The Application of Public Procurement as a Policy Instrument in the EU and its Member States
Submitting Institution
University of HullUnit of Assessment
Business and Management StudiesSummary Impact Type
PoliticalResearch Subject Area(s)
Economics: Economic Theory, Applied Economics
Studies In Human Society: Policy and Administration
Summary of the impact
Research into public procurement in the EU and its Member States
undertaken by Professor Bovis has made a significant impact on the
application of public procurement as a policy instrument in the UK. The
impact of Professor Bovis' research is threefold: it has influenced
parliamentary debate and legislative scrutiny in the UK by demonstrating
the socio-economic and industrial policy dimension of public procurement;
it has shaped change in the UK regulatory and legal environment of public
procurement through advice to the UK government on procurement legal
reforms; and it has affected a paradigm shift by extensive media
engagement.
Underpinning research
Research undertaken by Professor Bovis at the University of Hull between
2005 and 2012 has investigated outcomes of EU public procurement
regulation upon the Member States [1]. It has revealed the economic
importance of public procurement regulation by analysing its features,
which introduce competitiveness in the market, resulting in significant
price convergence, and finally acting as the catalyst for rationalisation
and industrial restructuring of the European industrial base [2]. It has
established the rationale of public procurement regulation by linking its
outcomes with fundamental principles of EU integration, such as the free
movement of goods and services, the right of establishment, the
prohibition of discrimination, and the imperative to eliminate
preferential and discriminatory purchasing patterns by the public sector
[2].
The research body which underpins the case study exposed the strong
influence of neo-liberal theory in public procurement regulation by
reflecting upon the trend of policy makers to establish market conditions
based on price competition, which would result in production and
distribution efficiencies and optimal allocation of resources [3]. It also
demonstrated the public policy implications for the Member States arising
from EU public procurement regulation. It exposed the influence of ordo-liberal
theories in public administrations of EU Member States by revealing
emerging trends of a type of "national public policy", which carries with
it common policies, such as environmental policy, employment policy,
social policy and industrial policy. It takes into account a narrower view
of national priorities within the overall regulatory process of the
integration of public markets, in contrast to the wider view of EU market
integration [5].
Professor Bovis' research established two competing conceptual themes:
one reflecting on public procurement regulation as an economic instrument
of the European Integration process; the other, reflecting on public
procurement regulation as a policy choice for national governments [4].
References to the research
1. Bovis C, EU Public Procurement Law 2nd Edition, Edward Elgar,`2012,
pp xxi +557 ISBN 972 2 34494 405 7.
2. Bovis C, Public Procurement in the EU: Jurisprudence and Conceptual
Directions, 49 Common Market Law Review p.p. 1-44, 2012. ISSN:
0165-0750
3. Bovis C, Public Procurement: Case Law and Regulation, Oxford
University Press, 2006, pp xxv + 736, ISBN 0-19-927792-3.
4. Bovis C, Financing services of general interest, public procurement
and state aid: The delineation between market forces and protection, European
Law Journal, Vol.11, No1, 2005, pp. 79-109. ISSN: 1351-5993.
5. Bovis C, "Public Procurement and the Internal Market of the 21st
Century: Economic Exercise versus Policy Choice", Chapter 17 in EU Law for
the 21st Century: Rethinking the New Legal Order, Nebia and Tridimas (eds)
Hart Publishing, 2005, ISBN 1-84113-460-0, pp. 290-310.
The quality of Professor Bovis' research is evidenced by publication in
outlets of high impact. Common Market Law Review, SRJ 0.89,
Citations per doc 0.88, Total Citations 157; European Law Journal,
SRJ 1.01, Citations per doc 0.88, Total citations 107.
It is also demonstrated by the extensive citation of his work by the
European Court of Justice in leading cases to determine the correct
interpretation of public procurement law in EU Member States. See, for
example, Case C-324/07, Coditel Brabant SPRL v Commune d'Uccle and
Région de Bruxelles — Capital, OPINION OF ADVOCATE GENERAL TRSTENJAK
delivered on 4 June 2008; Case C-536/07, Commission of the European
Communities v Federal Republic of Germany OPINION OF ADVOCATE
GENERAL TRSTENJAK delivered on 4 June 2009.
Due to the reputation of his research, Professor Bovis has appeared as
chairman and/or keynote speaker in training and continuous professional
development events by professional/policy maker and training bodies, such
as the European Law Academy (ERA), European Institute of Public
Administration (EIPA), Nordic Communications (NorhCOM), QED
Communications, and Inside Government.
Professor Bovis was commissioned by the UK Office of Fair Trading (OFT)
to assess the impact of public procurement regulation on the future of
Post Office Ltd in 2012. The engagement entailed a £15,000 research
project to determine whether the UK could move to a new public procurement
model from the existing focus on pure value-for-money, towards focusing on
a blend of value-for-money and socio-economic characteristics, and
evaluating the manner in which this could benefit the UK Post Office.
Professor Bovis was commissioned by the Trades Union Congress (TUC) in
2012 in a £2,000 research project to undertake a strategic review of the
legal and policy parameters in the UK, which might be conducive to: demand
structures on railway rolling stock procurement; the nature of project
requirements; and the way the above interact with contracting authorities'
intentions in the delivery of public services.
Details of the impact
Professor Bovis' research focused academic debate and influenced
discourse on the socio-economic and industrial policy dimensions of public
procurement in the EU and its Member States.
Statement of impact: The underpinning research has had significant
organisational impact upon the UK Government and the UK legislator by
shaping change in the regulatory environment of public procurement and
influencing parliamentary debate and scrutiny respectively.
Details of impact and justification:
In 2011, Professor Bovis was appointed as lead counsel to the UK Cabinet
Office to advise on public procurement reform. The UK Government sought to
investigate the potential of economic growth through public procurement.
Research outputs 3 and 5 provided Professor Bovis with the variables
needed to ascertain whether EU Member States (such as France and Germany)
apply the EU Public Procurement rules in an advantageous way for
domestically-based suppliers. The research found that there is a striking
difference in policy application of public procurement between the UK and
the leading EU Member States, which promote country-based employment
though public procurement.
As a result of this study, the UK Government aligned UK policy with other
EU Member States and adopted a more strategic perspective on public
procurement. His recommendations were fully accepted by the UK Cabinet
Office and have been acknowledged by that Government department as
"particularly valuable for reforming public procurement in the UK" as a
result of the amendments of the EU Public Procurement regime during
2011-2013. The UK Government has sought Professor Bovis' continuous
engagement to implement and affect public procurement policy change [6].
Statement of impact: The underpinning research has had an impact
on public policy, law and services by influencing the scrutiny of the
application of public procurement in the EU and in the UK, and reflecting
on public procurement regulation as a policy choice for national
governments.
Details of impact and justification:
In 2011, Professor Bovis appeared before the House of Commons Select
Committee on Transport and provided written and oral evidence on public
procurement application in EU Member States and the UK. In his testimony,
recourse to research outputs 1 and 2 allowed Professor Bovis to provide
the parameters of the public policy implications for the Member States
arising from EU public procurement regulation. The outcome of the
parliamentary enquiry was that it published its report and drew attention
to the need for the UK Government to link economic growth, employment and
manufacturing policies with its public procurement strategy [7]. The
result of the parliamentary enquiry also led the House of Commons Select
Committee on Transport to ask the UK National Audit Office (NAO) to
investigate the decision by the UK Secretary of State for Transport to
award the £1.4bn Thameslink project to Siemens AG instead of the UK-based
Bombardier train manufacturer [8]. The NAO published its report in June
2013 and criticised the UK Government over considerable delays to the
project and questioned its value-for-money objectives [8].
In addition, Professor Bovis appeared before the House of Commons Select
Committee on Public Administration and provided written and oral evidence
on defence procurement and industrial policy in the UK in 2013 [9]. In his
testimony, Professor Bovis drew on research outputs 3 and 5 and provided
evidence on emerging trends in industrial policy, which allow for national
priorities to be met within the overall regulatory process of the
integration of public markets. This led to the House of Commons Select
Committee on Public Administration publishing its Report to the UK
Government on Defence and Government Procurement in July 2013, which
contains Professor Bovis' full findings and recommendations, and advises
that the UK Government apply defence procurement policy in line with
industrial policy [10].
In 2012, Professor Bovis was commissioned by the UK Office of Fair
Trading (OFT) to assess the impact of public procurement regulation on the
future of Post Office Ltd. The outcomes of the research were underpinned
by Professor Bovis' research outputs 2 and 4 and confirmed the influence
of ordo-liberal theories in public administrations of EU Member States.
The Office of Fair Trading, which is the ultimate regulator of the Post
Office Ltd, has utilised Professor Bovis' recommendations to influence the
UK Public Service Bill in 2012 [15].
Statement of impact: The research has had significant impact on
society through media engagement, citations in policy consultations and
strategy documents, which shaped public debate for responsible public
procurement.
Details of impact and justification:
Professor Bovis has actively engaged with the UK media in disseminating
his research to influence public debate for supporting national industry
and for promoting employment through public procurement.
His appearances on the BBC Newsnight programme on 14 July 2011 and on BBC
Radio 4 on 12 July 2011, together with extensive coverage in the national
press during 2011-12, received UK-wide recognition. This is because
Professor Bovis urged the UK government and its agencies to use
socio-economic award criteria in public procurement instead of the
cheapest offer. As a result, in 2012 he was invited by the Royal Academy
of Engineering to make representations to the UK Government based on his
research on the issue of UK manufacturing capacity and its links with
public procurement. The outcome has been the saviour of the Derby-based UK
train manufacturer, Bombardier, as it was awarded the £1bn Crossrail
contract using criteria that went beyond price, thus safeguarding in
excess of 1,400 jobs [13].
His appearance on BBC File on 4 (20 March 2012) provided a critique of
the Scottish Government's decision to procure foreign components and
supplies for the Forth Bridge replacement, one of the most important
infrastructure projects in the UK for the last 50 years, and offered an
informed debate on opportunities for British industry arising from the UK
Government Procurement Review [12].
Professor Bovis was commissioned by the Trades Union Congress (TUC) in
2012 to investigate the relation of demand structures on railway rolling
stock procurement with the application of public procurement rules in the
UK. As a result of his recommendations, which were made with reference to
research outputs 4 and 5, the TUC successfully instigated the 2012
campaign, Save British Train Manufacturing [11].
Professor Bovis' learned expertise, which is underpinned by his research
on public procurement in the EU (especially research outputs 1-5), has
been used by and in a range of other public hearings, such as in the EU
Committee of the Regions, the EU Parliament, and the Hungarian National
Procurement Council [14].
Sources to corroborate the impact
[6] Cabinet Office: Classified Letter of Engagement of review on UK,
French and German interpretation and application of the Procurement
Directives; Cabinet Office: Letter of Acknowledgement from Executive
Director of Cabinet Office.
[7]http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/proc/proc31.htm
House of Commons, Select Committee on Transport Eleventh Report of Session
2010-12, Thameslink rolling stock procurement (HC 1453).
[8] House of Commons, Select Committee on Transport, 14 December 2011 SCA
115/2010-12 REPORT: Thameslink rolling stock procurement — NAO should
review the Thameslink procurement process; http://www.nao.org.uk/wp-content/uploads/2013/06/10164-001-Thameslink-Full-
Report.pdf
[9] http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/proc/proc31.htm
[10] http://www.publications.parliament.uk/pa/cm201314/cmselect/cmpubadm/123/123.pdf
[11] Trades Union Congress: Strategic Procurement Capability in the UK
Rolling Stock Industry http://www.thisisderbyshire.co.uk/Derby-Telegraph-featured-plight-Bombardier/story-15188378-detail/story.html#
http://www.theguardian.com/commentisfree/2011/jul/05/bombardier-rail-policy-buffers
http://www.mirror.co.uk/news/uk-news/siemens-fined-for-worldwide-corruption-144519
http://www.mirror.co.uk/news/uk-news/lawyer-bombardier-can-be-saved-if-government-149144
[12] http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/20_03_12_fo4_abridgetoofar.pdf
http://www.supplymanagement.com/news/2011/vote-for-change/
[13]http://www.thisisderbyshire.co.uk/Minister-signals-Derby-train-maker-fair-shot/story-15351497-
detail/story.html#axzz2ghTwnytx
[14]http://www.peppol.eu/news/news_repository/The_Single_Market_Act-brochure.pdf/at_download/file;
http://www.europarl.europa.eu/document/activities/cont/201203/20120309ATT40380/20120309ATT40380EN
.pdf;
https://www.etenders.gov.mt/epps/cft/downloadInfoItem.do?documentId=2208
[15] OFT and Consumer Focus — Building Social Value in Public
ProcurementM
http://services.parliament.uk/bills/2010-11/publicservicessocialvalue.html