{"id":2993,"date":"2018-07-02T18:52:22","date_gmt":"2018-07-02T18:52:22","guid":{"rendered":"http:\/\/legalblog.ie\/procurement-principles\/"},"modified":"2022-09-25T18:59:00","modified_gmt":"2022-09-25T18:59:00","slug":"procurement-principles","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/procurement-principles\/","title":{"rendered":"Broad Procurement Principles [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Public_Procurement_Law\" title=\"Public Procurement Law\">Public Procurement Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Publicity\" title=\"Publicity\">Publicity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Procurement_Process\" title=\"Procurement Process\">Procurement Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Award_Criteria\" title=\"Award Criteria\">Award Criteria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Financial_Thresholds\" title=\"Financial Thresholds\">Financial Thresholds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Exceptions\" title=\"Exceptions\">Exceptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/procurement-principles\/#Redress\" title=\"Redress\">Redress<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Public_Procurement_Law\"><\/span>Public Procurement Law<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>European Union Law binds member states and public authorities. Such authorities and bodies are significant purchasers of goods and services. The common market for goods and services in the European Union requires transparent, non-discriminatory procurement by public authorities. The EU Legislation lay down EU \u00a0wide rules and principles in relation to procurement.<\/p>\n<p>The procurement rules apply to governmental bodies and bodies governed by public law. These are bodies which are established for purposes of a general public interest nature. They do not include industrial or commercial businesses. They will generally be financed by the government and be under the control and supervision of the government.<\/p>\n<p>EU Legislation promotes the principle that member states should have a central purchasing and tendering body.<\/p>\n<p>EU Legislation allows for a system of certification of organisations for the purpose of providing evidence of financial, economic and technical capacity in a public procurement context. The systems must be mutually recognised in all EU States. The EU States decide the criteria for registration.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Publicity\"><\/span>Publicity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The procurement rules require transparency in the process of tendering and procurement. There must be EU wide advertisement of contracts over certain thresholds in value. All EU businesses can participate without discrimination.<\/p>\n<p>Prepublication is required in the European Union Official Journal. This includes contract notices and periodic indicative notices by which contracting authorities notify their requirements for procurement for the coming year.<\/p>\n<p>Public authorities have obligations to report and maintain certain records. In particular, they must draw up reports in relation to contracts award. They must maintain statistics of awards made during the year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Procurement_Process\"><\/span>Procurement Process<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Invitations to tender must be published for contracts above certain thresholds. The notice must set out the award procedures and criteria applicable.<\/p>\n<p>The notification of the award to the successful tender together with the price and reasons for selection must be published.. The notices are published in full in the original language. They are summarized in other official community languages. The EU bears the cost.<\/p>\n<p>After advertisement and publicity, the procurement process moves to selection and qualification. The process must determine the candidates according to objectively defined criteria. They must not discriminate or act arbitrarily. The authorities must follow the specified selection criteria.<\/p>\n<p>Authorities may require evidence of goods standing. This would include compliance with the relevant licensing or regulatory authority requirements and tax compliance. It may require evidence of the technical ability to perform the contract. This may be shown by way of experience and or qualification. References may be required. Details of recent work, technical abilities and sample work may be required.<\/p>\n<p>Evidence of quality assurance compliance where relevant may be required. Evidence of financial standing and the ability to perform may be required. This may require bank statements, accounts, management accounts and turnover figures.<\/p>\n<p>There may be requirements in relation to the legal form of the tenderer. For example consortia or joint venture may or may not be allowed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Award_Criteria\"><\/span>Award Criteria<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Awards should generally be based at the lowest price or the most economically advantageous offer. The lowest price offer should still be subject to the requirements in relation to quality standing etcetera.<\/p>\n<p>The economically advantageous basis considers qualitative and other factors beyond price. This may include efficiency, merits, aesthetic, functional characteristics after-sale service, technical assessments, commitments, maintenance costs and security of supplies. In the case of the most advantageous economically advantageous offer, there would normally be a formal weighting of the relevant factors in the evaluation process.<\/p>\n<p>The most economically advantageous criteria balance a number of factors. This will include price cost-effectiveness, technical merit, quality aesthetic and functional features, maintenance cost, security of supplies, spare part, commitments. This is an indicative list only and many other features may be relevant.<\/p>\n<p>It is a fundamental principle that awards must be must not discriminate on the basis of nationality within the EU.<\/p>\n<p>Public authorities may \u00a0provide conditions in the award of a contract which may include provisions for<\/p>\n<ul>\n<li>occasional training<\/li>\n<li>employment of persons with difficulty in achieving integration,<\/li>\n<li>combating unemployment or<\/li>\n<li>environmental protection.<\/li>\n<\/ul>\n<p>Such conditions must not be directly or indirectly discriminatory.<\/p>\n<p>Candidates who have been the\u00a0subject of conviction of certain crimes, of which the awarding authority is aware, be excluded. These include participation in a criminal organisation, corruption, money laundering, fraud.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Financial_Thresholds\"><\/span>Financial Thresholds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following financial thresholds apply so that the directives apply only to contracts above these levels.\u00a0 The thresholds (exclusive of VAT) applicable from\u00a01 January 2018 are<\/p>\n<p>Works\u00a0Contract Notice<\/p>\n<p>\u20ac5,548,000 Threshold applies to Government Departments\u00a0and Offices, Local and Regional Authorities and\u00a0public bodies<\/p>\n<p>Supplies and Services Contract Notice<\/p>\n<p>\u20ac144,000 Threshold applies to Government Departments\u00a0and Offices<br \/>\nContract Notice \u20ac221,000 Threshold applies to Local and Regional\u00a0Authorities and public bodies outside the Utilities\u00a0sector<\/p>\n<p>Utilities\u00a0Works Contracts \/<br \/>\nPrior Indicative Notice<br \/>\n\u20ac5,548,000<\/p>\n<p>For entities in utilities sector covered by GPA<\/p>\n<p>Supplies and Services \u20ac443,000<\/p>\n<p>For entities in utilities sector covered by GPA\u00a0The relevant thresholds are changed by the Commission every two years.<\/p>\n<p>Contracting authorities must not divide works in order to avoid the threshold. The thresholds apply to the full price including options and renewals.\u00a0In relation to supply contracts involving leasing or hiring, the value is based as follows<\/p>\n<ul>\n<li>fixed term contracts for less than 12 months, the total estimated value of the contract<\/li>\n<li>fixed contracts for more than 12 months the total value including the estimated residual value.<\/li>\n<\/ul>\n<p>Where the term is not fixed for a service or supply contract which is renewable and regular, the value is based on the total aggregate value of contracts of the same type during the 12 months period preceding.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Exceptions\"><\/span>Exceptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The general public sector procurement legislation applies to most public contracts. Excluded are water, energy, transport and postal services contracts, which are covered by separate similar legislation.<\/p>\n<p>The directive does not apply to secret contracts requiring special security measures or when the protection of the essential interests of an EU State so require. Contracts subject to international other international rules are also excluded.<\/p>\n<p>Special considerations apply to defence contracts and certain telecommunication contracts.<\/p>\n<p>The directive does not apply to<\/p>\n<ul>\n<li>acquisition or leasing of land<\/li>\n<li>acquisition development production of materials for broadcasting by broadcasters<\/li>\n<li>arbitration and conciliation<\/li>\n<li>financial services in connection with the issue of shares, securities, and other instruments including transactions to raise capital money or central bank services<\/li>\n<li>employment contracts<\/li>\n<li>research and Development Services other than where the benefits accrue exclusively to the contracting authority for use in its own affairs.<\/li>\n<\/ul>\n<p>The directive does not apply to service contracts or concessions or service contracts on the basis of an exclusive right enjoyed pursuant to domestic legislation compatible with the treaty They are subject to other similar EU legislation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Redress\"><\/span>Redress<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Contractors may obtain redress in domestic courts or appeal to the European Commission based on infringements of procurement legislation. \u00a0If the Commission decides that there has been an infringement, it may require the state or body to comply.<\/p>\n<p>State enforcement mechanisms are available. Challenges can be made by aggrieved tenderers in the High Court. Damages can be awarded for breach.<\/p>\n<p><!--\/themify_builder_static--><\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-2993\" data-postid=\"2993\" class=\"themify_builder_content themify_builder_content-2993 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Public Procurement Law European Union Law binds member states and public authorities. Such authorities and bodies are significant purchasers of goods and services. The common market for goods and services in the European Union requires transparent, non-discriminatory procurement by public authorities. The EU Legislation lay down EU \u00a0wide rules and principles in relation to procurement. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[125,25],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2993"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=2993"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2993\/revisions"}],"predecessor-version":[{"id":18732,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/2993\/revisions\/18732"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=2993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=2993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=2993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}