Different Procurement Procedures

The applicable procurement procedure depends on the estimated value and on the type of the contract. The estimated value of a contract may not be determined with a view to evading the requirements laid down in the following rules, nor may a procurement procedure be split up for that purpose. Where the subject of a contract is subdivided into several lots, even if each one will be subject of an individual contract, the value of all lots together must be taken into account for the overall evaluation of the applicable threshold.

Different types of contract

Paragraph 1.2 of Annex IV defines the following types of contract:

  • Property contract: covers the rental of land, existing buildings or other real estate (purchase of immovable assets can never be financed by the EU's contribution);
  • Supply contract: covers the purchase, operational leasing, rental or hire purchase, with or without option to buy, of products. The delivery of products may include sitting, installation and maintenance;
  • Works contract: covers the execution (and design) of a work corresponding to the requirements specified by the Contracting Authority. A 'work' means the outcome of building or civil engineering works taken as a whole that is sufficient by itself to fulfil an economic or technical function;
  • Service contract: covers all intellectual and non-intellectual services other than those covered by supply contracts, works contracts and property contracts. Service contracts equally comprise study contract (studies for the identification and preparation of projects, feasibility studies, technical studies and audits) and technical assistance contracts (the contractor is called on to play an advisory, to manage or supervise a project or to provide the consultancy specified in the contract).

A contract having as object a combination of different types of contracts (Hybrid Contract) follows the procedures foreseen for the contract to which the major value of the supply would refer.

Overview of Procurement Procedures

Procedure Description
Open Tender Procedure In an Open Tender procedure all interested economic operators may participate and submit a Tender. The Open Tender procedure is launched by the publication of an advertisement called a Contract Notice (indicating the rules governing the submission and presentation of tenders; the Exclusion, Selection and Award Criteria and the Technical specifications or Terms of Reference). An evaluation committee evaluates the tenders received on the basis of the published Exclusion, Selection and Award criteria. Once the outcome of the procedure has been determined all Tenderers shall be informed by means of an Award Notice.
… with
Local Publication
When the estimated value of the contract requires local publication, the Contract Notice must be issued in a periodical published in the country of operation or, if this is not possible, by any other relevant means available. Time limit for receipt of Tenders is minimum 21 calendar days from the publication of the Contract Notice.
… with
International Publication
When the estimated value of the contract requires international publication, the Contract Notice must be published on a specialised website on the Internet or on the Contracting Authority's website and simultaneously in a periodical published at least in the country of operation or, if this is not possible, by any other relevant means available. Time limit for receipt of Tenders is minimum 30 calendar days from the publication of the Contract Notice.
Negotiated Procedure The negotiated procedure requires the Contracting Authority to invite simultaneously and in writing Candidates to negotiate the terms of the procurement contract. The number of Candidates to be invited depends on the estimated value of the contract or on the type of product being procured (e.g. Pharmaceuticals and Medical devices are subject to Special Rules). In any event, the number of Candidates invited should be sufficient to ensure genuine competition in the given circumstances. This procedure starts with a written communication or Invitation to Negotiate (containing the same information as a Contract Notice) sent to Candidates to inform them of the Contracting Authority's intention to launch procurement procedures. Once it has received the necessary amount of offers from the Candidates invited, which satisfy the selection criteria, the Contracting Authority may then negotiate the terms with one or more of the Candidates in order to obtain the best value for money possible.
… based on 3 or more bids When, based on the estimated value of the contract, Annex IV requires the use of the Negotiated Procedure, the number of Candidates invited to negotiate should not be less than 3. If a sufficient number of Candidates to satisfy the selection criteria cannot be found an exception may be made, however, in any event, the number of Candidates invited shall be sufficient to ensure genuine competition.
… based on 1 bid With the Single Bid Negotiated Procedure it is possible to award contracts based upon negotiation with a single Candidate in the following exceptional cases:
- Urgent Actions;
- Individual order forms on the basis of a Framework Contract;
- Purchases from an HPC;
- Contracts valued below €10,000;
- No suitable tenders/offers in response to an Open Tender or Negotiated Procedure;
- For technical or operational reasons or for the protection of exclusive rights;
- For the repetition of services, works or supplies linked to an earlier contract awarded not longer than one year ago (can only be renewed twice on these grounds);
- For additional supplies, works and services not included in the initial contract not exceeding 50% of the value of the initial contract;
- For Property contracts after prospection of the local market;
- For particularly advantageous contractual terms (e.g. from supplier winding up business or from the receivers or liquidators of a bankruptcy, an arrangement with creditors etc).
… based on Pre-Qualification When procuring pharmaceutical products or medical devices the Special Rules in Chapter 4 of Annex IV provide an automatic exception to the normal procurement procedures irrespective of the value of the contract to be awarded. In this case the Contracting Authority must launch a Negotiated Procedure by inviting simultaneously and in writing only pre-qualified candidates meeting the set international standards. No minimum number of Candidates to invite is prescribed but whenever feasible the number of Candidates invited to negotiate shall be sufficient to ensure genuine competition.





References and useful links