Presentation from Networking the Networks - Riddel Hall, Belfast 13 December 2013

1. Pre-Commercial Procurement
www.investni.com
SBRI – Pre-Commercial
Procurement

2. SBRI – What Is It?
• An innovative approach to government
procurement
• Programme coordinated through Technology
Strategy Board (TSB) by Invest NI/DETI
• Demand-driven by a defined challenge
• Fast-track simplified process, particularly suited
to SMEs
• Public sector body acts as the “lead customer”
Pre-Commercial Procurement
www.investni.com

3. SBRI – What Is It?
Procurement not grant
• Develop and eventually procure a novel solution to an existing problem
• Encourage creation of solutions which meet policy objectives
Development Contracts
• 100% funded R&D
• Deliverable based rather than hours worked or costs incurred
• Operates under procurement rules rather than State Aid rules
• IP rests with Company
•
Certain usage rights with Public Sector – companies encouraged to exploit IP
Pre-Commercial Procurement
www.investni.com

4. SBRI – What Does It Do?
• Utilises the power of public sector
procurement (DHSSPS budget: £4.7bn p.a.)
• Delivers major improvements in meeting
operational or policy objectives of public
sector
• Enables better quality & cost effective
solutions for the public sector by stimulating
the creation of new products & services
Pre-Commercial Procurement
www.investni.com

5. SBRI – Priority given by Government
• 6 of the larger UK gov’t departments targets
– £100m in FY13/14
– £200m in FY14/15
• NI Finance Minister very keen to utilise SBRI to
improve efficiency of NI public sector
procurement
Pre-Commercial Procurement
www.investni.com

6. SBRI – How Does It Work?
• TSB & government departments create a competitive call
for solutions to identified needs in the public sector
• Phased approach
– Phase 1 – Feasibility – determine scientific, technical &
commercial feasibility
– 2 - 9mths & £20k to £100k
– Results of phase 1 will largely determine entry to phase 2
– Phase 2 – Prototyping – bring product/service to the point of
commercialisation
– May be up to 2 years and £1M (depends on challenge)
Pre-Commercial Procurement
www.investni.com

7. SBRI – How Does It Work?
1. Open competition
supported by TSB
2. Competition opens
4. Most promising proposals selected
5. Phase 1 demonstration of feasibility – typically lasting up to 6 months & worth < £100k
8. Applicants commercialise
successful outcomes
9. Applicants free to further
develop & exploit IP
Pre-Commercial Procurement
www.investni.com
3. Applicants submit proposals
6. Assessment of projects for phase 2 funding
7. Phase 2 prototype development – typically lasting up to 2 years, worth £ 250k - £1m

8. Role of Technology Strategy Board
• SBRI Champion
• Process Owner
• Documents & Templates
• Keeping it simple for both Public & Private Sectors
• Application Support
• Problem definition and unpacking
• Outreach
• Competition management
• Increasing support to Devolved Administrations
Pre-Commercial Procurement
www.investni.com

9. SBRI – Application Process
• Competition widely advertised through TSB channels
• Any size of business is eligible
• Other organisations eligible – need to demonstrate route to market
• Project risk is managed through the Phased process
•
Applications assessed by Public Sector Body on Fair Market Value
• All contract values quoted include VAT
• The contract terms and conditions are not negotiable
• Single applicant (Any partners should be shown as subcontractors)
Pre-Commercial Procurement
www.investni.com

10. SBRI – Benefits
• If Government uses procurement
innovatively it will...
•
encourage new innovative solutions from businesses
•
secure better value for money
•
boost the growth of NI SMEs
•
stimulate exports
•
provide winning companies ‘first-mover’ advantage
•
Grow the local economy
Pre-Commercial Procurement
www.investni.com

11. SBRI – Company Benefits
• Develops prototype in collaboration with a
“lead customer”
• Receives a contract not a grant
• 100% funded
• Retains IP
• Can claim R&D Tax Credits (large co.
scheme)
Pre-Commercial Procurement
www.investni.com

12. SBRI – Progress To Date
NITB Apps
• Need to make visitor information more accessible via mobile devices
to help tourists ‘explore more’
• Opportunity to exploit public sector dataset
• £90k budget (Maximum award of £30k)
• Seeking 3-7 successful projects
• 72 bids (22 from NI)
• 4 Winners, 2 from NI, MyTourTalk less than 1 year old
• 9 public sector data sets being used by the winners
• Total cost £81k – no ongoing cost to government
• https://vimeo.com/80809219
Pre-Commercial Procurement
www.investni.com

13. SBRI – Retrofit for the Future
• To Retrofit UK social housing stock in order to meet
future targets in reduction of CO2 emissions and energy
use
• NI Participation through Eco-Energy (NI) & Grove
Housing Association – supply chain opportunities
Pre-Commercial Procurement
www.investni.com

14. SBRI – HCAI – Dept of Health
• NHS spends up to £1B dealing with HCAI
• ~300,000 patients
• Hand cleaning device
•
Machine which scans non-thermal plasma over hands
•
Kills pathogens, kinder on the skin
• Funded for two phases
•
£100,000 + £750,000
• ‘SBRI funding has enabled us to raise a second round of Angel
funding....we have grown from 3 to 6 full time employees plus 20
associates...by 2014 we plan to have a 100 employees ’
STEVE MORRIS, CREO MEDICAL
Pre-Commercial Procurement
www.investni.com

15. SBRI – Other NI Participation
• Screening Drug Drivers
29 Applications – 2 from NI
(Home Office Challenge)
3 Contracts awarded – 1 from NI - Randox
• Have I got views for you
50 applications – 1 from NI
(Home Office Challenge)
6 Contracts awarded – 1 from NI - Repknight
• Better Health Outcomes 5 companies from NI
have applied
Pre-Commercial Procurement
www.investni.com

16. SBRI – Points of Contact
• Pat Doyle
Innovative Procurement Executive – Invest NI
Tel: 028 9069 8835
pat.doyle@investni.com
• Eoin McFadden
Innovative Procurement Executive – DETI
Tel: 028 9052 9773
eoin.mcfadden@detini.gov.uk
• Rick Bartlett
Innovative Procurement Executive – CPD
Tel: 028 9057 6814
richard.bartlett@dfpni.gov.uk
• https://www.innovateuk.org/government-contracts-sbri
Pre-Commercial Procurement
www.investni.com