Procurement law
11 important questions on Procurement law
What is public procurement?
The scope of the General Directive and the Special Sectors Directive can roughly be delineated by:
2.The ‘what’-question: is it a public contract?
3.The ‘value’-question: is the value of the contract higher than the threshold amount?
What are the general principles of Procurement Law?
- Equality
- Transparency
- Proportionality:the requirements that tenderers etc. are required to meet must be proportionate to the contract that is being awarded.
- Non Discrimination/equiality
- Objectivity
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When has the public authority the right to exclude your business form a call for tenders? If it:
- is bankrupt or being wound up
- has suspended its activities or its activities are administered by a court
- has been found guilty of grave misconduct
- has not paid taxes or social security contributions
- has made false declarations to a public authority
In which specific cases may public authorities award contracts without publishing?
- emergencies due to unforeseeable events
- contracts that - for technical reasons or because of exclusive rights - can be carried out by one particular company only
- contracts that by law are excluded from public procurement (acquisition/rental of existing buildings, employment contracts, programme material for broadcasting, etc.).
What are the different types of Public Procurement procedures?
- Open procedure: Everyone may submit a tender.
- Restricted procedure: Only those who are pre-selected will be invited to submit a tender.
- Competition with negotiation: The Public Authority invites at least 3 businesses with whom it will negotiate the terms of the contract
- Competitive dialogue, the Public Authority invite at least 3 candidates to a dialogue in which the final aspects are defined. After the dialogue the candidates submit their final tenders. Competitive dialogue cannot be used by public services providers in the water, energy, transport and postal services sectors.
What is an Open tendering procedure?
- Everybody is permitted to tender
- Disadvantage: the contracting authority sometimes has to assess very large numbers of tenders
What is an restricted tendering procedure?
- Everybody can request to participate
- A pre-selection is made according to the selection criteria
- Only the selected tenderers will actually tender
- a minimum of 5 tenderers should be selected
What is an competitive dialogue tendering procedure?
- Complex contracts of which the tendering authority is not capable of determining the:
- Technical resources
- Legal Conditions
- Financial conditions
- Dialoge with a minimum of 3 selected candidates to determine a solution
- Based on the solution candidates put in their bid
- very helpful for innovations!
What are the requirements of the selection criteria of a tender?
-The selection criteria must be: proportionate, objective and substantively related to the contract. (general principles)
What are possible award criteria?
- Best PQR (price-quality ratio)
- Lowest costs (lifecycle costs)
- Lowest price
Other award criteria:
- Technical merit
- Environmental characteristics
- delivery date
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