IISD Performance Based Specifications in Public Procurement by Laura Turley at GIB Summit

Performance Based Specifications in Public Procurement Laura Turley May 21 2014 Global Infrastructure Basel

Sustainable Infrastructure

GIB Grading Tool

Ambition Web (NL)

ISI’s Envision Rating System

Best Practice in the Public Sector …

Holistic, Integrated Framework

Priority Areas

Tools: Output Based Needs

Analysis

Tools: Market Consultations & Dialogues

Targets

Tools: Performance Based Specs

Performance Based Specifications

Instructions that outline the functional requirements for a product or service – these should be clear, achievable, measurable and enforceable.

Luminosity > Number of Bulbs

Strength of Concrete > Mixture Proportions

Efficiency of Fuel Use > Type of Fuel & Use

Public Procurement as a Driver of Innovation

Large spend volumes

De-facto guarantee to private sector to invest in new processes & technologies

Sharing of risks

• Focus on results over inputs• Encourages private sector to be

innovative, resource & material efficient, and cost effective

• Expertise to the experts • Drive new patterns of ownership• Assist moving to service economy &

more circular economy

Performance Based Specifications (PBS) are great because:

PBS Common Practicein Infrastructure Already

In as far as PBS are used to measure and monitor service delivery (but not all service contracts use result-oriented PBS)

Areas for improvement for infrastructure: Use PBS in the needs analysis Replace tech specs with PBS Award based on performance targets Monitor performance & targets

• Translation into tenders • Capacity of procurers• Price• Finance for suppliers • Necessity of green business models

Performance Based Specifications (PBS) are challenging because:

About IISD • Non Profit Think-Tank, 75 specialists• Advisory and implementation services to

governments, international organizations and companies

• Themes: procurement, climate change, finance, water, energy, subsidies, investment, industrial development…

• Offices in Canada, USA, Switzerland, & China• Supported by Norad, DANIDA, SECO, SDC, CIDA, SIDA,

UNEP, AusAID, NZAid, OECD• Third in the Financial Times/Foreign Policy ranking of

influential think tanks• Advised 15 countries on Sustainable Public

Procurement and PPPs• Lead the 3GF Partnership for Procurement and Green

Growth

Thank you!

Laura Turley lturley@iisd.org