Simplified below-the-threshold procedure

When can the simplified below-the-limit procedure be used?

A contracting authority can use the simplified below-the-limit procedure for all below-the-limit public contracts for supplies and services, and for construction works contracts, provided their estimated value does not exceed CZK 50 million excluding VAT. This award method allows the contracting authority to conduct the tender procedure more flexibly and with a lower administrative burden.

A significant difference compared to above-the-limit contracts is that the contracting authority is not obliged to publish the call for tenders in the Public Procurement Journal or the Official Journal of the European Union (TED). It is sufficient to publish the call for tenders on its contracting authority profile. This significantly simplifies the entire process without compromising transparency or the opportunity to participate in the competition.

Another feature of this type of procedure is its openness to all potential suppliers. Although the contracting authority may, under Section 53(1) of the Act on Public Procurement (ZZVZ), approach specific suppliers (at least 5), it must simultaneously allow an unlimited number of suppliers to submit tenders, which guarantees fair economic competition.

How the award procedure works step by step

Initiation of the procedure and publication of the call

The contracting authority initiates the simplified below-the-limit procedure by publishing a call for tenders on the contracting authority's profile. The call must meet the requirements set by the Act, particularly containing information on access to the tender documentation, the deadline for submission of tenders, the method of their submission, the rules for their evaluation, and the qualification requirements for suppliers, as specified in Annex No. 6 to the ZZVZ under letter A). If the contracting authority decides to approach specific suppliers, there must be at least five of them.

Throughout the entire deadline for the submission of tenders, the tender documentation must be available on the contracting authority's profile. This requirement ensures a level playing field for all participants in the tender procedure.

Submission of tenders and prohibition of negotiations with participants on submitted tenders

The minimum deadline for the submission of tenders is 11 working days. This period is calculated from the date of publication of the call, which ensures sufficient time for the preparation of tenders. However, the contracting authority must still ensure that the deadline is reasonable given the nature of the public contract's subject matter. The contracting authority must also comply with the statutory prohibition under Section 53(2) of the ZZVZ on negotiating with participants about the submitted tenders, which means that tenders can only be evaluated according to pre-established criteria, not negotiated with suppliers.

The Act allows the contracting authority to evaluate not only the price but also other quality criteria, such as the supplier's experience, the technical parameters of the tender, or environmental aspects. This ensures that the winning tender 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 the supplier

After the deadline expires, the contracting authority evaluates the tenders and selects the supplier according to the pre-established criteria. The tender procedure must be conducted transparently, and the contracting authority is obliged to keep a written report on the evaluation of tenders, which participants in the procedure can inspect upon request. At the same time, under Section 126 of the ZZVZ, the contracting authority must send a notice of the result of the award procedure to the Public Procurement Journal.

If the contracting authority has stipulated in the tender documentation that the notice of the supplier selection or the exclusion of a participant from the award procedure will be published on the contracting authority's profile, then this notice is considered delivered at the moment of publication. This step eliminates the need to send notices to individual suppliers and streamlines the entire process.

Possible cancellation of the award procedure

The contracting authority has the option to cancel the award procedure if there are legal grounds for doing so. In such a case, under Section 53(8) of the ZZVZ, it is obliged to publish a cancellation notice on the contracting authority's profile within five working days of the decision to cancel the award procedure.

Advantages and risks of the simplified below-the-limit procedure

This type of procedure offers contracting authorities a number of advantages, particularly a faster process and lower administrative complexity. Furthermore, the option to approach specific suppliers ensures that relevant entities capable of executing the contract participate in the tender procedure.

On the other hand, it is necessary to adhere to the minimum deadlines and legal obligations that also apply to this type of procedure. For example, failure to comply with the minimum deadline for the submission of tenders or incorrect setting of qualification requirements can lead to the cancellation of the award procedure, sanctions from the Office for the Protection of Competition, or a reduction in subsidies.

Contracting authorities should also bear in mind that even though it is a "simplified" procedure, the obligation to act transparently and non-discriminatorily still applies. Any non-standard conditions in the tender documentation can be challenged by suppliers or the Office for the Protection of Competition.

Conclusion

The simplified below-the-limit procedure is an effective tool for awarding public contracts in the below-the-limit regime. By correctly setting the conditions, a transparent and swift selection of a supplier can be achieved without unnecessary bureaucracy. Nevertheless, it is essential to ensure careful compliance with legal rules so that the award procedure is conducted in accordance with the legal framework.

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