Entities may be excluded from the procurement process if they have been convicted of certain serious offences including corruption, fraud, money laundering, or participation in organised criminal activities.
Authorities may exclude candidates who are
- insolvent or in insolvency proceedings,
- guilty of offences concerning professional misconduct,
- demonstrably proved to have committed professional misconduct,
- have failed to fulfil tax or social security obligations,
- have misrepresented any information or failed to supply required information which must be furnished by law.
Proof of Standing
The financial standing of the applicant tenderer may be proved by a judicial or administrative certificate of good standing in the countries where provision is so made. In other cases, the records of ab equivalent representative bodies may be required. Certificates of compliance with tax and social insurance obligations may be required.
Where States do not provide judicial and equivalent and records, a declaration on oath before a Notary or other equivalent body in the country of origin is to suffice. States may appoint authorities and bodies competent to issue documents and certificates.
Awarding authorities may make enquiries to authorities in other states where they are not satisfied with the information furnished. This may include inquiries in relation to the directors and officers of the tenderer. Contracting authorities are entitled to satisfy themselves that no unlawful State aid is being paid.
Authorities may request tenderers to prove their financial standing. It may include bank statements, evidence from banks and funders, evidence of professional indemnity insurance. They may require accounts and balance sheets where this is required to be published under the relevant law. If this is not subject to publication, certification of evidence of overall financial status may be required.
The statements, generally three years financial accounts may l be required. In the case of a startup operation, turnover or other substituted information of economic capacity should suffice. Evidence of financial and economic capacity may be provided by references, including statements from bankers and funders, financial accounts and evidence of turnover from relevant contracts.
In the case of a group company or consortia, the authorities may rely on the financial and economic standing of holding companies, group companies, joint ventures or consortium members. However, it must be proved that the contracting entity has the relevant resources, including proof that the tenderer entity will have the financial backing of the group member, holding company etc.
The technical ability of the tenderer to perform the contract must be shown. The requirements will depend on the circumstances. The capacity may be shown in terms of skills, experience, qualifications, infrastructure, know-how etc.
In the case of public works contracts, evidence of previous work and skill with certificates of satisfactory completion should be furnished. This should state the value, date and location of works, and whether they were completed in conformity with the contract and requirements.
References may be required to establish suitability and qualification. They should not of themselves determine the contract.
The requirements in terms of technical expertise and capacity will depend on the nature of the contract. It may be proved in circumstances by sufficient capital, plant and equipment, human resources with the requisite qualification, expertise etc.
The qualifications of the key providers may be relevant in many circumstances. Professional registration and licences requirements may be required for certain types of contracts. Evidence of registration with the relevant professional body, trade body or other licencing authority may be required.
Steps may be taken to verify the capacity and technical competence of the tenderer. Samples of work, evidence of previous work samples, etc. may be required. Products may be tested for conformity with standards published by relevant standards bodies.
There should be no discrimination in relation to the location of the tender within or without the State provided it is within the EU. The location of the head office may in effect be relevant in terms of other criteria such as the capacity to undertake the contract.
Environmental management measures may be required in appropriate cases. Eco-management certificates may be required. If certificates are to be drawn up, they must refer to certain recognised eco-management audit systems or equivalent standards based on EU or international standards. Equivalent certificates must be accepted.
The capacity of group members or participants may be relied on, regardless of the legal link. However, it must be proven that the relevant resources are at the disposal of the authority.
Awarding authorities may request evidence in relation to the proposed subcontractors.