92%
value of public tenders
awarded by adopting the
economically most
advantageous bid method
67.4%
of total tenders
awarded on the basis of the most
economically advantageous bid
approach
25/100
average score
assigned to sustainability
in tender awards

Tenders for contracts awarded on the basis of the most economically advantageous bid approach

The Hera Group Guidelines on procurement, since 2008, favour the economically most advantageous bid method as the approach for assessing bids, using sustainability criteria consistent with the principles of the Code of Ethics.

In the specific areas identified by the Guidelines, and in detail “social commitment”, “quality of services” and “economic value”, sustainability criteria have been identified since 2009 which are the fruit of the experience acquired in managing calls for tenders according to the method of the most economically advantageous bid, based on doctrine, on regulations on the matter and in line with Hera Group objectives.

A minimum number of sustainability criteria for choosing suppliers were established for each area, based on the amount and importance of the tender (if it is a tender with a significant impact on the environment, occupational safety, the quality of services provided to customers, the term or amount of the contract). Among the main criteria, mention is made of: the management of atmospheric emissions and sound, prevention, reuse and recyclability of waste; energy efficiency; reduction of the hazardous nature of substances used and reduction of water consumption (for the environmental protection criterion), supplier’s adoption of their own Code of Ethics; hiring of persons with disabilities and persons facing hardship; accident prevention and safety training (the social commitment criterion); quality of materials, equipment and instruments; professional qualifications and skills and technical services and performance.

The New Tender Code, published by means of Italian Legislative Decree No. 50/2016 and which came into force as from April 2016, assimilating the EU directives issued on the subject and establishing the new regulations to be applied to tenders and public contracts, envisaged the publication of around 50 measures including general guidelines proposed by ANAC and ministerial decrees implementing the new rules introduced. The main innovations of the New Code include the provision of the awarding method according to the economically most advantageous bid method as mandatory and exclusive in certain cases (Art. 95) such as for example services with a high intensity of manpower (such as cleaning services or scholastic services), or in engineering, architecture services or those of another technical or intellectual nature for amounts greater than Euro 40 thousand. The Hera Group Procurement guidelines therefore anticipated these virtuous practices in the selection of the suppliers by almost ten years.

The Procurement and Tender Management Departments are responsible for selecting the sustainability criteria in agreement with the company contacts concerned. They chose the criteria to be used according to the type of tender, the importance of the sustainability criterion in relation to said tender, and assessments of previous tenders assigned and their results. The Purchasing and Tender Management Departments can also use the technical support of the Corporate Social Responsibility Department and the Quality, Safety and Environment Department for the choice of the criteria and the assessment of bids in the tender phase.

At company level, the operational indication envisages that the score assigned to the “technical component” of the offer ranges from a minimum of 20 points for the supplies of goods to a maximum of 70 points for the services and the emergency response work on networks and plant maintenance.

Public tenders for contracts adopting the economically most advantageous bid method
  2015 2016 2017
No. of public invitations for tenders published 18 37 65
No. of public invitations for tenders published with economically advantageous bid 18 31 54
Value of the public invitations for tenders published (in millions of Euro) 306.6 201.9 260.7
Value of the public invitations for tenders published with economically advantageous bid 306.7 195.2 238.9
% of tenders with economically advantageous bid out of total (value of the calls) 100% 97% 92%
Average score assigned to aspects relating to sustainability of public tenders awarded during the year 24.2 27.6 27.2

In the three-year period considered, the incidence of the economically most advantageous bid criteria was on average 96% of the total value of the public invitations to tender issued by the Group.

In particular, during 2017, a total of 65 public invitations for tenders were announced, for a total starting price of more than Euro 260 million: of these 239 million, or 92% of the total value of the invitations issued in 2017, envisaged the awarding method according to the criteria of the most economically advantageous bid. The average score assigned to the sustainability aspects came to 27.2.

In 2017, 11 public tender invitations were issued with awarding to the largest discount for around Euro 21.8 million, equal to approximately 8% of the total value of the public tender invitations issued in the year. Furthermore, 4 public tenders for qualification systems were held, which were not included in the total: the legislation in fact requires that the tender amount and the award method be defined as and when in the subsequent negotiation procedures.

Total awards adopting the economically most advantageous bid method
  2015 2016 2017
Value of the total awards to which the economically most advantageous bid award method is applicable (in millions of Euro) 531.5 488.1 541.0
% of the value of the awards adopting the economically most advantageous bid method 66.6% 63.0% 67.4%
% of the value of the awards adopting the economically most advantageous bid method with environmental and/or social criteria 95.6%* 95.4% 94.2%
Average score assigned to the sustainability aspects in the adjudications adopting the economically most advantageous bid method 23.8 26.2 25.3

* Excluding Marche Multiservizi

The method of awarding involving the most economically advantageous bid is applicable (if the tender procedures permit recourse to this method) to the entire purchasing cycle, with a clear predominance for purchases of services and work, given the already high standardisation of the technical specifications with regard to the sphere of materials supplies and in some cases of work. We would like to point out that 75.5% of the value of contracts managed by the Hera Spa Procurement and Tender Contracts Department, excluding AcegasApsAmga and Marche Multiservizi, to which the most economically advantageous bid criterion is applicable took place according to this method, in place of the largest discount. This figure comes to 67.4% if AcegasApsAmga and Marche Multiservizi are included. In AcegasApsAmga the figure reaches 46.4% in 2017, almost 15 percentage points more than in 2016, while in Marche Multiservizi during 2017, 33.4% of the value of the adjudications took place according to the economically most advantageous bid method, down 8.3 percentage points with respect to 2016. At Group level, 2017 reported an increase in the percentage of the value of the adjudications involving the economically most advantageous bid compared with 2016 (+4 percentage points).

It is hereby specified that the percentage relating to 2015 is higher than the other years due to the extraordinary event relating to the tender for the integrated contract for adaptation of the Trieste treatment plant. Excluding this event, the percentage for 2015 would be around 59%, therefore a constant increase would be seen between 2015 and 2017.

<img class="alignnone wp-image-2715 size-full" src="http://eng.gruppohera.it/group/social_responsibility/sr/wp-content/uploads/2018/05/Affidamenti-totaliENG.png" alt="Total adjudications with economically advantageous bid" width="870" height="580" />

94.2% of the value of the contracts awarded using the economically most advantageous bid was carried out using the environmental and/or social assessment criteria.

Considering the total number of contracts, the percentage of new contracts with social criteria on the total is equal to 19%. This figure refers to Hera Spa, AcegasApsAmga, Fea, Herambiente, Herambiente Servizi Industriali, Hera Comm, Hera Luce, Inrete Distribuzione Energia, Heratech and Uniflotte.

With regard to orders/contracts awarded during 2017 via the economically most advantageous bid award method, the average score assigned to the technical component was almost 56 points out of 100, of which 25.3 relating to sustainability criteria (8.3 pertaining to environmental aspects and 17.1 to social aspects). Excluding AcegasApsAmga and Marche Multiservizi the average score assigned to sustainability criteria was 26, in the Triveneto area this value was 29.2 points, while in the Marches region the value was 3.5 (down with respect to the 8 points in 2016 as a consequence of the different type of tender held).

Total awards adopting the economically most advantageous bid method: scores assigned to the various components (weighted average on the amounts) (2017)

The objective for 2018 is to continue to show preference for the economically most advantageous bid in place of the maximum reduction, ensuring at least 20 points on average to environmental and social sustainability aspects (in awards of services and work using this selection criteria).

During 2015, within the Iso 50001 certification process for Hera Spa a clause was envisaged in the standard specifications which obliges the technical contact individual – if they detect that the subject matter of the purchase has a significant impact on the energy consumption of the Group – to proceed with the assessment of the energy efficiency requirements on the basis of an Energy Management document useful for the assessment of the energy impact.

In the private tenders the Hera Group, excluding Marche Multiservizi, invited an average of 15.5 suppliers for each set of negotiations (weighted average on purchase volumes) confirming the approach of the Group based on an open and transparent competition between the suppliers on a consistent basis with the guidelines of current legislation.

With regard to the importance and significance assigned to sustainability criteria when assessing the bids, the following tenders awarded in 2017 stood out.

Among the public tenders:

  • Within the sphere of the Public qualification system for the awarding of the execution of scheduled maintenance work, network extension, connections and accessory services in the water, sewage, district heating and gas commodity sectors (Emilia and Romagna areas) for a tender amount of around Euro 30.2 million, of the 60 points reserved for the technical components, 7 were dedicated to environmental sustainability (enrolment in the register of environmental operators, environmental impact of the vehicles used and ISO 14001 environmental certification), 21 to social sustainability (training measures for first aid and fire prevention, number of training measures for the employees qualified as “supervisor”, OHSAS 18001 safety certification, SA 8000 social responsibility certification, trend of the accident and injury rate, number of employees with requisites for environments suspected to be polluted or confined areas and measures on asbestos) and 32 for other technical aspects (number and experience of the personnel made available, number of vehicles).
  • Within the sphere of the Public qualification system for the awarding of the service involving maintenance cleaning of the piping, septic tanks, sewer lifting and waste transport for a total 2-yearly tender amount of around Euro 28.4 million (including AcegasApsAmga Padua and Trieste in the scope), of the 70 points reserved for the technical component, 10 were dedicated to environmental sustainability (age of the vehicles used and ISO 14001 environmental certification), 27 to social sustainability (number of employees with requisites for environments suspected to be polluted or confined areas, number of training measures for first aid and fire prevention, number of training measures for the employees qualified as “supervisor”, number of training measures regarding road signage, OHSAS 18001 safety certification and SA 8000 social responsibility certification, trend of the accident and injury rate) and 33 for other technical aspects (number and experience of the personnel made available, number of vehicles and equipment).
  • In the negotiated procedure public tender for awarding the ordinary and extraordinary mechanical maintenance service care of the waste-to-energy plants and other waste treatment plants of Herambiente and other companies belonging to the Hera Group (including Hestambiente), for a total tender amount of around Euro 22 million, of the 60 points dedicated to the technical component, 25 were reserved for socio-environmental sustainability (training on safety and accident and injury trend, possession of ISO 14001 environmental, OHSAS 18001 safety and SA 8000 social responsibility certification) and 35 to other technical aspects (experience of the personnel).
  • Within the sphere of the Public qualification system for the awarding of the services relating to emergency response support services and scheduled maintenance work, network extension, connections and accessory services of the gas and district heating commodity sectors in the area run by Inrete, for a total tender amount of around Euro 9.3 million, of the 70 points reserved for the technical component, 10 were dedicated to environmental sustainability (enrolment in the register of environmental operators, environmental impact of the vehicles used and ISO 14001 environmental certification), 26 to social sustainability (number of employees with requisites for environments suspected to be polluted or confined areas, number of employees qualified for measures on asbestos, training measures for safety and fire prevention, number of training measures for the employees qualified as “supervisor”, accident/injury rate trend, OHSAS 18001 safety certification and SA 8000 social sustainability certification) and 34 for other technical aspects (number, qualification and experience of the personnel made available, number of buffer machines).
  • In the open procedure public tender of Herambiente relating to the materials handling service and operative and post-operative activities for the running of the landfill for non-hazardous waste at Tremonti di Imola and activities for the running of the decommissioned landfills in the Emilia – Emilia North – Florence area for a total tender amount of around Euro 6.2 million, of the 60 points reserved for the technical component, 19 points were assigned to environmental sustainability (environmental impact and age of the vehicles used for the service and ISO 14001 environmental certification), 31 points for social sustainability (accident & injury rate trend, OHSAS 18001 safety certification, number of measures for training on weekly safety, cleaning and sanitation of work clothing in industrial laundries and site visits by the company PPSR) and 10 points for other technical aspects (experience of the personnel).
  • In the negotiated procedure public tender for the services involving printing, folding, enveloping and sending bills to customer addresses relating to the services managed by the Hera Group companies (including AcegasApsAmga) for a total tender amount of around Euro 5.8 million, of the 70 points reserved for the technical components, 20 were dedicated to environmental sustainability (use of eco-compatible paper, biodegradable envelopes and vegetable inks, use of eco-compatible technologies and possession of “ecoprint” certification) and 50 to other technical aspects for handling the process.
  • In the open procedure public tenders relating to the service for the valorisation of waste by means of mechanical/manual selection and mechanical handling care of the Voltana Lugo (RA), Coriano (RN), Mordano (BO) and Ferrara selection and recovery plants run by Herambiente SpA, for a total tender amount of around Euro 4.2 million, of the 60 points reserved for the technical component, 6 were dedicated to environmental sustainability (training measures on environmental aspects for the operations manager and ISO 14001 environmental certification), 48 to social sustainability (accident & injury rate trend, OHSAS 18001 safety certification, monthly visit of the company PPSR, weekly cleaning and sanitation of the work clothing, induction of individuals facing social hardship), and 6 points for other technical aspects (professional experience).
  • In the open procedure public tender relating to the awarding of services associated with the municipal and similar waste transportation service carried out using unloading and loading vehicles and for the transportation of HMW in the area of the province of Ravenna, for a tender amount of around Euro 2.8 million, of the 70 points reserved for the technical aspects, 12 were assigned to environmental sustainability (age and environmental impact of the vehicles), 12 to social sustainability (OHSAS 18001 safety certification, SA 8000 social responsibility certification and technical training of the employees) and 46 to other technical aspects (number of vehicles made available and response times).
  • In the open procedure public tender of Herambiente for the service for recovery and transportation of biodegradable waste deriving from collection in the provinces of Bologna and Modena, for a tender amount of around Euro 2.1 million, of the 70 points reserved for the technical aspects, 36 were assigned to environmental sustainability (ISO 14001 environmental certification, ISO 50001 energy certification, waste traceability and recovery ), 6 to social sustainability (OHSAS 18001 safety certification and SA 8000 social responsibility certification) and 28 to other technical aspects.
  • In the negotiated procedure public tender for the supply of methane gas odorising compliant with the requirements of the UNI7133 standard (THT and TMB), for an annual tender amount of around Euro 1.8 million (Inrete, AcegasApsAmga and Marche Multiservizi), of the 30 technical points, 3 were reserved for environmental sustainability (ISO 14001 certification), 21 for social sustainability (training of employees with regard to firefighting and first aid, accident/injury rate trend, personnel qualified to use toxic gases, OHSAS 18001 safety and SA 8000 social responsibility certification) and 6 for other technical aspects
  • In the open procedure public tender associated with the waste-to-energy service by means of mechanical/manual selection care of the Modena (MO) plant managed by Herambiente, for a tender amount of around Euro 1.7 million, of the 70 points reserved for the technical aspects, 8 were assigned to environmental sustainability (training on environmental aspects for the operations manager and ISO 14001 environmental certification), 44 to social sustainability (accident/injury rate trend, professional experience of the operations manager, OHSAS 18001 safety certification, SA 8000 social responsibility certification, visit to the plant by the company PPSR, weekly cleaning and sanitation of the work clothing care of an industrial laundry) and 18 to other technical aspects (digitalisation of the data and availability of a raising platform).
  • In the open procedure public tender for the service involving running and maintenance of the treatment plants, sewer lifting, imhoff pits, floodways and sludge dehydration (Emilia Romagna area) for a total annual tender amount of around Euro 1.2 million, of the 60 points reserved for the technical component, 3 were dedicated to environmental sustainability (ISO 14001 environmental certification), 36 to social sustainability (training of employees with regard to fire prevention and first aid, training of employees qualified as “supervisor”, OHSAS 18001 safety certification and SA 8000 social responsibility certification, employees with requisites for environments suspected to be polluted or confined areas and number of PES qualified employees) and 21 for other technical aspects (number and experience of the personnel made available).

Among the private tenders:

  • In the private tender for the “entire” awarding of the final covering work on the 5th and 6th sectors of the non-hazardous waste landfill in Ravenna run by Herambiente, for a tender amount of around Euro 4.1 million, of the 70 points reserved for the technical value, 23 were dedicated to environmental sustainability (conferral of inert material using large machinery to reduce the number of trips and the environmental impact, protection of pits using geo-composite membrane), 12 for social sustainability (presence at site of a non-operational engineer and presence at site of the company PPSR) and 35 to other technical aspects (reduction of execution times).
  • In the private tender for the awarding of the “entire” work for the adaptation of the sewerage networks and plants and the overhaul of the water and gas ridges in the district of Pioppa and Calabrina (FC), for a total tender amount of around Euro 2.6 million, of the 40 points reserved for the technical component, 3 were dedicated to environmental sustainability (ISO 14001 environmental certification), 11 to social sustainability (accident/injury rate trend, OHSAS 18001 safety certification and number of employees with requisites for environments suspected to be polluted or confined areas) and 26 for other technical aspects (number and experience of the personnel made available, reduction of the work execution timescales, pipes to be replaced in cast iron instead of PVC).
  • In the private tenders of Herambiente SpA for the awarding of the service for the transportation of municipal treatment sludge from the Herambiente SpA area treatment plants, for a total tender amount of around Euro 1.8 million and for the awarding of the liquid waste loading and transportation service for a tender amount of around Euro 2.2 million, of the 70 points reserved for the technical value, 50 were assigned to socio-environmental sustainability (35 to the environmental impact and age of the vehicles, 15 to the possession of the ISO 14001 environmental, OHSAS 18001 safety and SA8000 social responsibility certification) and 20 points to other technical aspects.
  • In the private tender for the awarding of the “entire” work on the cathodic protection plants (Emilia Romagna area) for a total tender amount of around Euro 1.5 million, of the 60 points reserved for the technical component, 4 were dedicated to environmental sustainability (ISO 14001 environmental certification), 11 to social sustainability (OHSAS 18001 safety certification, SA 8000 social sustainability certification and the accident/injury rate trend) and 45 for other technical aspects (number and qualification of the personnel made available, reduction of the work delivery / execution timescales).
  • In the private tender for the awarding of the “entire” work for the realisation of the intake water pipe at the Covignano (RN) reservoir, for a tender amount of around Euro 1.5 million, of the 70 points reserved for the technical component, 5 were dedicated to environmental sustainability (ISO 14001 environmental certification), 28 to social sustainability (accident/injury rate trend, OHSAS 18001 safety certification, SA 8000 social responsibility certificate and number of employees with requisites for environments suspected to be polluted or confined areas) and 37 for other technical aspects (number and experience of the personnel made available, reduction of the work execution timescales).
  • In the private tender for the awarding of the work relating to the “entire” realisation of the interconnections and development of the TLR network in the city of Forlì, for a total tender amount of around Euro 1.5 million, of the 40 points reserved for the technical component, 2 were dedicated to environmental sustainability (ISO 14001 environmental certification), 17 to social sustainability (accident/injury rate trend, OHSAS 18001 safety certification, SA 8000 social responsibility certificate and number of employees with requisites for environments suspected to be polluted or confined areas) and 21 for other technical aspects (number of the personnel made available, reduction of the work execution timescales, prior experience on work linked to the TLR).
  • In the private tender for the awarding of the greenery maintenance service and removal of snow in the areas pertaining to the sewage-waste treatment and aqueduct plants in the areas of Rimini, Ravenna, Ferrara, Forlì-Cesena and Bologna for a total annual tender amount of around Euro 1.2 million, of the 60 points reserved for the technical component, 3 were dedicated to environmental sustainability (ISO 14001 environmental certification), 18 to social sustainability (number of training measures for first aid and fire prevention, number employees qualified as supervisor, OHSAS 18001 safety certification and SA 8000 social responsibility certification) and 39 for other technical aspects (number and experience of the personnel made available for the service, number and type of equipment / vehicles made available).

Other open procedure tenders:

  • In the open procedures associated with the collection and transportation of solid waste in the area of the municipalities of the province of Ravenna, for a tender amount of Euro 10.9 million and the manual road sweeping and municipal waste collection service in the areas of the province of Ravenna for a tender amount of around Euro 2.4 million, of the 70 points reserved for the technical aspects, 22 were assigned to environmental sustainability (environmental impact, type of fuel and age of the vehicles used), 12 to social sustainability (OHSAS 18001 safety certification, SA 8000 social responsibility certification and training of the employees) and 36 to other technical aspects (number of vehicles, response times and number of additional co-ordinators).
  • In the open procedure for the awarding of the manual road sweeping service, collection of municipal waste via vehicles and running of collection centres in the area of the province of Ravenna, for a tender amount of around Euro 4.6 million, of the 70 points reserved for the technical aspects, 22 were assigned to environmental sustainability (environmental impact and age of the vehicles used and ISO 14001 environmental certification), 48 to social sustainability (OHSAS 18001 safety certification, SA 8000 social responsibility certification and induction of individuals facing social hardship).