The European Union s Public Procurement System

Information sheet The European Union s Public Procurement System This paper serves to provide a better understanding of the EU and WTO rules on public procurement and is for informational purposes only. The State Secretariat for Economic Affairs (SECO) has compiled the information provided in this document from internal and external sources to the best of its knowledge and belief and intends to expand and update this information over time. Despite taking all due care, SECO does not rule out the possibility of errors or omissions or of technical problems and thus accepts no liability in respect of the content of this document. Summary on pages 17-18 1

Table of contents I) International rules (WTO rules)...3 II) Community rules (EU rules)...4 A) New directive on public works, supply and service contracts... 5 B) Public procurement in the water, energy, transport and postal services sectors... 6 C) Rules applicable to all public contracts... 9 Contract-award criteria... 9 Rules on publication and transparency... 9 Participation conditions and grounds for exclusion... 10 Procedures for the awarding of public contracts... 11 D) Review procedures... 13 Appeals: Public works, supply and service contracts... 13 Appeals: Water, energy, transport and postal services sectors... 14 III) The bilateral procurement agreement between Switzerland and the EU...16 2

I) International rules (WTO rules) 1 Government Procurement Agreement (GPA) At an international level, 13 members 2 of the World Trade Organization (WTO), including the European Community and Switzerland, signed the WTO s Government Procurement Agreement (GPA), which came into force in 1996. This Agreement opens most public calls to tender from GPA contracting States to international competition 3. Suppliers from all GPA signatory countries are eligible to participate in public tenders in other signatory countries. The relevant conditions are laid down in the Agreement. The rules of the GPA serve to ensure, among other things, that there is no discrimination against suppliers from other GPA parties. They also offer a right of appeal to companies that feel they have been unfairly treated in the awarding of a public contract. Extension of the GPA to the 10 new EU Member States To ensure that suppliers from the new EU Member States have access to the markets of other GPA parties, the Commission has successfully negotiated an extension of the GPA to all new EU Member States. Suppliers from the new EU Member States thus enjoy similar access conditions to public contracts in other GPA countries as suppliers from the old EU Member States. In return, the other GPA contracting parties were given the same access conditions for the public procurement markets of the new EU Member States as they already enjoyed for the EU-15. 1 http://www.wto.org/english/tratop_e/gproc_e/gp_gpa_e.htm 2 Canada, European Communities (including its 25 member States: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom), Hong Kong China, Iceland, Israel, Japan, Korea, Liechtenstein, Netherlands with respect to Aruba, Norway, Singapore, Switzerland, United States 3 The Government Procurement Agreement extends international competition to include national and local government entities. It extends coverage to services (including construction services), procurement at the sub-central level (for example, states, provinces, departments and prefectures), and procurement by public utilities. The agreement applies to contracts worth more than specified thresholds. For central government purchases of goods and services, the threshold is SDR 130,000 (some $185,000 in June 2003). For purchases of goods and services by sub-central government entities, the threshold varies but is generally in the region of SDR 200,000. For utilities, thresholds for goods and services are generally in the area of SDR 400,000 and, for construction contracts, in general the threshold is SDR 5,000,000. 3

II) Community rules (EU rules) EU founding contract European legislation on government contracts has been evolving since the 1970s. Under the European Community s founding charter, public bodies are obliged to give equal treatment to all economic operators, ensuring a transparent tendering process, with genuine competitive tendering, free movement of services and mutual recognition across the entire EU. The four European directives on public procurement processes have been consolidated into two new directives, which came into force in April 2004 (the deadline for their implementation by Member States was 31 January 2006): Two European directives A) Public works contracts, public supply contracts and public service contracts http://europa.eu/scadplus/leg/en/lvb/l22009.htm B) Public procurement in the water, energy, transport and postal services sectors http://europa.eu/scadplus/leg/en/lvb/l22010.htm These new directives complete the European Union s overhauled consolidated legal framework. In addition, the new provisions simplify the processes for the awarding of public contracts. They also act as a step towards the development of electronic processes. Applicable law: Calls for tenders, tendering process, awarding of contract Under these directives, public contracts above a certain value are subject to EU rules on the publishing of calls for tenders in Supplement S to the Official Journal of the European Union, the invitation to tender and the awarding of contracts. The thresholds in question depend on the type of contract, and the calls for tenders must be published in the 20 official languages of the EU. The calls for tenders also appear in the online database Tenders Electronic Daily (TED): http://ted.europa.eu/ National procurement system Where the value of a public contract is below the minimum limit, the individual country s own legislation is applied (subject to European regulations). Information on EU Member States national procurement systems is available at http://ec.europa.eu/youreurope/nav/en/business/publicprocurement/info/index_en.html However, for certain public contracts, irrespective of size, the individual Member States legislation take precedence. This applies 4

where the contracts in question are of particular national interest, such as in defence procurement projects. SIMAP information system The EU has its own website for public contracts: SIMAP, the information system for public procurement. Here, those involved in public procurement can find information on the possibilities of awarding contracts at international and European level and on buyer profiles from some 30 countries. SIMAP also provides special webbased tools, e.g. enotices, and an overview of the rules and procedures at European and national level. Participants can also find out about the remedies available to them in the various Member States if they feel their public procurement rights have been violated. http://simap.europa.eu A) New directive on public works, supply and service contracts Directive 2004/18/EC applies to public works, supply and service contracts valued at or above the following thresholds (before VAT). Thresholds EUR 137 000 for public supply and service contracts awarded by central government authorities (ministries, public-sector bodies); EUR 211 000 - for public supply and service contracts awarded by public contracting authorities that are not central government authorities; - for contracts that concern certain defence-related products and are awarded by central government authorities; - for contracts concerning certain services in the fields of research and development (R&D), telecommunications, hotels and catering, transport by rail and waterway, temporary staffing, vocational training, information and security, legal advice, healthcare, veterinary and social services, recreation, culture and sports; EUR 5 278 000 in the case of public works contracts. Exceptions The following are excluded from the scope of this directive: public contracts covered by the special sectors directive and contracts awarded for the purpose of providing or operating public telecommunications networks; public contracts that are classified as secret or which affect the State s security interests; public contracts concluded pursuant to international agreements; public contracts concerning the following services: the acquisition or rental of existing buildings; the acquisition, development, production or co-production of radio or television programmes; arbitration and 5

conciliation services; the purchase, sale or transfer of financial instruments; central bank services; employment contracts; R&D services where the results do not belong exclusively to the contracting authority or which are not wholly financed by it; public service contracts awarded on the basis of an exclusive right; service concessions Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts: http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:l:2004:134:0114:02 40:EN:PDF B) Public procurement in the water, energy, transport and postal services sectors Application Directive 2004/17/EC on special sectors applies to: all contracting authorities or public undertakings that pursue activities in one of the following fields: gas, electricity, water, transport services, postal services, fuel extraction or the provision of ports or airports; all other contracting entities that pursue one (or more) of the above activities and enjoy special or exclusive rights granted by a competent authority of a Member State. Activities This directive applies to the following activities: the provision and operation of fixed networks intended to provide a service to the public in connection with the generation, transport or distribution of gas, heat or electricity, or the supply of gas, heat or electricity to such networks; the provision and operation of fixed networks intended to provide a service to the public in connection with the production, transport or distribution of drinking water, or the supply of drinking water to such networks; where the contracting entity awards contracts within the context of its water-management activities or organises contests connected with irrigation, land drainage or hydraulic engineering projects, or in connection with the disposal or treatment of sewage; the provision or operation of networks providing a service to the public in the field of transport by railway, automated systems, 6

tramway, trolley bus, bus or cable. Bus transport services are excluded from the scope of the directive where other entities are free to provide those services, either in general or in a particular geographical area, under the same conditions as the contracting entities; the provision of postal services. These services cover: postal services which are reserved under the terms of Directive 97/67/EC, as well as those which may not be reserved under Directive 97/67/EC: all of the following services are also covered, on condition that such services are provided by an entity also providing postal services and that the market is not yet open to competition: mail management services (e.g. mailroom management services), added-value services linked to and provided entirely by electronic means (e.g. the secure transmission of encrypted documents, address management services), direct mail bearing no address, financial services (e.g. postal money orders and postal giro transfers), philatelic services and logistics services; the exploitation of a geographical area for the purpose of 1) prospecting for or extracting oil, gas, coal or other solid fuels, or 2) the provision of airports, ports or other terminal facilities to carriers by air, sea or inland waterway. Effective competition Contracts awarded in the sectors in question are no longer subject to the Directive if effective competition exists. Since 30 April 2004, Member States have had the possibility of asking the Commission to adopt a decision testifying to the existence of effective competition in a Member State for a given sector in accordance with a specific procedure. This procedure is based on the characteristics of the goods and services under consideration, the existence of alternatives, prices and the presence of several competitors. On its own initiative or at the request of the national contracting entities, when the national transposition of the directive allows them to do so, the Commission may adopt a decision testifying to the existence of effective competition in a Member State and for a given sector. If no decision is made within the deadline set, the exclusion becomes applicable. This directive applies to contracts valued at or above the following thresholds (excluding VAT): Thresholds EUR 422 000 in the case of supply and service contracts; EUR 5 278 000 in the case of works contracts. Exceptions The following are excluded from the scope of this directive: works and service concessions in the sectors of activity concerned; contracts awarded for purposes of resale, lease to third parties, for purposes other than the pursuit of an activity in the sectors concerned or for the pursuit of such an activity in a third country. The Commission may publish in the Official Journal the lists of the categories of products and activities excluded; 7

contracts that are secret and require special security measures or are awarded pursuant to international rules; certain contracts awarded by a contracting entity to an affiliated undertaking or awarded by a joint venture formed exclusively by a number of contracting entities for the purpose of carrying out the activities concerned. By definition, an affiliated undertaking has annual accounts which are consolidated with those of the contracting entity or is subject to a dominant influence by virtue of ownership, financial participation, or the rules which govern it. Contracting entities must notify the Commission of the names of the undertakings or joint ventures concerned and the nature and volume of the contracts involved; service contracts awarded on the basis of an exclusive right; service contracts for the acquisition or rental of land, existing buildings or other immovable property or concerning rights thereon (excluding financial service contracts concluded at the same time as, before or after the contract of acquisition or rental); arbitration and conciliation services; financial services in connection with the issue, sale, purchase or transfer of financial instruments (such as transactions to raise money or capital); employment contracts; and research and development (R&D) services wholly remunerated by the contracting entity; contracts awarded by certain contracting entities for the purchase of water and for the supply of energy or of fuels for the production of energy; certain contracts subject to special arrangements in Germany, Austria, the Netherlands and the United Kingdom and in the field of the prospecting for or extraction of oil, gas, coal and other solid fuels. Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:l:2004:134:0001: 0113:EN:PDF 8

C) Rules applicable to all public contracts Contract-award criteria Contract-award criteria The criteria by which public contracting authorities award their contracts are either: the lowest price, or to the most economically advantageous bid: various criteria of relevance to the subject matter of the contract in question, such as: quality, price, technical merit, aesthetic and functional characteristics, environmental characteristics, running costs, costeffectiveness, after-sales service and technical support, delivery date, and completion date. The contracting authority should specify the relative weighting it gives to each of the criteria. Rules on publication and transparency Publication and transparency obligations Throughout the procedure, public contracts whose value exceeds the thresholds in the EU Directive are subject to obligations regarding information and transparency. This takes the form of publishing information notices drawn up in accordance with standard Commission forms. There are several types: the notice of publication of a prior information notice (not compulsory); the prior information notice (not compulsory). After sending the notice of publication of a prior information notice, the contracting authority publishes this notice on its buyer profile itself or sends it to the Office for Official Publications of the European Communities (OPOCE). This publication is compulsory if the contracting authority wishes to shorten the deadlines for the receipt of tenders; Contract notice or notice of a design contest Contract award notice and notice of the results the contract notice or notice of a design contest (compulsory). The contracting authority may publish this notice itself nationally but must send it to the OPOCE. Publication by the OPOCE is free. The contract notice or notice of a design context is published in full in an official language of the EU, and a summary is translated into all other languages; the contract award notice and notice of the results of a design contest (compulsory). Each contracting authority will provide information, as soon as possible, on the decisions reached concerning the award of a contract, including grounds for not awarding it. It will draw up a detailed report for all contracts and inform the following as soon as possible: any unsuccessful candidates, of the reasons for rejecting their applications 9

tenderers who had made an admissible tender, of the relative advantages of the tender selected, as well as the name of the economic operator awarded the contract. The information on the various parties to the contract must be stored and exchanged in such a manner that ensures the integrity and confidentiality of the data. The contracting authority examines the content of the tenders only after the deadline for submitting them has passed. Use of electronic means is non-discriminatory and helps to speed up the procedures. Devices for the electronic receipt of tenders permit the use of an electronic signature, guarantee the authenticity, integrity and confidentiality of the data and are capable of detecting possible fraud. Participation conditions and grounds for exclusion 4 Participation conditions and grounds for exclusion European public procurement legislation imposes strict conditions regarding participation in public procurement. These conditions aim to check the suitability of economic operators tendering for contracts on the basis of criteria relating to their economic and financial capacity, and their technical and professional knowledge or abilities. The conditions for participation also aim to effectively combat fraud and corruption, systematically excluding from public procurement contracts any economic operators who have been found guilty of participating in a criminal organisation or of corruption, fraud or money laundering. A contracting authority may ask tenderers for any document testifying to their professional conduct and/or economic situation. To obtain this information, it may turn to the competent national authorities or those of another Member State. Any economic operator may be excluded from participation in a public contract where that economic operator: is bankrupt (or the subject of proceedings for a declaration of bankruptcy), is being wound up, has suspended business activities, or its affairs are being administered by the court, has been convicted of any offence concerning its professional conduct, has been guilty of grave professional misconduct (e.g. misrepresentation), has not paid social security contributions or taxes. 4 These are new provisions that have yet to be implemented by several States. 10

Procedures Procedures for the awarding of public contracts There are different public procurement procedures: the open procedure, the restricted procedure, the negotiated procedure, and the competitive dialogue. Open procedure The open procedure In an open procedure, any interested economic operator may submit a tender. The minimum time limit for the receipt of tenders is 52 days from the date on which the contract notice was published. If a prior information notice has been published, this time limit can be cut to 36 days. In no case may the time limit for the receipt of tenders be less than 22 days. Restricted procedure The restricted procedure In the case of restricted procedures, any economic operator may request to participate, but only candidates invited to do so may actually submit a bid. The time limit for the receipt of requests to participate is 37 days from the date of publication of the contract notice. The contracting authority then, simultaneously and in writing, invites the selected candidates to submit their tenders. There should be a minimum of five candidates. The minimum time limit for receipt of tenders is 40 days from the date on which the invitation is sent. If a prior information notice has been published, this time limit can be cut to 36 days. The minimum time limit for receipt of tenders may not be less than 22 days. Exceptionally and when urgency requires, the contracting authority may set a minimum time limit of 15 days (10 days if the notice is sent electronically) for requests to participate and 10 days for receipt of tenders. Negotiated procedure The negotiated procedure In a negotiated procedure, the contracting authority consults the economic operators of its choice and negotiates the terms of the contract with them. Negotiated procedure with publication The following cases justify the use of the negotiated procedure with publication of a contract notice: following another procedure which revealed the presence of irregular tenders, insofar as this new procedure does not substantially alter the original terms of the contract, in exceptional cases, when the nature of the contracts or the risks attaching thereto prevent prior pricing, 11

in the field of services, for intellectual services which do not permit the use of an open or restricted procedure, for works which are performed solely for purposes of research or testing. Negotiated procedure without publication The following cases justify the use of the negotiated procedure without publication of a contract notice: for all types of contract: when no tenders have been submitted in response to an open procedure or a restricted procedure; when, for technical or artistic reasons, or for reasons connected with the protection of exclusive rights, the contract may be executed only by a particular economic operator; in cases of extreme urgency brought about by unforeseeable events; for supply contracts: when the products involved are manufactured purely for the purposes of R&D; for follow-up deliveries over a maximum period of three years where a change of supplier would oblige the contracting authority to acquire material having different technical characteristics; for supplies quoted and purchased on a commodity market; for purchases of supplies under particularly advantageous conditions from an economic operator definitively winding up its business activities or in receivership; for public service contracts, when the contract is awarded to the successful candidate in a design contest; for works and service contracts: up to 50% of the amount of the original contract, for additional works or services which are not included in the initial project and have become necessary through unforeseen circumstances; for new works or services consisting in the repetition of similar works or services entrusted to the initial economic operator for a maximum of three years. In negotiated procedures with publication of a contract notice, the minimum time limit for receipt of requests to participate is 37 days from the date of the contract notice. In cases of extreme urgency, the contracting authority may set a minimum time limit of 15 days (10 days if the notice is sent electronically). The contracting authority, simultaneously and in writing, invites the selected candidates (a minimum of three) to negotiate. The invitation comprises all the contract documents, the time limit for receipt of the tenders, the address to which the tenders must be sent and the language(s) in which the tenders must be drawn up. The relative weighting of criteria for awarding the contract is also included. Competitive dialogue The competitive dialogue A contracting authority may make use of the competitive dialogue for complex contracts if it is not able to define by itself the technical solutions to satisfy its needs or is not able to specify the legal and/or financial make-up of a project. Large infrastructure projects lend themselves to this type of dialogue. 12

The contracting authority publishes a contract notice that includes the award criteria. The minimum time limit for receipt of requests to participate is 37 days. The contracting authority then, simultaneously and in writing, invites the selected candidates (a minimum of three) to conduct a dialogue. The discussion commences, may take place in stages and continues until the (technical and/or economic and legal) solutions have been defined. The contracting authority ensures equal treatment of all tenderers and protects the confidentiality of the information. At the end of the dialogue, the candidates submit their final tenders. These tenders may be specified, but without changing the basic features of the contract. The contracting authority awards the contract in accordance with the award criteria set and on the basis of the most economically advantageous tender. D) Review procedures Two directives on review procedures The purpose of this Directive is to enhance guarantees of transparency and non-discrimination in the award of public procurement contracts in the European Community in the fields of supply, works and service contracts. It accords to all firms an equivalent level of legal guarantee in terms of remedies in all the Member States. In May 2006, the European Commission proposed improving the effectiveness of the remedies available to aggrieved firms where they believe there have been irregularities in the awarding of a public procurement contract, particularly at a stage where infringements may still be corrected. In particular, the purpose of the proposal is to oblige contracting authorities to observe a standstill period before proceeding to conclude a contract, following the announcement of an award, either via notification of the award decision in the case of formal award procedures, or by publication of a contract award notice in the case of awards without an invitation to tender. This standstill period concerns public procurement contracts. Appeals: Public works, supply and service contracts Directive: Public works, supply and service contracts The purpose of Directive 89/665/EEC is to ensure the effective application of Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts, by making it obligatory for Member States to establish effective and rapid remedies in the event of infringements of these provisions. These procedures are available at least to any person having or having had an interest in obtaining a particular public procurement contract and who has been or risks being harmed by an alleged infringement. Decisions made by contracting authorities that are in breach of Community law on public procurement contracts must be subject to effective and rapid remedies. In all Member States, such remedies must include, in particular: 13

taking, by way of interlocutory procedures, interim measures (such as suspension of the award procedure in question); setting aside unlawful decisions including discriminatory technical, economic and financial specifications in the invitation to tender; compensating injured parties. Corrective mechanism: A procedure has been introduced whereby the Commission, when it considers that a clear and manifest infringement of Community public procurement law has been committed, may present its arguments to the Member State and the contracting authority concerned and request that the infringement be corrected, before conclusion of the contract. The Member State is obliged to reply within 21 days. Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=celex:31989l0665:en:ht ML Appeals: Water, energy, transport and postal services sectors Directive: Water, energy, transport and postal services sectors Directive 92/13/EEC seeks to guarantee the effective application of the provisions of Directive 2004/17/EC coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors. The provisions of the Directive are based on four main elements: adaptation in the water, energy, transport and postal services sectors (the special sectors of the redress mechanisms available under Directive 89/665/EEC concerning national remedies relating to public supply, works and service contracts awarded by the contracting authorities; an attestation procedure to which the contracting entities can have recourse; a corrective mechanism to strengthen the lines of action open to the Commission in cases where a clear and manifest infringement has been committed; a conciliation procedure at Community level. In the case of certain redress mechanisms, the Directive empowers the Member States to choose between two options whereby they can either 14

intervene directly in the procurement procedures by suspending those procedures and repealing any illegal decisions; or exert an indirect influence on the contracting entities through the specific imposition of a financial penalty. In both instances the aim is to ensure that any infringements of the law are corrected and that the relevant interests are protected. Whatever the option chosen, the Directive provides for the possibility of obtaining damages. The aim of the attestation procedure is to ensure that the procurement procedures and practices followed by the contracting entities are scrutinised by external independent persons in order to establish that they comply with Community law. The contracting entities may include the certificate of compliance in their notices for publication in the Official Journal of the European Union. Where the Commission feels that a clear and manifest infringement of the Community provisions has been committed in the course of the procurement procedure, it may, prior to concluding the contract, apply the so-called corrective mechanism. The Directive provides for a conciliation procedure whereby disputes between contract seekers, on the one hand, and contracting entities, on the other, can be settled on an amicable basis. In agreement with the two parties, this procedure is conducted by one Commission-accredited conciliator and a conciliator appointed by each of the two parties. Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=celex:31989l06 65:EN:HTML 15

III) The bilateral procurement agreement between Switzerland and the EU CH EU market liberalisation Bilaterals I, 1999 Swiss market liberalisation covers the procurements (works, supply and service contracts) of the Confederation and the Cantons as well as those of public bodies and public-sector companies operating in the special sectors of water, energy and transport provision. They are all obliged to call for tenders and conduct their procurements in accordance with the WTO rules for contracts exceeding a certain threshold. The selection process seeks not just the lowest price, however, but the offer presenting the best overall value. With the bilateral procurement agreement (Bilaterals I, 1999), Switzerland and the EU extended the concept of market liberalisation under the GPA to a bilateral level: In signing up to the GPA, Switzerland was not prepared to subject the procurements of local and regional authorities (municipalities, districts) to the WTO s procurement agreement. The bilateral procurement agreement closes this liberalisation gap with respect to the European Union: the GPA s procurement procedures and appeals processes apply to tenders from EU Member States also for the procurement procedures of authorities and State bodies at district and municipal level, provided that the thresholds set forth in the GPA are exceeded. In return, Swiss suppliers can also now appeal against the procurement decisions of regional authorities in the EU. This places Swiss tenderers on an even footing with those from EU or EEA States. In addition, the agreement ensures mutual, non-discriminatory access to the public procurement markets of telecommunications, rail transport and the entire energy provision process (i.e. companies operating in natural gas and oil production and not just electricity), which was previously not covered by the GPA. However, both sides opted out of the telecommunications sector in 2002. In the GPA sectors of water and energy provision, transportation (local urban transport, ports and airports), and the markets for cable railways and ski lifts, the bilateral procurement agreement now also applies to private-sector procurers that are providing public services and have been granted exclusive or special rights by a competent authority of one of the contracting parties for the purpose of exercising this activity. This is a special case in that the GPA s world trade rules do not cover private-sector procurers. 16

EU LAW: COMPARISON OF THE PROCEDURES FOR AWARDING PUBLIC CONTRACTS 5 Works, supply and service contracts; Thresholds for tendering (standard directive): EUR 137 000 EUR 211 000 EUR 5 278 000 In principle, for public supply and service contracts (awarded by central government authorities 6 ) In principle, for public supply and service contracts (awarded by public procurers 7 that are not central government authorities) for certain defence goods and for services in the fields of research and development, telecommunications, hotels and catering, transport by rail and waterway, temporary staffing, vocational training, information and security, legal advice, healthcare, veterinary and social services, recreation, culture and sports. In principle, for public works contracts Works, supply and service contracts; Thresholds for tendering (special-sectors directive): EUR 422 000 In principle, for public supply and service contracts EUR 5 278 000 In principle, for public works contracts In the field of water, energy and transport provision and postal services 5 See: http://europa.eu/scadplus/leg/en/lvb/l22009.htm (covers public works, supply and service contracts as well as public contracts in water, energy and transport provision.) 6 Central government authorities: ministries, public-sector bodies 7 Public procurers: the State, a sub-federal body, a public-sector institution (and associations) in a position to call for tenders publicly. 17

Publication of contract notice Open procedure Restricted procedure Negotiated procedure Competitive dialogue Includes award criteria Time limit for receipt of tenders without prior information notice 52 days (after publication) 40 days (after invitation) In urgent cases 10 days Set by contracting authority On completion of dialogue Time limit for receipt of tenders with prior information notice Minimum deadline for receipt of tenders Minimum deadline for receipt of participation requests (after publication) Participants Minimum number of participants Special cases 36 days (after publication) 22 days (after publication) Not necessary, tender is directly submitted All interested parties 36 days (after invitation) Set by contracting authority On completion of dialogue 22 days (after invitation) Set by contracting authority On completion of dialogue 37 days In urgent cases 15 days (10 days in case of enotices) Anyone may submit a participation request; a tender may only be submitted by those invited to do so At least 5 participants 37 days In urgent cases 15 days (10 days in case of enotices) Chosen by the contracting authority. Participants are invited to the negotiation in writing. At least 3 participants Only justified in certain cases Contracting authority negotiates the terms of the contract with the participants 37 days All interested parties At least 3 participants are invited to the dialogue. Only justified in certain cases For particularly complex contracts (e.g. large infrastructure projects) 18