Procurement category: ICT

Relevant EU legislation/policy/guidance: EU GPP Criteria for Computers, monitors, tablets and smartphones (2021) and the Technical background report.

Background

The Office of Government Procurement (OGP) is a central purchasing body, responsible for sourcing common products and services for the public service in Ireland. The OGP Information and Communication Technology (ICT) approach emphasises sustainability by focusing on shared services, efficient resource use, and standardisation across public bodies.

The Irish Government's Green Public Procurement Strategy and Action Plan 2024-2027 states that by 2025, a minimum of 80% of ICT end-user products procured by public sector bodies are certified to EPEAT Gold Standard (or equivalent), TCO Certified (or equivalent) or will have been remanufactured.

An existing Framework Agreement for the supply of new Windows Desktop, Notebook, 2-in-1 Devices and Associated Products and Services was due to end and to be renewed in July 2023. As part of the renewal process, the Contracting Authority identified potential demand across the public service for Remanufactured Windows Notebook Computers in the region of €7,500,000 annually. To cater for this demand a lot specifically for Remanufactured Notebook Computers was included as part of the renewal of this framework agreement, alongside lots for new devices (desktops, laptops, peripherals and associated services). As is standard for most framework agreements published by OGP, this renewal required a minimum of two suppliers per lot.

A call for competition was published in February 2023 with two bids received for the remanufactured lot. However, both failed at the compliance stage and the lot was cancelled. 

OGP launched a second request for tenders in September 2023, this time with a standalone framework agreement for remanufactured laptops only. However, only one bid was received. As a minimum of two suppliers were required, the framework was cancelled again.

In November 2023 OGP published a new request for tender which enabled the awarding of a contract to one or more suppliers as applicable.  Two bids were received, one of which was compliant and passed evaluation.  In May 2024 the contract was awarded to the successful supplier.

Procurement objectives

The new Framework aims to build on the benefits and success of OGPs previously established ICT Frameworks by:

• ensuring access to high quality Remanufactured Windows Notebook Computers at the most economically advantageous cost for all Framework Clients; 
• promoting and encourage SME participation and opportunity; and
• supporting the environmental ambitions of the Irish Government.

An extensive market consultation was carried out to establish if the market had the capacity and capabilities to deliver the requirement.  Responses were received from original equipment manufacturers (OEMs) of new devices and those involved in the ‘second life’ ICT market from across the EU and UK, all indicating that the market was now mature enough to proceed with a request for tender (RFT) for such equipment.  

Additionally, a comprehensive client engagement was carried out, with clients from across all spectrums of the public sector in Ireland queried for their opinions on second life equipment.  Over 25% of all clients queried indicated that they would be interested in availing of remanufactured laptops if they were made available via a centralised Framework.

Tender requirements

Selection criteria

To show that they have the level of experience and ability to provide high quality remanufactured goods and services, bidders were required to:  

1. Demonstrate financial and economic standing by proving that they have had a minimum annual turnover of five million euro (€5,000,000) for each of the three financial years.
2. Provide three examples of the successful delivery of at least 100 Remanufactured Windows Notebook Computers of the same device (same make and model and technical specification) in a single contract to a single client within the last three years.
3. Declare that they have supplied the following minimum quantity of Remanufactured Windows Notebook Computers annually for each of the preceding three (3) years: 
   1. 500 Remanufactured Windows Notebook Computers in 2020
   2. 750 Remanufactured Windows Notebook Computers in 2021
   3. 1,000 Remanufactured Windows Notebook Computers in 2022

Evidence of orders and client references were used to verify the submissions.

Tenderers were also required to be EMAS registered or to have in place certified systems for remanufacturing according to ISO 9001, ISO 14001, including quality assurance/quality control procedures for inspection, reprocessing (e.g. repair, replace or upgrade) if needed, cleaning, testing, storage, packaging and transport.

Technical specifications 

Compliance with the KiteMark Standards, or equivalent. The KiteMark Standard - BS 8887-220:2010 for remanufactured and reconditioned products aims to assure the quality of refurbished processes in the circular economy. It certifies the remanufacturing or reconditioning processes carried out by suppliers of remarketed items (manufacture, assembly, disassembly and end-of-life processing (MADE)) based on the application of BS 8887 series of standards for design for manufacture, assembly, disassembly, and end of life processing (MADE), as well as best practice principles of ISO 9001.

Bidders were also asked to note that annually on the anniversary of the commencement date of the Framework Agreement, the minimum processor generation required in the technical specification will be increased by one generation, ensuring that remanufactured devices remain competitive and technologically relevant. This approach demands that tenderers supply devices that not only meet or exceed the base configuration but also offer updated upgrade options as specified each year, making it crucial for suppliers to maintain a current and adaptable product lineup.

Award Criteria

Bidders were asked to submit descriptive responses for each of the following, assessed and scored using a transparent methodology.  It should be noted that to overcome the perceived barriers to remanufactured devices, the Award Criteria chosen for this procurement are identical to those chosen for the procurement of new devices on the originally published call for tenders from OGP that included a lot for remanufactured laptops.  This approach was adopted to allay any concerns from OGP Clients that this might be in any way a lesser offering than ‘new’. Suppliers received no points if they did not achieve minimum marks for each criterion.  

Quality of Proposed Approach to Warranty Management and Support Services (200 Marks): This criterion assesses the tenderer's proposed strategy for managing warranties and support services. Robust warranty coverage comparable to new products, for both the device and components like batteries, can assure framework users of product reliability and increase the uptake of remanufactured options. The evaluation also considers the quality of support services provided, such as responsiveness, availability, and the ability to handle issues effectively.

Quality of Proposed Approach to Green and Environmental Matters (50 Marks): The focus was on the environmental impact of the vehicle fleet used by the tenderer within the Island of Ireland, particularly regarding the use of low-emission and zero-emission vehicles. Tenderers were required to provide details, from their fleet management system or equivalent, of the full composition of fleets engaged in delivering Devices and Services as supporting evidence.  Marks were awarded based on the combined percentage of low and zero-carbon vehicles used by the tenderer and any sub-contractor in delivering devices and services across their customer base within Ireland. The percentage of marks awarded reflected the percentage of the supplier’s low-carbon and zero-carbon vehicles (e.g. a fleet with 22% low-carbon/zero-carbon vehicles received 22% of the available marks for this criterion). 

Quality of Proposed Approach to Supply and Delivery Services (75 Marks): A perceived barrier to remanufactured devices for public authorities is that the availability of identical devices at scale is limited. This criterion evaluated the effectiveness of the tenderer's supply chain and delivery mechanisms, including supply continuity and timeliness.

Quality of Proposed Approach to Image Creation, Deployment, and Management (75 Marks): Another perceived barrier for remanufactured devices is that each device will be differently configured and make security and other configuration difficult across all devices. This criterion reviewed the tenderer's proposed approach to ensuring that all systems are properly configured and ready for use upon delivery.

Web Portal (100 Marks): Customer support and service comparable to new devices is also an important aspect of mainstreaming the use of remanufactured devices. This criterion assessed the functionality and user-friendliness of the web portal that will be used for the management of services related to the tender, including order placement, service management, and customer support.

Associated Services (100 Marks): Evaluates additional services associated with the tender that contribute to the additional use and sustainable end of life of the ICT, such as unpacking and packaging removal, installation services, secure disposal of old equipment, and asset tagging.

Results

The Framework contract was established in May 2024.  This was the third attempt by OGP to establish this arrangement.  In the first attempt (February 2023) it was included as a standalone lot on a Framework that also provided for new devices.  Three bids were received on the lot, however only one was compliant meaning a multi-supplier framework could not be established.  A second attempt (July 2023) also failed due to an insufficient number of compliant bids being received to enable the establishment of a multi-supplier framework.  

A third and final attempt was made (November 2023) with provision to allow for the arrangement to proceed in the event of only one compliant bid being received.  This attempt was successful.  Two bids were received, one of which was compliant.  

The reasons for the issues around compliance stemmed from three main areas:

1. Suppliers of remanufactured ICT products lack experience in bidding on public contracts;
2. The specifications required around services, warranty, device quality, scale and availability proved difficult for some suppliers to meet; and
3. Only one supplier was able to meet the BSI certification standard (or equivalent).

The contract was awarded to a single supplier (an Irish SME in consortium with a UK based remanufacturer) for four years.  It has an estimated value of up to €30 million, which is expected to provide in the region of 60,000 devices over the lifetime of the contract.

Environmental impacts

Remanufacturing in the ICT sector offers several positive impacts:

• Environmental and Circular: Remanufacturing reduces waste, minimises raw material demand, and uses less energy than manufacturing new products, supporting circular economy principles by extending product lifecycles and enhancing resource efficiency. The manufacture of a laptop is between 75% – 85% of the overall carbon footprint, where most emissions come from the production and materials used for the motherboard, SSD and display. Remanufacturing a device results in as little as 6% of the carbon impact of a new device.  Measurable impacts, which are certified, also help promote the devices as an environmentally responsible alternative to new ones.  For example, per device, it can be stated that the purchase of just one device can prevent the emission of 316kg CO2e, achieve 1200kg in mined resource preservation and save 190,000 litres of water.  Over the contract's lifetime, this equates to 19 million Kgs of CO2e, 72 million Kgs of mined resource preservation and 11 billion litres of water saved.
• Economic: It provides cost savings of between 25% and 40% due to lower prices compared to equivalent new devices, without compromising quality or performance, making technology access more affordable for public entities.

Lessons learned

• Clearly define product specifications: Specify exactly what you aim to buy, including detailed definitions of terms like 'remanufactured' versus 'refurbished' to avoid ambiguity and ensure all parties have a common understanding of the requirements.
• Set rigorous criteria for selection: Ensure tenderers meet high standards by requiring certifications (ISO 9001, 14001, BS 8887–220:2010), detailed warranties, consistent product batches, and robust support for issues like 'Dead on arrival' or 'Dead on installation'. Additionally, stipulate processor growth models over the contract period to guarantee future compatibility and performance.
• Minimise risk with flexible contract terms: Implement contract terms that limit the organisation's risk, such as stipulating 'no guaranteed volume', which allows for adjustments based on actual needs and reduces financial exposure.
• Get buy-in from client organisations in order to ensure the successful utilisation of the framework.  One of the most difficult parts of establishing this arrangement was convincing ICT professionals that the equipment, warranties and services on offer on this framework are of equal standard to those offered on frameworks for new equipment.

More information

Contact person: Vincent O’Reilly, Assistant Principal Officer (Category Manager – Compute & Storage Infrastructure), Office of Government Procurement Ireland

For related information, please see EU GPP Criteria for Computers, monitors, tablets and smartphones (2021) and the Technical background report.