93.5%
value of public tenders
awarded by adopting the
economically most advantageous
bid method
72.8%
of total tenders
with the economically most
advantageous bid method
32/100
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 “respect for the environment”, “social commitment”, “quality of services” and “economic value”, sustainability criteria have been defined on the basis of the experience acquired in managing calls for tenders according to the most economically advantageous bid method, of doctrine, of 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 Procurement and Tenders functions are responsible for selecting the sustainability criteria in agreement with the company contacts concerned. They chose the criteria to be used for 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 Procurement and Tenders functions can also use the technical support of the Shared Value and Sustainability Department and the Quality, Safety and Environment Department for the choice of the criteria and the assessment of bids in the tender phase.

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, as subsequently amended by means of Italian Legislative Decree No. 56/2017, 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 approach 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 in fact anticipated these virtuous practices in the selection of the suppliers by around 10 years.

Public tenders for contracts adopting the economically most advantageous bid method
  2016 2017 2018
No. of public invitations for tenders published 37 65 55
No. of public invitations for tenders published with economically advantageous bid 31 54 47
Value of the public invitations for tenders published (in millions of Euro) 201.9 260.7 183.5
Value of the public invitations for tenders published with economically advantageous bid 195.2 238.9 171.5
% of tenders with economically advantageous bid out of total (value of the calls) 97% 92% 93.5%
Average score assigned to aspects relating to sustainability of public tenders awarded during the year 27.6 27.2 32.1

 

In the three-year period considered, the incidence of the economically most advantageous bid criterion was on average 94% of the total value of the public tender invitations issued by the Group.

In particular, during 2018, a total of 55 public invitations for tenders were announced, for a total starting price of more than Euro 183.5 million: of these 171.5 million, or 93.5% of the total value of the invitations issued in 2018, envisaged the awarding method according to the most economically advantageous bid criterion. The average score assigned to the sustainability aspects came to 32.1 (+18% compared with 2017).

In 2018, 8 public tender invitations were issued with awarding to the largest discount for around Euro 12 million, equal to approximately 6.5% 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
  2016 2017 2018
Value of the total awards to which the economically most advantageous bid award method is applicable (in millions of Euro) 488.1 541.0 788.4
% of the value of the awards adopting the economically most advantageous bid method 63.0% 67.4% 72.8%
% of the value of the awards adopting the economically most advantageous bid method with environmental and/or social criteria 95.4% 94.2% 95.4%
Average score assigned to the sustainability aspects in the adjudications adopting the economically most advantageous bid method 26.2 25.3 31.8

The economically most advantageous bid award method 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 77.4% of the value of contracts managed by the Hera Spa Procurement and Tenders 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. At Group level, by contrast, this figure was 72.8% (+5 percentage points with respect to 2017). In AcegasApsAmga the figure reached 64.1% in 2018, almost 18 percentage points more than in 2017, while in Marche Multiservizi during 2018, 30.2% of the value of the adjudications took place according to the economically most advantageous bid method, down slightly with respect to 2017.

95.4% of the value of the contracts awarded using the economically most advantageous bid was carried out using the environmental and/or social assessment criteria.

With regard to orders/contracts awarded during 2018 via the economically most advantageous bid award method, the average score assigned to the technical component was 66 points out of 100, of which 31.8 relating to sustainability criteria (10.9 pertaining to environmental aspects and 20.9 to social aspects). Excluding AcegasApsAmga and Marche Multiservizi the average score assigned to the sustainability aspects came to 31.9. In the Triveneto area this value was 26.1 points, while in the Marches region the value was 22.5 (up sharply with respect to the 3.5 points in 2017 as a consequence of the different type of tender held).

The Group sets itself the objective of continuing to show preference, in place of the largest discount, for the economically most advantageous bid and to assign a relevant score to the environmental and social sustainability aspects in the tenders held with this method.

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 21 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 2018 are indicated:

Type

Description

Area

Amount (Euro mln)

Duration (years)

Technical component

(%)

Sustainability score

Public tender

Maintenance and management of real estate plant engineering assets

ER, T

85.0

4

70

Environmental (34%): ISO 14001, ISO 50001

Social (10%): OHSAS 18001, SA 8000, legality rating and induction of workers with weaknesses

Other technical aspects (26%)

Public tender

Emergency response and scheduled maintenance work, network redevelopment, connections and accessory services in water and sewage mains

ER

77.0

2

70

Environmental (8%): enrolment in the national register of environmental operators, environmental impact of the vehicles used and ISO 14001

Social (38%): health and safety training measures, OHSAS18001, SA8000 and legality rating

Other technical aspects (24%)

Public tender

Emergency response and scheduled maintenance work, network extension, connections and accessory services on gas and remote heating networks

ER

34.7

2

70

Environmental (8%): enrolment in the national register of environmental operators, environmental impact of the vehicles used and ISO 14001

Social (38%): health and safety training measures, OHSAS18001, SA8000 and legality rating

Other technical aspects (24%)

Public qualification system

Specialist maintenance work on integrated water service installations

ER

30.7

4

70

Environmental (5%): ISO 14001

Social (47%): health and safety training measures, OHSAS18001 and SA8000

Other technical aspects (18%)

Public tender

Call centre service for customers

ER

29.0

2

80

Social (14%): trade union agreement on incentive plans, handling of registration of telephone calls and working hours flexibility, company welfare schemes

OHSAS 18001 and ISO 9001

Other technical aspects (66%)

Public qualification system

Emergency response and scheduled maintenance work, network redevelopment, connections and accessory services in water and sewage mains

T

24.0

70

Environmental (3%): ISO 14001

Social (29%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (38%)

Public tender

Ordinary and extraordinary maintenance on waste-to-energy plants and other waste treatment plants

ER

21.7

2

60

Environmental (2%): ISO 14001

Social (23%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (35%)

Public qualification system

Specialist maintenance work on integrated water service installations

ER

17.8

4

70

Environmental (5%): ISO 14001

Social (47%): health and safety training measures, OHSAS18001 and SA8000

Other technical aspects (18%)

Public qualification system

Plan for replacement of gas pipelines in cast iron and extraordinary maintenance of water and electricity mains

T

17.2

70

Environmental (7%): environmental impact of the vehicles used and ISO 14001

Social (15%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (48%)

Public qualification system

Ancillary activities on gas, water, electricity and heat meters

ER

17.0

4

70

Environmental (12%): environmental impact of the vehicles used and ISO 14001

Social (22%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (36%)

Public qualification system

Specialist maintenance work on electricity installations

ER

15.0

4

70

Environmental (5%): ISO 14001

Social (39%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (26%)

Public tender

Rental of integrated photocopying and printing systems

ER, T

9.0

6

70

Environmental (14%): ISO 14001

Social (2%): OHSAS18001

Other technical aspects (54%)

Public tender

Adaptation and enhancement of the Pesaro purification plant

M

7.4

70

Environmental (23%)

Social (2%)

Other technical aspects (55%)

Public tender

Electrical and electro-instrumental industrial maintenance on waste-to-energy plants and other waste treatment plants

ER

7.0

2

80

Environmental (6%): ISO 14001 and ISO 50001

Social (49%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (15%)

Public tender

Work supporting emergency response and extraordinary maintenance services for integrated water service networks and plants

M

6.6

80

Environmental (24%)

Social (2%)

Other technical aspects (54%)

Public qualification system

Emergency response and scheduled maintenance work and accessory services on gas mains

T

6.0

70

Environmental (2%): ISO14001

Social (22%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (46%)

Private tender

Construction of sewage collector of South Rimini Backbone

ER

5.5

70

Environmental (5%): ISO 14001

Social (31%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (34%)

Private tender

Work for restoring the road surface pertaining to the maintenance work, scheduled work and extensions for the network services

ER

5.0

2

70

Environmental (5%): ISO 14001

Social (53%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (12%)

Public tender

Valorisation of waste by means of selection and sorting and mechanical handling

ER

4.0

2

70

Environmental (6%): environmental training and ISO 14001

Social (40%): audit regarding safety of the service performed, OHSAS18001 and SA8000

Other technical aspects (24%)

Public tender

Supply, installation and commissioning of a pre and post-mechanical treatment plant care of the Sant’Agata Bolognese plant

ER

3.5

70

Environmental (44%): energy consumption pre/post-treatment section, ISO 14001 and ISO50001

Social (4%): OHSAS18001

Other technical aspects (22%)

Public qualification system

Creation of connections, limited extensions, enhancements and/or small movements of networks and plants

T

3.1

60

Environmental (2%): ISO 14001 Social (14%): health and safety training measures, OHSAS 18001 and SA8000

Other technical aspects (44%)

Private tender

Running and pneumatic maintenance of the methane gas reduction apparatus

ER

2.8

3

70

Environmental (10%): enrolment in the national register of environmental operators and ISO 14001

Social (19%): OHSAS 18001 and SA 8000

Other technical aspects (41%)

Public qualification system

Technical, administrative and operational running of purification and sewage plants

T

2.7

60

Environmental (27%): environmental impact of the vehicles used, reduction of the energy consumption, the sludge to be disposed of and the quantities of outgoing nitrogen and phosphorous

Social (3%): OHSAS18001

Other technical aspects (30%)

Public tender

Operating activities for the handling, screening and processing of waste aimed at anaerobic digestion, composting and stabilisation

ER

2.5

2

70

Environmental (15%): ISO 14001

Social (42%): audit regarding safety of the service performed, OHSAS18001 and SA8000

Other technical aspects (13%)

Public tender

Door-to-door collection service and related transportation of separate municipal waste to be carried out in artisan, industrial and forensic areas in the municipality of Ferrara

ER

2.4

70

Environmental (15%): environmental impact of the vehicles used

Social (20%): OHSAS 18001 and SA 8000

Other technical aspects (35%)

Public qualification system

Disposal and collection, transportation and delivery to destination of sludge produced in the treatment plants

T

2.1

70

Environmental (42%): ISO 14001 and ISO 50001

Social (6%): OHSAS 18001 and SA 8000

Other technical aspects (22%)

Public tender

Transportation of municipal waste stored care of the waste transfer stations and equipped drop-off points

ER

2.0

70

Environmental (25%): environmental impact of the vehicles used and ISO 14001

Social (25%): OHSAS 18001 and SA 8000

Other technical aspects (20%)

Public tender

Gas, water and GPL meter reading services and ancillary measurement activities

M

1.9

80

Environmental (6%)

Social (10%)

Other technical aspects (64%)

Private tender

Industrial waste logistics, brokerage of special waste, back office, reception and protocol

ER

1.8

2

70

Environmental (12%): environmental legislation training measures and ISO 14001

Social (41%): health and safety training measures, induction of individuals facing social hardship and commitment for their contractual stabilisation, OHSAS 18001 and SA 8000

Other technical aspects (17%)

Public tender

Long-term lease of two new compactors for the industrial waste and special municipal waste landfill

M

1.8

70

Environmental (10%)

Other technical aspects (60%)

Public tender

Service for the recovery of biodegradable waste conferred directly by means of collection vehicles by the operator of the public service

ER

1.7

70

Environmental (38%): percentage of launch for waste recovery and traceability of the same, ISO 14001 and ISO 50001

Social (6%): OHSAS 18001 and ISO 9001

Other technical aspects (26%)

Public tender

Execution of works and supplies for legislative adaptation and safety work for the public lighting plant in Pesaro

M

1.5

70

Environmental (35%)

Social (3%)

Other technical aspects (32%)

The pie chart in the table shows the points assigned to the price in grey, those assigned to environmental sustainability in green, those to social sustainability in blue and those to other technical aspects forming part of the technical components in orange.