To increase flexibility in the provision of short-term technical assistance (TA) for the benefit of third world countries as well as its own operations, the European Commission (EC) has streamlined procurement procedures through the use of Framework Contracts (FWCs).
A Framework Contract is an instrument to achieve fast and transparent recruiting of experts for activities for the sole interest of the beneficiary countries/authorities of the EC’s external aid programs.
- FWCs can cover all the beneficiary countries/authorities of the EC’s external aid programs.
- FWCs are mostly multi-year contracts in which different consortia (groups of companies) become “preferred suppliers” for TA services to the EC for a specific area of expertise, the so-called ‘Lots’.
How does it work?
Particular procedures vary between Framework Contracts and Lots but, typically, each lot is serviced by several consortia who are invited – via a Request for Services (RfS) – to submit an offer (CVs + statements, a financial offer and often a methodology).
Each of these consortia intends to offer a qualified team to the EC either from their own staff or by using their network of partner organizations or by approaching freelance consultants. The time between the RfS and the deadline to submit an offer is usually very short and often no longer than two weeks (for projects up to € 300,000) and no longer than one month (for projects up to € 999,999). Based upon an evaluation of the offers submitted by the different consortia, the EC decides which offer will be selected. Typically, the team needs to be mobilized at very short notice.
The scope of services requested relate to the full project cycle: identification, feasibility, operational and technical follow-up assignments, financial and/or contractual monitoring, project evaluation, technical, financial or the contractual audit of the project, technical advice and support, information and communication or closure of a project. The main ongoing framework contracts are the following: SIEA 2018; Framework contract ‘Services for the implementation of external aid 2018’ (FWC SIEA, 2018).
FWC SIEA 2018
SIEA 2018 is EuropeAid’s primary framework contract for development services which consists of 6 Lots and is valid from 01/06/2018 until 31/05/2020:
- Lot 1 – Sustainable management of natural resources and resilience. Indicative budget: €125 million
- Lot 2 – Infrastructure, sustainable growth and jobs. Indicative budget: €155 million
- Lot 3 – Human Rights, Democracy and Peace. Indicative budget: €154 million
- Lot 4 – Human Development and safety net. Indicative budget: €73 million
- Lot 5 – Budget Support. Indicative budget: €63 million
- Lot 6 – Innovative financing for Development. Indicative budget: €80 million
This summer, EuropeAid announced the first contractors to receive funding under the SIEA framework. The awards include data for 612 contracts awarded between June 2018 and June 2019. So far, more than €100 million have been allocated to 41 contractors.
By Lots, we can see that the largest one in terms of value of allocated contracts is Lot 2 – Infrastructure, sustainable growth and jobs, with 174 contracts worth €29.43 million. This lot also has the largest indicative budget of €155 million. Close behind is Lot number 3 – Human rights, democracy and peace with 169 contracts worth €27.18 million. Lot 5 – Budget support and Lot 1 – Sustainable management of natural resources and resilience are third with approximatively 14.6 million Euro worth of contracts each.
The least amount of money was channeled through Lot 6 – Innovative financing for development with only 15 contracts worth €3.18 million.
Taking a look at the companies by number of allocated contracts, AECOM International Development Europe is the leader with 51 awards in Lots 2 and 5 which concern infrastructure, sustainable growth, jobs and budget support. The total value of funding received by AECOM was a little less than €7.4 million. At the same time a company affiliated to AECOM but treated as a separate entity, AECOM Belgium, was awarded six contracts worth €0.5 million in Lot 6.
IBF International Consulting is the second most contracted company with 42 awards in Lot 3 – Human rights, democracy and peace and Lot 4 – Human development and safety net. The total value of contracts is €7.5 million. IBF is also the company that received the largest contract from the SIEA 2018 worth €973,011 for a project in decentralization and local development in Tunisia.
Third is COWI Belgium with 39 contracts in Lot 1 – Sustainable management of natural resources and resilience and lot 2 – Infrastructure, sustainable growth and jobs. COWI Belgium is also the largest contractor in terms of total contract value – €7.6 million.
The remaining 480 contracts worth €80 million were shared among 38 contractors in this round of contract awards.
As SIEA 2018 grew in funding (its indicative budget of €650 million is twice as big compared to its predecessor, BENEF 2013) so did the number of consortia and contractors per lot. This resulted in even more competition and, thus, more partnership opportunities between the increasing number of contractors.
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