Understanding the Rules

To understand the procurement process it is necessary to understand some key issues:


Selection of Procedures

There are three different types of "procedures" operated by public bodies in awarding contracts for supplies, works and services. These are known as the "open", "restricted" and "negotiated" procedures.

For EU contracts, public bodies are required to advertise their contracts by publishing notices in the Official Journal of the European Communities (OJEC).

For non-EU contracts, public bodies must advertise in the local media or use in- house tender lists.

In all contracts one or other of the following procedures must be adopted:


  • The Open Procedure

As the name implies, the Open Procedure means that any and every supplier wishing to participate in a tender process is entitled to receive tender documents and to submit a tender. This is a routine procedure.

However, tenders may be invalidated unless they meet the set minimum financial, economic and technical standards set by the authority.


  • The Restricted Procedure

This is a routine procedure whereby oOnly those suppliers receiving tender invitations from the contracting authority may submit tenders.

Selection for tender lists is based on meeting the quality standards of financial, economic and technical competence.

These criteria are set by the authorities and announced in advance.


  • The Negotiated Procedure

The negotiated procedure can be used as standard for non-EU contracts.

However, when used by public authorities for EU contracts this is an exceptional procedure.

Participation is limited only to those suppliers who, having been consulted, are invited to negotiate the terms of a contract.

Note:
Under the public procurement directives, the negotiated procedure may be used only in special circumstances.

Examples would include the procurement of intellectual services or in cases where a tender process under an "open" or "restricted" procedure had resulted in unsuitable or irregular tenders only being received.

Otherwise the open or restricted procedure must be chosen.

Utilities operating in the water, energy and transport sectors routinely may use the negotiated procedure for relevant contracts.

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