European tenders: over 1,000 public contracts totaling € 3 billion in funding for 2016

European tenders: over 1,000 public contracts totaling  € 3 billion in investment/funding for 2016
08/03/2017
ZABALA has analyzed the value that EU tenders bring to businesses

Throughout 2016 the different European bodies and institutions published more than 1,000 public procurement notices with a total value of  more than 3 billion euros. The  framework contracts, whose individual value exceeds 100,000 euros of budget each [1], have an average duration of 32 months, with contracts ranging from 2 to up to   98 months in duration.

These contracting entities are European bodies and institutions that are specialized in a different fields. They include the three most representative institutions -  the Commission, the Parliament and the Council; the various European agencies (European Maritime Defense Agency, Maritime Safety Agency, EASME) and over 130 other entities  entities such as JRCs (Joint Research Center), European Patent Office (EPO), Eurostat, Cedefop, etc.

The ranking of the 15 main entities that have published the most tenders in 2016 can be seen in the following table:

The ranking is led by the European Commission (EC) which has published 440 contracts for a total value of 1,5billion euros¸ approximately half of all the contracts published by EU bodies. We are speaking about a very  diverse rage of contracts: from small consultancy work such as the evaluation of the European energy strategy woth 190,000 €  to the financing of large scale projects  like the purchasing of  wiring for telecommunications networks and the construction of specialized rooms for a value of more than 9 million euros.

European Commission tenders encompass the contracting of the different Directorates-General (DGs), as well as several entities directly dependent on the EC.

As we can see from the table the Joint Research Center (JRC) issues the most contracts. The JRC is made up of five specialized institutes located in six different European cities and is the institution responsible for providing scientific and technical advice to the European Commission. The different business opportunities published are varied: from the refurbishment  of buildings, contract security services, supply of technical and IT equipment,, facilities and maintenance work to a large number of studies or very specific technical assistance.

DG Communication is second public body, which joins many of the communication and outreach services of the European Commission, and because of that, it is of vital importance.

Here is  some additional data from this analysis on the recruitment of European bodies:

  • 84% are service contracts, 11% are supplies and only 4% are construction contracts.
  • Practically 90% of  contracts are contracts processed through an open procedure,  7% of them through restricted procedure and 1% of them through negotiated procedure.
  • Regarding Directorates-Generals, the JRC and the DG for Communication (DG COMM) are the  EC entities that issue the most calls for tenders followed by the EC's Infrastructure and Logistics Office (OIB), DG ENVIRONMENT  and DG ENERGY), which are sectors with most  opportunities.
  • The calls  are mostly very technical in nature , so it is an opportunity for entities with a specific  technical profile.

Based on that mentioned above we can   draw certain conclusions about this market which are:

  • It is a SERVICES driven market.
  • Following the fundamental principles of public purchase, where ANY ECONOMIC OPERATOR that meets the solvency conditions can apply, seeing as  the open procedure is the main modus operandi one .
  • The size of the projects is very varied, so the solution options are very broad.

All the documentation of these contracts is managed under a common platform called eTendering where the different institutions hang contractual documentation, technical specifications, annexes, questions and answers.

It is necessary to be very rigorous in the preparation of a tender, to work in a continuous and constant way, establishing strong and stable contacts to form complementary consortiums of fast and efficient way.

Laborious application procedures must be followed for each tender, so having an entity like ZABALA to help you evaluate the tenders available, form the consortium, structure, prepare and present the documentation in an orderly manner is fundamental in this market.

Do you want to compete in this market? Do you want to conduct a comprehensive analysis of your company's options in this market? At ZABALA we can help you.

 

[1] Source: TED: Tenders Electronic Daily and DELTA (Diagnostic tool for European tenders of ZABALA INNOVATION CONSULTING).