The introduction of GPP in the local government procurement system : an analysis

Abstract

The aim of this study is an analysis of the Introduction of the Green Public Procurement (GPP) in the Local Government Procurement System (LGPS), and any effects that are being experienced by the Maltese Economic Operators (MEO) vis-à-vis the GPP measures taken by the GM four years ago. The quantitative research analysis, highlights outcomes that are encountered by the bidders when submitting their bids. The analysis explores how well EO are informed on GPP and if requirements are being met, whilst also compares the level of progress of MEO and foreigners from the European Union. The study analyse if MEO rely on foreign suppliers or these have their own systems and possess verifications to provide green products / services. The investigation addresses the level of competitiveness, when the EO participate in the LGPS and other European countries. The researcher took into account other factors, such as economic implications, and the opinion of the EO regarding investments in products meeting GPP criteria. Proof that the tenders meet the GPP criteria is a requirement. Having these verifications mean competitive advantages and benefits like cost savings in consumption and improved overall operating conditions. Most EO depend on orders that come from the GM. EO are encouraged to consider the GPP seriously, since it results that the European Commission (EC) has completely embarked on the issue of the GPP as part of the EU 2020 Strategy. Thus, the GPP can soon experience an increase in thresholds. Results indicate that EO are not proactive and innovative, since very few own licenses / verifications such as EU Ecolabel, EMS and EMAS. Some EO experienced an increase in their business activity since the introduction of the GPP, nevertheless the majority remained passive since most of these rely on foreign suppliers to provide green products. Should the demand for GPP tenders increase further, the EO will encounter difficulties in their operations in terms of competitiveness. These do not feel well prepared, as some think that green products do not achieve an increase in competitiveness and thus, may result in loss of business. The analysis suggests that the R&D should be part of the investments and solutions for innovation to put forward the green economy. Consequently, this safeguards competitiveness whilst also creates green jobs. The researcher suggests that incentives and assistance shall be provided for EO who apply for EU programmes (GAP) and encourage SMEs in the shift towards GPP, whereas offer networks for market growth and discover new ways of reducing costs whilst creating green jobs. This should result in a positive outcome in terms of environmental and economic benefits and hence, offering a win-win situation for EO, Public Authorities and stakeholders in the Maltese society.