended. An example: If I want to buy textiles, I can be precise: Do I buy work clothes? Firefighter uniforms? Or towels? The tool wants to know exactly. For good reason: In step number three, it is checked whether suitable quality marks or other credible evidence are available for the requested product. Here, the award tool is linked to another database of the Compass Sustainability: the Quality Mark Finder.

If (sufficient) labels are not yet available, it is proposed to work with a questionnaire. This asks for award criteria, which show the sustainable commitment of the bidding companies. In this way, the first steps can also be evaluated positively. At the same time, the market is being signalled that sustainable criteria will be increasingly in demand in the future.

From fair providers to the type of procedure

If quality marks are available, it can continue: In a fourth step, the tool asks whether there is sufficient supply on the market. Now buyers are in demand: In the quality mark finder, they can search for companies that offer sealed products – and check whether supplier companies with the desired form of proof are available with the same quality and functionality. Step number five deals with economic efficiency. For the specific case, it is necessary to look at: Are there price differences between products that meet high or low/without sustainability requirements? There can be a wide price range for both ‘conventional’ and ‘sustainable’ products: Fair is not equally expensive. Expensive is not fair. In a sixth step, the awarding tool asks about the type of procedure. Here, too, the Sustainability Compass provides further information, e.g. on the legal basis on which the choice of the type of procedure is based. For example, you have to choose between a direct purchase, a restricted tender or a public tender.

Planning procedures and creating exchanges

Finally, on the basis of the information entered, the tool proposes how to proceed with fair allocation. It shows how sustainability criteria can be specifically anchored in the tendering process. These tips are available for download as a PDF or text document. This document can also be used as an addendum to the procurement notice. In this way, the knowledge gained can be passed on in a compact manner and discussed with colleagues. Speaking of discussion: The tool offers an interactive map with practical examples of municipalities from all over Germany. So why not start an exchange with colleagues from a pilot commune? FEMNET wishes a lot of joy and success in the use of the digital allocation tool.