EU Commission issues guidance on the award of low value public Contracts

On the 24th of July 2006 the EU Commission published guidance on how public bodies should fairly award public contracts whose value is below the relevant thresholds contained in the Public Procurement Directives.

The Commission, in acknowledging that the EU Directives on Public Procurement do not apply to such contracts, restated the well established principles that such contracts should nevertheless be awarded in compliance with the internal market principles of transparency and non discrimination.

The Commission’s guidance which is issued in the form of “an Interpretative Communication” sets out the Commissions’ suggestions as to how public bodies should comply with these internal market principles.

The EU Procurement Directives do not apply to contracts which have values of less than €211,000 and in the case of Services or Supply contracts or €5,278,000.00 in the case of Works contracts.

The European Court of Justice (ECJ) has developed, through case law, minimum standards of transparency and non discrimination for the award of these contracts.

Advertising

The Communication sets out the steps to be followed to ensure that low value contracts are properly advertised. It gives specific guidance as to how widely the contract should be advertised as well as giving examples of various methods of advertising that could be used.

Contract Award

The Communication sets out guidance as to how public bodies can best ensure that they are operating a fair and impartial procedure in awarding the contract.

The principles of such contract award procedures include a transparent and objective approach with appropriate time limits, as well as equal access for interested bidders from all member states and a non discriminatory description of the subject matter of the contract.

Review Procedures

The Communication also explains how bidders can request a review of the impartiality of the decisions taken by the public body in the course of their contract award procedures.

This Communication does not constitute new legal rules but it does offer public bodies and economic entities who are interested in bidding for such contracts useful guidance.

For further information please contact
Patrick Ryan at pryan@kilroys.ie

© Kilroys Solicitors September 2006