Simplified sub-limited procedure: how to procure public contracts efficiently
Public procurement can be complex and administratively demanding, but there are ways to simplify the process. One of the most commonly used types of procurement procedure is the simplified sub-limit procedure, which allows for faster and more efficient award of the contract without compromising transparency or fair competition. What are its advantages and when can it be used? Find out in our article.
Author of the article: ARROWS (Mgr. Alexandra Johnová, office@arws.cz, +420 245 007 740)
The simplified sub-limit procedure is defined in Sections 53 and 54 of Act No. 134/2016 Coll., on public procurement (hereinafter referred to as "ZZVZ") and is intended for the award of sub-limit public contracts for supplies, services and construction work, and it is certainly one of the most used types of procurement procedures in general, and it is necessary for the contracting authority to know the conditions of its use. The simplified sub-limit procedure offers certain advantages over the normal procedures, in particular as regards the administrative steps and the publication obligation. On the other hand, there are also clear rules which, if not complied with, may invalidate the whole procedure or lead to possible sanctions by the supervisory authorities.
When can the simplified sub-limit procedure be used?
The simplified procedure may be used by the contracting authority for all below-limit public supply and service contracts and for public works contracts if their estimated value does not exceed CZK 50 million excluding VAT. This method of procurement allows the contracting authority to conduct the tender procedure more flexibly and with less administrative burden.
An important difference with the above-limit contracts is that the contracting authority is not obliged to publish the invitation to tender in the Public Procurement Bulletin or in the Official Journal of the European Union (TED). It is sufficient to publish the invitation to tender on its contracting authority profile. This greatly simplifies the whole process without compromising transparency or the possibility to tender.
Another feature of this type of procedure is its openness to all potential suppliers. Although the contracting authority may, according to Article 53(1) of the PPA, address specific suppliers (at least 5), it must at the same time allow an unlimited number of suppliers to submit tenders, which guarantees fair competition.
How the procurement procedure proceeds step by step
Initiation of the procedure and publication of the invitation
The contracting authority launches the simplified sublimit procedure by publishing a call for tenders on the contracting authority's profile. The invitation to tender must comply with the requirements laid down by law, in particular it must contain information on access to the tender documentation, the time limit for submission of tenders, the method of submission, the rules for their evaluation and the qualification requirements of the suppliers, as set out in Annex 6(A) to the TPLA. If the contracting authority decides to address specific suppliers, there must be at least five of them.
The tender documentation must be available on the contracting authority's profile throughout the period for the submission of tenders. This requirement ensures a level playing field for all tenderers.
Submission of tenders and prohibition of discussions with tenderers on tenders submitted
The minimum time limit for the submission of tenders is 11 working days. This time limit is calculated from the date of publication of the invitation to tender, which allows sufficient time for the preparation of tenders. However, the contracting authority must still ensure that the time limit is proportionate to the nature of the subject-matter of the contract. The contracting authority must, however, comply with the legal prohibition under Article 53(2) of the PPL to negotiate with the tenderers on the tenders submitted, which means that tenders can only be evaluated according to predetermined criteria and not negotiated with the suppliers.
The law allows the contracting authority to evaluate other quality criteria in addition to price, such as the experience of the supplier, technical parameters of the tender or environmental aspects. This ensures that the winning bid is not only the cheapest, but also the most advantageous in terms of the overall performance of the contract.
Evaluation of tenders and selection of contractors
After the deadline, the contracting authority evaluates the bids and selects the contractor according to predetermined criteria. The selection procedure must be conducted in a transparent manner and the contracting authority must keep a written report on the evaluation of the tenders, which can be consulted by the tenderers on request. At the same time, the contracting authority must, in accordance with Article 126 of the Public Procurement Act, send a notice of the outcome of the tendering procedure to the Public Procurement Bulletin.
If the contracting authority has stipulated in the tender documentation that the notice on the selection of a supplier or on the exclusion of a tenderer will be published on the contracting authority's profile, then this notice is deemed to have been delivered at the moment of publication. This step eliminates the need to send notifications to individual suppliers and streamlines the whole process.
Possible cancellation of the procurement procedure
The contracting authority has the possibility to cancel the procurement procedure if it has legal grounds to do so. In such a case, pursuant to Article 53(8) of the ZZVZ, it is obliged to publish a notice of cancellation on the contracting authority's profile within five working days of the decision to cancel the procurement procedure.
Advantages and risks of the simplified sublimit procedure
This type of procedure brings a number of advantages to contracting authorities, in particular a faster process and lower administrative complexity. In addition, the possibility of approaching specific suppliers ensures that relevant entities capable of performing the contract participate in the tender procedure.
On the other hand, it is necessary to comply with the minimum deadlines and legal obligations that also apply to this type of procedure. For example, failure to comply with the minimum deadline for submission of tenders or incorrect setting of qualification requirements may lead to cancellation of the procurement procedure, sanctions from the Office for the Protection of Competition or reduction of the subsidy.
Contracting authorities should also bear in mind that even if the procedure is a "simplified" procedure, the obligation to proceed in a transparent and non-discriminatory manner still applies. Any non-standard conditions in the tender documents may be challenged by suppliers or the Office for the Protection of Competition.
Conclusion
The simplified sub-limit procedure is an effective tool for public procurement under the sub-limit regime. By setting the conditions correctly, a transparent and quick selection of suppliers can be achieved without unnecessary bureaucracy. Nevertheless, care must be taken to ensure that the procurement procedure is carried out in accordance with the legal framework.
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