Case Study: Sustainable Procurement of AV Equipment for the HPBA Green Hub

Introduction

The HPBA Green Hub is a pioneering initiative aimed at fostering circular design and sustainability in the built environment. As part of its commitment to sustainability, HPBA sought to adopt a circular economy approach in procuring audiovisual (AV) equipment for the hub. This case study explores the challenges, solutions, and outcomes of this procurement process.

Procurement Goals

HPBA’s Green Hub is publicly funded, therefore Green Public Procurement rules apply. We are passionate about the sustainable built environment and are applying circular economy principles to our fit out of the Green Hub. Our goals for this procurement are:

1. Sustainability: Source AV equipment with minimal environmental impact, focusing on reconditioned or refurbished items.
2. Circular Economy Alignment: Embrace models such as Product as a Service (PaaS) to extend the lifecycle of equipment and minimize waste.
3. Transparency: Ensure suppliers provide clear information on their sustainability practices, including the carbon footprint of their products.

Process Overview

Tender Submission

A tender was issued, attracting submissions from four companies. Suppliers were asked to detail their sustainability credentials, including the carbon footprint of their products, sourcing practices, cost and shipping methods.

Supplier Discussions

In follow-up meetings, each supplier presented their solutions, with particular focus on:

– Availability of reconditioned or refurbished equipment.

– Suitability of PaaS models for public procurement.

Key Challenges

1. Limited Supply of Refurbished Equipment

– One company specialised in refurbished laptops, screens, and interactive whiteboards but could not meet the broader AV requirements of the Green Hub.

– The high demand for refurbished technology in Ireland exacerbated the difficulty of sourcing suitable equipment.

2. Public Procurement Constraints

– Public funding required adherence to procurement regulations, which posed challenges for adopting innovative models like PaaS.

3. Carbon Footprint Considerations

– Ensuring that all equipment had minimal environmental impact involved scrutinising suppliers’ sourcing, manufacturing, and shipping practices.

Exploring Solutions

1. Product as a Service (PaaS)

Product as a Service (PaaS) is a business model in which customers lease or subscribe to a product rather than purchasing it outright. Under this model, the supplier retains ownership of the product and provides ongoing maintenance, upgrades, and end-of-life management, ensuring that the product remains functional and sustainable throughout its lifecycle.

Ownership: The supplier maintains ownership of the product, shifting responsibility for its upkeep and disposal away from the customer.

Subscription or Leasing Model: Customers pay for access to the product, often through a recurring fee, rather than making a one-time purchase.

Lifecycle Management: Suppliers take responsibility for maintaining, repairing, and recycling or reusing the product at the end of its life.

Focus on Value: Customers benefit from the product’s utility without needing to manage its full lifecycle, while suppliers are incentivised to produce durable and sustainable goods.

Examples of PaaS in Practice

Philips Lighting at Schiphol Airport: Philips provides lighting as a service, installing and maintaining lights while retaining ownership. This model ensures efficient use and end-of-life recycling.

Clothing Leasing Services: Companies like Rent the Runway allow customers to rent garments instead of buying, reducing waste and encouraging reuse.

IT and Tech Equipment Leasing: Businesses lease computers, servers, or AV equipment, with suppliers handling upgrades and eventual recycling.

Benefits of PaaS

Environmental Sustainability: Promotes resource efficiency, reduces waste, and encourages a circular economy.

Cost Efficiency: Customers avoid upfront capital expenses and only pay for what they use.

Improved Product Quality: Suppliers are incentivized to create durable, repairable products to maximise long-term revenue.

Convenience: Customers benefit from maintenance and upgrade services, reducing the burden of managing the product.

PaaS aligns with circular economy principles by decoupling resource use from economic growth, making it an increasingly popular choice for sustainable business practices.

Two suppliers offered quotes for a PaaS model, and further discussions explored the feasibility of integrating this within public procurement frameworks.

2. Customised Solutions

• We were impressed by the willingness of suppliers to go the extra mile, with several of them open to exploring new ways of working to meet the brief.
• One standout supplier, Avituc, demonstrated exceptional adaptability. They proposed a bespoke PaaS model tailored to the Green Hub’s needs, encompassing sustainable equipment.

Outcome and Next Steps

• Selection of Avituc: Avituc’s innovative approach and bespoke solution met all requirements, balancing sustainability, functionality, and compliance with public procurement guidelines.
• Trial PaaS Model: A trial will evaluate the effectiveness of the PaaS approach for future scalability.

Reflections and Learnings

• High Demand for Refurbished Tech: The limited availability of refurbished AV equipment in Ireland highlights the need for increased focus on this market.
• Potential of PaaS Models: Leasing solutions offer a sustainable alternative to traditional procurement, though public sector adoption requires adjustments to procurement frameworks.
• Importance of Supplier Collaboration: Transparent communication with suppliers, like Avituc, is crucial for achieving tailored sustainable solutions.