Global Government Contracting: Europe M-U
Identifying Procurement Opportunities. Delivering Procurement Needs.Procurement information for jurisdictions in Africa, the Americas, Asia-Pacific, Europe and the Middle East in respect of:
- how to find procurement opportunities;
- the structure of procurement laws and key content; and
- in-country resources and relevant publications.
Country Contacts
Sandra Perišić
Senior Associate, Karanović & Partners
Leonid Ristev
Counsel, Karanović & Partners
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
Government tenders are officially announced on the electronic public procurement system (EPPS), which represents a unique information system enabling communication between bidders and purchasers, including publication of tender requirements and documentation to the general public.
Additionally, several specialized portals also publish information regarding public procurements:
There are no different official sources for 'green' contracting opportunities. However, such opportunities are often published on ecology and green energy portals (eg Ecoportal.me, Balkan Green Energy News)
Public invitations for awarding public-private partnerships (PPPs) are published:
- in the Official Gazette of the Republic of Montenegro;
- in public media distributed within the entire territory of the Republic of Montenegro;
- on the website of the procurement entity;
- on the EPPS;
- in the electronic form on the internet page of Montenegrin Investment Agency;
- on printed or electronic media, by discretion of the procurement entity.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
Under the Public Procurement Law, there are no requirements for bidders to be established in Montenegro in order to bid or execute a contract with the procuring entity.
There are some areas where the local presence of a bidder (or at least one member of its consortium) is required by specific laws, such as for the supply of pharmaceuticals.
However, when it comes to PPP, the procurement entity may, by its own discretion, require the bidders to establish an SPV in Montenegro, prior to signing the PPP contract, whose sole purpose will refer to activities prescribed by tender.
Is there any requirement for 'local content'?
There is no requirement for 'local content'. However, in cases where local presence of bidders is required, the general requirements relating to bidder's personnel (such as in terms of the licenses they possess) may indirectly require the engagement of local workforce.
The Legal Procurement Framework
What is the applicable procurement legislation?
General public procurement procedures in Montenegro are conducted under the Law on Public Procurement.
The Law on Public Procurement also sets out the basic framework for procurement in the area of defence and security, whilst the applicable bylaws (such as the Rule On Specific Procurement In The Security Field) go into further details on the relevant procurement specifics. Additionally, the Law on Public Procurement also sets the framework for procurement in the area of energy and utilities.
When it comes to sectorial laws, from the perspective of PPPs, the procedure that applies to the procurement of PPPs is either the one prescribed under the Law on Private-Public Partnership or under the Law on Public Procurement, depending on whether the project is with or without elements of a concession.
Concession award procedures are regulated by Law on Concessions.
Please find below the links for other relevant legislation:
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes, Montenegro has ratified the WTO Government Procurement Agreement (GPA).
Montenegro has also signed bilateral trade agreements with the Republic of Turkey and Ukraine, which include Government Procurement commitments, which are of rather general nature (i.e. relating to the general intention of the parties to promote competition and eliminate restrictions from participating in public procurements, etc).
If so, how do these international trade agreements interact with the domestic procurement legislation?
These international trade agreements establish principles such as the liberalization of public procurement markets on the basis of non-discrimination and reciprocity.
Under Montenegrin law, ratified international agreements prevail over national laws, meaning that, in case of a conflict, their provisions derogate the general national rules. However, such international trade agreements do not establish any exceptions in applying Law on Public Procurement.
What types of procuring entity need to comply with the procurement legislation?
The following entities need to comply with the procurement legislation:
- state bodies;
- local self-government units;
- state owned or controlled entities performing activities of public interest;
- consortium; and
- sectorial procuring entity.
There is also a detailed list of exceptions, describing circumstances under which the Law on Public Procurement will not be applicable, e.g. for procurement of real estate, legal services, loans, specific types of defence and security procurements, postal and telecommunication services, procurements financed by international organisations, due to national security reasons etc.
Which types of contracts are covered?
The Law on Public Procurement covers the procurement of goods, services and works.
However, financial thresholds refer to the value of contracts which are excluded from public procurement, as follows:
- procurement of goods, services and works of estimated value on an annual basis up to EUR 5,000.00,
- procurement of goods and services of estimated value on an annual level equal to and greater than EUR 5,000.00, and less than EUR 20,000.00, and
- procurement of works of estimated value on an annual level equal to or greater than EUR 5,000.00, and less than EUR 40,000.00.
The procurement of goods, services and works with financial values as stipulated in the three points above are conducted as simple procurement procedures.
Specific thresholds apply for certain procurements for the needs of Montenegrin diplomatic and military missions abroad and in peace corps missions, as well as for the procurement of social and some reserved procurements related to professional rehabilitation and employment of physically impaired persons.
Are there any exemptions to competitive bidding?
Negotiating Procedure Without Prior Publication may be regarded as an exemption to competitive bidding. However, it is only available in the following circumstances:
- in the Public Procurement Procedure no bid or no correct bid has been submitted, or in the limited public procurement procedure no application for qualification or no correct application for qualification has been submitted, provided that the subject of procurement and the content of the public procurement documentation have not been significantly changed;
- only a certain entity may realize the procurement in the case of: (i) creating unique work of art, (ii) absence of market competition for technical reasons, and (iii) the protection of exclusive rights, including intellectual property rights;
- if it is not possible to act within the deadlines prescribed for Public Procurement with Negotiations, due to extreme urgency caused by an event that the procuring entity could not have foreseen, and which was not caused by the actions of the procuring entity;
- the subject of procurement are goods produced exclusively for the purposes of researching, experimentation, studies or development, provided that it is not a serial production of goods for the purpose of making a profit or reimbursement of research and development costs;
- additional deliveries of goods during the performance of contractual obligations from the bidder, provided that: (i) goods are intended for partial replacement of goods or installations or expansion of existing deliveries of goods or installations, (ii) change of bidders or goods would cause technical problems in functioning and maintenance, (iii) the total value of additional deliveries of goods does not exceed 20% of the value of the contract, and (iv) and from the day of concluding the basic contract, the duration of these contracts, as well as recurring contracts, are not longer than three years;
- procurement of goods on commodity exchanges;
- procurement of goods is carried out under particularly favourable conditions, provided that the bidder has permanently suspended business activities or is in the process of bankruptcy or liquidation;
- procurement of services, for continuation of services similar to those prescribed by the Project Competition, provided that the procuring entity includes all awarded entities and concludes a contract with one of the awarded entities; and
- procurement of services and/or works which present re-provision of similar services or works entrusted to the bidder, provided that: (i) the public procurement documentation prescribes the possibility of additional services or works, (ii) the total value of additional services or works does not exceed 20% of the value of the contract and (iii) no more than three years have passed since the conclusion of the contract.
Are there any proposals to amend the applicable procurement legislation?
There is a working version of the Law on amendments of Law on Public Procurement, but it still has not entered a parliamentary procedure. The working version aims to simplify procedures and clarify legal provisions that could and/or have so far been subject to different interpretations in application.
Key procurement resources
Country Contact
Janet Meesters
Partner, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of "green" contracting opportunities?
Tenderned is the most regularly used website.
Also used is TED. As of right now, there are no special sources for government announcements for "green contracting" opportunities.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
No, in general there is no such requirement for bidders to be established in a certain jurisdiction in order to bid or execute a contract. In special circumstances, it could be required by procuring entities in a specific tender, but in general such provision would be a violation of the public procurement principles since the European public procurement rules aim to guarantee a free and open internal market for public procurement.
Is there any requirement for "local content"?
No, in general there are no requirements for procuring entities to include "local content". However, under circumstances procuring entities may demand that a certain percentage of "social workers" will work on a project in order to improve the local workforce.
The Legal Procurement Framework
What is the applicable procurement legislation?
In general, the "Aanbestedingswet 2012" is the main applicable legislation for public procurements. It implements EU Directives 2014/24/EU and 2014/25/EU.
Connected to the Aanbestedingswet 2012, there is certain supporting legislation that further describes the public procurement rules.
An important document that must be followed by procuring entities is the Proportionality guide (Gids Proportionaliteit). This guide describes for various scenarios which requirements and actions of procuring entities are proportionate, and which requirements and actions might in general be a violation of the principle of proportionality.
The Netherlands also have a special guide that is applicable for public procurement regarding works.
Next to the general legislation and supporting guides, The Netherlands also have a special applicable framework for public procurement regarding defence and military products.
Links to the relevant legislation are below, as well as the Proportionality guide:
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes, The Netherlands have ratified the GPA.
If so, how do these international trade agreements interact with the domestic procurement legislation?
The GPA is a supplement next to the domestic legislation, and specifically states the scenarios in which procuring entities must deal with contractors outside of the EU in the same way as contractors that are based inside the EU.
What types of procuring entity need to comply with the procurement legislation?
Contracting authorities and special-sector companies are bound in their procurement activities to the Aanbestedingswet 2012.
Which types of contracts are covered?
- Government contracts for works, services and deliveries
- Government contracts for special sector entities
- Government contracts for concession orders
Depending on the value of the contract, a specific public procurement procedure must be followed. These financial thresholds change every two years, and can be found in the following directives:
For contracts that have a value below these thresholds, in general there is no obligation to follow a competitive bidding procedure. However, the "Gids Proportionaliteit" gives guidance as to when it is still advised to hold a competitive bidding procedure. These guidelines are fluid and depend on the specific tender. An important factor for deciding whether a contract is covered by the "Aanbestedingswet 2012" is whether multiple parties would be potentially interested in the contract award.
Are there any exemptions to competitive bidding?
The Dutch public procurement legislation states a limited number of situations in which procuring entities may hand out a direct award without a competitive bidding procedure. It must be noted that these situations are rare, and the contracting authority that seeks to rely on one of these situations must be able to justify its decision to make an award without following a regular public tender. Shortly summarized, procuring entities may directly award a contract without a competitive procedure in the following situations:
- If the procuring entity intends to award the contract to an entity in which it holds a certain amount of control, and this legal entity performs more than 80% of their activities for procuring entities and there is no private capital.
- If the contract to be awarded can only be performed by one party, due to legal, technical or practical reasons, then the procuring entity may directly award the contract.
- If the value of the intended contract is below the thresholds mentioned in the answer above , a procuring entity may directly award the contract as long as the procuring entity still respects the main principles of the Public Procurement law.
Are there any proposals to amend the applicable procurement legislation?
No.
List key procurement resources and include links
Pianoo is part of the Ministry of Economic Affairs and explains public procurement rules. They also regularly publish guidelines that can be used by procuring entities to improve green procurement within the applicable legal framework.
Country Contacts
Veton Qoku
Partner, Karanović & Partners
Bojana Paneva
Associate, Law Office Veton Qoku co-operating with Karanović & Partners
Leonid Ristev
Counsel, Karanović & Partners
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
Government tenders are generally announced on the government website designated and used as an Electronic system for public procurement (Electronic System). In accordance with the provisions of the Law on Public Procurement, all communications, exchange of information and the submission of tenders or requests to participate in procurement procedures are made through the Electronic System. There is an obligation to publish government tenders in the Electronic System if their value exceeds:
- in the classical public sector, exceeding EUR 1,000 - EUR 10,000 in Denar equivalent, depending on the type of contract awarded; and
- in the utilities, exceeding EUR 2,000 - EUR 5,000,000 in Denar equivalent, depending on the type of contract awarded.
Government tenders are also advertised on the official websites of the relevant procuring entity (state-owned or public entities, government body, etc).
Public procurement notices in a simplified open procedure, open procedure, restricted procedure, competitive procedure with negotiation, negotiated procedure with publication of a public procurement notice, competitive dialogue and innovation partnership must also be published in the Official Gazette of the Republic of North Macedonia.
The Central Financing and Contracting Department (CFCD) is a department within the Ministry of Finance of the Republic of North Macedonia having sole responsibility for tendering, contracting and payments concerning EU funded projects. Such procurement opportunities are published on the official website on Tenders Electronic Daily and CFCD's official website.
Public procurement notices and notices for design contests are also published in the Official Journal of the European Union, provided that the estimated value net of VAT is equal to or greater than the following thresholds:
- a minimum value in the classical public sector ranging from EUR 130,000 to and greater than EUR 5,000,000 in Denar equivalent, depending on the type of contract awarded; and
- a minimum value in the utilities ranging from EUR 400,000 to and greater than EUR 5,000,000 in Denar equivalent, depending on the type of contract awarded.
With respect to announcements of 'green' contracting opportunities, please note that there are currently no separate sources where such opportunities are announced. The announcements for tender procedure and auction for market premiums and feed-in tariffs are published on the Official website of the Ministry of Economy.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
Generally, foreign bidders can (and regularly do) participate in public procurement procedures in North Macedonia.
Nevertheless, there are some areas where the local presence of a bidder (or at least one member of its consortium) is required by specific laws, such as for the supply of pharmaceuticals and the performance of construction works.
Regarding PPPs in North Macedonia, the public partner can state in the tender documentation that the bidder should establish an SPV for executing the contract and/or for realizing the project.
Is there any requirement for 'local content'?
No, the applicable laws do not explicitly envisage such requirements for local content.
The Legal Procurement Framework
What is the applicable procurement legislation?
The applicable procurement legislation in the Republic of North Macedonia is the following:
- Law on Public Procurement, published in "Official Gazette of the Republic of Macedonia" no. 24/2019 and "Official Gazette of the Republic of North Macedonia" no. 87/2021. This Law prescribes rules on public procurement in both the classical public sector and in the utilities sector. An unofficial translation of the consolidated version of the Law on Public Procurement has been made available on the website of the National Bank of the Republic of North Macedonia;
- Law on Concession and Public Private Partnership, published in the "Official Gazette of the Republic of Macedonia" nos. 6/2012, 144/2014, 33/2015, 104/2015 and 215/2015 and the "Official Gazette of the Republic of North Macedonia" nos. 153/2019, 261/2019 and 89/2022). This Law prescribes special rules regulating concessions and public private partnerships; and
- Law on Public Procurement in the Area of Defence and Security, published in the "Official Gazette of the Republic of North Macedonia" nos. 180/2019 and 176/2021. This Law prescribes special rules applicable to public contracts awarded in the field of defence and security (Macedonian version of this Law and its latest amendment available on the website of the Public Procurement Bureau.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
North Macedonia is currently in the process of negotiating for accession to the GPA, having applied for accession on 17 March 2017. North Macedonia enjoys observer status in the Committee on Government Procurement since 27 June 2013.
North Macedonia has undertaken public procurement commitments in the following ratified treaties:
- Stabilisation and Association Agreement between the European Communities and the former Yugoslav Republic of Macedonia, ratified on 12 April 2001
- Free Trade Agreement between the EFTA States and the Republic of Macedonia, ratified on 7 November 2001
- Free Trade Agreement between Republic of Macedonia and Republic of Turkey, ratified on 17 December 1999; and
- Free Trade Agreement between Republic of Macedonia and Ukraine, ratified on 5 July 2001.
If so, how do these international trade agreements interact with the domestic procurement legislation?
International trade agreements, once ratified, constitute part of the domestic legal system. Accordingly, public procurement provisions therein complement domestic procurement legislation, and in case of conflict, their provisions derogate the general national rules.
Article 27 of the Law on Public Procurement provides that public procuring entities, in public procurement procedures, shall not accord a less favourable treatment to economic operators established in countries signatories to the GPA, or to other international treaties or agreements that are ratified in accordance with the Constitution of the Republic of North Macedonia.
What types of procuring entity need to comply with the procurement legislation?
In accordance with the Law on Public Procurement, entities which must comply with public procurement legislation (Contracting Authorities) are:
- state authorities and bodies of the local self-government units;
- legal entities established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character, and which are financed, for the most part, by state authorities and bodies of the local self-government units, or which are subject to control over their operations by state authorities and bodies of the local self-government units or by such legal entities, or in which more than half of the members in their managerial or supervisory board are appointed by state authorities and bodies of the local self-government units;
- associations established by one or more state authorities and bodies of the local self-government units, or by legal entities established, financed, which are subject to control, or which have more than half of the members in their managerial or supervisory board are appointed by state authorities and bodies of the local self-government units;
- public enterprises, joint stock companies and limited liability companies in the abovementioned entities have a dominant direct or indirect influence through ownership, i.e. if they hold the major share of the company's capital, have a majority of the votes of the stockholders or appoint more than half of the members of the managerial or supervisory board of the enterprise or the company, and which perform one or more activities in the utilities sector, in the cases when they award public contracts or conclude framework agreements with the purpose of performing the relevant activities; and
- any other legal entity which carries out one or more activities in the utilities sector, based on a special or exclusive right, in the cases when it awards public contracts or concludes framework agreements with the purpose of carrying out the relevant activities within its competences.
The Government of North Macedonia has adopted a decision for determining an indicative list of Contracting Authorities.
Which types of contracts are covered?
The Law on Public Procurement applies to public procurement procedures and design contests having an estimated value net of value-added tax that is equal to or greater than the following thresholds:
- a minimum threshold in the classical public sector ranging from EUR 1,000 to and exceeding EUR 10,000 in Denar equivalent, depending on the type of contract awarded; and
- a minimum threshold in the utilities ranging from EUR 2,000 to and exceeding 5,000,000 in Denar equivalent, depending on the type of contract awarded.
All procurements exceeding the statutory thresholds are subject to the public procurement rules, unless explicitly exempt by the Law on Public Procurement (e.g. certain legal services provision, for the needs of diplomatic and consular representations below a certain value).
Are there any exemptions to competitive bidding?
The procurement procedure in which competitive bidding is eliminated or restricted, the so-called negotiated procedure without prior publication, is available only when specific conditions are met, e.g. when no bids have been received in the open or restrictive procedure, or for reasons of extreme urgency, or when only a specific bidder may perform the contract due to technical reasons or protection of exclusive rights (such as IP).
Are there any proposals to amend the applicable procurement legislation?
Yes, according to the publicly available information, there are proposals to amend the applicable legislation regulating concessions and public private partnerships. In this respect, the Ministry of Economy published on the website platform of the National Register of Regulations the following draft-laws:
- Law on Public Private Partnership; and
- Law on Concession for Goods of General Interest.
Key procurement resources
- Law on Public Procurement (An unofficial translation of the consolidated version of the Law on Public Procurement has been made available on the following link;
- Electronic System for Public Procurement, system which enables conducting public procurements in electronic form. The Electronic System enables electronic trading between Contracting Authorities in Republic of North Macedonia and domestic and foreign economic operators. The Electronic System eliminates paper-work and ensures efficiency and cost-effectiveness of the contract award procedures.
- Manual for Economic Operators on the Manner of Using the Electronic System for Public Procurement (available on the website of the Public Procurement Bureau).
- Law on Concessions and Public Private Partnership (English version is currently not available).
- System for e-concession, used for granting concessions for detailed geological research and exploitation of mineral resources (available on the website: e-koncesii.mk).
- System for PPP e-auctions, used for e-auctions in the PPPs (available on the website: e‑koncesii.mk/jpp).
Country Contact
Michał Orzechowski
Counsel, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
If a tender is above EU thresholds, it is advertised in the Supplement to the Official Journal of the EU – Tenders Daily.
If a tender is below these thresholds, there is a local equivalent of TED, ie Biuletyn Zamówień Publicznych.
Additionally, each governmental body launching a tender, is normally obliged to publish all documents on its official website.
There is no dedicated source for "green" procurement.
Are they any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
There are requirements resulting from the general law as well as tender specific requirements.
The requirements can relate to the contractor (i.e. subjective criteria) and the contract-matter (i.e. objective criteria).
Is there any requirement for 'local content'?
The law permits contracting authorities to reserve a portion of the contract to "local content", but this must be assessed on a case-by-case basis as there is no fixed percentage in the law.
The Legal Procurement Framework
What is the applicable procurement legislation?
All acts can be found here at the official website of the Public Procurement Office:
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes (via EU).
If so, how do these international trade agreements interact with the domestic procurement legislation?
Local law implements certain key rules into domestic order.
What types of procuring entity need to comply with the procurement legislation?
Governmental bodies, municipalities as well as so called sectorial bodies (operating in the utilities sector), especially if financed or managed by public bodies.
Which types of contracts are covered?
The Act covers supplies, services and construction contracts. The Act applies to contracts the value of which exceeds PLN 130 000 net. Simplified rules apply to contracts the value of which does not exceed:
- EUR 140 000, for supplies and services awarded by contracting authorities that are central administrative units;
- EUR 215 000, for supplies and services awarded by contracting authorities that are regional and local authorities;
- EUR 5 382 000 for construction works.
The threshold for utilities and defence security contracts are higher and amount to:
- EUR 5 382 000 – for construction works;
- EUR 431 000 -for supplies and services.
Are there any exemptions to competitive bidding?
Yes, the Polish Public Procurement Act recognized the possibility of a single source procurement.
A list of circumstances allowing for a single source procurement is listed in Article 213 of the Act.
Are there any proposals to amend the applicable procurement legislation?
Currently no.
Key procurement resources
The main procurement resources are available here.
Country Contacts
Nuno Azevedo Neves
Managing Partner, DLA Piper
Bruno Soares Ferreira
Senior Associate, DLA Piper
Mariana Ricardo
Senior Associate, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of ‘green’ contracting opportunities?
All public tenders are advertised on IMPIC’s Portal Base and on series II, section L of the Official Gazette.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
Generally, bidders can be established in any other jurisdiction.
Please note that Portugal, as an EU Member-State, can restrict non-EU based bidders in the Defence and Security sectors.
Is there any requirement for ‘local content’?
Although there are no requirements of this nature per se, they could be included in the tender documents.
In accordance with the Public Procurement Code, the aspects of the execution of the contract contained in the specifications may concern conditions of a social or environmental nature, or that are intended to favour the enhancement of the local and regional economy, provided that they are related to such execution.
Moreover, procuring entities may reserve the right to be a candidate or tenderer to entities with their head office and effective activity in the territory of the intermunicipal entity where the contracting authority is located, in procedures promoted by intermunicipal entities, associations of local authorities, local authorities or local companies for the formation of contracts for the lease or purchase of movable property or acquisition of services of current use with a value below defined thresholds.
The Legal Procurement Framework
What is the applicable procurement legislation?
- Public Procurement Code (Código dos Contratos Públicos)
- National Strategy for Ecological Public Procurement 2020 (“ENCPE 2020”)
- Framework Climate Law (Law no. 98/2021, dated 31 December 2021)
- Decree-Law no. 37/2007, dated 19 February 2007
- Decree-Law no. 72/2018, dated 12 September 2018
- Law no. 96/2015, dated 17 August 2015
- Law no. 49/2009, dated 5 August 2009
- Law no. 37/2011, dated 22 June 2011
- Law no. 30/2021, dated 21 May 2021
- Ordinance no. 371/2017, dated 14 December 2017
- Ordinance no. 372/2017, dated 14 December 2017
- Ordinance no. 72/2018, dated 9 March 2018
- Ordinance no. 701-A/2008, dated 29 July 2008
- Ordinance no. 701-C/2008, dated 29 July 2008
- Ordinance no. 701-H/2008, dated 29 July 2008
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes, through the European Union, Portugal has ratified the WTO GPA.
As provided for in the Public Procurement Code, in the fields covered by Annexes 1, 2, 4 and 5, the General Notes on Appendix 1 of the European Union to the World Trade Organization Agreement on Government Procurement and the other international agreements by which the European Union is bound, contracting entities subject to this Code shall grant economic operators of the States signatory to those agreements the same treatment as that which the contracting entities of those States grant to economic operators of the European Union.
Moreover, and also through the EU, Portugal has entered into the following bilateral trade agreements which include Government Procurement commitments:
- Free Trade Agreement EU-Republic of Korea
- Comprehensive Economic and Trade Agreement Canada – EU (CETA)
- EU-Japan Agreement for an Economic Partnership
- Free Trade Agreement EU-Singapore
- Free Trade Agreement EU-Vietnam
- Trade and Cooperation Agreement EU - UK
If so, how do these international trade agreements interact with the domestic procurement legislation?
As the international trade agreements described above are international law instruments, national legislation must abide by them, thus not contradicting them.
What types of procuring entity need to comply with the procurement legislation?
All procuring entities need to comply with procurement legislation.
Which types of contracts are covered?
The following contracts are covered by public procurement:
- Public works contracts;
- Public works concessions;
- Public service concessions;
- Leasing or acquisition of movable property;
- Acquisition of services;
- Partnership agreements.
Are there any exemptions to competitive bidding?
Direct awards are permissible pursuant to two criteria:
- Amount of the contract (financial thresholds per type of contract apply);
- Material criteria (regardless of the amount of the contract).
Are there any proposals to amend the applicable procurement legislation?
A revision of the Public Procurement Code was approved in generality on 21 July 2022.
The specific wording of the amendments is not yet known, but there is the intention to change some aspects related to the contracting regime.
Key procurement resources
Country Contacts
Paula Corban-Pelin
Partner, DLA Piper
Livia Zamfiropol
Partner, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of ‘green’ contracting opportunities?
All government tenders are advertised through an online platform called SICAP.
In line with European Union (EU) and local legislation, government tenders above certain thresholds must also be published in the Official Journal of the European Union.
There are no specific sources for government announcements of ‘green’ contracting opportunities.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
The public procurement legislation does not require that bidders are established in the Romanian jurisdiction in order to be able to participate in public tenders.
Nevertheless, there have been cases in practice where the contracting authorities included in the tender documentation specific requirements which could only be fulfilled by entities having a presence in Romania (e.g. tenders in which the contracting authority requires that the bidders hold a specific authorization, which can only be obtained by an entity with a subsidiary or at least a representative office in Romania).
Is there any requirement for ‘local content’?
There are no specific requirements for the bidders to employ a local workforce.
The Legal Procurement Framework
What is the applicable procurement legislation?
We have listed below the main applicable procurement legislation:
- Public procurement (covers also utilities and concessions)
- Law no. 98/2016 on public procurement
- Law no. 99/2016 on sectorial procurement
- Law no. 100/2016 on works and services concessions
- Law no. 101/2016 on remedies and appeals concerning the award of public procurement contracts, sectorial contracts and of works concession contracts and service concession contracts, and for the organization and functioning of the National Council for Solving Complaints
- Government Decision no 394/2016 for the approval of the Implementation Norms of the provisions regarding the awarding of the sectorial contract/framework agreement from Law no. 99/2016 on sectorial procurement
- Government Decision no 395/2016 for the approval of the Implementation Norms of the provisions regarding the awarding of the public procurement contract/framework agreement from the Law no 98/2016 on public procurements
- Law no. 69/2016 regarding green public procurement
- Order no. 1068/1652/2018 for the approval of the Guide on green public procurement which includesthe minimum requirements regarding environmental protection for certain groups of products and services which are required at the level of tender books
- Defence
- Government emergency ordinance no. 114/2011 approved by the Law 195/2012 on the awarding of certain public procurement contracts in the fields of defence and security
- PPP
- Government emergency ordinance no. 39/2018 regarding public-private partnerships.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
The provisions of the GPA applied automatically to Romania upon its adherence to the EU on 1 January 2007.
If so, how do these international trade agreements interact with the domestic procurement legislation?
Romania’s public procurement legislation is aligned with EU public procurement legislation. Thus, if a decision is made at EU level to implement certain international trade provisions related to public procurement, such decision will be transposed into local legislation or will apply directly, as the case may be.
As a recent example in this respect, the Romanian public procurement legislation was amended in 2021 to include among the entities which may participate in tenders, third countries which have ratified the World Trade Organization Government Procurement Agreement (GPA), in so far as the awarded public procurement contract falls under Annexes 1, 2, 4 and 5, 6 and 7 to Appendix I of the GPA.
What types of procuring entity need to comply with the procurement legislation?
The following entities, defined as “contracting authorities”, have an obligation to comply with public procurement legislation:
- central or local public authorities and institutions, as well as the structures in their competence which meet certain criteria;
- public law bodies[1]; and
- associations formed by one or more contracting authorities described in (a) or (b).
There is also an obligation to apply the legislation on sectorial procurement to (i) public enterprises (legal entities controlled by contracting authorities and (ii) private entities exercising one of the regulated activities on the basis of special or exclusive rights.
Which types of contracts are covered?
In respect of contracts above the following thresholds, there is an obligation to publish a notice in the Official Journal of the European Union:
- Lei 26,093,012[2], for works public procurement contracts/framework agreements;
- Lei 678,748[3], for products and services public procurement contracts/framework agreements;
- Lei 1,042,363[4], for public procurement contracts/framework agreements for products and services awarded by a county council, a local council, the General Council of the Municipality of Bucharest, as well as by public institutions subordinated to them;
- Lei 3,636,150[5], for public procurement contracts / framework agreements having as their object social services and other specific services.
For contracts between the above thresholds and Lei 135,060[6] in case of products/services and Lei 450,200[7] in case of works, a simplified procedure must be followed, which is also regulated by the public procurement legislation.
Below these latter thresholds, contracting authorities may directly acquire products, services or works.
In respect of public procurement in the defence sector, the threshold below which direct acquisition is possible is Euro 100,000.
Are there any exemptions to competitive bidding ?
Direct acquisition is possible if the contract value is below a certain threshold (see above).
Use of the negotiated procedure without prior publication is also an exemption from competitive bidding. This procedure may only be applied in certain strict circumstances, e.g. if the works, products or services can only be provided by a certain economic operator (sole source provider) for reasons such as absence of competition for technical reasons or protection of exclusive rights, including intellectual property rights.
Are there any proposals to amend the applicable procurement legislation?
The public procurement sector is of significant interest and, for this reason, there are usually various proposals for the amendment of the applicable legislation.
Currently there are three legislative proposals at the level of the Romanian Parliament (Senate) concerning public procurement legislation.
Among the main aspects envisaged by one of the legislative proposals is the increase of the threshold for direct procurement up to Lei 500,000[8] for goods/services and up to Lei 5,000,000[9] for works. Such an amendment would massively change the public procurement sector, therefore it will need to be followed closely.
Key procurement resources
[1] Public law bodies is understood to mean any entity, other than those provided in par. (1) lit. a) which, regardless of the form of establishment or organization, cumulatively meet the following conditions: (a) are established to satisfy needs of general interest, without commercial or industrial character; (b) have legal personality; (c) are financed, for the most part, by entities from those provided in par. (1) lit. (a) or by other public law bodies or are subordinated, under the authority or in the coordination or control of an entity among those provided in par. (1) lit. a) or of another public law body or more than half of the members of the board of directors / management or supervisory body are appointed by an entity from those provided in par. (1) lit. a) by another public law body.
[2] Approx. Euro 5,274,618
[3] Approx. Euro 137,206
[4] Approx. Euro 210,710
[5] Approx. Euro 735,036
[6] Approx. Euro 27,301
[7] Approx. Euro 91,006
[8] Approx. Euro 101,000
[9] Approx. Euro 1,010,000
Country Contacts
Goran Radošević
Partner, Independent Attorney at Law in cooperation with Karanović & Partners
Leonid Ristev
Counsel, Karanović & Partners
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
Government tenders are generally announced on the Public Procurement Portal (Portal), which is an information system enabling communication between bidders and purchasers, and also includes publication of tender requirements and documentation to the general public.
In addition, tenders of estimated value equal to or exceeding RSD 5 million (approx. EUR 42,300) are also announced in the Official Gazette of the Republic of Serbia, while the tenders equal to or exceeding the EU public procurement thresholds are also published in the Official Journal of the European Union.
When government tenders relate to public-private partnerships (PPPs), public invitations are also published:
- in the Official Gazette of the Republic of Serbia;
- in a public media distributed within the entire territory of the Republic of Serbia;
- on the website of the public body initiating the tender;
- on the Portal;
- when appropriate, in the electronic form on the internet page of Tenders Electronic Daily, and, on a mandatory basis, for projects worth more than EUR 5 million
There are also separate announcement systems regarding "green" contracting opportunities:
- when it comes to renewable energy sources, recent legislative developments introduced the auction system through market premiums and feed-in tariffs. This auction system is advertised on the website of the Ministry of Mining and Energy and is conducted through the Renewable Energy Sources Portal.
- from the standpoint of energy efficiency, there is also an established auction system regarding market premiums, as well as opportunities for concluding contracts on feed-in tariffs.
The energy efficiency auction system, as well as the public announcements for subventions offered for energy efficiency and rehabilitation, are advertised on the website of the Ministry of Mining and Energy.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
Generally, foreign bidders can (and regularly do) participate in public procurement procedures in Serbia.
Nevertheless, there are some areas where the local presence of a bidder (or at least one member of its consortium) is required by specific laws, such as for the supply of pharmaceuticals and the performance of construction works.
From the perspective of PPPs in Serbia, there is no requirement for bidders to be established in the jurisdiction to bid for a PPP project. Generally, an SPV is obligatorily established in Serbia for the purpose of realization of the public contract, unless otherwise determined by the PPP project proposal or by the Concession Act and can participate exclusively in the implementation of that PPP project.
From the perspective of renewable energy sources, as well as the energy efficiency legislation, the auction bidder must have an SPV established in Serbia or bid as an entrepreneur duly registered with the Serbian authorities.
Finally, in certain cases, government contracts are awarded to specific suppliers by way of international agreements ratified by the Republic of Serbia, which derogate the general procurement rules. Such agreements may include the requirement for local presence of the specific supplier.
Is there any requirement for 'local content'?
No, there are no specific requirements for local content in government tenders, i.e. complete or partial involvement of a local workforce, resources or capital. This applies also to sectorial procurement (such as PPPs and energy-related procurements).
However, in cases where the local presence of bidders is required (see above), the general requirements relating to bidder’s personnel (such as in terms of the licenses they possess) may indirectly require the engagement of local workforce.
The Legal Procurement Framework
What is the applicable procurement legislation?
The general law governing public procurement is the Law on Public Procurement.
The Law on Public Procurement also sets the basic framework for procurement in the area of defence and security (e.g. arms procurement), whilst the applicable bylaws (such as the Decree on Defence and Security Public Procurements) go into further details on the relevant procurement specifics.
When it comes to sectorial laws, from the perspective of PPPs, the procedure that applies to the procurement of PPPs is either the one prescribed under the PPP Law or under the Law on Public Procurement, depending on whether the project is with or without elements of a concession.
From the perspective of renewable energy sources, the applicable procurement legislation that introduces the auction system is the Law on the Use of Renewable Energy Sources, which is further specified by the Decree on Market Premiums and Feed-in Tariffs.
Regarding energy efficiency, the applicable procurement legislation is the Law on Energy Efficiency and Rational Use of Energy and the Decree on Establishing the Program for Financing of Activities and Measures for Improvement of Energy Efficiency in 2022.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
No, Serbia has not ratified the WTO Government Procurement Agreement (GPA).
However, there are a number of bilateral agreements with certain Government Procurement commitments, which are most often of a general nature (i.e. they relate to the general intention of the parties to promote competition and eliminate restrictions from participating in public procurements, etc.), while some of them derogate the applicability of general procurement rules for specific projects.
If so, how do these international trade agreements interact with the domestic procurement legislation?
Under Serbian law, ratified international agreements prevail over national laws, meaning that - in case of a conflict - their provisions derogate the general national rules. In practice, this is not a notable issue for most international agreements which contain general commitments only. However, a handful of international agreements were executed for specific infrastructure projects, explicitly eliminating the requirement to select the contractor via an open tender in line with Serbian law, which resulted in major works being awarded to global companies directly.
What types of procuring entity need to comply with the procurement legislation?
From the perspective of the Law on Public Procurement, procuring entities include:
- the so-called public bodies (such as state, regional and local authorities);
- entities established for the specific purpose of meeting needs in the general interest; and
- companies performing specific activities in water, energy, transport and postal services sectors.
There is also a detailed list of exceptions, describing circumstances under which the Law on Public Procurement will not be applicable, e.g. for procurement of real estate, legal services, loans, specific types of defence and security procurements, procurements financed by international organisations, due to national security reasons etc.
When it comes to compliance with the procurement framework under the PPP Law, all public entities procuring a public-private partnership are required to adhere to the PPP Law. The definition of public entities under the PPP Law is quite wide and encompasses a variety of entities with a slight or majority "public" element.
Which types of contracts are covered?
Generally, the Law on Public Procurement regulates contracts on public procurement of goods, services or works.
However, there are several categories of contracts which are exempt from the applicability of the Law on Public Procurement (e.g. contracts between affiliates).
Moreover, the legislative framework established relevant thresholds below which the Law on Public Procurement does not apply, including:
- RSD 1 million (approx. EUR 8,500) for procurement of supplies, services and conducting of design contests;
- RSD 3 million (approx. EUR 25,600) for the procurement of works.
Specific thresholds apply for certain procurements for the needs of Serbian diplomatic missions abroad, as well as for the procurement of social and other specifically enumerated services.
From the perspective of the PPP Law and public-private partnerships in Serbia, any public contract for PPP, with or without elements of concession is covered thereunder.
The PPP Law applies to all public contracts that are not exempt and whose estimated value excluding value added tax is equal to or higher than the thresholds under the Law on Public Procurement, as described above.
From the perspective of renewable energy sources, as well as the energy efficiency legislation in the Republic of Serbia, the contracts which are covered include:
- the market premium contract;
- the feed-in tariff contract; and
- contracts on financing and implementation regarding energy efficiency and rehabilitation programs.
Are there any exemptions to competitive bidding?
Competitive bidding, i.e. open tender, is a general standard with government tenders. In certain cases, the contracting authority may also rely on the so-called "restrictive" procedure (where the bidders must first go through the qualifications process) and several other procedures, which still involve competition but consider other relevant circumstances.
The procurement procedure in which competitive bidding is eliminated or restricted, the so-called negotiated procedure without prior publication, is available only when specific conditions are met, e.g. when no bids have been received in the open or restrictive procedure, or for reasons of extreme urgency, or when only a specific bidder may perform the contract due to technical reasons or protection of exclusive rights (such as IP).
When the PPP Law applies, competitive tenders are required as a general rule. However, the PPP Law recognizes certain exemptions, such as when the disclosure of certain information would present a threat to the security of the Republic of Serbia.
From an energy efficiency standpoint, competitive bidding is required only for market premiums, awarded to investors of power plants or part of a power plant for highly efficient cogeneration with an installed capacity of 500 kWe up to 10 MWe.
Feed-in-tariffs, offered to investors of a micro-cogeneration unit or small cogeneration, are awarded directly after the preliminary privileged power producer status is obtained.
Are there any proposals to amend the applicable procurement legislation?
There are no specific proposals for amendment of the procurement legislation in the pipeline before the Serbian authorities.
The Law on Public Procurement is a fresh piece of legislation (having commenced in January 2020), and introduced considerable novelties to the procurement framework.
It can be expected that further amendments to the applicable legislation, both general and sectorial, will aim to further harmonize the legislation with that of the European Union.
Key procurement resources
- Law on Public Procurement (available also in English at the following link)
- Law on Public-Private Partnerships and Concessions (available also in English at the following link)
Country Contact
Michaela Stessl
Partner, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of "green" contracting opportunities?
Government tenders are advertised in:
- Public Procurement Journal of the contracting authority, Office for Public Procurement of the Slovak Republic
The tenders are also advertised for example in:
There is no separate source for government announcements of 'green' contracting opportunities.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
The requirements for participation in public procurement procedures are regulated by the Act No. 343/2015 Coll. on Public Procurement, as amended (Act). The more precise definition of the conditions for participation in public procurement depend on the type of contract (tender) in question.
The basic conditions are as follows:
- Conditions relating to personal status
These conditions are specified precisely in the Section 32 of the Act, according to which the bidder may participate in the public procurement after the following conditions are fulfilled:
- neither the bidder, nor its statutory body, nor a member of the statutory body, nor a member of the supervisory body, nor the proxy has been legally convicted of one of the criminal offenses, which are defined in Section 32 (1) lit a) of the Act (e.g. the crime of corruption, the crime of damaging the financial interests of the European Communities, the crime of money laundering, etc.);
- has no arrears on health and social insurance and old-age pension contributions;
- has no tax arrears in the Slovak Republic and in the country of permanent residence, place of business or usual residence;
- the bidder has not been declared bankrupt, bidder is not in restructuring, liquidation, nor have bankruptcy proceedings against bidder been terminated due to a lack of assets;
- is authorized to deliver goods, carry out construction work or provide other services;
- is not banned from participating in public procurement pursuant to a valid and effective decision in the Slovak Republic and in the country of permanent residence, place of business or usual residence.
The fulfilment of the above mentioned conditions may be also demonstrated by an entry in the list of economic operators (in Slovak "zoznam hospodárskych subjektov") led by the Office for Public Procurement of the Slovak Republic.
- Financial and economic status
These requirements are set out in Section 33 of the Act. The conditions for proving financial or economic status must be reasonable having regard to the nature and value of the contract (tender). The purpose of the determination of the financial and economic status is to prove the financial stability of the bidder (supplier).
The bidder must demonstrate financial and economic position, in particular by:
- statements from the bank or from the branch of a foreign bank;
- a certificate of professional indemnity insurance or a certificate of entrepreneur's liability insurance, if such insurance is required by special regulation;
- balance sheets or statements of assets and liabilities; or
- statements of overall turnover for the last 3 years.
Please note that this is an exemplary calculation, and the legislation allows the contracting authority to determine other ways of proving compliance.
- Technical and professional qualifications
The purpose of proving the fulfilment of the conditions of technical / professional qualification is to prove that the bidder (supplier) is able to provide the procured service or deliver the goods with the required specification and quality. Section 34 (1) of the Act sets out the documents by which the compliance with the conditions of technical or professional qualification can be provided, for example:
- a list of supplies of goods or services for the previous 3 years, indicating prices, delivery times and customers;
- details of technicians or technical bodies (especially responsible for quality control);
- in the case of construction works/services, data on the average annual number of employees and the number of management employees for the previous 3 years;
- samples of goods, descriptions/photographs, etc.
Demonstration that the conditions for participation in the field of technical/ professional competence have been met may also include the requirement to submit documents on the quality management system or the environmental management system.
- Reserved contracts (tenders)
The Act allows the contracting authority to reserve participation in public procurement for specific entities, which are registered integration social enterprises, sheltered workshops and natural persons with disabilities operating or carrying out self-employment at a sheltered workplace.
Is there any requirement for "local content"?
There are no special requirement for local content.
However, according to Section 10 (8) of the Act: "the contracting authority may restrict a bidder, tenderer or group of suppliers from participating in a public procurement, in particular to exclude them or to exclude their bid if that bidder, tenderer or group of suppliers is established in a third country with which the Slovak Republic or the European Union does not have an international agreement guaranteeing equal and effective access to public procurement in that third state for economic operators established in the Slovak Republic. The contracting authority may request the bidder or tenderer to replace a subcontractor or other person by whom it demonstrates compliance with the conditions of participation if the subcontractor or such other person is established in a third country with which the Slovak Republic or the European Union does not have an international agreement guaranteeing the same and effective access to public procurement in this third country for economic operators established in the Slovak Republic. The contracting authority must proceed in accordance with the first and second sentences in the case of a bidder, tenderer, group of suppliers, subcontractor or other person established in a third country, or a contract to be determined by the regulation issued by the government of the Slovak Republic..."
The Legal Procurement Framework
What is the applicable procurement legislation?
The general applicable procurement legislation in the Slovak Republic is as follows:
- Act No. 343/2015 Coll. on Public Procurement, as amended.
- Act No. 305/2013 Coll. on the Electronic Form of the Exercise of Powers of Public Authorities and on the Amendment of Certain Acts, as amended (E-Government Act).
- Decree of the Office for Public Procurement of the Slovak Republic No. 493/2021 Coll., laying down the Financial Limit for the Over-Limit Contract, the Financial Limit for the Over-Concession and the Financial Limit for the Design Contest.
- Decree of the Office for Public Procurement of the Slovak Republic No. 73/2022 Coll., laying down the Content of the Questionnaire for Entry in the List of Electronic Means of Electronic Communication in Public Procurement.
- Decree of the Office for Public Procurement of the Slovak Republic No. 41/2019 Coll., laying down Details of Technical and Functional Requirements for Tools and Equipment used for Electronic Communications in the Public Procurement
- Decree of the Office for Public Procurement of the Slovak Republic No. 132/2016 Coll., laying down the Details of the Certification Procedure for Electronic Auction Systems.
- Decree of the Office for Public Procurement of the Slovak Republic No. 152/2016 Coll., laying down the Details of the Notices used in the Public Procurement and their Content.
- Decree of the Office for Public Procurement of the Slovak Republic No. 155/2016 Coll., laying down the Details of the Single European Document and its Content.
- Decree of the Office for Public Procurement of the Slovak Republic No. 157/2016 Coll., laying down the Details of the Types of the Design Competitions in the Field of Architecture, Spatial Planning and Civil Engineering, the Content of the Competition Conditions and the Activities of the Jury.
- Decree of the Office for Public Procurement of the Slovak Republic No. 171/2019 Coll., amending Office for Public Procurement of the Slovak Republic No. 157/2016 Coll., which lays down the Details of the Types of Design Competitions in the Field of Architecture, Spatial Planning and Civil Engineering, the Content of the Competition Conditions and the Activities of the Jury.
The Office for Public Procurement of the Slovak Republic also issues guidance e.g. methodological guidelines with regard to public procurement.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes, the GPA 1994 entered into force for the Slovak Republic on 1 May 2004 and the GPA 2012 entered into force for the Slovak Republic on 6 April 2014.
If so, how do these international trade agreements interact with the domestic procurement legislation?
An important and decisive moment for the practical application of the provisions of GPA should be the fact that national public procurement legislation applies in the territory of the Slovak Republic. However EC legal interpretation in relation to the GPA excludes the immediate effect of GPA provisions in EU Member States (i.e. GPA in the territory of EU member states does not directly establish rights and obligations for individual entities and applies indirectly, through directives and national legislation).
The Act itself refers to the GPA in its provisions.
What types of procuring entity need to comply with the procurement legislation?
In general all entities in the public sphere must comply with the procurement legislation, except those contracts to which the Act specifically does not apply.
The Act specifically stipulates to which contracts (tenders) it does not apply to, e.g.:
- specified low value contracts;
- acquisition of existing buildings or rental of existing buildings and other real estate or acquisition of rights to them by any means of financing;
- a contract, a design contest or a concession if it is awarded in accordance with a special procedure or in accordance with the rules of an international organization;
- a civil contract having as its object the provision of public passenger transport services on railways or special railways;
- a contract with an estimated value of less than EUR 10,000 during a calendar year or during the term of the contract, if the contract is concluded for a period longer than one calendar year, etc.
Which types of contracts are covered?
See above.
In addition the Act differentiates between:
- Over-limit contracts - contracts with an estimated value equal to or higher than the financial limit set by a generally binding legal regulation issued by the Office for Public Procurement of the Slovak Republic (currently by the Decree of the Office for Public Procurement of the Slovak Republic No. 493/2021 Coll., laying down the Financial Limit for the Over-Limit Contract, the Financial Limit for the Over-Concession and the Financial Limit for the Design Contest), i.e.
- EUR 140,000 for the public contracting authority, which is the Slovak Republic and in the case of a contract for the supply of goods or a contract for the provision of a service other than a contract for the provision of a service listed in Annex No. 1 to the Act (this annex includes for example health services, social services, etc.) or if the contracting authority is in the field of defence and in the case of a supply contract is listed in Annex No. 1 to the Act;
- EUR 215,000 for the public contracting authority, which is (a) municipality, (b) higher territorial unit, (c) legal entity which is established for the special purpose of meeting needs of general interest, which are not industrial or commercial in nature and which meets the requirements under the Act or (d) an association of legal entities whose members are exclusively public procurers and in the case of a contract for the supply of goods or a contract for the provision of a service other than a contract for the provision of a service listed in Annex No. 1 to the Act (this annexes includes for example health services, social services, etc.) or if the contracting authority is in the field of defence and in the case of a supply contract is not listed in Annex No. 1 to the Act;
- EUR 750,000 for the public contracting authority for a contract for the provision of a service listed in Annex No. 1 to the Act;
- EUR 431,000 for the contracting authority in case of the contract for the supply of goods or a contract for the provision of a service other than a contract for the provision of a service listed in Annex No. 1 to the Act;
- EUR 1,000,000 for the contracting authority if the contract (tender) refers to provision of services listed in Annex No. 1 to the Act;
- EUR 431,000 in the case of a defence and security contract having as its object the supply of goods or services;
- EUR 5,832,000 for public contracting authority and contracting authority in the case of a works contract and in case of over-limit concession;
The financial limit for the design contest is:
- EUR 140,000 for the public contracting authority, which is the Slovak Republic;
- EUR 215,000 for the public contracting authority, which is (a) municipality, (b) higher territorial unit, (c) legal entity which is established for the special purpose of meeting needs of general interest, which are not industrial or commercial in nature and which meets the requirements under the Act or (d) an association of legal entities whose members are exclusively public procurers;
- 421,000 for the contracting authority.
- Sub-limit civil contracts – contracts with an estimated value lower than the financial limit in case of over-limit contracts and at the same time equal to or higher than:
- EUR 100,000 in the case of a supply contract other than foodstuffs and a service contract other than those listed in Annex No. 1 to the Act (this annexes includes for example health services, social services, etc.);
- EUR 180,000 in the case of a supply contract other than foodstuffs and a service contract other than those listed in Annex No. 1 to the Act (this annexes includes for example health services, social services, etc.);
- EUR 400 000 in the case of a service contract listed in Annex No. 1 to the Act (this annexes includes for example health services, social services, etc.);
- EUR 300 000 in the case of a works contract.
- Low civil contract – contracts:
- for the supply of goods other than foodstuffs, a service contract or a works contract the estimated value of which is less than the financial limit referred to in case of sub-limit civil contracts and at the same time equal to or greater than EUR 10,000 during the calendar year or during the time of the contract, if the contract is concluded for a period longer than one calendar year;
- for the supply of goods which are foodstuffs and whose estimated value is less than the financial limit referred to in case of sub-limit civil contracts and equal to or more than EUR 10,000 during a calendar year or during the term of or during the time of the contract, if the contract is concluded for a period longer than one calendar year.
Please note that above is only the general differentiation and the Act also sets out other examples and thresholds (e. g. in case of the sub-limit contracts in the field of defence and security, etc.).
Are there any exemptions to competitive bidding?
The Act sets out in Sections 81 and 82 the direct negotiated procedure. The direct negotiating procedure may be used by a contracting authority only if at least one of the conditions set out in Section 81 of the Act are met, e.g.
- in a previous public tender, no bidder met the conditions for participation or the offer itself did not meet the criteria of the announced public tender and provided that the original terms of the contract are not substantially altered;
- goods, construction work or other services can be provided only by a particular economic operator, for example when the subject of the contract is the creation of a unique piece of art or other form of artistic performance;
- it is the procurement of goods whose prices are quoted and which are bought directly on the commodity exchange;
- it is the procurement of goods offered on particularly advantageous terms from the liquidator, bankruptcy administrator or executor;
- the contract is awarded because of an extraordinary event, like vis major, which could not have been foreseen and due to time constraints, traditional public tender couldn't have been organized, etc.
The Act also stipulates other types of procurement procedures than standard competitive bidding procedure (public tender), such as innovative partnerships, competitive dialogue, etc.
Are there any proposals to amend the applicable procurement legislation?
Currently, a new proposal is before the parliament of the Slovak Republic as of 8 April 2022. This proposal introduces a new exception from the scope of the Act, in the case of a contract whose subject matter is food supplied by the primary producer of the goods and the purchaser is a school, school catering facility or their founder. This exception applies only up to the estimated value of the contract of EUR 50,000 during the calendar year or during the term of the contract. The proposal thus de facto raises the upper limit of the financial limit of low value contracts for goods to which food is supplied by their primary producers.
The proposal will be discussed by the parliament.
For more information please see here.
Key procurement resources
Reference is made to the resources listed above in relation to the applicable procurement legislation in the Slovak Republic.
In addition, the following resources may be useful:
- Website of the Office for Public Procurement of the Slovak Republic
Country Contacts
Jasna Zwitter-Tehovnik
Partner, DLA Piper
Domen Brus
Associate, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of ‘green’ contracting opportunities?
There are rules on the publication of contracts in the field of public procurement, concession and public-private partnerships. Most pertinently, all contracts in the field of public procurement, concession and public-private partnerships that are entered into by the Government must be published.
Calls for tenders are published on this website (only public contracts for which publication is required are published.)
Calls for concession awards are published on the websites of contracting authorities and in the Official Gazette of the Republic of Slovenia.
In addition to these obligations, if government tenders exceed relevant EU thresholds, such tenders must also be published in the Official Journal of the European Union.
Nevertheless, government tenders can also be published on websites and/or any other media by contracting authorities, if they choose so.
There are no specific rules for “green” contracting opportunities.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
Contracting authorities cannot reject economic operators solely on the grounds that they are not natural or legal persons under the law of the Republic of Slovenia, if such economic operators are entitled to provide the relevant service under the law of the Member State in which they are established.
Additionally, contracting authorities must ensure that there is no discrimination between tenderers at any stage of a procurement procedure and in relation to any element of the tender, taking into consideration mutual recognition and the proportionality of the contracting authority’s request in relation to the subject-matter of the contract. Contracting authorities must exercise due diligence so as not to create circumstances that might result in territorial, material or personal discrimination against tenderers, discrimination on the basis of the classification of the tenderer’s activity or any other form of discrimination.
Nevertheless, a contracting authority may set criteria in notifications for tenders, which would prevent bidders from other countries being awarded the tender.
Some additional requirements can apply for sector specific (i.e. health and pharmaceutical services) concession award procedures.
Is there any requirement for ‘local content’?
See the above answer.
There are no provisions in the Slovenian Public Procurement Act (ZJN-3) such as employment quotas relating to the local workforce. However, it is at the discretion of the individual contracting authority what conditions it sets in its call for tenders, as long as such conditions are objective and proportionate. Contracting authorities may establish objective criteria for selection which may relate to suitability to pursue the professional activity, economic and financial standing and technical and professional ability.
The Legal Procurement Framework
What is the applicable procurement legislation?
Public procurement is regulated mainly by:
- Public Procurement Act (ZJN-3), regulating public orders (for supply, service and construction);
- Public Procurement in the Defence and Security Sector Act (ZJNPOV), regulating public orders (for supply, service and construction in defence and security sector);
- Legal Protection in Public Procurement Procedures Act (ZPVPJN), regulating the appeals procedureof public procurement awards proceedings under (a) and (b);
- Public-Private Partnership Act (ZJZP); regulating the concession award proceedings;
- Certain Concession Contract Act (ZNKP); regulating concession award proceedings and transposing Directive 2014/23/EU into Slovenian law.
Other acts may be applicable depending on the sector in which the concession award procedure is being conducted (i.e. defence, health and pharmacy). Since Slovenia has not yet adopted the EU legislation concerning concessions, the EU legislation applies as is (but only for the concessions and public orders which exceed the EU set thresholds).
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Slovenia is a party to the GPA.
If so, how do these international trade agreements interact with the domestic procurement legislation?
If the procurement is covered by the international trade agreement, such procurement would be excluded from domestic (Slovenian) procurement law.
What types of procuring entity need to comply with the procurement legislation?
The following are contracting authorities under ZJN-3:
- authorities of the Republic of Slovenia;
- authorities of self-governing local communities;
- other bodies governed by public law;
- public undertakings which pursue one or more activities in the field of infrastructure;
- entities that are not referred to in the four areas aboe but pursue one or more activities in the field of infrastructure, operating on the basis of special or exclusive rights granted by a competent authority of the Republic of Slovenia.
An association formed by one or several contracting authorities referred to in the preceding paragraph shall also be considered a contracting authority.
A “body governed by public law” means a body that has all the following characteristics:
- it is established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character;
- it has legal personality; and
- it is financed, to more than 50%, by state or local authorities or by other bodies governed by public law or which are subject to management supervision by such authorities or bodies or have an administrative, managerial or supervisory board more than half of whose members are appointed by state or local authorities or by other bodies governed by public law.
A public fund, a public agency, a public institute and a public utility institute shall be considered bodies governed by public law.
A “public undertaking” means any undertaking over which the contracting authorities referred to in (a), (b) or (c) of paragraph one may exercise, directly or indirectly, a dominant influence by virtue of their ownership of it, their financial participation therein or the rules which govern it.
An indicative list of contracting authorities must be annexed to a decree issued pursuant to Articles 9 and 52 of ZJN-3 by the Government of the Republic of Slovenia setting out an indicative list of contracting authorities and mandatory information to be included in notices.
In case of any doubt as to whether an entity meets the conditions for a contracting authority under ZJN-3, such an entity may file a request with the ministry responsible for public procurement to determine its status as a contracting authority.
The same position applies to concessions award procedures, although concessions can be awarded also on the basis of act adopted by the legislator.
Which types of contracts are covered?
Generally, supply, service and construction contracts awarded by the contracting authority are subject to procurement regulation.
Thresholds under the EU law are as follows:
- public service and public supply contracts (Public Service Directive): EUR 215,000.00 or EUR 140,000.00 (specified contracting authorities (e.g. ministries);
- public service and public supply contracts (Utilities Directive, Defence Directive): EUR 431,000.00;
- public construction contracts (Public Sector Directive, Utilities Directive, Defence Directive): EUR 5,382,000.00;
- concession contracts (Concession Contracts Directive): EUR 5,382,000.00.
In these cases, the EU and Slovenian law will apply, although EU law shall prevail.
In cases lower than the above thresholds but higher than:
- in the general field
- EUR 20,000 for public supply of services contracts or design contests;
- EUR 40,000 for public works contracts; and
- EUR 750,000 for utilities contracts,
- in the infrastructure field:
- EUR 50,000 for public supply or services contracts or design contests;
- EUR 100,000 for public works contracts; and
- EUR 1,000,000 for utilities contracts,
- in the defence and security field:
- EUR 40,000 for public supply or services contracts; and
- EUR 80,000 for public works contracts,
the Slovenian procurement law will apply.
For concessions award procedure, sector-specific laws will provide for when they are applicable. The thresholds stated above are not relevant.
For procurements (public orders) not achieving the thresholds outlined above, the contracting authority must still comply with the principles of economic efficiency and the principle of transparency.
The contracts excluded from the public procurement regulation are contracts concerning electronic communications, real estate, research and development, broadcasting, arbitration, financial services, political campaigns, transport, civil protection, employment, loans, in-house and public-public cooperation and certain international contracts.
Are there any exemptions to competitive bidding?
Yes, single award procedure is considered as an exception and is allowed if the following conditions are met:
- if, in the previous competitive procedure, no tender is received, and the subject of the contract is not changed;
- if a single potential contractor is available (i.e. for artwork, technical reasons (without influencing the competition), due to specific exclusive right (copyright));
- urgency;
- cases applicable only to goods and services contracts: (a) particularly favourable conditions due to liquidation and bankruptcy, (b) in the case of the award of services, a competition previously held, (c) where the goods are purchased on the stock exchange, (d) repetition of services/works and the market option was already present in the original procurement;
- after the market survey has been conducted (only if contract value is below EU set thresholds).
Are there any proposals to amend the applicable procurement legislation?
No.
Key procurement resources
See above.
Country Contacts
Borja de Obeso
Partner, DLA Piper
José Manuel Sala
Of Counsel, DLA Piper
Carlos Daza
Senior Associate, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of ‘green’ contracting opportunities?
Government tenders are advertised/announced in the public procurement platforms.
As a general rule, these public procurement platforms are included in the web sites of each contracting authority (e.g. Administration, public entity or entity obliged to tender contracts).
Public tenders can also be announced in the more general public procurement platforms (belonging to either (i) the Central State Administration, or (ii) a specific regional administration) and also in the EU Official Gazette sometimes.
Examples of such platforms are:
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
EU persons or persons belonging to a State signatory to the Agreement on the European Economic Area
These persons (legal or moral) are entitled to “directly” participate in public tenders, be awarded contracts and execute them. When the legislation of the State in which these companies are established requires a special authorization or membership of a certain organization to be able to provide the service in question, they must prove that they meet this requirement.
Non-EU persons or persons not belonging to a State signatory to the Agreement on the European Economic Area
These persons (legal or moral) are entitled to “directly” participate in public tenders, be awarded contracts and execute them where permitted by international treaties.
Persons from a State that is not part of an international treaty are also entitled to “directly” participate in public tenders, be awarded contracts and execute them, provided they are able to demonstrate by means of a report that the State of origin of the foreign person also allows Spanish companies to participate in public sector tenders in a substantially analogous manner. Said report shall be prepared by the corresponding Economic and Commercial Office of Spain abroad. In contracts subject to harmonized regulation, the report on reciprocity will be dispensed with in relation to companies from signatory States of the Agreement on Public Procurement of the World Trade Organization.
As an exception, specific tender clauses specifications may require foreign companies that are awarded “works contracts” to open a branch in Spain.
Is there any requirement for ‘local content’?
It is mandatory to include in the bid specifications at least one special condition of execution of any of the following classes:
- Environmental condition: for example, reduction in the level of emission of greenhouse gases; energy efficiency or use of renewable sources during the execution of the contract or maintenance or improvement of natural resources that may be affected by the execution of the contract.
- Social condition: for example, promoting the social integration of people with disabilities, disadvantaged people or members of vulnerable groups among the people assigned to the execution of the contract; subcontracting with Special Employment Centres or Insertion Companies; gender equality plans that are applied in the execution of the contract and, in general, equality between women and men; promoting female hiring; reconciling work, personal and family life; the improvement of working and salary conditions; job stability; the hiring of a greater number of people for the execution of the contract; training and protection of health and safety at work; the application of ethical criteria and social responsibility to the contractual provision; or the criteria referring to the supply or use of products based on fair trade during the execution of the contract.
Companies that intend to participate in the public tender shall comply with the special conditions, where applicable.
In any case, special conditions are to be analysed on a case-by-case basis.
The Legal Procurement Framework
What is the applicable procurement legislation? The more important applicable regulations are the following:
- Royal Decree-Law 3/2020, of February 4, on urgent measures incorporating various European Union directives in the field of public procurement in certain sectors into the Spanish legal system (i.e. water, gas and heating, electricity, transport, ports and airports, postal services and oil, gas and coal extraction)
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes. Spain is a party to the WTO Government Procurement Agreement (GPA).
If so, how do these international trade agreements interact with the domestic procurement legislation?
The obligations and commitments included in the GPA are binding for the Spanish Administration and public sector entities while procuring contracts.
What types of procuring entity need to comply with the procurement legislation?
The Public Procurement Act is applicable to several kinds of procurement entities which are part of the so-called “Public Sector”. In addition, there are also certain entities operating in special sectors that are also obliged to procure contracts (i.e. water, gas and heating, electricity, transport, ports and airports, postal services and oil, gas and coal extraction).
The procurement entities covered by the Public Procurement Act and the rest of the regulations include not only the Public Administrations (e.g., Central, Regional, and Local governments), but also public entities with separate legal personality, as well as private entities with separate legal personality which are nonetheless publicly-owned, publicly-financed, or publicly managed, consortiums, etc. or that operate in special sectors.
Nonetheless, depending on the kind of entity, public procurement regulations may be applicable to a different extent.
For example, public procurement regulations might be applicable with regard to the tender procedure (as well as, maybe, some specific elements; e.g. contract modification), but not the execution phase (which can be subject to Private Law regulations).
For instance, in the case of public procurement agreements executed by the Central, Regional, and Local governments, public procurement rules will be applicable to both the tender procedure and the agreement’s execution.
However, in the case of public procurement agreements executed by private entities with separate legal personality which are nonetheless publicly-owned, publicly-financed, or publicly managed (if certain conditions are met), the execution of the agreement might be subject to private law, so that only the tender award procedure would be subject to public procurement regulations (in addition to certain specific elements, e.g. contract modification).
Which types of contracts are covered?
The scope of application of the procurement regulations is not defined by financial thresholds, but rather by both, (i) an objective criteria (i.e. based on the contract’s object), and (ii) a subjective criteria (i.e. based on the procurement entity).
Specifically, regarding the objective criteria, the Public Procurement Act is applicable to (i) works agreements, (ii) works concession agreements, (iii) service concession agreements, (iv) supply agreements, and (v) service agreements.
In addition, there are some specific rules regarding excluded agreements; e.g. real estate agreements, defence agreements, etc.
Are there any exemptions to competitive bidding ?
Yes (although competitive bidding remains the preferred option).
Direct awards are permitted for so-called “minor agreements”, i.e., works agreements with a value not exceeding EUR 40,000 and service or supply agreements with a value not exceeding EUR 15,000.
Further, in certain cases it will be possible to award agreements by means of a so-called negotiated procedure with or without publicity.
Under this kind of tender procedure, the procurement entity will only invite to the tender procedure one or various tenderers (i.e., it will only be possible for those bidders selected by the Administration to file a proposal), and will subsequently carry out a negotiations phase with them.
The application of this procedure is restricted to certain specific cases (e.g., when the agreement can only be awarded to a specific contractor, given the nature of the works / services to be provided, or when the agreement has been declared as secret).
Are there any proposals to amend the applicable procurement legislation?
Not currently.
Key procurement resources
Country Contact
Charlotte Brunlid
Special Counsel, DLA Piper
Government Procurement
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
Whether a public procurement must be published, and if so; where it should be published, depends on the value of the contract and the type of contract, as detailed below:
Procurements not exceeding the national Swedish direct procurement threshold values do not need to be published. In June 2022, the thresholds were as follows (higher thresholds apply for certain social services and other specific services):
- SEK 700,000 if the contract is subject to the Public Procurement Act (Sw. lag (2016:1145) om offentlig upphandling);
- SEK 1,200,000 if the contract is subject to the Utilities Procurement Act (Sw. lag 2016:1146) om upphandling i försörjningssektorerna) orthe Swedish Public Procurement Act in the areas of Security and Defence (Sw. lag 2011:1029) om upphandling på försvars- och säkerhetsområdet)
- SEK 2,799,554 if the contract is subject to the Swedish Act on Procurement of Concessions (Sw. lag (2016:1147) om upphandling av koncessioner)
Public procurements exceeding the direct procurement thresholds must be published in at least one of the procurement databases that are registered in the Swedish Competition Authority's (Sw. Konkurrensverket) procurement database registry, available here.
In June 2022, the following databases (all operated by non-governmental providers) were registered:
- CTM;
Public procurements exceeding the EU procurement threshold must also be published in Tenders Electronic Daily (TED), which can be found here..
There are no special sources for publication of "green" contracting opportunities, however sustainable public procurement is considered important in Swedish public procurement.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
There are no requirements in the Swedish public procurement legislation that suppliers must be established in Sweden to tender or execute contracts awarded through a public procurement procedure.
Furthermore, contracting authorities and entities cannot prohibit or discriminate against foreign tenderers.
Under certain circumstances, contracting authorities and entities may require a tendering consortium awarded a public contract to form a certain legal entity, for example, a Swedish limited liability company (Sw. aktiebolag).
To execute a contract to provide services or construction works in Sweden, a foreign tenderer may in some cases need to establish a branch office pursuant to the Foreign Branch Offices Act (Sw. lag om utländska filialier m.m.) and make certain registrations at the Swedish Tax Office (Sw. Skatteverket).
Is there any requirement for 'local content'?
There are no requirements in the legislation for ‘local content’.
The Legal Procurement Framework
What is the applicable procurement legislation?
The Swedish public procurement legislation is spread across several acts and one regulation. All acts, except The Act on Systems of Choice (Sw. lag (2008:9629) om valfrihetssystem), have separate rules for procurement for contracts with a value below the threshold values or otherwise outside the scope of the EU procurement directives as complementary to the EU procurements rules.
The public procurements that are governed by domestic rules (i.e. that are not covered by the EU procurement directives), are generally less strict and detailed than the EU directives.
The type of contract and/or sector determines which public procurement act applies, as detailed below.
The Public Procurement Act (Sw. lag (2016:1145) om offentlig upphandling) applies to procurements by contracting authorities of contracts related to goods, services and construction work and where no other procurement act applies. The Public Procurement Act transposes the EU classic procurement directive (2014/24/EU). The Public Procurement Act also includes national rules for public procurements that are not covered by the EU directive. A unofficial English language version of the Act is available here.
The Utilities Procurement Act (Sw. lag (2016:1146) om upphandling inom försörjningssektorerna) applies to procurement by contracting authorities and entities in the utilities sector (water, energy, transport and postal sectors) and contracts related to goods, services and construction work. The Utilities Procurement Act transposes the EU utilities procurement directive (2014/25/EU). The Utilities Procurement Act also includes national rules for public procurements that are not covered by the EU directive. No English language version of the Act is available.
The Concessions Procurement Act (Sw. lag (2016:1147) om upphandling av koncessioner) applies to procurements by contracting authorities of concession contracts. The Concessions Procurement Act transposes the EU concessions procurement directive (2014/23/EU). The Concessions Procurement Act also includes national rules for public procurements that are not covered by the EU directive.No English language version of the Act is available.
The Defence and Security Procurement Act (Sw. lag (2011:1029) om upphandling på försvars- och säkerhetsområdet) applies to procurement by contracting authorities in the defence sector. The Defence and Security Procurement Act transposes the EU defence procurement directive (2009/82/EU). The Defence and Security Procurement Act also includes national rules for public procurements that are not covered by the EU directive. No English language version is available.
The Act on Systems of Choice (Sw. lag (2008:9629) om valfrihetssystem), applies when municipalities and regions subject part of their operations to competition by setting up a "system of choice" where the user can choose between approved suppliers of certain services in the system. The Act on Systems of Choice is applicable for a specified set of services mainly relating to health care and social services, such as elderly care and midwifery services. The Act on Systems of Choice is also applicable to the Swedish Public Employment Service's (Sw Arbetsförmedlingen) labour market policy measures (job coaches). No English language version is available.
No specific law or rules apply to PPPs. Instead, PPP is governed under the procurement legislation as described above, i.e. the applicable legislation depends on the nature of the purchase and which contracting authority or entity is procuring.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
As a member state in the EU, Sweden is a party to the WTO Government Procurement Agreement (GPA).
Sweden is not a party to any bilateral trade agreements other than those that follow from Sweden being part of the EU.
If so, how do these international trade agreements interact with the domestic procurement legislation?
Obligations for contracting authorities and entities to adhere to the WTO Government Procurement Agreement (GPA) are included in the EU procurement directives which in turn have been transposed into domestic law in the abovementioned national public procurement acts (the Public Procurement Act, the Utilities Procurement Act, the Concessions Procurement Act and the Defence and Security Procurement Act).
What types of procuring entity need to comply with the procurement legislation?
The Swedish public procurement legislation applies to governmental and municipal authorities, including:
- the decision-making assembly in a municipality or region;
- a body governed by public law (for example companies or other legal entities financed or controlled by a public sector entity); and
- an association formed by one or more authorities or one or more public bodies.
Non-public sector entities active within the utilities sector (water, energy, transport or postal services) are subject to the Utilities Procurement Act under certain specifically regulated circumstances.
Which types of contracts are covered?
All contracts where contracting authorities or entities receive a performance (purchase of goods, services or construction work) from a supplier in exchange for remuneration (monetary or other) are covered by the legislation unless the subject matter of the procurement is expressly exempted in the legislation. Examples of such exemptions are the procurement of:
- leasing of real estate property;
- employment;
- certain media services;
- broadcasting times;
- certain financial services;
- certain legal services;
- certain contracts between contracting authorities or entities; and
- procurements where specific security concerns are necessary.
Public concession contracts (i.e. a contractual arrangement where a contracting authority grants a supplier a right to provide services or otherwise exploit the services by charging fees from third parties) are regulated in the Concessions Procurement Act (Sw. lag (2016:1147) om upphandling av koncessioner).
The contract value and type of contract determines if the Swedish public procurement rules apply.
In general, the EU procurement directives are stricter than the national rules that apply for procurements outside the scope of the directives. Certain contracts, such as contracts with a low (specifically regulated) value or contracts where the supplier cannot be changed because of technical reasons or because of extreme urgency that was not caused by the contracting authority or entity, can be awarded through a direct award of contract, see more below.
Are there any exemptions to competitive bidding?
It is a strong main principle that public procurements shall be subject to a call for competition through publication. However, there are several exemptions where direct awards (so-called negotiated procedure without prior publication) are permissible, for example, if:
- the contract value does not exceed the direct procurement threshold (see question 4 above);
- there is extreme urgency for a purchase which is absolutely necessary;
- the subject matter of the procurement can be supplied only by a particular supplier because:
- the aim of the procurement is the creation or acquisition of a unique work of art or artistic performance;
- competition is absent for technical reasons; or
- the subject-matter of procurement is protected by exclusive rights and therefore can only be supplied by a certain supplier;
- a published procurement is subject to a review procedure in court and there is an urgent need to make a cover purchase of the service, good or works in question;
- the contract relates to supplies purely for the purpose of research, experimentation, study or development;
- it is possible to purchase supplies or services on particularly advantageous terms in connection with a supplier winding up its business activities having gone through an insolvency procedure, been declared bankrupt, or being the object of a similar procedure.
Note that the exemptions are interpreted narrowly and vary depending on the applicable act. Also note that the mentioned exemptions include prerequisites that are not detailed here.
Are there any proposals to amend the applicable procurement legislation?
There are several ongoing changes in the Swedish public procurement legislation.
On 1 July 2022, new rules aiming to make court review procedures regarding public procurements more effective entered into force. The new rules introduce, among other things:
- limitation periods for when a supplier at the latest may invoke new circumstances in a review procedure in court (three weeks as a main rule);
- a requirement for courts to handle procurement cases urgently;
- explicit time limits for how long time the mandatory exclusion grounds apply for exclusion.
New Swedish rules entered into force on 1 January 2023 which will make it possible for contracting authorities and entities to reserve publicly procured contracts of certain social services and other special services for non-profit organisations.
New rules are currently prepared which will make it mandatory to consider sustainability issues in all public procurements. Currently, such considerations are mandatory only in procurements where the subject-matter of the procurement justifies it. The rules are planned to enter into force on 1 July 2023
Furthermore, there is a proposal for new regulations with the purpose of ensuring more efficient supervision of public procurement by extending the supervisory powers of the Swedish Competition Authority (Sw. Konkurrensverket). The new regulation is planned to enter into force on 1 February 2023.
Key procurement resources
Government procurement information in English can be found on the web pages of:
The Swedish Government's web page regarding its strategy "Circular economy – Strategy for the transition in Sweden" can be found here. . The strategy is relevant for the development of requirements for public procurement in Sweden.
Country Contacts
Adriana Mierzwa – Bronikowska
Partner, DLA Piper Giziński Kycia sp.k.
Anna Kalinichenko
Senior Pro Bono Lawyer, DLA Piper Giziński Kycia sp.k.
Government Procurement
NOTE: during martial law (which has been effected by the Law of Ukraine on Legal Regime of Martial Law and the respective Law which introduced this regime on 24 February 2022), procurement procedures are subject to special temporary regulation implemented by the Government which may deviate from that described below.
Where are government tenders advertised? Are there any different sources for government announcements of 'green' contracting opportunities?
The web portal, Головна | Prozorro, is the official open data resource that offers free access to all public purchasing data on all tenders announced from 31 July, 2016 in the Ukrainian language, with tender announcements over a specific expected value published in English.
Tender announcements are published (and businesses compete in auction processes) via the electronic auctions module. Access to the auctions module is realized via one of the authorized electronic marketplaces, with the information in the central public purchasing database updated and available on this web portal and all the remaining marketplaces simultaneously.
In the case of concessions, tender announcements are published in the Uriadovyi Kurier newspaper or the Holos Ukrainy newspaper or official mass media of the relevant local authority in Ukrainian and on the official website of the concessor in Ukrainian and English
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
No, there are no such requirements for bidders, but in the case of concessions and PPP contracts there is a requirement to set up a local legal entity in order to conclude the contract.
Is there any requirement for 'local content'?
No.
The Legal Procurement Framework
What is the applicable procurement legislation?
The Law on Public Procurement does not apply to concession and PPP projects.
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
Yes.
If so, how do these international trade agreements interact with the domestic procurement legislation?
According to the Ukrainian procurement legislation, if the ratified international trade agreements set rules that vary from the ones set by the domestic legislation, the rules set by the international trade agreements prevail.
What types of procuring entity need to comply with the procurement legislation?
According to Article 2 of the Law on Public Procurement:
- State Bodies;
- State Funds;
- legal entities being enterprises, institutions, organisations and their associations that meet the needs of the state or a territorial community unless they operate on an industrial or commercial basis, subject to one of the criteria stated by the legislation;
- legal entities and/or business entities operating in one or more separate areas of business, defined in the legislation, and meeting at least one of the criteria set by the legislation.
Which types of contracts are covered?
The Law sets different thresholds for different types of customers and depending on the subject matter of procurement.
The category 1 procuring entities (e.g., central government authorities, enforcement agencies of the state, the Pension Fund of Ukraine) must use the procurement procedure if the value of goods and/or services is equal to or exceeds UAH 200 000, and the value of work is equal to or exceeds UAH 1.5 million.
The category 2 procuring entities (e.g., legal entities 50% of which is owned by the state) must carry out the procurement procedure if the value of goods and/or services is equal to or exceeds UAH 1 million, and the value of work is equal to or exceeds UAH 5 million.
All regulated entities must carry out the simplified procurement when the value of goods, work and/or services is equal to or exceeds UAH 50 000 and is less than the value provided above (i.e. UAH 200 000 for goods and/or services and UAH 1.5 million for work for the category 1 procuring entities and UAH 1 million for goods and/or services and UAH 5 million for work for the category 2 procuring entities).
Are there any exemptions to competitive bidding?
The procurement legislation does not apply if the scope of procurement includes certain types of goods/services/works, the list of which is included in Article 3, Part 5 and Part 6 of the Law on Public Procurement
The list of the projects that do not fall under the concession legislation is included in Article 3, Part 6 of the Law on Concession
The Law on Defence Procurement does not apply in cases stated in Article 2, Part 3.
Are there any proposals to amend the applicable procurement legislation?
The procurement/PPP regime is an important part of the post-war reconstruction, and the respective legislation may be subject to changes in the context of the reconstruction plans of the Ukrainian Government.
Key procurement resources
Country Contacts
Dr Sharon Fitzgerald
Partner, DLA Piper
Martyn Scott
Legal Director, DLA Piper
Gavin Deeprose
Senior Professional Support Lawyer, DLA Piper
Emma Dowden-Teale
Partner, DLA Piper
Where are government tenders advertised? Are there any different sources for government announcements of ‘green’ contracting opportunities?
UK Government tenders are advertised on:
- Find a Tender (the e-notification service for higher value contracts); and
Other procurement portals are also in use, including the following in respect of the devolved governments:
- the Scottish Government advertises tenders on Public Contracts Scotland;
- the Welsh Government advertises tenders on Sell2Wales; and
- the Northern Ireland Executive advertises opportunities on eSourcingNI and eTendersNI.
There are no specific sources for ‘green’ contracting opportunities.
Are there any requirements for bidders to be established in the jurisdiction in order to bid or execute a contract with the procuring entity?
This is a complex area but, broadly speaking, the rights of non-UK bidders to bid for UK public procurement opportunities are addressed by way of international procurement and trade agreements (and supporting UK legislation), such as:
- for EU bidders, the UK-EU Trade and Cooperation Agreement (see below); and
- for GPA bidders (see below), the World Trade Organisation’s Agreement on Government Procurement.
Is there any requirement for ‘local content’?
No. Subject to limited exceptions, local content requirements are prohibited for contracts covered by the WTO’s Agreement on Government Procurement and the EU-UK Trade and Cooperation Agreement.
The Legal Procurement Framework
What is the applicable procurement legislation?
Public procurement in the UK is a devolved matter and different rules and policies apply across England, Scotland, Northern Ireland and Wales. The principal procurement legislation is:
UK (excluding Scotland, except where stated otherwise)
- the Public Contracts Regulations 2015, which apply to public sector procurements;
- the Utilities Contracts Regulations 2016, which apply to procurements by certain regulated utility companies;
- the Concession Contracts Regulations 2016, which apply to the procurement of works and services concession contracts; and
- the Defence and Security Public Contracts Regulations 2011, which apply to the procurement of certain defence and security contracts. These regulations apply across the whole UK.
Scotland
In addition, Regulation 1370/2007, as amended by the Regulation (EC) No 1370/2007 (Public Service Obligations in Transport) (Amendment) (EU Exit) Regulations 2020 is relevant to the procurement of passenger transport services by rail and by road.
UK public procurement is currently subject to reform. A Procurement Bill was laid before the UK Parliament in May 2022 and enacted on 26 October 2023 (see below).
Has your country ratified the WTO Government Procurement Agreement (GPA), or any bilateral trade agreement with Government Procurement commitments?
The UK joined the World Trade Organisation’s Agreement on Government Procurement (GPA) as an independent nation with effect from 1 January 2021 (i.e. the first day following the ending of the Brexit transition period on 31 December 2020). Previously, the UK had participated in the GPA through its membership of the European Union.
The UK is also subject to procurement commitments under the UK-EU Trade and Cooperation Agreement (TCA) as entered into between the UK and EU in connection with the UK’s departure from the EU. The TCA was agreed in principle on 24 December 2020 and initially applied on a provisional basis from the end of the transition period (see above) until coming fully into force on 30 April 2021 (it was implemented in the UK by the European Union (Future Relationship) Act 2020 and approved by the European Parliament on 27 April 2021, as announced here).
Title VI of Part 2 of the TCA concerns public procurement (see articles 276 to 294 and Annex 25). The first article of that title reads: “The objective of this Title is to guarantee each Party’s suppliers access to increased opportunities to participate in public procurement procedures and to enhance the transparency of public procurement procedures”. The two paragraphs regarding Title VI as set out in the UK’s summary document of 24 December 2020 say this: “The [TCA] ensures that the UK can maintain a separate and independent procurement regime and will enable the Government to enact reform of our system. The [TCA] provides for a transparent and non-discriminatory framework of rules for trade in public procurement. These rules are based on the WTO Government Procurement Agreement (GPA), with some precedented additions for covered procurement, including the use of electronic means in procurement, electronic publication of notices, environmental, social and labour considerations, and domestic review procedures. // The UK and EU have also agreed an extension of market access coverage beyond the GPA, which includes: the gas and heat distribution sector; private utilities that act as a monopoly; and a range of additional services in the hospitality, telecoms, real estate, education and other business sectors. This will provide businesses with additional opportunities and will benefit contracting authorities through increased competition, creating better value for money for the taxpayer”. The TCA therefore implements the GPA and provides further rights.
The UK has also negotiated a number of trade agreements with non-EU countries since leaving the EU. The UK’s Department for International Trade maintains a page on the ‘Gov.UK’ site titled ‘The UK’s trade agreements’ providing information and links in respect of both the TCA and the UK’s trade agreements with non-EU nations – information on the latter can be found on this page on ‘Gov.UK’.
If so, how do these international trade agreements interact with the domestic procurement legislation?
The GPA applies to procurements undertaken by certain types of public entity for particular types of contract with a value above specified thresholds. It aims to open (on a mutual basis) government procurement markets among its parties, and it seeks to address trade barriers (such as the preferential treatment of domestic goods and services) in the government procurement sector.
The GPA has two parts: (i) the main rules – these establish the requirements for non-discrimination, the transparent award procedures and the remedies for affected suppliers; and (ii) the market-coverage schedules (or annexes) for each GPA party, which specify which procurement opportunities (including type, threshold value and exceptions) each GPA party has agreed to open up to other GPA parties and will therefore be subject to the main GPA rules.
The detail on the above is set out in Appendix I of the GPA, which contains the UK’s coverage schedules as a number of annexes. These annexes define the UK’s commitments under the GPA with respect to:
- the procuring entities covered by the GPA;
- the goods, services and construction services covered by the GPA; and
- the exceptions to the coverage.
The UK’s public procurement regulations comply with and give effect to the GPA - see for example regulations 25A and 90A of the Public Contracts Regulations 2015, as amended by the Public Procurement (Amendment etc.) (EU Exit) Regulations 2020, the Public Procurement (Agreement on Government Procurement) (Amendment) Regulations 2021 and the Public Procurement (Agreement on Government Procurement) (Amendment) (No. 2) Regulations 2021 (the latter two sets of regulations make amendments to various United Kingdom and Scottish public procurement regulations for the purpose of implementing the GPA).
As regards the TCA, this provides market access that goes beyond the level set out in the GPA. It also protects UK-owned businesses based in the EU from the risk of discrimination in EU public procurements. The TCA opens up public procurement markets in utilities in the gas and heat sector and in private utilities that act as a monopoly; and it provides market access for an additional set of services, including a range of hospitality services, telecommunications, real estate, and education services.
The European Union (Future Relationship) Act 2020 provides that, to the extent the TCA is not otherwise implemented, it will be read into existing domestic law - this effectively modifies existing domestic law as necessary to ensure the UK complies with its obligations under the TCA. EU suppliers will continue to have access to the UK’s remedies regime for covered procurement.
For further information on the above, see the Cabinet Office’s Procurement Policy Note (PPN) 02/21 – Requirements for contracts covered by the WTO Government Procurement Agreement and the UK-EU Trade and Co-operation Agreement (February 2021) (available here). The UK’s commitments under the GPA and the TCA are set out in this PPN (including in Annex A of the PPN, which relates to the procurement provisions in the TCA).
As for the UK’s international trade agreements other than with the EU (as to which see above), the Public Procurement (International Trade Agreements) (Amendment) Regulations 2021 give effect, in the UK’s procurement regulations, to the UK’s procurement obligations covered by such trade agreements.
What types of procuring entity need to comply with the procurement legislation?
The public procurement regulations in the UK apply to public bodies, bodies governed by public law and utilities – they encompass central government departments, executive agencies, non-departmental public bodies, entities in the wider public sector, local authorities, National Health Service (NHS) bodies and utility companies.
The definition of ‘contracting authorities’ in regulation 2 (Definitions) of the Public Contracts Regulations 2015 is as follows: “the State, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, and includes central government authorities, but does not include Her Majesty in her private capacity”.
A distinction is drawn in the Regulations between central government authorities and sub-central contracting authorities. The Crown and all the bodies listed in Schedule 1 to the Public Contracts Regulations 2015 are central government authorities. Contracting authorities which are not in the list are sub-central contracting authorities. Local authorities, schools and fire and police authorities are all sub-central contracting authorities. The distinction is important as sub-central contracting authorities benefit from certain flexibilities in the Regulations including a higher threshold for services contracts. NHS Trusts and NHS Foundation Trusts are classified as central government authorities.
Regulation 2 (Definitions) also contains a definition for ‘bodies governed by public law’. These are ”bodies that have all of the following characteristics:
- they are established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character;
- they have legal personality; and
- they have any of the following characteristics:
- they are financed, for the most part, by the State, regional or local authorities, or by other bodies governed by public law;
- they are subject to management supervision by those authorities or bodies; or
- they have an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities, or by other bodies governed by public law.
Applying this definition, a university would be subject to the Public Contracts Regulations 2015 if at least half of its income came from public authorities during the budgetary year.
There are equivalent provisions in the Public Contracts (Scotland) Regulations 2015. The other procurement regulations have their own definitions. See, for example, the definitions for ‘contracting authorities’ and ‘utilities’ in regulation 2 (Definitions) of the Utilities Contracts Regulations 2016 and the definitions for ‘contracting authorities’ and ‘utilities’ in regulation 2 (Interpretation) of the Concession Contracts Regulations 2016.
Which types of contracts are covered?
The public procurement regulations in the UK apply to the award of contracts (whether in respect of works, supplies or services, or framework or dynamic purchasing arrangements) which fall within the scope of the applicable regulations. Each of the principal sets of procurement regulation in the UK contains definitions which relate to the contracts that are to be considered within its scope, although this is subject to the financial thresholds and the express exclusions (see below) as provided for in the relevant regulations.
For example:
- the Public Contracts Regulations 2015 relate to ‘public contracts’, as defined in regulation 2 (Definitions). These are “contracts for pecuniary interest concluded in writing between one or more economic operators and one or more contracting authorities and having as their object the execution of works, the supply of products or the provision of service”. Works contracts are “public contracts which have as their object: (a ) the execution, or both the design and execution, of works related to one of the activities listed in Schedule 2 of the Public Contracts Regulations 2015; or (b) the execution, or both the design and execution, of a work, or (c) the realisation, by whatever means, of a work corresponding to the requirements specified by the contracting authority exercising a decisive influence on the type or design of the work”. Service contracts are “public contracts which have as their object the provision of services other than those referred to in the definition of ‘public works contracts’” and supply contracts are “public contracts which have as their object the purchase, lease, rental or hire-purchase, with or without an option to buy, of products, whether or not the contract also includes, as an incidental matter, siting and installation operations”. There is also a ‘light-touch’ regime for where the proposed contract is for the provision of certain social or other specific services (see regulations 74 to 77 in Chapter 3 (Particular Procurement Regimes) of Part 2 of the 2015 Regulations, and Schedule 3 (Social and Other Specific Services) to the 2015 Regulations);
- the Utilities Contracts Regulations 2016 relate to procurements by ‘utilities’, as defined in regulation 2 (Definitions). Specifically, they apply to the award of contracts by “utilities” as part of, or ancillary to, their carrying out of one of the relevant utility “activities” (these are set out in regulations 9 to 15). A “utility” is a contracting authority or a public undertaking which (in each case) pursues a relevant “activity”, or an entity that carries out a relevant “activity” by virtue of being granted, by a competent authority, “special or exclusive rights” to do so. A relevant utility “activity” includes energy, water, transport, ports, airports, postal services and fuel extraction. The ‘light-touch’ regime in respect of social and other specific services is provided for in regulations 90 to 93 and Schedule 2; and
- the Concession Contracts Regulations 2016 relate to the award of ‘concession contracts’, as defined in regulation 2 (Interpretation) (the lighter regime for social and other specific services is provided for in regulation 19 and Schedule 3).
The financial thresholds (as provided for in each set of public procurement regulations) relate to the estimated value of a public procurement, and apply for the purpose of determining if the procurement is to be subject to the full applicable procurement regulatory regime. For procurements subject to the Public Contracts Regulations 2015, see in this respect regulations 5 (Threshold amounts), 5A and 6.
There is a set of lower thresholds (above a de minimis threshold dependent on the type of contracting authority) under the Public Contracts Regulations 2015 for those public procurements which, due to their value, fall below the main financial thresholds (and which, therefore, would otherwise not be regulated) but which, if they satisfy these lower thresholds, are subject to a separate regime (which relates to the publication of information and certain requirements for assessing the suitability of candidates) – see in this respect Chapter 8 (Below-Threshold Procurements) in Part 4 of the Public Contracts Regulations 2015, and The Public Contracts (Amendment) Regulations 2022 (2022 No. 1390), which relate to the thresholds for the purpose of Chapter 8.
As regards the computation and amount of the financial thresholds, see Procurement Policy Note 10/21 – Thresholds and inclusion of VAT, 6 December 2021, Procurement Policy Note 11/23: New Thresholds, 19 December 2023, and the Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2023 (2023 No. 1117) which came into force on 1 January 2024. The equivalents for Scotland are SPPN 8/2021 – Procurement thresholds and VAT inclusion in estimated contract value, 13 December 2021, SPPN 5/2023 – Updates to Procurement Thresholds, 30 October 2023, and the Public Procurement (Agreement on Government Procurement) (Thresholds) (Miscellaneous Amendments) (Scotland) Regulations 2023 (2023 No. 300) which came into force on 1 January 2024.
As well as financial thresholds, there are a number of express exclusions set out in each of the sets of procurement regulations, meaning that certain arrangements that would otherwise be subject to public procurement regulation are excepted from the rules covered by the exclusion. See, for example, regulations 10 (Specific exclusions for service contracts) ( e.g. the acquisition or rental, by whatever financial means, of land, existing buildings or other immovable property, or which concern interests in or rights over any of them; certain broadcasting services; arbitration or conciliation services; certain legal services; certain financial services; loans; employment contracts; civil defence, civil protection, and danger prevention services that are provided by non-profit organisations or associations; public passenger transport services by rail or metro; and certain political campaign services), 11 (Service contracts awarded on the basis of an exclusive right) and 12 (Public contracts between entities within the public sector) in Sub-Section 3 (Exclusions) of Chapter 1 in Part 2 of the Public Contracts Regulations 2015.
There are equivalent provisions to those referred to above in the Scottish procurement regulations (see the procurement legislation section of this document).
It should also be noted that, in addition to the above, there are certain UK procurement regulations which are of relevance to procurements taking place within particular sectors or relating to particular infrastructure assets, such as the defence and transport sectors and offshore electricity transmission assets - examples of such regulations, in the context of defence, are the Defence and Security Public Contracts Regulations 2011, which establish rules (where competition is in use) for the procurement of defence and sensitive security equipment and services by contracting authorities in the UK, and the Single Source Contract Regulations 2014, as relevant to defence procurement where there is to be no open competition.
Are there any exemptions to competitive bidding?
Where a contract is caught by the public procurement regulations, a competitive bidding process is generally required in relation to it pursuant to the regulations. However, in certain circumstances it is permitted by the relevant regulations to proceed with the procurement and award a contract without the publication of a contract notice and a call for competition (this is sometimes referred to as direct award procurement or, in the context of defence, as single source procurement).
For example, see the cases and circumstances laid down in regulation 32 (Use of the negotiated procedure without prior publication) of the Public Contracts Regulations 2015. One of the cases described in that regulation (within the general grounds) is where “… for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with” (see regulation 32(2)(c)). The other cases within the general grounds relate to where no tenders, no suitable tenders, no requests to participate or no suitable requests to participate have been submitted in response to an open procedure or a restricted procedure (see regulation 32(2)(a)); and where the works, supplies or services can be supplied only by a particular economic operator for any of a number of specified reasons (see regulation 32(2)(b)). Regulation 32 also sets out a number of additional grounds (see regulations 32(5) to 32(12)).
By way of a further example, in the UK’s defence sector there is a single source procurement regulatory framework governing the placement of contracts without competition with a selected contractor – this can occur for a number of reasons, including on grounds of national security or because there is only one specialist supplier available. This framework is provided for in the Defence Reform Act 2014 and the Single Source Contract Regulations 2014 (as made under that Act).
Are there any proposals to amend the applicable procurement legislation?
On 15 December 2020, the Cabinet Office published a Green Paper consultation titled ‘Transforming public procurement’ setting out a number of proposed reforms with the objectives of speeding up and simplifying procurement processes, focusing on value for money in public procurement, creating opportunities for small businesses, and supporting innovation in public service delivery. This was followed on 6 December 2021 with the publication here of the Government’s response to (and a summary of) the submissions received by it in respect of the consultation – the response document is called ‘Transforming Public Procurement: Government response to consultation’. Then, on 11 May 2022, the Procurement Bill (which relates to the above) was introduced to Parliament. The Bill received Royal Assent on 26 October 2023, becoming the Procurement Act 2023 (it was published with explanatory notes), although the new procurement regime under it (which is to cover public contracts, utilities contracts, concession contracts, and defence and security contracts) is not expected to take effect before October 2024 (a minimum of six-months’ notice is to be given by the government in respect of the ‘go-live’ date). The necessary statutory instruments (regulations) for the new regime are being developed (a two-part consultation on those regulations commenced on 19 June 2023). As regards transition, the existing procurement legislation will apply until the new regime takes effect, and will also continue to apply to procurements started under the old rules. Guidance is being provided to cover the transition from the old to the new regulations – the proposed approach for this transition (i.e. for procurements already underway at the time the new regime enters into force) is explained in the Cabinet Office’s Part 2 Consultation on draft regulations to implement the Procurement Bill, published on 17 July 2023 (available on ‘Gov.UK’ here).
The Procurement Act 2023 applies to procurements by contracting authorities in England and by devolved contracting authorities in Wales and Northern Ireland. Scotland, however, is to maintain its own procurement framework, although the Act provides for arrangements covering joint and cross-border procurement with Scottish contracting authorities. See the explanatory notes referred to above (with a link) for more on the position of Scotland under the Act.
As regards international obligations, the Procurement Act provides for the UK to meet its obligations on public procurement as included in the treaties that it has signed (including the World Trade Organisation Agreement on Government Procurement (GPA), the Trade and Cooperation Agreement with the EU, and other trade agreements entered into by the UK).
The Government Commercial Function maintains a page on the ‘Gov.UK’ site titled ‘Collection – Transforming Public Procurement’ – this is the place to go for information and updates about the above procurement law reform programme (including guides, videos and factsheets).
In addition to the above, a significant reform agenda relating to the single source regulatory framework for non-competitively procured defence contracts (including Part 2 of the Defence Reform Act 2014 and the Single Source Contract Regulations 2014) has been proposed by the UK Ministry of Defence (MOD) in a Command Paper titled ‘Defence and Security Industrial Strategy: reform of the Single Source Contract Regulations’, published on 4 April 2022 (the consultation response document, dated 23 May 2022, is available here – a further consultation was published by the MOD on 1 November 2023). Delivery of this reform is to be effected in part by way of Schedule 10 (Single source defence contracts) to the Procurement Act 2023. The Procurement Act will also repeal the Defence and Security Public Contracts Regulations 2011 (which regulate defence procurement with competition), with the new regime created by the Act to replace those regulations.
Key procurement resources
Some publicly available UK procurement resources have been listed, with links, below.
- Procurement policy notes (PPNs) can be accessed using the following links:
- for Cabinet Office PPNs – click here
- for Welsh Government PPNs – click here
- for Northern Ireland Department of Finance PPNs – click here
- for Scottish Government PPNs – click here
- The Green Book – Central Government Guidance on Appraisal and Evaluation comprises guidance for UK public sector bodies on how to appraise proposals before committing funds to a policy, programme or project (this is periodically updated). See also the collection of resources published by HM Treasury titled ‘The Green Book and accompanying guidance and documents’.
- The Cabinet Office and Government Commercial Function publish The Sourcing Playbook (together with a number of guidance documents available using the same link) and The Consultancy Playbook (and an accompanying guidance note, again available using the same link).
- The Cabinet Office publishes The Construction Playbook and a number of guidance and other related documents (all available using the same link). On 16 December 2021, the Cabinet Office published here a review titled ‘Constructing the Gold Standard – An Independent Review of Public Sector Construction Frameworks’.
- The Cabinet Office and Central Digital and Data Office issued the ‘Digital, Data and Technology Playbook’ on 28 March 2022– this provides government guidance on sourcing and contracting for digital, data and technology projects and programmes.
- The Cabinet Office has also published the Public-sector procurement guidance, 7 January 2021.
- HM Government’s National Procurement Policy Statement, June 2021, sets out the strategic priorities for public procurement and how contracting authorities can support their delivery – this was published here by the Cabinet Office on 3 June 2021.
- The Scottish Government’s ‘Procurement Journey’ site is another external resource for procurement guidance and templates.
- The Crown Commercial Service[1] maintains guidance titled ‘Public procurement policy’ – this covers (with links) the legal framework for public procurement, the procurement regulations, and more.
- The Crown Commercial Service publishes the ‘Procurement Essentials’ series of articles.
- On 20 January 2022, the Government Actuary’s Department (GAD) announced the publication here of new guidance (prepared in conjunction with the Government Legal Department) on the procurement regulations which apply where a government or other public body wishes to procure services from GAD. The guide is titled ‘Procuring our services’ and is useful for those wanting a primer on the Public Contracts Regulations 2015.
- The Government Commercial Function maintains a page on the ‘Gov.UK’ site titled ‘Collection - Transforming Public Procurement’ – this relates to the reform of the public procurement regime.
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