Final Report Summary - SP4ESP (Implementing the European Space Policy: A Coherent European Procurement Law and Policy for the Space Sector ? Towards a Third Way) Executive summary: The 'Third way' in European space procurement is recommended in the shape of a toolbox complemented by a selection of extra-procurement instruments. Given the distinct procurement philosophies of the European Space Agency (ESA) and the European Union (EU), steps towards a common approach must be made at both ends. Project results: In response to the European space policy of 2007, calling for the development of adequate instruments and funding schemes, the study compiles 27 generically defined tools for space procurement. This toolbox undergoes a multi-faceted analysis with each tool being checked against its viability to attain the pre-defined policy objectives, its impact on different space market segments and its legality under ESA and EU rules. 1. Definition of programme and procurement object; 2. Participation rules: restrictions, preferences based on nationality; 3. Work package: splitting, sizing; 4. Restricting the individual bidding possibilities; 5. Balance advantage of pre-involved contractors; 6. Multiple sourcing; 7. Sole sourcing via joint ventures; 8. Sole sourcing via IPR regime; 9. Sub-contracting; 10. n-State criterion; 11. Know-how transfer; 12. Best value for money as award criterion I; 13. Best value for money as award criterion II; 14. Concentration correcting mechanism; 15. Nationality as award criterion; 16. Varying degrees of advantage given to Small and medium-sized enterprises (SMEs) of research institutions; 17. Abnormally low tenders; 18. Weighing of votes based on financial contribution; 19. Prior market and capacity analysis and prequalification procedures; 20. Contact between bidders as well as between bidders and contracting authority; 21. Flexibility in procurement procedure; 22. Commencement of work prior to signature of contract; 23. Framework agreements and options in contracts; 24. Contract duration; 25. Re-negotiation and contract changes; 26. Legal remedies; 27. Monitoring and statistics.As benchmark for the purpose of this study serve policy objectives identified as common to both ESA and EU, notably: (1) the attractiveness for Member States to invest in space; (2) the efficient use of resources; (3) the global competitiveness of the European space industry and economy; (4) European autonomy and non-dependence; and (5) the balanced involvement of capacities in Europe.This non-exhaustive array of policy objectives faces several caveats as the European space policy, for the time being, is far from being well defined.Where policy objectives, in particular to strengthen European competitiveness and to provide for a sustainable and balanced development, could be implemented by means other than procurement, the study explores these so-called extra-procurement instruments. They complement the toolbox for space procurement and include inter alia the funding schemes of the EU cohesion and structural funds, the role of the European Investment Bank, and EU and ESA instruments for funding research and development. Analogies, including the procurement by Eumetsat, ITER and F4E, the security and defence sector as well as aircraft manufacturing, also contribute useful ideas and lessons learned. Potential impact: The 'Third way' thereby caters for both coherence and flexibility needs. Policy and programming offer the necessary flexibility for combining the activities and funding by different European actors and align their activities into concerted action. In light of defined and prioritised policy objectives, the choice has to be made on the suitable set of procurement tools and extra-procurement instruments within the outlined legal framework.This flexibility acknowledges requirements of a specific programme and subsequent procurement and trumps a model with rigid pre-defined rules. The study hopes to contribute to further structure the debate on space related procurements in Europe. The cooperation envisaged under the 'Third way' is expected to also foster political consensus on related issues and is intended to serve policy-makers for finally making 'Europe in space' a reality. Related documents Final Report - SP4ESP (Implementing the European Space Policy: A coherent European procurement law and policy for the Space Sector towards a third way)
