PCP Process
A PCP is particularly useful when no off-the-shelf solution exists and when stimulating competition is key.
In a PCP like Dynamo, the procurers don’t buy finished products. Instead, they fund several competing companies to research and develop possible solutions. The process happens in three phases:
- Solution Design – Multiple companies get funding to propose and sketch out different ideas.
- Prototype Development – The most promising ideas move forward, and companies build early versions (prototypes) to test if they work.
- Real-World Testing – A few final prototypes are tested in real conditions to see if they tackle the problem effectively.
At each stage, only the best solutions continue, so competition drives innovation. In the end, the procurers do not buy the prototypes — they just help create them. The companies keep their intellectual property (IP) and can later sell their innovations on the open market. If the procurers want to buy the best solution, they usually will get discounted prices, but have to launch a separate procurement process.
This approach shares the risk between the public and private sectors while ensuring that innovative, tailored solutions get developed.
Phases of the PCP Process
Open Market Consultation
The Open Market Consultation (OMC) is a series of events designed to inform potential suppliers about the DYNAMO project’s pre-commercial procurement opportunities. These events aim to clarify the procurement process, gather feedback on requirements and challenges, and facilitate collaborations among potential suppliers. An online survey and matchmaking service were also part of the OMC to gain deeper insights and aid potential bidders in identifying collaboration opportunities. Attendance at OMC sessions was not mandatory for tender submission, and all details from the events are accessible on this very website.
Call for Tender
The Call for Tender is a formal invitation to suppliers to submit proposals for the DYNAMO project’s pre-commercial procurement. This document outlines the general context and background, including the phased competitive development approach described above. It details the equitable distribution of IPR-related risks and benefits, exemptions from EU public procurement directives, and the importance of the Open Market Consultation. The Call for Tender specifies the services to be procured, the expected outcomes per phase, the tender closing time, the procurers and other parties involved, the contracting approach, and the total budget and its distribution per phase. It also includes the evaluation criteria for tenders, the content and format of tenders, and miscellaneous information such as language requirements and procedures for appeal.
Phase I: Solution Design
In this phase, seven contractors presented their approaches and formulated a detailed package for the pilot sites. The goal is to assess the feasibility of the proposed solutions, including concept, technology, organisation, regulatory compliance, and safety.
Phase II: Prototype Development
Phase II of the DYNAMO project is dedicated to developing and refining prototype systems, ensuring they evolve from initial concepts into functional solutions. The process begins with the creation of an alpha version, which includes either non-functional or partially functional components. This early-stage prototype undergoes initial testing with a small group of end users, allowing for a first round of feedback. As development progresses, a beta version is introduced, designed to be fully functional and capable of system-wide interaction. This iteration is subjected to a more extensive round of testing, involving a larger group of end users across different countries.
Throughout this phase, continuous validation and refinement take place, incorporating insights gained from testing to improve functionality and usability. Regular status calls help track progress and ensure alignment with project objectives. Towards the end of Phase II, the beta prototypes are presented on-site to our procurers, who assess their readiness for the next stage.
Phase III: Original Development and Testing
Phase III of the DYNAMO project is where the developed solutions transition from tested prototypes to full-scale pilot implementations under real-life conditions. This phase focuses on the deployment, operation, and assessment of the systems at all procurer sites. The selected contractors install and integrate their solutions, ensuring that all necessary components function seamlessly within the existing health and care infrastructures. Before launching the full pilot trials, thorough on-site testing is conducted to identify and resolve any technical or operational challenges that could arise due to local conditions.
Selection Process
The selection of suppliers for each phase is based on a rigorous evaluation process:
Eligibility and Exclusion Criteria
Participation was open to all types of operators from any country, regardless of size, geographical location, or governance structure. Tenders may be submitted by a single entity or in collaboration with others. However, there are requirements relating to the place of performance of the R&D services, with at least 50% of the total value of activities required to be performed in EU Member States or Horizon Europe associated countries.
Evaluation Criteria
The evaluation of tenders is based on exclusion criteria, selection criteria, and award criteria. Exclusion criteria include conflict of interest and grounds relating to criminal convictions, payment of taxes, insolvency, and professional misconduct. Selection criteria assess the tenderer’s ability to perform R&D, experience with multi-disciplinary and cross-organisational pathway planning, collaboration with public procurers, and capacity to commercially exploit the results.
Award Criteria
Award criteria are divided into on/off criteria and weighted criteria. On/off criteria include compliance with the definition of R&D services, compatibility with other public financing, and compliance with ethics and security requirements. Weighted criteria evaluate the excellence, impact, and implementation of the proposed solution. The evaluation committee, composed of representatives from the Buyers Group, assesses the tenders based on these criteria; they are supported by an Expert Advisory Board.
Contracting Approach
The PCP is implemented by concluding a Framework Agreement with each successful tenderer and Specific Contracts for each of the three R&D phases. A Framework Agreement and a Specific Contract for Phase I were awarded to seven contractors. Call-offs are organised for Phases II and III, with the aim of awarding three Phase II contracts and two Phase III contracts. Only offers from contractors that successfully completed the preceding phase are eligible for the next phase.
Involved Parties
The PCP process is conducted jointly by several public organisations forming a buyers group, led by a Lead Procurer who initiates the procurement process and signs contracts on behalf of all member organisations.
Funding
The PCP project is funded by the European Union under the Horizon Europe Research and Innovation Programme. The total budget for the PCP is €3,350,000.