Reg. 31 (PCR 2015)

Innovation partnership

In: Procure > Clarification and due diligence

Overview

This regulation sets out the rules which apply to innovation partnership procurement procedures.

An innovation partnership procedure must aim at the development of an innovative product, service or works and the subsequent purchase of the resulting supplies, services or works, provided that they correspond to the performance levels and maximum costs agreed between the contracting authority and the participating suppliers.

An innovation partnership procedure must be structured in successive phases following the sequence of steps in the research and innovation process.

The regulation requires a contracting authority to negotiate with suppliers on their initial, and all subsequent, tenders submitted by them, except for the final tender, to improve their content.

The contracting authority must ensure that the structure of the partnership and, in particular, the duration and value of the different phases reflect the degree of innovation of the proposed solution and the sequence of the research and innovation activities required for the development of an innovative solution not yet available on the market.

Objective at this commercial stage

Consider whether to include provisions in the procurement documents options (and associated conditions) for the contracting authority to decide after each phase to: (a) terminate the innovation partnership procedure entirely, or; (b) in the case of an innovation partnership with several suppliers, reduce the number of suppliers by terminating one or more individual supplier contracts.

Key considerations at this commercial stage

Contracting authorities should:

  • negotiate the initial and all subsequent tenders with suppliers, except for the final tender, to improve their content, subject to this regulation (i.e. regulation 31(14) to 31(26) inclusive)
  • ensure that minimum requirements and the award criteria are not subject to negotiation
  • ensure equal treatment of all suppliers, and as a minimum: (a) not provide information in a discriminatory manner which may give some suppliers an advantage over others; (b) inform all suppliers whose tenders have not been eliminated in an earlier stage, in writing, of any changes to the technical specifications or other procurement documents, other than those setting out the minimum requirements, and; (c) following any such changes, provide sufficient time for tenderers to modify and re-submit amended tenders, as appropriate
  • not reveal to the other suppliers other solutions or information, unless the relevant supplier agrees to the intended communication of the specific information.

See also in the Procurement Act 2023:

  • Section 20: Competitive tendering procedures
  • Section 54: Time limits

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements