Procurement Information
Procurement Directives
Some businesses are put off by the mere mention of European Union (EU) Procurement Directives.
However, they're relatively easy to understand. Which is good news - you'll need a working knowledge of procurement Directives if you're going to tender for public sector business.
What is a Directive?
EU Directives lay down end goals that have to be achieved in every Member State. This sets out a legal framework for public procurement.
Then, each national authority adapts their laws to meet these goals. How they do this is up to the nation, but the Directive sets out the date when the national laws must be in place.
Why do we need procurement Directives?
Directives as used by the EU bring different national laws into line with each other – especially when a factor affects the operation of the single market. A good example would be product safety standards.
The Directives encourage openness, transparency and equality of treatment.
They’re designed to make sure contracts meet the overall principles of the European Treaty. That means opening up the public procurement market and ensuring the free movement of goods and services within the EU.
Who's governed by the procurement Directives?
Directives cover all public sector bodies in Europe.
EU Directives related to public procurement
Open to all - large and small
A company based in one EU country can bid freely for public authority contracts in other EU countries. The contracts use harmonised, transparent procedures for selecting contractors.
And it’s not just about big business. The Small Business Act for Europe makes it easier for smaller businesses to bid for public contracts on an equal footing with larger competitors.
The Restricted Procedure
The Restricted Procedure is the process most commonly followed in the UK public sector. However, it’s not widely used in other EU Member States.
The Restricted Procedure has three main stages:
- Express your interest - The authority advertises for companies to express their interest and request a supplier questionnaire, then invites interested suppliers to undergo a pre-qualification assessment before inviting them to tender. You will be asked in the advertisement to write, email or fax the authority to express your interest and request the Supplier Questionnaire.
- Supplier questionnaire (PQQ) - The authority will send this to you and you’ll have to return it within the specified timescale to be considered. The authority will evaluate all the returned supplier questionnaires and create a shortlist of suppliers it will invite to tender for the contract.
- Submit your tender - If you’re successful, you’ll be asked to submit your tender. The authority will evaluate the tenders and award the contract on the basis of the most economically advantageous tender to the authority.
Alternatives to the Restricted Procedure
Sometimes, authorities have to use a different process. The two main options are:
- The Open Procedure – all suppliers who respond to an advertisement are invited to tender. They’re supplied with tender documentation and, in some cases, a Supplier Questionnaire. In this procedure, the information you provide in the Supplier Questionnaire will be considered alongside your tender bid.
- The Competitive Dialogue procedure – for complex contracts, the authority is allowed to advertise its needs, requirements and award criteria – not just a specific contract. This provides a starting point for a dialogue with contractors, to help the authority identify the best way of meeting its needs.
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