The procurement process outlines the steps taken to acquire goods or services, from identifying the need to making the final purchase while saving cost, reducing time, and building win-win supplier relationships.

Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies. The public procurement process is the sequence of activities starting with the assessment of needs through awards to contract management and final payment.

The purpose of public procurement is to award contracts in a timely and cost-effective manner to qualified contractors, suppliers and service providers. Contracts are awarded for goods, services and works, to support government operations and provide public goods and services in accordance with the procurement rules. These rules covers all EEA countries, EU countries and WTO countries subject to bilateral general public procurement agreements.

Transparency
The principle of transparency serves two main objectives: the first is to introduce a system of openness into public purchasing in the member states, so a greater degree of accountability should be established and potential direct discrimination on grounds of nationality should be eliminated. The second objective aims at ensuring that transparency in public procurement represents a substantial basis for a system of best practice for both parts of the equation, but is of particular relevance to the supply side, to the extent that the latter has a more proactive role in determining the needs of the demand side.

Equal Treatment
The principle of Equal Treatment requires that all suppliers be treated equally and with the utmost fairness at every stage of a contract award procedure. This means that the selection of candidates to tender, the receipt of tenders and the treatment of tenders must be carried out in a scrupulously fair manner.

Non-Discrimination
This concept of non-discrimination is more than simply an extension of the concept of equal treatment. It implies that any condition of eligibility or origin (based on nationality or local provenance) will automatically give rise to unequal treatment, since those conditions will, by definition, discriminate against a certain group of (foreign) economic operators or favour another group. However, while discrimination in a given context will produce unequal treatment, unequal treatment does not always give rise to discrimination.

Proportionality
The Proportionality principle mandates that the requirements imposed on suppliers must be pertinent and closely linked to the contract being granted. It serves as a reminder for contracting authorities to adhere to a balanced approach, enhancing transparency. This principle is employed to ensure that Member States does not go beyond what is necessary to achieve the aim pursued, in relation with such significant aspects as the exclusion of tenderers, THE criteria for qualitative selection or the evaluation of tenders.

Value for money
Contracting authorities have an obligation to get the best value for taxpayers’ money for everything they procure. Identifying the most economically advantageous tender does not necessarily mean going only for the cheapest offer. It means finding a solution, which meets the requirements you have identified – including environmental ones – in the most cost-effective way. Best value not only measures the cost of goods and services, but also takes into account factors such as quality, efficiency, effectiveness and fitness for purpose. Protection of the environment can be one of these factors and can therefore act as an equal consideration amongst others for the award of the contract.

Mutual Recognition
The principle of Mutual Recognition requires that the standards, specifications and qualifications in use throughout the EU should receive equal recognition, on condition that the products or services are suitable for their intended purpose.

Competition
From an economic perspective, “competition” operates as a discovery procedure by allowing different economic operators to communicate the prices at which goods and services are available on the market. Those prices act as guideposts and reflect the demand and supply conditions at any given moment. They also reflect the differences in quality and in terms and conditions of sale of the different (non-homogeneous) products available.

Rules of Origin
It is a series of limitations applied to States in which they shall not apply rules of origin to goods or services imported from another Party different from the rules of origin applied normally when dealing imports or supply of the same goods from the same Party

Integrity
Integrity is reliability. Bidders, and other stakeholders, must be able to rely on any information circulated by the procuring entity, formally or informally. In public procurement integrity is two-fold; there is the integrity of the procurement process, and the integrity of the public procurement professional.

Efficiency
Procurements should be conducted as quickly and efficiently as possible, without wasting taxpayer money or causing any undue delays.

Accountability
Accountability in public procurement is the responsibility procurement practitioners have to report on and explain their actions and decisions made throughout the public procurement process.

Contracting authorities are 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.

Article 2 of the directive defines an “economic operator” as any individual, entity, or group (including temporary associations) offering works, products, or services in the market.

Article 18 emphasizes that contracting authorities must treat economic operators equally and without discrimination, acting transparently and proportionately.

Article 19 allows groups of economic operators, including temporary associations, to participate in procurement procedures without requiring a specific legal form. Contracting authorities may specify in procurement documents how these groups should meet certain requirements, provided it is justified and proportionate.

Procurement planning is the process of identifying and consolidating requirements and determining the timeframes for their procurement with the aim of having them as and when they are required.

1.  Identify the requirements of each contracting authority.
2. Review historic expenditure and identify emerging requirements for the next 2-4 years
3. Assess the ease of fulfilment of the requirements and allocate provisional estimated budgets against each category and sub-category
4. Review procurement policies and procedures for the contracting authority to ensure that they are up to date and in line with good practice.
5. Develop implementation and prioritisation schedule for the delivery of individual procurement projects under the plan
6. Complete the procurement plan.
7. Get procurement plans approved.
8. Prepare procurement schedule.

The procurement plan comprises a comprehensive record of all anticipated procurement needs extending over a specific duration. It outlines details such as the description of each requirement, the procurement category (goods, works, services), the chosen procurement method, allocated funds, and the relevant department overseeing the procurement. Occasionally, it may also include an estimated contract award date. On the other hand, the procurement schedule encompasses all the information found in the procurement plan. What distinguishes the two lies in the fact that the procurement schedule not only incorporates all these details but also includes milestones and specific timeframes for every stage in the procurement process. Additionally, the procurement schedule may serve as a tool for monitoring the outcomes of the procurement process for each requirement and assessing the overall performance of the procuring entity .

Procurement methods encompass the processes employed to choose suppliers, contractors, and service providers for obtaining goods, works, and services. These methods can be either competitive or non-competitive, in accordance with the applicable procurement rules.

Quotations process
Is a procurement method in which the buyer requests proposals from potential suppliers. Businesses often use this method for complex or specialised goods and services. In an Request for Quotation (RFQ), the buyer outlines the specifications and requirements of the project or service and invites suppliers to submit proposals outlining how they can meet those requirements. The buyer then evaluates the proposals and selects the most suitable supplier based on various criteria such as cost, quality and experience.

Open procedure
In open tendering, all interested suppliers may submit bids for a specific project or requirement in response to a Contract Notice and RFT published in the OJEU. The procurement procedures, selection criteria and evaluation are made clear in the Contract Notice and the RFT. Only tenderers who are not disqualified on Exclusion Grounds and meet the Selection Criteria are evaluated against the Awards Criteria set out in the RFT.

Restricted procedure
The Restricted Procedure is a two-stage procedure which involves a pre-qualification stage open to all interested parties who wish to submit a request to participate, and an award stage where candidates shortlisted at the pre- qualification stage are invited to submit tenders and are assessed against Award Criteria set out in the RFT.

Competitive Dialogue
This procedure can be used by a contracting authority with the aim of proposing a method of addressing a need defined by the contracting authority. A selection is made of those who respond to the Contract Notice and the contracting authority enters into dialogue with those selected to develop one or more suitable solutions for its requirements. The contracting authority may reduce the number of solutions throughout the dialogue and subsequently invite tenders on the basis of the specified solution(s).

Competitive procedure with negotiation
In competitive negotiated procedures anyone may ask to participate accompanied by an ESPD response, but only those who are pre-selected will be invited to submit initial tenders and to negotiate.

Procuring entities can only use this procedure when negotiations are necessary due to the specific or complicated nature of the purchase however, the procuring entities in the defence and security, water, energy, transport and postal services sectors may use it as a standard procedure.

Negotiated procedure without market notice
Involves the direct awarding of a contract to a specific supplier without competitive bidding, typically employed for highly specialised items or when only one supplier can fulfil requirements. This can ensure customised products or services that meet specific needs and maintain relationships with proven suppliers. the contracting authority must be able to justify the use of the exemption for direct award of a contract without OJEU advertising.

Innovation Partnership
The Innovation Partnership in the European Union (EU) for public procurement is a framework designed to foster collaboration between the public sector and businesses to develop innovative solutions. Introduced in the 2014 EU Public Procurement Directive, the Innovation Partnership aims to address complex challenges by engaging private companies throughout the research and development process. Unlike traditional procurement, which focuses on selecting from existing solutions, the Innovation Partnership enables public authorities to work closely with industry partners to co-create and implement innovative products, services, or works.

This approach encourages long-term partnerships, allowing for joint problem-solving and the development of cutting-edge solutions tailored to specific public needs. The process involves a series of stages, from defining the problem to selecting qualified partners, and jointly funding research and development. By facilitating collaboration, the Innovation Partnership seeks to drive technological advancements, enhance public services, and stimulate economic growth within the EU while promoting efficient and strategic use of public funds.

Sheltered contracts
Reserved contracts involve exclusive bidding eligibility based on specific conditions, not a general preference for certain businesses. In EU procurement law, reservations are limited to two types: one for economic operators focusing on social and professional integration of disadvantaged workers (Art 20 Directive 2014/24/EU), and another for organisations with a public service mission in social, health, and education services Art 77 Directive 2014/24/EU). The first type allows promoting integration of unemployed, members of disadvantaged minorities or otherwise socially marginalised groups and the light touch procurement refers to a less regulated procurement approach.

Light touch Regime
The new light-touch regime (LTR) outlined in Art 77 Directive 214/24/EU is a specific set of rules for certain service contracts that tend to be of lower interest to cross-border competition applying higher thresholds of €750,000 before OJEU advertisement of these requirements is mandated. Those service are defined by Common Procurement Vocabulary (CPV) codes set out in Annex XIV to the Public Sector Directive. While separate rules may govern these services, they are still bound by the general principles of EU law.

The purpose of the Prior Information Notice (PIN) is to provide the market with advance notice of contracts that an authority intends to put out to competitive tender over the next 12 months. By including details of a contract in a PIN, the authority is able to reduce time limits for receipt of tenders following issue of a Contract Notice.

There is however no obligation to issue a PIN unless it is to be used as a call for competition. Only sub-central authorities (such as local or regional authorities) are entitled to use a PIN as a call for competition. However, they can only rely on a PIN as a call for competition when using either the restricted procedure or the competitive procedure with negotiation (see above), and only when sufficient details of the contract have been included in the PIN.

A PIN may also be used as a call for competition when procuring under the light touch regime (and must be used in the case of a light touch services concession contract).

Unless a PIN is used as a call for competition, contracts meeting the relevant EU thresholds must be advertised in the OJEU using the relevant European Commission standard forms. The Contract Notice must include sufficient detail as to the nature, scope, duration and value of the contract to be awarded. Most procurements subject to the Directives are advertised using a Contract Notice.

In procurement, tender is the act of seeking information, proposals, and quotations from suppliers, contractors, or consultants . The tender document is the formal, official publication which may lay out specific legal and performance obligations for your jurisdiction. The procuring entity prepares these documents, sometimes referred as Call for Tenders (CFTs), Request For tenders (RFTs), Request for Proposals (RFPs), Request for Quotations (RFQs), or Invitations for Bid (IFBs) . These documents are crafted upon receiving an approved procurement requisition for any item listed on the approved procurement plan

• General introduction: Providing a general overview of the requirement. This can include an overview of the contracting authority.
• Specifications and Requirements: Describing the goods, services or works required.
• Evaluation criteria: Description of the compliance, minimum organisational / technical requirements and experience levels needed as well as the contract award criteria used to make the final decision.
• Instructions to Bidders: Offering details on the bidding process, including preparation, submission, evaluation of bids or proposals, submission dates, and information about the purchaser and the bidder. Typically includes details on attestations suppliers must provide also.
• Contract Template: A draft format of the contract to be signed between the winning bidder and the purchaser or employer is provided.

Publication or advertisement of procurement notices depend on the procurement method. Competitive Bidding procurements are usually advertised in the local and sometimes international market for several days, but this period should be indicated in the procurement manuals and guidelines. Non-competitive bidding procurements such as request for quotations, direct contracting and sole-source procurements are not advertised. In the EU, above the EU spending thresholds, a Voluntary Ex Ante Transparency (VEAT) Notice should issue where competition has not been facilitated. It is discretionary at national level to publish a VEAT notice.

The EU Remedies Directives enable the publication of a Voluntary Ex Ante Transparency (VEAT) to mitigate the risk of ineffectiveness in bona fide cases, which allows for minimal transparency in direct award situations. The purpose of a VEAT notice is to notify the market of an intention and justification for a direct award.  When completing the VEAT notice, the contracting authority must provide sufficient information about the contract, justify the direct award without OJEU advertising, and observe a minimum 14-day standstill period before awarding the contract. This allows economic operators to challenge the decision, potentially leading to an orthodox competition or, if the award persists, enabling an aggrieved party to seek court intervention.

The 2014 EU Directives stipulate minimum timescales to allow sufficient preparation time. For open procedures, the minimum time for tender receipt is 35 days, reducible by five days for electronic submissions. In restricted and competitive procedures with negotiation, the minimum timescale for requests to participate and tender receipt is 30 days each. Competitive dialogue has a 30-day minimum for requests to participate, with no set minimum for tender receipt. Flexibility exists for Utilities Regulations, allowing, for example, a negotiated procedure with a general 30-day minimum for requests to participate and a minimum of 15 days, but not less than 10 days, for tender receipt. These timescales may be adjusted based on factors like a Prior Information Notice or a state of urgency

Yes, potential bidders have the option to ask questions or seek clarification from contracting authorities regarding tender documentation. The Contract Notice specifies the deadline for submitting queries. However, If additional information or materials are provided to one candidate, whether on request or otherwise, it must be shared with all candidates.

Occasionally meetings are arranged for procurements involving goods, works, or services as part of a tender process . The aim in holding bidder meetings is two-fold. The first aim is to clearly explain to bidders what is needed from them by the contracting authority. The second aim (equally as important) is to stimulate interest and competition. The materials presented in the briefing are normally included in the tender pack when it is issued so all suppliers have access to the same information. Where there is Q&A, sometimes questions are captured and the responses given included in the tender documents also. Alternatively, a common current trend is to record webinars for the briefing which include the Q&A aspect that bidders can consult in their own time. This again satisfies openness and transparency requirements.

Site visits often for infrastructure works, site visits are a component of the tendering process. They involve visiting the site where the bidder is hoping to deploy your services, for the purposes of gaining in-depth information. They may be independently conducted or organised by the relevant entity in coordination with the procuring entity. When a pre-bid meeting is scheduled, the site visit precedes it, allowing bidders to raise site-related questions addressed during the subsequent pre-bid meeting and documented in the minutes.

Bidders are required to submit bids by a specified date and time, as stated in the tendering documents. The opening of bids typically occurs on the same day, immediately following the submission time elapsed. Bids received before the deadline submission date are securely stored until the opening date and time. The responsibility for receiving and opening bids lies with the procuring entity, as specified in the Procurement Rules. Any bids received after the submission date and time are not accepted, unless an amendment to the tendering document is in place. If a bid box is used, it is closed immediately after the submission time has elapsed.

Yes, under the 2016 Regulations, a contracting authority may, in specific situations, ask the tenderer to provide, enhance, clarify, or complete information if the submitted information seems incomplete or incorrect, or if specific documents are absent. It is advisable to seek legal counsel before a contracting authority requests such clarifications from tenderers.

Review of tenders should be carried out by a team with the necessary competence. Team members must complete a Conflict of Interest form ahead of the evaluation to ensure that there are no conflicts and to allow for an evaluator be replaced where conflicts are identified. The team may include independent representation. External experts can be used in complex evaluations to provide advice or recommendations on the technical aspects of the tenders to the evaluation team.

External experts should sign confidentiality and non-disclosure agreements and comply with any other security or confidentiality requirements of the contracting authority and should return to the contracting authority all documentation, materials and notes received or made during the evaluation.

The ESPD regulated under Article 59 of the Directive is a single self-declaration form of suitability, financial status and abilities of a company used as preliminary evidence in all public procurement procedures in the EU above the EU threshold. The ESPD also covers situations where the economic operator relies on the capacities of other entities, requiring relevant information about those entities.

The ESPD enables the participating companies to declare that:
– They are not in a situation in which they have to/may be excluded from the procedure.
– They meet the selection criteria.

The advantage of the ESPD is that only the winner will have to submit the certificates requested as evidence by public buyers. This significantly reduces the administrative burden related to proving the eligibility of participants and simplifies cross-border access to business opportunities.

Economic operators may be excluded from the procurement procedure or be subject to prosecution under national law in cases of serious misrepresentation in filling in the ESPD or, generally, in supplying the information required for the verification of the absence of grounds for exclusion or the fulfilment of the selection criteria, or where such information is withheld or the economic operators are unable to submit the supporting documents.

As per the case law decision in Taxi Horn Tours BV undertaking, structured like a firm under national law, listed on a commercial register, can participate in public procurement individually. An economic operator participating on its own and which does not rely on the capacities of other entities in order to meet the selection criteria, must fill out one ESPD.

An economic operator participating on its own but relying on the capacities of one or more other entities must ensure that the contracting authority or contracting entity receives its own ESPD together with a separate ESPD setting out the relevant information for each of the entities it relies on.

Finally, where groups of economic operators, including temporary associations, participate together in the procurement procedure, a separate ESPD must be given for each of the participating economic operators.

The evaluation of tenders may only begin after the deadline for submission has expired. Tenders are evaluated by awarding points based on pre-published criteria, with each category worth a certain amount; for example the price offered may be worth 40%, technical characteristics 50% and environmental impact 10%.

Selection criteria are a set of requirements and standards that potential suppliers, contractors, or service providers must meet to demonstrate their suitability for participating in a procurement process. These criteria are assessed by the contracting authority to ensure that the entities involved in the bidding process possess the necessary qualifications, capabilities, and financial stability to successfully perform the contract.

At the end of the process, the Directives require that not later than 30 days after the award of the contract (or the conclusion of a framework agreement) authorities and utilities must send for publication in the OJEU a Contract Award Notice. The Contract Award Notice is a prescribed form and must contain information including the value and duration of the contract the identity of the successful tenderer.