Public Procurement of Innovation

Public Procurement of Innovation (PPI)

 

Aguas de Alicante is a pioneering entity in the development of activities related to Public Procurement of Innovation (PPI), thanks in large part to the support of the Valencian Innovation Agency (AVI), now integrated into IVACE+i.

 

What is PPI?

Public Procurement of Innovation is an administrative action to promote innovation, aimed at fostering the development of innovative solutions from the demand side through the public procurement instrument.

The implementation of Public Procurement of Innovation can generate the following benefits:

  • Development of the local fabric: efforts can be made to ensure that local companies participate in the procurement process, especially those with innovative content.
  • Attraction of investment: procurement incentivizes companies to participate and commit investments locally.
  • Change in public sector culture: the goal is to integrate innovation into the daily dynamics of the public sector.
  • Acquisition of goods and services: procurement focuses on meeting the administration's needs at the best cost/benefit ratio.
  • Innovation in the public sector: procurement seeks to incorporate innovations that improve the provision of service, even if they may entail a higher initial cost.
     

 

Types of PPI

There are three types of Public Procurement of Innovation:

  • Pre-Commercial Procurement (PCP)

    Contracting of R&D services focused on covering the needs of the contracting Administration. This is a type of PPI excluded from the application of the Public Sector Contracts Law.

    Type of Procurement Public Procurement of R&D Processes
    Buyer and contractors share the risks and benefits resulting from the investigation of solutions to problems proposed by the public tenderer.
    Procurement Route R&D Services Contract
    Not subject to the general regime of the LCSP (Public Sector Contracts Law). (Exclusion of Art. 8 LCSP)

  • Public Procurement of Innovative Technology (PPIT)

    Purchase of a good or service that does not exist but can be developed in a reasonable time because the technology is at a level of development that allows it. It uses the usual procurement procedures.

    Type of Procurement Public Procurement of Goods or Services close to the market, ready to provide public service
    The tenderer acquires goods and services for the provision of a public service that do not exist in the market and require a prior R&D phase
    Procurement Route Contracts to be awarded through ordinary procedures of the LCSP

  • Innovation Partnership

    Award procedure included in the law that allows concatenating an R&D phase with a subsequent supply phase.

    Type of Procurement Public Procurement of an R&D service and subsequent acquisition of the result
    The tenderer acquires an R&D service and its possible results through a subsequent deployment contract under a single procedure
    Procurement Route Award procedure regulated in the LCSP (Art. 177 et seq.)

 

Preliminary Market Consultation

The Preliminary Market Consultation (PMC) is the most characteristic action of Public Procurement of Innovation (PPI) and basically consists of an open call in which any physical or legal entity with the capacity to contribute innovative ideas aimed at responding to a series of challenges or needs that have been previously identified by the convening Administration can participate, through the use of technologies that exceed the performance of those currently existing in the market. The PMC is a preliminary step, not mandatory, but very useful for Public Procurement of Innovation.

The proposals collected will serve to determine the state of the art, specifying the degree of innovation required, as well as to evaluate market capabilities and define the technical and functional specifications of the sought solutions. 

These proposals must be feasible in order to be carried out later through a possible public procurement procedure, in our case, through Public Procurement of Innovation.

 

Experience

Among the extensive experience of Aguas de Alicante in Public Procurement of Innovation, the following activities stand out:

1.- Guide for Public Procurement of Innovation in Circular Economy and Sustainability

The transition toward a circular economy is a magnificent opportunity to transform our economy and make it more sustainable, contribute to the Sustainable Development Goals (SDGs) and the conservation of global resources, create local jobs, and generate competitive advantages in a world that is undergoing profound changes. Therefore, with the support of the Valencian Innovation Agency and with experts in public procurement and circular economy from the Water and Environment Engineering Institute (IIAMA), the University Institute of Water and Environmental Sciences (IUACA), and the Water Technology Centre (CETAQUA), we decided to draft this guide where both public buyers and companies can consult comprehensively in a single document, concepts of Public Procurement of Innovation, Circular Economy, and a large set of practical examples of aspects in which innovations related to the circular economy can be carried out.

Guide for Public Procurement of Innovation in Circular Economy and Sustainability
 


 

2.- PMC Advanced system for the control of industrial discharges in wastewater networks

In September 2020, Aguas de Alicante launched a Preliminary Market Consultation whose main objective was the identification of innovative technologies related to an "Advanced System for the Control of Industrial Discharges in Wastewater Networks."

Below is the documentation generated during this Preliminary Market Consultation:

 

3. CPM Structural Rehabilitation and Monitoring of the CID Canal Water Intake.

The purpose of the Preliminary Market Consultation "REMCID" is to gather the necessary information to prepare for an eventual public procurement. Detailed information on the process can be consulted in the following documents: