Reg. 31 (PCR 2015)

Innovation partnership

In: Define > Sourcing strategy

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 the innovation partnership procedure is an appropriate procurement approach, by reference to whether the goods, works or services being procured are already available on the market, the nature of the contract, its complexity and anticipated number of bidders.

Key considerations at this commercial stage

Contracting authorities should:

  • decide whether to set up the innovation partnership with one partner or with several partners conducting separate research and development activities
  • ensure that the evaluation strategy will lead to the award of the contract on the basis of the best price-quality ratio, in accordance with regulation 67 PCR 2015 (contract award criteria)
  • ensure that the structure of the partnership and, in particular, the duration and value of the different phases, reflect the degree of innovation required for the development of an innovative solution not yet available on the market
  • ensure that the estimated value of supplies, services or works must not be disproportionate in relation to the investment required for their development.

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